In Re: Amerijet International

CourtCourt of Appeals for the Fifth Circuit
DecidedMay 15, 2015
Docket14-20521
StatusPublished

This text of In Re: Amerijet International (In Re: Amerijet International) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re: Amerijet International, (5th Cir. 2015).

Opinion

Case: 14-20521 Document: 00513045394 Page: 1 Date Filed: 05/15/2015

REVISED MAY 15, 2015

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT United States Court of Appeals Fifth Circuit

FILED No. 14-20521 May 1, 2015 Lyle W. Cayce In re: AMERIJET INTERNATIONAL, INCORPORATED, Clerk

Petitioner

Consolidated With 14-20522

AMERIJET INTERNATIONAL, INCORPORATED,

Plaintiff - Appellant v.

ZERO GRAVITY CORPORATION,

Defendant - Appellee

Appeals from the United States District Court for the Southern District of Texas

Before STEWART, Chief Judge, and KING and ELROD, Circuit Judges. PER CURIAM: Petitioner and Plaintiff-Appellant Amerijet International, Inc., appeals the district court’s anti-suit injunction. Amerijet has also petitioned this court for a writ of mandamus setting aside the district court’s order reopening this case after the parties purportedly settled their dispute. Amerijet alleges that Case: 14-20521 Document: 00513045394 Page: 2 Date Filed: 05/15/2015

No. 14-20521 the district court lacked subject matter jurisdiction as it erred in setting aside Amerijet’s voluntary dismissal under Federal Rule of Civil Procedure 41(a)(1)(A)(i). We conclude that a pre-removal answer meeting the requirements of state law suffices to preclude voluntary dismissal under that rule. For the following reasons, we AFFIRM the injunction issued by the district court and DENY the petition for a writ of mandamus. I. Zero Gravity Corp. owns a Boeing 727 aircraft that it uses to provide parabolic flights that simulate a weightless environment. Zero Gravity provides such flights as part of its business both to members of the public, for entertainment, and to NASA, for experiments in a weightless environment. Amerijet International, Inc., is an airline company that operates specific aircraft for specific types of flights. Zero Gravity and Amerijet entered into a contract under which Amerijet operated the parabolic flights for Zero Gravity and provided maintenance services (the “Management Services Agreement”). Amerijet leased the aircraft’s engines to Zero Gravity under a separate contract (the “Engine Lease”). The Management Services Agreement stated that it would expire on March 31, 2011, unless terminated earlier by either party on six months’ notice. The Management Services Agreement also provided: “[t]hereafter, the term of this Agreement shall be extended on a month-to-month basis until terminated by either party giving the other party thirty (30) days prior written notice.” The Engine Lease expired on June 1, 2011. The parties continued performing after the initial terms of both agreements had expired. On April 3, 2014, Amerijet sent Zero Gravity notice that it was terminating the Management Services Agreement, effective May 4, 2014. On April 7, 2014, Amerijet sent Zero Gravity a demand letter, insisting that Zero

2 Case: 14-20521 Document: 00513045394 Page: 3 Date Filed: 05/15/2015

No. 14-20521 Gravity sign a new Engine Lease or else Amerijet would take possession of the engines on April 14, 2014. Zero Gravity declined. On April 14, 2014, Amerijet filed a petition and application for a temporary restraining order, temporary injunction, and permanent injunction in state district court in Texas. Amerijet’s petition claimed that, as the Engine Lease had expired, it had the right to the immediate possession of the engines. Amerijet’s petition also sought a declaratory judgment that it was entitled to possession of the engines. The Texas district court issued a temporary restraining order the same day. Zero Gravity responded on April 17, 2014, by filing (also in state court) a document entitled “ORIGINAL VERIFIED PETITION AND APPLICATION FOR TEMPORARY RESTRAINING ORDER, AND TEMPORARY AND PERMANENT INJUNCTION, AND MOTION TO DISSOLVE TEMPORARY RESTRAINING ORDER OBTAINED BY AMERIJET INTERNATIONAL, INC” (the “Filing”). 1 The Filing sets out facts regarding, inter alia, the parties, proper venue, the Engine Lease and Management Services Agreement, and the demand from Amerijet and Zero Gravity’s response. The Filing then requests relief in the form of dissolution of Amerijet’s temporary restraining order, a temporary restraining order and temporary and permanent injunctions maintaining the status quo, and a declaratory judgment that “Zero Gravity is in rightful possession of the Engines.” The filing was verified. On April 17, 2014, the Texas state court orally dissolved the temporary restraining order. On April 19, 2014, the Texas state court issued an order enjoining the parties from interfering with the engines so as to maintain the status quo until the hearing scheduled for April 21, 2014. At that hearing, the

1 “ORIGINAL VERIFIED PETITION AND” is struck out by hand on the document. At a hearing before the district court, counsel for Zero Gravity stated that he had “shortened [the caption] at the bench.” 3 Case: 14-20521 Document: 00513045394 Page: 4 Date Filed: 05/15/2015

No. 14-20521 Texas state court confirmed the dissolution of the April 17, 2014, temporary restraining order and dissolved the April 19, 2014, sua sponte order based on a joint motion by Amerijet and Zero Gravity. On May 6, 2014, Zero Gravity removed the case to the United States District Court for the Southern District of Texas. The following day, Amerijet filed a Rule 41(a) notice of voluntary dismissal without prejudice in the district court. The notice stated that “Defendant has not answered or filed a motion for summary judgment,” “[t]herefore, this action may be voluntarily dismissed without prejudice under Rule 41(a)(1)(A)(i) upon the filing of this notice.” On May 9, the district court issued an order setting a conference with the parties for May 12. At the May 12 hearing, Amerijet raised the Rule 41 dismissal, but the district court rejected Amerijet’s reliance on the purported dismissal, citing the fact that the court still needed to dispose of the bond and Zero Gravity’s pending “counterclaim.” After the hearing, the district court issued a “Management Order,” stating that “[b]y May 13, 2014, Zero Gravity Corporation must give Amerijet International Inc. and the court a two-page narrative describing its damages,” relating to the release of the bond for the temporary restraining order in state court. The court stated that Amerijet would then have two days to respond to that narrative. Zero Gravity and Amerijet both submitted declarations contesting which party should receive the cash bond Amerijet posted when it obtained the temporary restraining order. Zero Gravity then filed an “Initial Conference Supplement” with the district court, stating that, though Zero Gravity had “advised the court that the matter was largely resolved” at the May 12 conference, Amerijet had recently advised Zero Gravity that it would not release the aircraft maintenance logs to Zero Gravity due to an alleged FAA audit, though Amerijet provided no correspondence with the FAA reflecting such an audit. Zero Gravity stated that “[t]o change maintenance providers, 4 Case: 14-20521 Document: 00513045394 Page: 5 Date Filed: 05/15/2015

No. 14-20521 and continue to fly for NASA, Zero Gravity needs the logs immediately.” As such, Zero Gravity requested an additional conference with the district court and requested “that this matter not be closed until this issue is resolved, either by conference or counterclaim.” Shortly thereafter, Zero Gravity filed an “Initial Conference Second Supplement,” advising the court that “[s]hortly after the previous request for a conference, [Amerijet] informed Zero Gravity that it would transfer the aircraft maintenance records” and withdrawing the request for a conference.

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