In re Air Crash Near Clarence Center, New York, on February 12, 2009

983 F. Supp. 2d 249, 2013 WL 6086203, 2013 U.S. Dist. LEXIS 164588
CourtDistrict Court, W.D. New York
DecidedNovember 19, 2013
DocketNo. 09-md-2085
StatusPublished
Cited by1 cases

This text of 983 F. Supp. 2d 249 (In re Air Crash Near Clarence Center, New York, on February 12, 2009) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In re Air Crash Near Clarence Center, New York, on February 12, 2009, 983 F. Supp. 2d 249, 2013 WL 6086203, 2013 U.S. Dist. LEXIS 164588 (W.D.N.Y. 2013).

Opinion

DECISION AND ORDER

WILLIAM M. SKRETNY, Chief Judge.

I. INTRODUCTION

On February 12, 2009, while on final approach to the Buffalo Niagara International Airport, Continental Connection Flight 3407 crashed into a house in Clarence Center, N.Y., killing all 45 passengers, the four-person crew, and one person in the house. By order entered October 6, 2009, the United States Judicial Panel on Multidistrict Litigation transferred all then-pending actions concerning the crash of Flight 3407 to this Court for coordinated or consolidated pretrial proceedings, pursuant to 28 U.S.C. § 1407. In re Air Crash Near Clarence Ctr., N.Y., on Feb. 12, 2009, 655 F.Supp.2d 1355, 1356 (J.P.M.L.2009). Subsequently-filed actions have also been transferred here.

Presently before this Court is Plaintiff Xiaojun Pan’s motion for the application of New York law to the issue of compensatory damages. (Docket No. 288.1) Defendants Colgan Air, Inc., Pinnacle Airlines [252]*252Corp., and Continental Airlines, Inc. have also cross-moved for the application of Chinese law to this issue. (Docket No. 295.) This Court has reviewed and considered the parties’ motion papers and finds oral argument to be unnecessary. For the reasons discussed below, Plaintiffs motion is granted and Defendants’ cross-motion is denied.

II. DISCUSSION

Plaintiff contends that, pursuant to the relevant choice-of-law rules, New York law applies to the issue of compensatory damages and this state has a strong interest in seeing its law applied in the instant case. Defendants assert that Plaintiff and decedent, his wife, were legally domiciled in China at the time of the accident, therefore Chinese law should be applied to this damages issue.

Where, as here, a federal court is exercising diversity jurisdiction in a multidistrict litigation, resolution of a conflict of laws issue applies the choice of law rules of the state in which the relevant action was commenced. In re Air Crash Near Clarence Ctr., N.Y., on Feb. 12, 2009, 798 F.Supp.2d 481, 486 (W.D.N.Y.2011); see In re Air Crash Disaster Near Chicago, III. on May 25, 1979, 644 F.2d 594, 610 (7th Cir.1981). This action was commenced in the Southern District of New York, therefore the forum state is New York. Thus, this Court’s task is to determine how New York courts would resolve this issue, even if it were to find a different resolution better or wiser. In re Air Crash Near Clarence Ctr., N.Y., on Feb. 12, 2009, 798 F.Supp.2d at 492 (citing In re Air Crash at Belle Harbor, N.Y. on Nov. 12, 2001, No. MDL 1448(RWS), 2006 WL 1288298, *29 (S.D.N.Y. May 9, 2006)).

