EuroTec Vertical Flight Solutions LLC v. Safran Helicopter Engines

CourtDistrict Court, N.D. Texas
DecidedAugust 1, 2019
Docket3:15-cv-03454
StatusUnknown

This text of EuroTec Vertical Flight Solutions LLC v. Safran Helicopter Engines (EuroTec Vertical Flight Solutions LLC v. Safran Helicopter Engines) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EuroTec Vertical Flight Solutions LLC v. Safran Helicopter Engines, (N.D. Tex. 2019).

Opinion

United States District Court NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

EUROTEC VERTICAL FLIGHT § SOLUTIONS, LLC. § § v. § CASE NO. 3:15-CV-3454-8 § SAFRAN HELICOPTER ENGINES § S.A.8S., SAFRAN HELICOPTER § ENGINES USA, INC., and SAFRAN § HELICOPTER ENGINES CANADA, § INC, § MEMORANDUM OPINION AND ORDER Plaintiff EuroTec Vertical Fight Solutions, LLC (‘Plaintiff’) brings this action against Safran Helicopter Engines USA, Inc. (“SafranHE USA”), and against Safran Helicopter Engines S.A.S, (SafranHE France”) and Safran Helicopter Engines Canada, Inc. (“SafranHE Canada”) (together, “International Defendants,” and collectively with SafranHE USA, “Defendants”)}. In the Third Amended Complaint (the “Complaint”)}—which is the fourth complaint in this case— Plaintiff alleges violations of the Sherman Act, 15 U.S.C.§§ 1, 2, California Cartwright Act, CAL. Bus, & PRoF. CODE § 16720 ef seg., Kansas Restraint of Trade Act, KAN. STAT. ANN. § 50-101 ef seg., §35 of the Lanham Act, 15 U.S.C. § 1117, Texas Deceptive Trade Practices Consumer Protection Act (“DTPA”), TEX. Bus. & Com. Cope ANN,§§ 17.46, 17.50, as well as common law claims for breach of contract, wrongful detention, conversion, negligence, tortious interference, civil conspiracy, unfair competition, misrepresentation, and concealment. Pending before the Court is SafranHE USA’s and the International Defendants’ Motions to Dismiss [ECF Nos. 103, 104]. For the foregoing reasons, the Court grants in part and denies in part the Motions.

I BACKGROUND Pursuant to Special Order 3-318, this case was transferred from the docket of Judge Jane J. Boyle to the docket of this Court on March 8, 2018. Plaintiff filed its original complaint on October 23, 2015, and amended the complaint to join new defendants on March 28, 2016. On June 1, 2016, Defendants filed a Motion to Compel Arbitration and a Motion to Dismiss, which the Court granted, staying the case pending arbitration. Following arbitration, the Court reopened the case on September 18, 2017, Plaintiff filed its Second Amended Complaint on October 9, 2017, and Defendants filed a new set of motions to dismiss. The Court heid a hearing on the second set of motions to dismiss on November 18, 2018, The Court dismissed the Second Amended Complaint in its entirety but granted Plaintiff's motion for leave to amend. Although the Court expressed hope that affording Plaintiff an opportunity to replead would result in “some of the weaker of [the] 14 claims... [getting] taken out,” ECF No. 92, at 65:21-23, Plaintiff's fourth attempt includes thirty causes of actions over the course of 130 pages, and includes many of the same weaker claims as its prior attempt. See Third Am, Compl. Defendants filed a third set of motions to dismiss on January 25, 2019, which is the subject of this Memorandum Opinion and Order. A. Parties Plaintiff is a Kansas limited liability company that owns helicopters and helicopter engines, is a certified repair station, and is in the business of buying, selling, and leasing helicopters, engines, and engine parts. See Third Am. Compl. {J 1-4. Plaintiff also provides consumers with various services, including engine maintenance, repair, and overhaul services (“MRO Services”). id. 45. Defendants are manufacturers, marketers, sellers, and lessors of helicopter engines and of modules, components, parts, and accessories for those engines. /d. J{]9, 12-15, 18. Defendants also market and provide MRO Services for their engines. /d.

