Clay v. AIG Aerospace Insurance Services, Inc.

61 F. Supp. 3d 1255, 2014 U.S. Dist. LEXIS 161128, 2014 WL 6469422
CourtDistrict Court, M.D. Florida
DecidedNovember 17, 2014
DocketCase No. 6:14-cv-235-Orl-40GJK
StatusPublished
Cited by18 cases

This text of 61 F. Supp. 3d 1255 (Clay v. AIG Aerospace Insurance Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clay v. AIG Aerospace Insurance Services, Inc., 61 F. Supp. 3d 1255, 2014 U.S. Dist. LEXIS 161128, 2014 WL 6469422 (M.D. Fla. 2014).

Opinion

ORDER

PAUL G. BYRON, District Judge.

This cause comes before the Court on the following:

1. Defendant AIG Aerospace Insurance Services, Inc. F/K/A Chartis Aerospace Insurance Services, Inc.’s Partially Unopposed Motion to Stay ■ on Grounds of Abstention (Doc. 42), filed May 27, 2014;
2. Response to Defendant AIG Aerospace Insurance Services, Inc.’s Motion to Stay on Grounds of Abstention (Doc. 59), filed June 10, 2014;
3. Defendants Air-Tec, Inc.’s and Williamson Aircraft, Inc.’s Motion to Dismiss or, in the Alternative, to Stay Proceedings; and to Stay Discovery (Doc. 53), filed June 6, 2014;
4. Plaintiffs’ Response to Defendants’ Motion to Dismiss or, in the Alternative, Motion to Stay Proceedings and Stay Discovery Pending Resolution of Said Motion (Doc. 62), filed June 20, 2014;
5. Defendants, Marilyn Ruhe, Bob Ruhe AG Service, Inc. and Ruhe Sales, Ine.’s Motion to Dismiss Complaint for Lack of Personal Jurisdiction and to Quash Service of Process with Memorandum of Law in Support (Doc. 57), filed June 9, 2014;
6. Defendant, Eric Ruhe’s Motion to Dismiss Complaint for Lack of Personal Jurisdiction and to Quash Service of Process with Memorandum of Law in Support (Doc. 60), filed June 16, 2014;
7. Plaintiffs’ Response in Opposition to Defendants’ Motion to Dismiss for Lack of Personal Jurisdiction or, in the Alternative, Motion to Sever and Transfer Venue (Doc. 63), filed June 23, 2014; and •
[1261]*12618. Defendants’ Reply to Plaintiffs’ Response in Opposition to Defendants’ Motion to Dismiss for Lack of Personal Jurisdiction or, in the Alternative, Motion to Sever and Transfer Venue (Doc. 70), filed July 21, 2014.

I. BACKGROUND

A. Facts1

This lawsuit arises out of a tragic airplane crash that resulted in the deaths of both the pilot, Dale Léighroy Phillips, Jr. (“Phillips”), and his passenger, Amy Clay (together, the “Decedents”). On February 20, 2012, the Decedents embarked on a Piper PA-24250 aircraft (the “subject aircraft”) from Abilene, Texas to Norman, Oklahoma. (Doc. 20, ¶ 18). The Decedents never reached Oklahoma, as a vacuum pump within the subject aircraft’s engine failed in flight, causing the subject aircraft to crash shortly after takeoff. (Id. ¶ 19).

Plaintiffs contend that Defendants are, in their own respective ways, responsible for the crash. Plaintiffs assert that the vacuum pump was originally installed on another aircraft located in Corpus Cristi, Texas near late 1999 or early 2000. (Id. ¶ 20(a)). In 2003, that aircraft was sold to J.A.G. Components, Inc. (“J.A.G.”)2 in Coral Springs, Florida where it was operated for approximately two years. (Id. ¶ 20(b)). In October 2005, this aircraft was destroyed when Hurricane Wilma struck Florida. (Id. ¶ 20(c)). J.A.G.’s insurance company declared the aircraft a total loss. (Id. ¶ 20(d)). On an unspecified date, Defendant AIG Aerospace Insurance Services, Inc. (“AIG”) and Defendant Chartis Aerospace Insurance Services, Inc. (“Chartis”) took possession of the destroyed aircraft. (Id. ¶ 20(e)). AIG and Chartis then placed this aircraft, including its engine and vacuum pump, up for auction on the Internet. (Id. ¶ 20(f)). Although AIG and Chartis advertised the aircraft as having been severely damaged in a hurricane, Plaintiffs allege that AIG and Chartis failed to record any damage to .the engine or vacuum pump in the aircraft’s engine logs or make efforts to warn others that the engine and vacuum pump were damaged. (Id.).

