Continental Motors, Inc. v. Jewell Aircraft, Inc.

882 F. Supp. 2d 1296, 2012 WL 3113136, 2012 U.S. Dist. LEXIS 106560
CourtDistrict Court, S.D. Alabama
DecidedJuly 31, 2012
DocketCivil Action No. 12-0221-WS-C
StatusPublished
Cited by10 cases

This text of 882 F. Supp. 2d 1296 (Continental Motors, Inc. v. Jewell Aircraft, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Motors, Inc. v. Jewell Aircraft, Inc., 882 F. Supp. 2d 1296, 2012 WL 3113136, 2012 U.S. Dist. LEXIS 106560 (S.D. Ala. 2012).

Opinion

ORDER

WILLIAM H. STEELE, Chief Judge.

This matter comes before the Court on defendants’ Motion to Dismiss (doc. 3). The Motion has been extensively briefed and is now ripe for disposition.

I. Relevant Background.

The case of Larry Crouch, et al. v. Teledyne Continental Motors, Inc., Civil No. 10-0072-KD-N (the “Crouch Action”), was something of a cause célebre in this District Court. During the 20 months that the Crouch Action was active on Judge DuBose’s docket, the parties racked up more than 400 docket entries, culminating in a three-week jury trial that spanned from July 18, 2011 through August 5, 2011. Although those proceedings concluded (at least, insofar as this District Court is concerned) some time ago, the instant litigation emerged as a spin-off from the Crouch Action when the parties herein could not agree as to who must foot the bill for the seven-digit attorney’s fees accrued by the defendant in that case.

At issue in the Crouch Action was whether Teledyne Continental Motors (“Continental”) was liable for a November 2006 airplane accident in Bardstown, Kentucky, which resulted in serious permanent injuries to Larry Dale Crouch and Teddy Lee Hudson. According to the First Amended Complaint in the Crouch Action, Continental had manufactured and sold a magneto that was installed as the ignition source for the subject aircraft’s engine in [1300]*1300March 2005.1 The Crouch plaintiffs maintained that the aircraft had lost power and crashed when a fractured engine mount flange had caused the magneto to become displaced, thereby disrupting the ignition source to that engine.

The First Amended Complaint in the Crouch Action alleged, inter alia, that Continental (by and through its agents, servants, employees and contractors) had negligently designed, engineered, tested, manufactured and installed the magneto.2 In July 2011, Judge DuBose entered a pair of orders identifying four claims joined for trial between the plaintiffs and Continental, to-wit: (i) whether the magneto housing flange sold by Continental was unreasonably dangerous, giving rise to strict liability for its failure; (ii) whether Continental negligently failed to warn potential users that the magneto was unreasonably dangerous after the product was sold; (iii) whether Continental breached a warranty by providing a product that was not merchantable and fit for its intended use; and (iv) whether Continental was liable to the plaintiffs “for negligent installation of the magneto by John Jewell and/or Jewell Aircraft, Inc. (Jewell),” on the theory that John Jewell and/or Jewell Aircraft, Inc. negligently installed the magneto and were acting as Continental’s agents at that time. (See Civil Action No. 10-0072-KD-N, at docs. 320, 325.) At the close of the plaintiffs’ case during the trial of the Crouch Action, however, those plaintiffs “withdrew the Negligent Installation Claim in open court.” (Doc. 1-1, ¶ 43.) The Crouch Action went to the jury on the other three claims, all of which sought to impose liability on Continental for its own acts and omissions, as contrasted with the negligent installation claim, which had sought to hold Continental vicariously liable for the actions of a third party (i.e., John Jewell and/or Jewell Aircraft, Inc.). The jury found in Continental’s favor on all of those claims and causes of action, awarding the Crouch plaintiffs nothing. (Id. ¶ 44.)

Having been vindicated by the verdict following a bruising, grueling, drawn-out legal struggle in the Crouch Action, Continental celebrated its victory by initiating new litigation seeking recovery of its Crouch Action attorney’s fees.3 The defendants in this action consist of Jewell [1301]*1301Aircraft, Inc. (“JA”), John Jewell Aircraft, Inc. (“JJA”), and John Jewell (“Mr. Jewell”) (collectively, the “Jewell Defendants”), and were neither Crouch Action plaintiffs nor parties to the Crouch Action (as it was litigated in this judicial district).4

The Complaint in this case — which was initially filed in Mobile County Circuit Court prior to being removed to this District Court on diversity grounds — alleges three causes of action against the Jewell Defendants. The first two claims sound in breach of contract, and are centered on a Product Support Agreement (the “Agreement”) entered into between Continental and JA on or about January 1, 2005. Neither JJA nor Mr. Jewell was a signatory to the Agreement. By the terms of that Agreement, JA “agrees to indemnify and hold [Continental] harmless from and against all claims, demands, obligations and liabilities ... to the extent that such claims, demands, obligations or liabilities have resulted from or arisen out of any act or omission of [JA], its officers, agents, representatives, servants, or employees.” (Doc. 1-1, ¶ 26 & Exh. A at ¶ 21.)5 Continental contends that all three of the Jewell Defendants “have breached the Produce [sic ] Support Agreement by and through their failure and/or refusal to indemnify, defend and hold [Continental] harmless in regards to the Crouch and Hudson Plaintiffs’ claims against [Continental].” (Doc. 1-1, ¶ 50.) In a separate claim, Continental brings a cause of action against all Jewell Defendants under Kentucky law for common-law indemnity. All defendants now seek dismissal of all claims against them on multiple grounds.

II. Legal Standard for Motion to Dismiss.

On a motion to dismiss for failure to state a claim, “the court construes the complaint in the light most favorable to the plaintiff and accepts all well-pled facts alleged ... in the complaint as true.” Sinaltrainal v. Coca-Cola Co., 578 F.3d 1252, 1260 (11th Cir.2009); see also Speaker v. U.S. Dep’t of Health and Human Services Centers for Disease Control and Prevention, 623 F.3d 1371, 1379 (11th Cir.2010) (“In ruling on a 12(b)(6) motion, the Court accepts the factual allegations in the complaint as true and construes them in the light most favorable to the plaintiff.”); Edwards v. Prime, Inc., 602 F.3d 1276, 1291 (11th Cir.2010) (similar).

To withstand Rule 12(b)(6) scrutiny, plaintiffs must plead “enough facts to state a claim to relief that is plausible on its face,” so as to “nudge[ ] their claims across the line from conceivable to plausible.” Bell Atlantic Corp. v. Twombly, 550 U.S. [1302]*1302544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (citation omitted). Thus, minimum pleading standards “require!] more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955. As the Eleventh Circuit has explained, Twombly/Iqbal principles require that a plaintiff plead a facially plausible claim to relief, whose allegations are “enough to raise a right to relief above the speculative level.” Speaker, 623 F.3d at 1380 (citations omitted).

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882 F. Supp. 2d 1296, 2012 WL 3113136, 2012 U.S. Dist. LEXIS 106560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-motors-inc-v-jewell-aircraft-inc-alsd-2012.