Bell Helicopter Textron, Inc. v. Arteaga

113 A.3d 1045, 2015 Del. LEXIS 176, 2015 WL 1780072
CourtSupreme Court of Delaware
DecidedApril 6, 2015
Docket333, 2014
StatusPublished
Cited by40 cases

This text of 113 A.3d 1045 (Bell Helicopter Textron, Inc. v. Arteaga) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell Helicopter Textron, Inc. v. Arteaga, 113 A.3d 1045, 2015 Del. LEXIS 176, 2015 WL 1780072 (Del. 2015).

Opinions

STRINE, Chief Justice, for the Majority:

I. INTRODUCTION

Bell Helicopter Textron Inc. (“Bell”), a Delaware corporation, appeals from a Su[1048]*1048perior Court order determining that Texas law should govern litigation involving a helicopter that crashed in Mexico on October 15, 2010. Despite the presumption in the Restatement (Second) of Conflicts that the law of the place where the injury occurred should govern the dispute,1 the Superior Court found that Texas law has the “most significant relationship” to the liability, damages, and remedies at issue. The court also opined that Texas law would be easier to apply than Mexican law because there would be no need to hire interpreters. In this interlocutory appeal, Bell argues that Mexican law is more appropriate because the decedents were all Mexican citizens, their relatives bringing this suit are all Mexican citizens, the helicopter was owned by a Mexican company, and it had been operated solely within Mexico for over thirty years when it crashed. Because the governing Restatement test to determine which sovereign’s law to apply strongly favors Mexico, we reverse. The decision of which law to apply to tort claims must be made on neutral principles that apply in all cases. In this case, those principles unambiguously favor applying Mexican law to the liability, damages, and remedies at issue.

II. BACKGROUND

On October 15, 2010, a helicopter transporting mechanics and technicians from the Mexican state of Campeche to a work site in the Mexican state of Veracruz crashed, killing everyone on board. The helicopter was registered in Mexico and was owned by a Mexican company that provides transportation services within Mexico, and was thus regulated by Mexico’s federal aviation authority. All of the victims, including the two pilots and seven passengers, were Mexican citizens.

Mexican federal aviation authorities determined that the cause of the crash was a defective inboard strap fitting. The helicopter was manufactured by Bell in 1979, and has been operated continuously in Mexico since that time. Bell also manufactured the strap fitting, which was installed in the helicopter in Mexico in 2009. The helicopter and the strap fitting were both designed and manufactured in Texas, where Bell is headquartered.

The only connection to this forum is that Bell is a Delaware corporation. Therefore, under the internal affairs doctrine, relations between Bell’s stockholders and managers are governed by the DGCL and the Delaware common law of corporations.2 But Bell has no operations in Delaware related to the helicopter crash and no conduct in Delaware affected the unfortunate victims of the crash, none of whom have any relevant connection with Delaware. Indeed, when estates for the victims were opened in Delaware to initiate this litigation, the plaintiffs filed petitions seeking to be excused from the need to appear in person because it would be an “unusual inconvenience” to do so.3

Notwithstanding that Delaware has no relationship to the crash and that Delaware is much farther from Mexico than [1049]*1049Texas, which the plaintiffs argue has the “most significant relationship” with this litigation, the plaintiffs filed products liability suits against Bell in the Delaware Superior Court in 2012.4 The plaintiffs chose not to file in either their home nation of Mexico or Texas, the American state whose law they contend governs their claims.5 The plaintiffs, all Mexican citizens, are representatives of seven of the victims (both pilots and five of the passengers).

Bell first moved to dismiss on forum non conveniens grounds, arguing that it was more appropriate to litigate claims stemming from a Mexican helicopter crash in a Mexican court. In a ruling that predated this Court’s decision on the issue of forum non conveniens in Martinez v. E.I. DuPont de Nemours & Co., Inc.6 the Superior Court denied Bell’s motion, holding that Mexico was not an available alternate forum.7 The Superior Court’s judgment was based in large part on its determination that a non-citizen cannot consent to jurisdiction in a Mexican court, and thus no case against Bell could proceed in Mexico.8 At that point, Bell did not file an interlocutory appeal to this Court. But after finding cases from Mexico involving foreign defendants, Bell moved to reopen the judgment under Rule 60(b).9 The Superior Court denied the motion in a bench ruling.10 Bell then attempted to file an interlocutory appeal to this Court from that denial, which was refused.11 Bell never suggested moving the case to Texas, and the Supreme Court did not consider Texas as a potential alternative forum in its ruling.

Bell next filed a motion requesting that the Superior Court apply Mexican law to the plaintiffs’ remedies. On the same day, the plaintiffs filed a motion requesting the application of Texas law to liability and damages. Neither party contended that Delaware law should apply, signaling the obvious: Delaware has no relevant connection to the litigation that would lead to its law governing the claims at issue. The Superior Court heard oral argument on both motions. Following this Court’s ruling in Martinez, the Superior Court requested additional briefing from the parties on the effect of the decision on the [1050]*1050choice of law motions. The Superior Court did not revisit its previous decision not to dismiss the case on forum non conveniens grounds.

In Martinez, this Court affirmed the Superior Court’s judgment dismissing the plaintiffs complaint on the basis of forum non conveniens. The plaintiff was a citizen of Argentina who claimed that her husband had suffered from asbestos exposure while working in an Argentinean textile plant owned by a “great-great grand-subsidiary” of DuPont, a Delaware corporation.12 The Court determined that DuPont had met its “high burden” to prove “overwhelming hardship” from having to litigate about Argentinean issues in a Delaware court.13 Although the issue before the Court was not which law should govern the litigation, the Court noted that one of the factors in its determination to dismiss the suit was that “the governing law is set forth in Spanish, not English;” in other words, there was no question that Argentinean law, not Delaware law, would apply to litigation involving injuries sustained by an Argentine working in Argentina.14

After considering the parties’ briefing on Martinez, the Superior Court issued an order determining that Texas law should apply to the plaintiffs’ claims.15 As the Superior Court noted, Delaware courts use a two-part test to determine which sovereign’s law to apply when there is a conflict: first, the court determines whether there is an actual conflict of law between the proposed jurisdictions. If there is a conflict, the court determines which jurisdiction has the “most significant relationship to the occurrence and the parties” based on the factors (termed “contacts”) listed in the Restatemént (Second) of Conflict of Laws.16

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Cite This Page — Counsel Stack

Bluebook (online)
113 A.3d 1045, 2015 Del. LEXIS 176, 2015 WL 1780072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-helicopter-textron-inc-v-arteaga-del-2015.