Douglas v. Modern Aero, Inc.

954 F. Supp. 1206, 1997 U.S. Dist. LEXIS 4589, 1997 WL 85356
CourtDistrict Court, N.D. Ohio
DecidedFebruary 13, 1997
Docket3:96CV7654
StatusPublished
Cited by15 cases

This text of 954 F. Supp. 1206 (Douglas v. Modern Aero, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Douglas v. Modern Aero, Inc., 954 F. Supp. 1206, 1997 U.S. Dist. LEXIS 4589, 1997 WL 85356 (N.D. Ohio 1997).

Opinion

*1208 Memorandum & Order

CARR, District Judge.

This is a case involving contract and tort claims arising out of the sale of an aircraft. Subject matter jurisdiction exists pursuant to 28 U.S.C. § 1332, because there is complete diversity among the parties and the amount in controversy, exclusive of interest and costs, exceeds $50,000. 1 Pending, inter alia, are defendants’ Rule 12(b)(2) motions to dismiss for lack of personal jurisdiction. (Does. 5, 8, & 18). 2 For the following reasons, defendants’ motions to dismiss for lack of personal jurisdiction shall be granted, and the case shall be transferred to the District Court of Minnesota. Defendants’ pending motions, in the alternative, for change of venue and to quash service of process shall be overruled as moot. (Does. 5, 8, & 18).

Plaintiffs Peter Douglas, Tom Corwin, and Dock Treece are citizens and residents of the State of Ohio. The three plaintiffs are partners in N220BC Limited. This partnership owns the Piper Aerostar aircraft that is the subject of this litigation. N220BC Limited is located — and appears to have its principal place of business — in Ohio.

Plaintiffs sued three groups of defendants. First, defendant Inca, Inc., is a Minnesota corporation with its principal place of business in Minnesota, and its President, defendant Frank Hancock, resides in Minnesota. Inca and Hancock owned the plane prior to its sale to plaintiffs. Neither Hancock nor Inca own or lease any property in the State of Ohio, nor have they conducted or solicited any business within Ohio.

Second, defendant Buffalo Aviation, a Minnesota corporation with its principal place of business in Minnesota, and its President Earl J. Waugh, who resides in Minnesota, contracted with defendant Inca, the plane’s original owner, to conduct an annual inspection on the aircraft. Waugh, acting as either an employee or agent of Buffalo Aviation, performed the inspection at Buffalo Aviation’s facility in Minnesota. Neither Buffalo Aviation nor Waugh have conducted business, or have owned or leased property in Ohio.

Finally, defendant Modern Aero, incorporated in and with its principal place of business in Minnesota, “inspects and services aircraft at its sole place of business at the Flying Cloud Airport, Eden Prairie, Minnesota.” (Doc. 8 at 5). Modern Aero performed a “pre-buy” inspection at this facility on the aircraft; this inspection is the subject matter of this litigation. (Doc. 8 at 5). Modern Aero neither sells nor distributes to customers in Ohio.

In addition to the parties to this litigation, two other entities played a role in this dispute. First, Silver Wings Aviation, an aircraft broker located in California, acted as intermediary between plaintiffs and defendants Hancock and Inca throughout the sale of the aircraft. Second, Princeton Aviation, an aircraft broker doing business in the State of Minnesota, “advertised” the aircraft to *1209 Silver Wings in California (doe. 20 at 3), and acted as “representative” of defendants Hancock and Inca. (Doc. 20, Exh. A at ¶4).

In 1995 Princeton Aviation contacted Silver Wings in California to advertise the availability of a Piper Aerostar aircraft for sale in Minnesota. Plaintiff Tom Corwin had approached Silver Wings on a prior occasion in 1995 and expressed a desire to purchase a Piper Aerostar aircraft. Acting as an intermediary, Silver Wings contacted plaintiff Corwin and, in exchange for a finder’s fee, conveyed the identity of the Minnesota broker, Princeton Aviation, and agreed to facilitate the sale of the aircraft.

Princeton Aviation sold the aircraft for the owner, defendant Inca. On November 9, 1995, the parties entered into an Aircraft Sales Agreement (Agreement) which was contingent on: 1) the interior and exterior of the Piper aircraft being in “good” condition; and 2) an annual inspection demonstrating the plane’s airworthiness. (Doc. 20, Exh. B at 1). Silver Wings sent the finalized Agreement from California to plaintiff Corwin in Ohio for Corwin’s signature. Corwin, in turn, forwarded the document to Princeton Aviation in Minnesota for its signature as “representative” of defendant Inca. (Doc. 20, Exh. A ¶ 4).

Earl J. Waugh performed the annual inspection of the aircraft “under the auspices of [defendant] Buffalo Aviation” in Minnesota. (Doc. 13 at 3). Defendant Waugh documented his inspection in the aircraft’s logbook on December 21, 1995, which listed the maintenance and repairs performed on the plane. Waugh also included a certification in the logbook which stated that the aircraft was “ok for ferry flight from 8Y2 to Mil for compliance with AD94-17-13 as set forth in ferry permit issued 12/20/95.” (Doc. 13 at 3).

In addition to the annual inspection there was also to be a “pre-buy” inspection of the aircraft. (Doe. 20 at 3). Plaintiffs originally intended to have this inspection performed at Zane Pritz Aviation in Lorain, Ohio. Defendants Hancock and Inca, however, stated that they would not allow the aircraft to be removed from Minnesota before completion of the sale, and proposed that defendant Modern Aero perform the pre-buy inspection. 3 Plaintiff Corwin contacted defendant Modern Aero, which ultimately performed the “pre-buy” inspection at its facility in Minnesota. The results of the inspection, which included miscellaneous repairs authorized by plaintiff Corwin, were recorded in the aircraft’s logbook by Modern Aero.

On completion of the purchase and inspections, plaintiff Corwin flew the aircraft from Minnesota to Toledo Express Airport in Swanton, Ohio. Once in Ohio, plaintiffs undertook the repairs necessary in light of the Waugh and Modem Aero inspections. While doing so, the plaintiffs found several discrepancies between the reported condition of the aircraft at the times of the annual and prebuy inspections and the plane’s actual condition. Specifically, the plaintiffs found discrepancies with, inter alia, “corrosion in multiple areas of the plane including the fuselage longeron structural members, fuselage ribs, wheel well panels, emergency exit window top channel, battery box and surrounding area, and rear cabin hat shelf.” (Doc. 14 at 4).

Plaintiffs’ findings were corroborated by an inspector from the Federal Aviation Administration (FAA). In his report, the FAA inspector listed other deficiencies not identified in the previous inspections. These additional, undisclosed, and unidentified problems allegedly rendered the plane “unairworthy.” (Doc. 1 ¶¶ 36, 49, 59, 70). Out of the alleged misrepresentations regarding the airworthiness of the aircraft at the time of sale and pre-sale inspection, plaintiffs bring this suit, claiming that each defendant was negligent, and that defendants Hancock, Inca, and Modern Aero are in breach of contract.

Without responding to the merits of plaintiffs’ claims, defendants move for dismissal based on lack of personal jurisdiction. Defendants assert that this Court cannot exercise personal jurisdiction under either Ohio’s *1210 long arm statute, O.R.C.

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Bluebook (online)
954 F. Supp. 1206, 1997 U.S. Dist. LEXIS 4589, 1997 WL 85356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/douglas-v-modern-aero-inc-ohnd-1997.