In Re N-500L Cases

517 F. Supp. 821
District Court, D. Puerto Rico·Decided April 9, 1981·No. Civ. 78-2126·Published·Cited by 4 cases

Opinion

DECISION AND ORDER

TORRUELLA, District Judge.

The above captioned action before the Court resulted from the crash of a Twin Beech aircraft, Registration Number N— 500L (hereinafter “N-500L”) when it encountered wake turbulence generated by an Eastern Airlines L 1011 aircraft. The N-500L was flying under charter for Third Party Defendant, Old South Air Service, d/b/a Air Caribbean Corporation.

At the conclusion of settlement negotiations with Plaintiffs, Codefendants Eastern Airlines and the United States agreed to accept 100% liability, reserving their rights to seek contribution from N-500L and the other Third Party Defendants: Air Caribbean, Air Caribbean’s Underwriters at London, 1 and Corporación Insular de Seguros (hereinafter “Corp. Insular”), the insurer of N-500L.

This brings us to the Motions at hand. Both Codefendants Eastern and the United States have petitioned this Court to conduct a non-jury trial on the issue of contribution. 2 Cornhill and Corporación Insular have opposed these petitions and seek trial by jury.

Our starting point in an examination of this question is the Seventh Amendment of the United States Constitution which provides that:

“In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved...”

The Supreme Court has held that this question depends on the nature of the issue to be tried rather than the character of the overall action. Ross v. Bernhard, 396 U.S. 531, 538, 90 S.Ct. 733, 738, 24 L.Ed.2d 729 (1969). For that reason, Rule 38(b), FRCP, refers to “any issue triable of right by a jury”, triable of right referring to “suits at common law”, and Rule 39(b), FRCP, provides that “the court in its discretion upon motion, may order a trial by jury on all issues, notwithstanding the failure of a party to demand a jury in an action in which such a demand might have been made of right.” (Emphasis ours).

At common law, the right of contribution was not recognized, and Federal Courts in common law jurisdictions have uniformly held such actions to be within the realm of equity, to be tried before a judge without a jury. Jones v. Schramm, 436 F.2d 899 (U.S. App.D.C.1970); see also Newport Air Park, Inc. v. U. S., 419 F.2d 342 (C.A. 1, 1969).

*823 In Dawson v. Contractors Transport Corp., 467 F.2d 727 (C.A.D.C., 1972), that Court citing Jones v. Schramm, supra, held:

“Contribution is an ‘equitable doctrine based on principle of justice,’ — which is not dependent on contract, joint action, or original relationship of the parties. . . The doctrine of contribution originated in the courts of equity... We may assume, therefore, as it has apparently been generally assumed, that when contribution is sought against a defendant who was not sued by plaintiff, as is permitted by our decisions, the claim sounds in equity and the court acts as finder of the fact to determine whether the second tortfeasor from whom contribution is sought was negligent, and therefore liable to the victim.” (Emphasis supplied). 3

While the Dawson court held that the fact that a claim is an equitable one does not always deprive claimant of a right to a jury trial on factual issues relevant to the claim, absent a claim which is equitable in name only but legal in essence, Ross v. Bernhard, supra, and absent factual issues which are common to both legal and equitable claims. Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 79 S.Ct. 948, 3 L.Ed.2d 988 (1959); Dairy Queen, Inc. v. Woods, 369 U.S. 469, 82 S.Ct. 894, 8 L.Ed.2d 44 (1962), claimant’s desires are not controlling in the case of purely equitable claims. 4

Such is the case here up to this point in our analysis. No legal claims underlie Cornhill’s cross-claim since Eastern and the United States have accepted liability. While the fact of negligence may be relevant to the action for contribution, it does not convert the action into an essentially legal one. Dawson v. Contractors Transport Corp., supra, at 732.

The second factor to be considered is that trial by jury is a matter of federal law in diversity as well as in other actions. Simler v. Connor, 372 U.S. 221, 83 S.Ct. 609, 9 L.Ed.2d 691 (1963); Christopherson v. Humphrey, 366 F.2d 323 (C.A. 10, 1966).

Thus in Louisiana, which like Puerto Rico is a civil law jurisdiction, it has been consistently held that the Seventh Amendment requires trial by jury in the Louisiana equivalents of common law action, when the actions are brought in the District Courts of Louisiana by reason of diversity jurisdiction. Wright v. Paramount-Richards Theatres, 198 F.2d 303 (C.A. 5, 1952); Parsons v. Bedford, 28 U.S. (3 Pet.) 433, 7 L.Ed. 732 (1830) (where the Court rejected the contention that the Seventh Amendment was inapplicable because the claim arose not under common law but rather under the civil law statutes of Louisiana). See also Rogers v. Loether, 467 F.2d 1110, 1113, n. 13 (C.A. 7, 1972), aff’d sub nom. Curtis v. Loether, 415 U.S. 189, 94 S.Ct. 1005, 39 L.Ed.2d 260 (1974).

In the Wright case, a district judge reexamined a jury verdict in a civil action. Federal Courts, under the Seventh Amendment, are forbidden to re-examine any fact tried by jury otherwise than according to the rules of common law. In Louisiana, state appellate courts can review both the law and the facts in all civil cases, which are tried without jury in the Louisiana state courts (as they are in Puerto Rico). The District Court, relying on Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), applied the law of Louisiana.

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In Re N-500L Cases, 517 F. Supp. 821 (prd 1981).

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