Diaz Aviation Corporation v. Airport Aviation

CourtCourt of Appeals for the First Circuit
DecidedJune 14, 2013
Docket12-1859P
StatusPublished

This text of Diaz Aviation Corporation v. Airport Aviation (Diaz Aviation Corporation v. Airport Aviation) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diaz Aviation Corporation v. Airport Aviation, (1st Cir. 2013).

Opinion

United States Court of Appeals For the First Circuit

No. 12-1859

DÍAZ AVIATION CORPORATION, d/b/a Borinquen Air,

Plaintiff, Appellant,

SIXTO DÍAZ-SALDAÑA

Plaintiff,

v.

AIRPORT AVIATION SERVICES, INC.; JOSÉ ALGARÍN; RAFAEL MATOS; PUERTO RICO PORTS AUTHORITY; FERNANDO BONILLA; FEDERICO SOSA- ROMÁN, a/k/a Fred Sosa-Román; EDWIN SANTANA-DE LA ROSA; ARNALDO DELEO; EDGAR SIERRA; ERIC GARCÍA; ALVARO PILAR,

Defendants, Appellees.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO

[Hon. Camille L. Vélez-Rivé, U.S. Magistrate Judge]

Before

Lynch, Chief Judge, Torruella and Kayatta, Circuit Judges.

Sixto M. Díaz-Saldaña, on brief for appellant. Guillermo De Guzmán-Vendrell and De Guzmán Law Offices, on brief for appellees Airport Aviation Services, Inc. and Edwin Santana-de la Rosa. Arturo Díaz-Angueira and Cancio, Nadal, Rivera & Díaz, P.S.C., on brief for appellees José Algarín and Rafael Matos. Margarita Mercado-Echegaray, Office of the Solicitor General, Department of Justice, Commonwealth of Puerto Rico, on brief for appellees Fernando Bonilla and Federico Sosa-Román. Myra M. Vélez-Plumey and Fernández, Collins Cuyar & Plá, on brief for non-appellees Puerto Rico Ports Authority, Alvaro Pilar, Arnaldo Deleo, Edgar Sierra and Eric García.

June 14, 2013

-2- TORRUELLA, Circuit Judge. A company that sells aviation

fuel at a Puerto Rico airport brought suit against a rival company,

the Puerto Rico Ports Authority, and employees of those entities,

claiming that the defendants wrongfully interfered with its

business. The district court dismissed the claims against some

defendants before trial, and granted judgment for the remaining

defendants after a bench trial. Finding no error, we affirm.

I

The plaintiff-appellant is Díaz Aviation Corporation

("Díaz Aviation"), a company that also does business under the

trade names Borinquen Air and Amber Service. Díaz Aviation has

provided aviation services at the Luis Muñoz Marín International

Airport ("LMMIA") in Carolina, Puerto Rico, since 1960. Although

the business began as an airline, in 1985 it began selling aviation

fuel. By 2005, Díaz Aviation was selling around $2 million of fuel

per year, and its main customer was the United States military.

Sixto Díaz-Saldaña ("Díaz") is the founder, sole

shareholder, and general manager of Díaz Aviation. He is also a

licensed attorney, and has chosen to represent his corporation

throughout this litigation, in the district court and on appeal.

One group of defendants consists of Airport Aviation

Services, Inc. ("AAS") and some current and former employees of

AAS. AAS is a Puerto Rico corporation that sells aviation fuel at

LMMIA; it was formerly part of a consortium of Puerto Rican

-3- companies known as "Empresas Santana." Edwin Santana de la Rosa

was formerly a stockholder, director, and officer of AAS; however,

he sold his stock in AAS and resigned from all positions at AAS in

March 2008. José Algarín is the president and CEO of AAS. Rafael

Matos is the Director of Fuel Sales and Operations Manager of AAS.

The second group of defendants is the Puerto Rico Ports

Authority ("PRPA") and various PRPA employees. The PRPA is a

corporation owned by the Puerto Rico government that ran LMMIA

during the relevant time frame. Fernando Bonilla is a former

Executive Director of the PRPA. Federico Sosa-Román is a former

manager of LMMIA. Alvaro Pilar is the Executive Director of the

PRPA. Arnaldo Deleo is the Director of Aviation of PRPA and

manager of LMMIA. Edgar Sierra is the Director of Operations at

LMMIA. Eric Gracia is the Assistant Director of Operations at

LMMIA.

Díaz Aviation filed a complaint in the federal district

court on June 26, 2009, and filed an amended complaint on

February 17, 2010. Broadly speaking, the amended complaint alleges

that a corrupt relationship existed between AAS and PRPA, and that

both organizations and their employees took improper actions in

order to drive Díaz Aviation out of business. Díaz Aviation

alleges that Santana has paid bribes to the governing political

party of Puerto Rico, and that as a result, the PRPA has

systematically favored AAS and discriminated against Díaz Aviation.

-4- The complaint points to several specific actions and incidents,

including:

-In March 2005, the PRPA brought an eviction action against Díaz Aviation in Puerto Rico court. This action ultimately failed because Díaz Aviation had paid rent and the PRPA had accepted it.

-In 2009, AAS won a contract to supply the military with fuel at LMMIA. Díaz Aviation alleges that AAS has wrongfully claimed that this is an exclusive contract, and has interfered with Díaz Aviation's fuel sales to the Air Force.

-On October 23, 2009, Algarín complained to a PRPA employee about Díaz Aviation; the next day, the PRPA removed Díaz Aviation's fueling permits and expelled Díaz Aviation's trucks from the fueling ramps for approximately two weeks.

-On January 20, 2010, PRPA employees removed a military airplane that Díaz Aviation was fueling, claiming that the airplane was illegally parked; AAS then sold fuel to the airplane.

The complaint does not include headings for separate

counts or causes of action, but it references numerous federal and

Puerto Rico statutes in a scattered fashion. This lack of

organization makes it difficult to determine what causes of action

Díaz Aviation is pursuing. The causes of action referenced most

prominently in the complaint are Section 1 of the Sherman Antitrust

Act, 15 U.S.C. § 1, and the Racketeer Influenced and Corrupt

Organizations Act ("RICO"), 18 U.S.C. § 1961 et seq., based on

bribery and fraud. The complaint also mentions 42 U.S.C. § 1983

-5- (civil rights); 18 U.S.C. § 287 (the False Claims Act); 18 U.S.C.

§ 241 (conspiracy against federal rights); Article 1803 of the

Puerto Rico Civil Code, P.R. Laws Ann. tit. 31, § 5142;1 P.R. Laws

Ann. tit. 3, § 1822 et seq. (Puerto Rico ethics law); and P.R. Laws

Ann. tit. 33, § 4883 (criminal statute barring public employees

from using their position for the benefit of a third party).

All defendants filed motions to dismiss, and the district

court granted the motions filed by the PRPA and individual PRPA

defendants Bonilla, Pilar, Sosa, Deleo, Sierra, and Gracia. The

district court dismissed these claims under the Local Government

Antitrust Act ("LGAA"), 15 U.S.C. §§ 35, 36, which immunizes local

governments and local government employees from federal antitrust

damages. See Díaz Aviation Corp. v. P.R. Ports Auth., 2010 WL

2991251, at *4-5 (D.P.R. July 27, 2010). The district court's

ruling did not mention or discuss any non-antitrust claims.

Following discovery, Díaz Aviation and the remaining

defendants (AAS, Santana, Algarín, and Matos) filed cross motions

for summary judgment. The district court denied the motions of

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