In December 2005, Plaintiffs assert that Defendant Ruhe Sales, Inc. (“Ruhe Sales”), Defendant Bob Ruhe AG Service, Inc. (“Ruhe AG”), Defendant Marilyn Ruhe,3 and Defendant Eric Ruhe (all collectively, the “Ruhe Defendants”), acting separately or in concert, purchased the destroyed aircraft from AIG and Chartis, including the damaged engine and vacuum pump. (Id. ¶ 20(g)). Eric Ruhe and Robert Ruhe, a non-party to this lawsuit, traveled to Coral Springs, Florida to transport the destroyed aircraft to Ohio. (Id.). According to Plaintiffs, after arriving in Ohio, the engine and vacuum pump were removed from the destroyed aircraft and placed in a box on the premises of the Ruhe Defendants. (Id. ¶ 20(h)).

In September 2011, the Ruhe Defendants sold and shipped the engine and [1262]*1262vacuum pump to Defendant Air-Tec, Inc. (“Air-Tec”) in Orlando, Florida. . (Id. ¶ 20(i)). Plaintiffs allege that, although the Ruhe Defendants knew that the engine and vacuum pump were severely damaged by a hurricane, none of them recorded the damage in the aircraft’s engine logs or made efforts to warn others that the engine and vacuum pump were damaged. (Id.). Thereafter, Air-Tec sold and transported the engine and vacuum pump to Defendant Williamson Aircraft, Inc. (“Williamson”) in Mims, Florida. (Id. ¶ 20(j)). Plaintiffs allege that Williamson knew or should have known that the engine and vacuum pump were damaged, but failed to record any damage to the engine or vacuum pump in the aircraft’s engine logs or make efforts to warn others that the engine and vacuum pump were damaged. (Id.).

In October 2011, Williamson sold and shipped the engine and vacuum pump to Phillips in Abilene, Texas. (Id. ¶ 20(k)). Phillips then installed the engine and vacuum pump on the subject aircraft without knowledge that both were damaged. (Id.). After installation, the engine and vacuum pump operated for approximately 2.9 hours before failing, dooming the ill-fated aircraft. (Id. ¶ 20(m)).

B. Procedural History

On April 17, 2013, Plaintiffs initiated legal action based on these events in the district court of the 402nd judicial district in Wood County, Texas, case number 2013-215. (Doc. 42-1). In that case, Plaintiffs sued AIG, Chartis, Williamson, Air-Tec, and other defendants who are non-parties to this action. (Id.). According to the Clerk of Court for Wood County, Texas, ease number 2013-215 is currently set for jury trial, which is scheduled to begin on January 20, 2015.

Plaintiffs initiated the instant lawsuit on February 11, 2014 by filing their Complaint. (Doc. 1). On March 17, 2014, Plaintiffs filed the Amended Complaint, which remains the operative pleading in this matter. (Doc. 20). In their Amended Complaint, Plaintiffs state three claims for relief. Count 1 states a claim for negligence against AIG, Chartis, Williamson, Air-Tec, and the Ruhe Defendants. (See id. ¶¶ 22-26). Count 2 states a claim for strict liability against AIG, Williamson, Air-Tec, and the Ruhe Defendants. (See id. ¶¶ 27-29). Count 3 states a claim for breach of warranty against AIG, Williamson, Air-Tec, and the Ruhe Defendants. (See id. ¶¶ 30-33).

Collectively, the Defendants have filed four motions that are the subject of this Order. First, AIG moves to stay these proceedings on grounds of abstention until the Texas state court lawsuit is resolved, as both lawsuits involve the same parties and substantially the same claims for relief. (Doc. 42).

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61 F. Supp. 3d 1255, 2014 U.S. Dist. LEXIS 161128, 2014 WL 6469422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clay-v-aig-aerospace-insurance-services-inc-flmd-2014.