Gatx/airlog Company Gatx Capital Corporation Airlog Management Corporation Frederick L. Hatton and Sanford P. Burnstein v. United States

286 F.3d 1168, 2002 U.S. App. LEXIS 7339, 2002 WL 598421
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 19, 2002
Docket99-36024
StatusPublished
Cited by80 cases

This text of 286 F.3d 1168 (Gatx/airlog Company Gatx Capital Corporation Airlog Management Corporation Frederick L. Hatton and Sanford P. Burnstein v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Gatx/airlog Company Gatx Capital Corporation Airlog Management Corporation Frederick L. Hatton and Sanford P. Burnstein v. United States, 286 F.3d 1168, 2002 U.S. App. LEXIS 7339, 2002 WL 598421 (9th Cir. 2002).

Opinion

ORDER

This court’s opinion, filed December 13, 2000, is hereby WITHDRAWN and replaced with the attached opinion.

With the filing of this new opinion, the panel has voted to deny the petition for rehearing and to deny the petition for rehearing en banc, filed February 22, 2002.

The full court has been advised of the petition for en banc rehearing, and no judge of the court has requested a vote on the petition for rehearing en banc. Fed. R.App. P. 35(b).

The petition for rehearing and the petition for rehearing en banc are DENIED.

OPINION

McKEOWN, Circuit Judge.

Aircraft safety is a matter of significant public importance, and the Federal Aviation Administration (“FAA”) plays a central role in monitoring safety through its certification of commercial aircraft. At issue in this case is whether the United States is immune from liability under the Federal Tort Claims Act, 28 U.S.C. §§ 2671-2680 (1994) (“FTCA”), for the FAA’s alleged negligence in issuing aircraft certifications. GATX/Airlog Company (“Airlog”) brought suit against the *1171 United States under the FTCA after the FAA issued a directive modifying the terms of two design certificates for converting passenger airplanes to cargo freighters. The district court dismissed Airlog’s complaint for lack of subject matter jurisdiction under the discretionary function exception to the FTCA. See GATX/Airlog Co. v. United States, 79 F.Supp.2d 1208, 1210-14 (W.D.Wash.1999). We affirm.

BACKGROUND

A. FAA Design Certification

Under the Federal Aviation Act of 1958, 49 U.S.C. § 40101 et seq. (1994 & Supp. IV 1998), 1 the FAA is charged with promoting flight safety by establishing minimum standards for, among other things, aircraft design. See 49 U.S.C. § 44701(a)(1) (Supp. IV 1998). Accordingly, the FAA has prescribed a comprehensive set of rules and regulations, including a multi-step certification process, for aircraft design and production. A detailed description of this certification process is set out in the Supreme Court’s decision in United States v. S.A. Empresa de Viacao Aerea Rio Grandense (Varig Airlines), 467 U.S. 797, 804-07, 816-19, 104 S.Ct. 2755, 81 L.Ed.2d 660 (1984). Three aspects of the design certification process are relevant here: the type certificate, supplemental type certificate, and airworthiness directive.

The first stage of this process is type certification, in which airplane manufacturers seek approval of new aircraft designs. Under federal regulations, aircraft manufacturers must analyze and test their new aircraft designs. See 14 C.F.R. §§ 21.21(b), 21.33(b), 21.35 (2000). Based on the resulting engineering and test data, the FAA then determines the airworthiness of those designs. See 14 C.F.R. §§ 21.21(b), 21.33 (2000). If the manufacturer demonstrates that the design complies with federal regulations, the FAA issues a type certificate. See 49 U.S.C. § 44704(a) (1994); 14 C.F.R. § 21.21(b). In most instances, the type certificate covers an aircraft model, rather than an individual airplane. See 49 U.S.C. § 44704 (1994 & Supp. IV 1998).

Any major change to an FAA-approved design then requires additional certification in the form of a supplemental type certificate, also known as an STC. See 14 C.F.R. § 21.113 (2000). By issuing an STC, the FAA approves a modification to a previously-certified aircraft design. See 49 U.S.C. § 44704(b) (Supp. IV 1998). STCs are obtained through the same process as type certificates: the applicant must provide the FAA with sufficient engineering and test data to demonstrate compliance with federal regulations. See 14 C.F.R. § 21.115 (2000); see also 14 C.F.R. § 21.33(b).

After issuing a type certificate or STC, the FAA continues to monitor the safety of the certified aircraft. See 49 U.S.C. § 44709(a) (1994); 14 C.F.R. § 39.1 (2000). The FAA may amend, modify, suspend or revoke a certificate for airworthiness reasons. Such an order takes the form of an airworthiness directive and may require the aircraft owner to alter the aircraft to maintain its certification. See 49 U.S.C. § 44709(b) (1994); 14 C.F.R. §§ 21.99, 21.277, 39.11 (2000). After the FAA issues an airworthiness directive, the particular aircraft may only be operated in compliance with that directive. See 49 U.S.C. § 44713(a) (1994); 14 C.F.R. § 39.3 (2000).

*1172 B. The FAA’s issuance of the STCs and an Airworthiness Directive

Airlog is in the business of converting passenger airplanes into cargo freighters. Airlog’s predecessor entered into a contract with Hayes International Corporation (“Hayes”), an aeronautical engineering company, to design the cargo conversions for Boeing 747 passenger airplanes, and to obtain STCs from the FAA. Because Air-log did not have an engineering staff, it relied on Hayes for engineering expertise.

The approval process involved FAA offices in Seattle and Atlanta and took place over a several-year period.

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