In Re Air Crash Disaster at Stapleton International Airport

720 F. Supp. 1433, 1988 U.S. Dist. LEXIS 16670, 1988 WL 168227
CourtDistrict Court, D. Colorado
DecidedOctober 14, 1988
DocketMDL 751
StatusPublished
Cited by7 cases

This text of 720 F. Supp. 1433 (In Re Air Crash Disaster at Stapleton International Airport) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Air Crash Disaster at Stapleton International Airport, 720 F. Supp. 1433, 1988 U.S. Dist. LEXIS 16670, 1988 WL 168227 (D. Colo. 1988).

Opinion

*1434 ORDER MDL 751-12

MEMORANDUM OPINION AND ORDER ON MOTION TO VACATE OR MODIFY ORDER MDL 751-10, SETTING SETTLEMENT CONFERENCES

SHERMAN G. FINESILVER, Chief Judge.

The court is in receipt of a motion to vacate or modify Order MDL 751-10 filed by defendants Continental Airlines, Inc. and Texas Air Corp. (“Continental”) on September 14, 1988. Certain plaintiffs responded to the motion on September 23, 1988. The court has reviewed Continental’s motion and the authority cited therein as well as the Federal Rules of Civil Procedure and other authority relevant to the Order. The motion is DENIED.

I.

These cases arise out of the November 15, 1987 crash of a Continental Airlines DC-9 airplane en route from Denver, Colorado, to Boise, Idaho. Flight 1713, on takeoff in a snow storm at Stapleton International Airport, crashed, overturned, and broke into several pieces. The accident killed 28 persons and injured 54 others. The pilot, copilot and a flight attendant were among the dead. The National Transportation Safety Board conducted an investigation into the crash and reported its findings last week, on September 27, 1988.

Plaintiffs are residents of various states, including Arizona, Colorado, Idaho, New Jersey, and Washington. They claim the crash of Flight 1713 was the result of pilot inexperience, ineffectual pilot training and the willful, wanton and reckless disregard for passenger safety exhibited by defendant Continental Airlines. Plaintiffs also contend that Continental engaged in a pattern and practice of falsifying pilot training records, check airmen, and other records in order to meet its demand for new-hire pilots and to pass Federal Aviation Administration (“FAA”) inspections. Finally, plaintiffs allege Continental engaged in deceptive trade practices in its 1987 advertising campaign designed to induce the public to purchase tickets without factual support for the matters presented therein.

Defendants deny that they were negligent, that they misrepresented anything, or that any wrongdoing on their part caused the crash. Defendants assert that plaintiffs’ damages were caused by the acts, omissions, and/or fault of third parties over whom Continental has no control. Specifically, defendants have designated the City and County of Denver and the Federal Aviation Administration as culpable parties pursuant to C.R.S. § 13-21-111.5.

The court has jurisdiction over these civil actions pursuant to 28 U.S.C. § 1332, diversity of citizenship. On April 14, 1988, the Judicial Panel on Multidistrict Litigation conferred jurisdiction upon this court for consolidated pretrial proceedings pursuant to 28 U.S.C. § 1407. In re Air Crash *1435 Disaster at Stapleton Int’l Airport, 683 F.Supp. 266 (J.P.M.L.1988).

II.

In Order MDL 751-10, this court found 1) that the claims stated above and the posture of the remaining cases pending before it lent themselves to settlement, 2) that the anticipated cost and breadth of the litigation to come demanded that the parties make every effort to explore resolution of the cases before trial, and 3) that while the effectiveness and ability of the court to mediate settlement conferences had been exhausted in settling 16 out of 36 cases during previous settlement conferences, an additional round, without the intervention of the court, was likely to be productive in the hands of experienced counsel like we find in these cases. 1 Citing the authority conferred by Rule 16 of the Federal Rules of Civil Procedure, the court then directed the parties to meet to discuss settlement of each of the 20 remaining cases. The Order set out a schedule of weeks in which conferences were to be held at the parties convenience, extending from the week of September 26, 1988 through the week of November 3, 1988. The Order also directed that the conferences be held in the offices of each plaintiffs attorney and that each of the parties be represented by counsel and an individual other than counsel with authority to make settlement decisions.

Continental, and more particularly its insurer United States Aviation Underwriters (“USAU”), whose representatives Continental contends have actual settlement authority, have moved the court to vacate or modify the order. Continental and USAU argue that the court’s order exceeds its authority, that since USAU is not a party to the suit, its representatives are beyond the court’s subpoena power and thus its jurisdiction, and that although they are willing to continue to negotiate, since the airline defendants have made their final settlement offers, discussions outside the presence of a judge or magistrate would be a “waste of everyone’s time and energy.” Defendant’s Motion, p. 5.

In its original motion, Continental (and USAU) informed the court that it would be willing to comply with an order setting settlement conferences, as it had in the past, so long as the order set conferences according to certain terms — that they be before a judge or magistrate in a neutral forum other than that of plaintiff’s counsel, that they be scheduled more conveniently to consolidate the travel of USAU representatives and that they be held in the districts from which a particular case was transferred or Denver, Colorado. After an initial review of the authorities, the court twice directed the parties to go forward with conferences set for the first two weeks of the schedule set out in MDL 751-10, pending issuance of this order.

On October 3,1988, Continental informed the court that in order to preserve its objection, Continental was not proceeding as directed but had sent and intended to continue to send only counsel to the conferences, pending issuance of this order, that counsel would have authority to agree to the settlement terms previously offered by Continental, and that no representatives of Continental other than counsel would attend.

III.

Continental’s original motion to vacate or modify included an admission of willingness to negotiate and an acknowledgement that it had complied with the court’s previous orders setting settlement conferences without objection. These admissions and its proposal of an alternative order with which it would comply defeat Continental’s argument that the order reaches USAU officials who fall outside it jurisdiction.

MDL 751-10 is directed at corporate defendants over whom the court does have jurisdiction, by diversity of citizenship originally and additionally by the consolidation order of the Judicial Panel on Multidistrict Litigation pursuant to 28 U.S.C. § 1407.

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Bluebook (online)
720 F. Supp. 1433, 1988 U.S. Dist. LEXIS 16670, 1988 WL 168227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-air-crash-disaster-at-stapleton-international-airport-cod-1988.