In Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Mary Guzman Lorraine Ayala, Alex Guzman Sandra Moldonado and Reann Guzman, a Minor, by and Through Her Guardian Ad Litem, Pauline Valenzuela v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Marcy Huerta John Daniel Huerta Martin David Huerta Johnna Danette Huerta v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. April Renee Basye, a Minor, by Her Guardian Ad Litem, Barbara Basye Barbara Basye Tracy Lynn Basye and Michael Anthony Basye v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Virginia Guzman Susan Harbour Manuel Guzman, Jr. Steven Guzman v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America

982 F.2d 1271, 92 Daily Journal DAR 16540, 92 Cal. Daily Op. Serv. 9865, 1992 U.S. App. LEXIS 32241
Court of Appeals for the Ninth Circuit·Decided December 10, 1992·No. 90-55808·Published·Cited by 23 cases

Opinion

982 F.2d 1271

In re AIR CRASH DISASTER NEAR CERRITOS, CALIFORNIA, ON
AUGUST 31, 1986.
Mary GUZMAN; Lorraine Ayala, Alex Guzman; Sandra
Moldonado; and Reann Guzman, a minor, by and
through her Guardian ad Litem, Pauline
Valenzuela, Plaintiffs-Appellees,
v.
AERONAVES DE MEXICO, S.A., dba Aeromexico, Defendant,
and
United States of America, Defendant-Appellant.
In re AIR CRASH DISASTER NEAR CERRITOS, CALIFORNIA, ON
AUGUST 31, 1986.
Marcy HUERTA; John Daniel Huerta; Martin David Huerta;
Johnna Danette Huerta, Plaintiffs-Appellees,
v.
AERONAVES DE MEXICO, S.A., dba Aeromexico, Defendant,
and
United States of America, Defendant-Appellant.
In re AIR CRASH DISASTER NEAR CERRITOS, CALIFORNIA, ON
AUGUST 31, 1986.
April Renee BASYE, a minor, by her Guardian ad Litem,
Barbara BASYE; Barbara Basye; Tracy Lynn Basye;
and Michael Anthony Basye, Plaintiffs-Appellees,
v.
AERONAVES DE MEXICO, S.A., dba Aeromexico, Defendant,
and
United States of America, Defendant-Appellant.
In re AIR CRASH DISASTER NEAR CERRITOS, CALIFORNIA, ON
AUGUST 31, 1986.
Virginia GUZMAN; Susan Harbour; Manuel Guzman, Jr.; Steven
Guzman, Plaintiffs-Appellees,
v.
AERONAVES DE MEXICO, S.A., dba Aeromexico, Defendant,
and
United States of America, Defendant-Appellant.

Nos. 90-55808, 90-56149, 90-56155 and 90-56158.

United States Court of Appeals,
Ninth Circuit.

Argued and Submitted Jan. 8, 1992.
Decided Dec. 10, 1992.

Marianne Finnerty, U.S. Dept. of Justice, Washington, D.C., for defendant-appellant.

James J. McCarthy, Magana, Cathcart, McCarthy & Pierry, Los Angeles, Cal., for plaintiffs-appellees.

Appeal from the United States District Court for the Central District of California.

Before: POOLE, WIGGINS, and LEAVY, Circuit Judges.

LEAVY, Circuit Judge:

These are consolidated appeals from the district court's damages awards to the heirs of five passengers killed on August 31, 1986, when an Aeromexico plane collided over Cerritos, California, with a small private aircraft operated by William Kramer. Following the initial determination by the district court in a multidistrict proceeding that the United States and William Kramer were each 50% liable for the crash, the heirs proceeded separately to litigate damages. The order regarding liability is the subject of an interlocutory appeal pending before this court. Damages for five of the deceased passengers were determined in separate damage trials and the government is appealing those awards in this case. We have jurisdiction under 28 U.S.C. § 1291.

FACTUAL AND PROCEDURAL BACKGROUND

Immediately following the crash, pursuant to its obligation under the Warsaw Convention, Aeromexico paid $75,000 to the heirs of each deceased passenger. See Convention for the Unification of Certain Rules Relating to International Transportation by Air, Oct. 12, 1929, 49 Stat. 3000, T.S. No. 876 (1934), note following 49 U.S.C.App. § 1502, as supplemented by the Montreal Agreement. Aeromexico also paid the funeral expenses to the families of the passengers.