With the exception of SafranHE USA, which is a Delaware corporation with its principal place of business in Dallas County, Texas, the Defendants are foreign companies. /d { 11. SafranHE France, formerly Turbomeca, S.A. and Turbomeca S.A.S., is a French company and domiciliary. Jd 97. SafranHE Canada is a Canadian corporation and domiciliary. Jd. □ 17. Plaintiff contends, however, that there is a significant unity of interest in ownership and control between the three Defendants, such that they are alter egos of one another, /d. 720. Plaintiff alleges that either SafranHE France is able to exert a great degree of control over the other Defendants, that Defendants are agents of one another, or that they acted in concert, pursuant to apreements, or as a joint venture, such that they should be considered a single business enterprise. Id, □ 21-24. B. Market Allegations Civilian and military helicopters are designed and manufactured by Airbus Helicopters (“Airbus”), Bell Helicopter, Leonardo Helicopters, Sikorsky Aircraft Corporation and other companies. /d. 470. According to Plaintiff, approximately 45% of all civil and parapublic helicopters worldwide are manufactured by Airbus. /d. 73. Airbus does not manufacture the engines used in its helicopters, instead relying on companies in the business of designing and manufacturing engines. /d. 75. Defendants are the largest manufacturers dedicated solely to the manufacturing of helicopter engines, and compete with “General Electric, Rolls-Royce, and Pratt & Whitney Canada.” Id. Plaintiff alleges that there is one geographic market and two relevant product markets,! □□□ 7 244. The geographic is allegedly the United States, while the product markets are: (1) market for Defendants’ engines and parts; and (2) market for MRO Services for Defendants’ engines.

' These allegations are relevant to Plaintiff's antitrust claims, As explained in more detail below, most of Plaintiff's claims require it to plead a relevant market, which is composed of a geographic market—-the geographic area where

(1) Geographic Market Plaintiff asserts that the relevant geographic market is the United States. Jd 4244. Nonetheless, Plaintiff contends that (1} Defendants deal in the United States and Canada; (2) Defendants’ customers are located in the United States and Canada, and turn to sellers in both countries for engines and parts; and (3) sellers of Safran engines and parts, as well as providers of MRO Services, view as competition sellers and service providers in both the United States and Canada, fd 9] 245-49. (2) Market for Engines and Parts The first relevant product market is allegedly the market for Defendants’ engines and parts. Id. 9252, Plaintiff states that SafranHE France is the largest supplier of helicopter engines to Airbus, manufacturing all of the engines for the ten Airbus models sold in the United States. id. 479. According to the Complaint, there are approximately 1,632 helicopters in existence with Defendants’ engines. /d § 74. Airbus’s other supplier, Pratt & Whitney Canada, is the exclusive supplier for only one Airbus model. fd. Plaintiff alleges that a consumer would not find it cost- effective either to replace an entire engine or to seek FAA recertification of a helicopter for use with another engine to avoid paying Defendants’ higher prices. fd. 258-60. Moreover, engines and parts manufactured by Defendants are allegedly neither interchangeable nor compatible with engines and parts manufactured by other manufacturers. Ia. 99 253-55. Thus, a part manufactured by General Electric, for example, cannot be used in Defendants’ engines. fd. | 257, According to Plaintiffs, the demand for Defendants’ engines and parts is thus independent of the demand for other manufacturers’ engines and parts. /d. 4 256.

Defendants _compete—and a product market—a market of reasonably interchangeable goods. See infra ? plantif's allegations on this point are inconsistent. Plaintiff later alleges that Defendants sought to “prevent competition from manufacturers of new PMA Parts (substitute parts otherwise manufactured by companies nat

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Bluebook (online)
EuroTec Vertical Flight Solutions LLC v. Safran Helicopter Engines, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eurotec-vertical-flight-solutions-llc-v-safran-helicopter-engines-txnd-2019.