The New York Court of Appeals has held that “[t]he first step in any case presenting a potential choice of law issue is to determine whether there is an actual conflict between the laws of the jurisdictions involved.” In re Allstate Ins. Co., (Stolarz-N.J. Mfrs. Ins. Co.), 81 N.Y.2d 219, 223, 597 N.Y.S.2d 904, 613 N.E.2d 936, 937 (1993); see GlobalNet Financial.Com, Inc. v. Frank Crystal & Co., Inc., 449 F.3d 377, 382 (2d Cir.2006). The law of New Jersey, where Plaintiff asserts he and decedent were domiciled at the time of the accident, is identical to that of New York with respect to pecuniary damages in a wrongful death action. Compare N.J.S.A. § 2A:31-5, and Thalman v. Owens-Coming Fiberglas Corp., 290 N.J.Super. 676, 683, 676 A.2d 611, 614 (N.J.Super.A.D.1996), with EPTL § 5-4.3(a), and Milczarski v. Walaszek, 108 A.D.3d 1190, 969 N.Y.S.2d 685 (N.Y.A.D. 4th Dep’t 2013). As such, no conflict-of-laws analysis is required if Plaintiff and decedent were in fact legally domiciled in New Jersey at the time of the accident. See Tron-lone v. Lac d’Amiante Du Quebec, 297 A.D.2d 528, 528, 747 N.Y.S.2d 79, 80 (N.Y.A.D. 1st Dep’t 2002), aff'd, 99 N.Y.2d 647, 760 N.Y.S.2d 96, 790 N.E.2d 269 (2003).

If they were domiciliaries of China, however, the parties do not dispute that an actual conflict exists between the laws of New York and China for compensatory damages in a wrongful death action. “[T]he essence of the cause of action for wrongful death in [New York] State is that the plaintiffs reasonable expectancy of future assistance or support by the decedent was frustrated by the decedent’s death.” Gonzalez v. N.Y.C. Hous. Auth., 77 N.Y.2d 663, 668, 569 N.Y.S.2d 915, 572 N.E.2d 598, 601 (1991). The amount of pecuniary damages recoverable is determined by, among other things, the decedent’s financial status, including his or her past and potential future income. See Johnson v. Manhattan & Bronx Surface Tr. Operat[253]*253ing Auth., 71 N.Y.2d 198, 204, 524 N.Y.S.2d 415, 519 N.E.2d 326, 328 (1988); see also Gonzalez, 77 N.Y.2d at 668, 569 N.Y.S.2d 915, 572 N.E.2d 598 (damages may be properly calculated, in part, from a decedent’s present and future earning potential); Franchell v. Sims, 73 A.D.2d 1, 5-6, 424 N.Y.S.2d 959, 962 (N.Y.A.D. 4th Dep’t 1980) (myriad of factors to be considered in damages calculation includes decedent’s income and his or her relationship with those claiming pecuniary loss).

In contrast, the parties’ respective experts agree that under Chinese law, the equivalent compensatory damages for a wrongful death claim is a “death compensation” award. (Decl. of Jacques del-isle ¶ 31, Docket No. 288-2; Decl. of Cui Jianyuan ¶¶ 19-20, Docket No. 295-9.) This award is calculated based not on a beneficiary’s individual loss, but by the average per capita disposable income of urban residents or net income of rural residents in either the forum locality or plaintiffs “domicile or usual place of residence,” whichever is higher, (del-isle Decl. ¶¶ 31-33; Cui Decl. ¶¶ 20-35.) The annual average is generally multiplied by a 20 year time period when the decedent was younger than 60 at the time of death, (del-isle Decl. ¶ 31; Cui Decl. ¶ 22.) Thus, although both jurisdictions provide compensation for a wrongful death, there is a material difference in the amount of recovery permissible that would effect the outcome of a trial. See Curley v. AMR Corp., 153 F.3d 5, 12 (2d Cir.1998); Simon v. Philip Morris Inc., 124 F.Supp.2d 46, 71 (E.D.N.Y.2000); cf. Anderson v. SAM Airlines, 939 F.Supp. 167, 173 (E.D.N.Y.1996) (no conflict in absence of evidence that second jurisdiction would allow a lesser amount of recovery).

To resolve a conflict of laws in a tort action, New York courts apply an ‘interests analysis’ to determine which jurisdiction has the greatest interest in the litigation. GlobalNet Financial.Com, Inc., 449 F.3d at 384;

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