The heirs of the deceased passengers filed actions against Aeromexico, the Estate of William Kramer, and the United States. The various actions were transferred to the Central District of California for consolidated proceedings before Judge David M. Kenyon. These appeals were a part of Multidistrict Litigation 717 ("MDL 717"). The claims against the United States were brought pursuant to the Federal Tort Claims Act ("FTCA"), 28 U.S.C. §§ 2671-2680. The heirs alleged that the United States was negligent for failing to detect the private aircraft's intrusion into restricted airspace and failing to give a traffic advisory to Aeromexico Flight No. 498.

In a 1989 trial on liability before Judge Kenyon, the district court concluded that the Government and Kramer were each 50% liable for the accident.1 Aeromexico was found not liable beyond its obligation under the Warsaw Convention. Aeromexico has paid $375,000 to these plaintiffs, which represented $75,000 for each death in these four cases.2

As part of MDL 717, Judge Kenyon ruled that the Warsaw payments were not a collateral source and, therefore, the Estate of Kramer and the United States were entitled to offset those payments. In the same order, in response to Aeromexico's motion for partial summary judgment, the court held that the defendants United States and the Estate of Kramer were jointly and severally liable for reimbursement of the monies paid to the plaintiffs by Aeromexico under theories of both equitable indemnity and direct liability. None of the parties to that order--the government, the Estate of Kramer, the heirs, or Aeromexico--have appealed from that order.

A bench trial was then held before Judge Manuel L. Real to determine the damages to be awarded in each of these four cases. Both economic and noneconomic damages were awarded.3 As part of the damages, the court awarded funeral and burial expenses to the plaintiffs, against the United States and the Estate of Kramer. Aeromexico had previously paid the funeral expenses and is seeking contribution from the United States. Finally, pursuant to Judge Kenyon's earlier order, Judge Real determined that the United States and the Estate of Kramer would each be entitled to offset a portion of the damages because of the reimbursement owed to Aeromexico for its payment under the Warsaw Convention. Accordingly, the district court reduced the judgments against the United States by $37,500 in each of the five wrongful death awards. The Government filed a timely appeal from these consolidated judgments and it challenges some of the damages awarded by the district court and the distribution of the offset amounts.

STANDARD OF REVIEW

Generally, this court reviews the district court's damages award under the FTCA for clear error. Shaw v. United States, 741 F.2d 1202, 1205 (9th Cir.1984). When a legal determination such as the proper elements of an award of damages is reviewed, a de novo standard is applied. Felder v. United States, 543 F.2d 657, 663 (9th Cir.1976).

DISCUSSION

A. Offset for Indemnification to Aeromexico

The United States contends the district court erred when it determined that the government was entitled to only a 50% credit ($37,500) because of its obligation to indemnify Aeromexico for the $75,000 Warsaw Convention payment. Because the United States and the Estate of Kramer have joint and several liability to Aeromexico for the Warsaw payments, the government asserts that it is entitled to offset the entire amount since it is the only solvent defendant and, thus, will be forced to pay Aeromexico 100% ($75,000) of the Warsaw payment.

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In Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Mary Guzman Lorraine Ayala, Alex Guzman Sandra Moldonado and Reann Guzman, a Minor, by and Through Her Guardian Ad Litem, Pauline Valenzuela v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Marcy Huerta John Daniel Huerta Martin David Huerta Johnna Danette Huerta v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. April Renee Basye, a Minor, by Her Guardian Ad Litem, Barbara Basye Barbara Basye Tracy Lynn Basye and Michael Anthony Basye v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Virginia Guzman Susan Harbour Manuel Guzman, Jr. Steven Guzman v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, 982 F.2d 1271, 92 Daily Journal DAR 16540, 92 Cal. Daily Op. Serv. 9865, 1992 U.S. App. LEXIS 32241 (9th Cir. 1992).

982 F.2d 1271 (In Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Mary Guzman Lorraine Ayala, Alex Guzman Sandra Moldonado and Reann Guzman, a Minor, by and Through Her Guardian Ad Litem, Pauline Valenzuela v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Marcy Huerta John Daniel Huerta Martin David Huerta Johnna Danette Huerta v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. April Renee Basye, a Minor, by Her Guardian Ad Litem, Barbara Basye Barbara Basye Tracy Lynn Basye and Michael Anthony Basye v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America, in Re Air Crash Disaster Near Cerritos, California, on August 31, 1986. Virginia Guzman Susan Harbour Manuel Guzman, Jr. Steven Guzman v. Aeronaves De Mexico, S.A., Dba Aeromexico, and United States of America) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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