Jeppesen Sanderson, Inc. v. United States

21 Cl. Ct. 655, 1990 U.S. Claims LEXIS 397, 1990 WL 162237
Procedural entryThis page is a short order in Jeppesen Sanderson, Inc. v. United States. Read the opinion of the Court — 19 Cl. Ct. 233
United States Court of Claims·Decided October 19, 1990·No. No. 11-87C·Published

Opinion

OPINION

FUTEY, Judge.

In this stage of the case the court is asked to decide two questions briefed by the parties. Jeppesen seeks to recover from the government the full amount of a tort judgment rendered against it by the district court for the Northern District of California. Jeppesen bases its claim upon an indemnity agreement, by which the government agreed to indemnify Jeppesen for that portion of the judgment which was determined by the jury or the district court to be established upon Jeppesen’s publication of government data. Jeppesen argues that the jury held it liable because the Federal Aviation Administration’s (FAA) design of the instrument approach procedure was a proximate cause of the accident. Defendant disputes that the jury made this finding. In addition, defendant argues that the exclusion provisions of the indemnity agreement bar recovery because of Jeppesen’s failure to include altitude restrictions on the chart.

Factual Background A. Case and Flight History

This case is before the court pursuant to a decision by the Court of Appeals for the Federal Circuit, rendered February 6, 1989, directing this court to determine that portion, if any, of indemnification that Jeppesen is entitled to under an agreement with defendant. Jeppesen Sanderson, Inc. v. United States, 868 F.2d 1277 (Fed.Cir. 1989). In addition, this case has been the subject of two prior opinions by the court. On April 19,1988, this court granted defendant’s motion for summary judgment. Jeppesen Sanderson, Inc. v. United States, 14 Cl.Ct. 624 (1988). On January 10, 1990, this court denied plaintiff’s motion for summary judgment based on post-trial jury affidavits. Jeppesen Sanderson, Inc. v. United States, 19 Cl.Ct. 233 (1990). A full statement of the facts can be gleaned from a reading of these prior opinions. Consequently, the facts will be supplemented'and elaborated here only where appropriate.

On September 8, 1973, a World Airways cargo aircraft 802 (World 802), using Jeppesen’s chart in instrument weather conditions,1 crashed into Mt. Dutton near Cold Bay, Alaska. The aircraft made contact with the Air Traffic Control at 5:25 a.m. Pacific Standard Time, about 15 minutes before it crashed, and reported that it was at 31,000 feet and 125 miles from the flight service station at Anchorage, Alaska. Two minutes later, the flight service station gave it an approach clearance as follows: “ATC clears World 802 for an approach to Cold Bay Airport.” This clearance authorized the pilot to execute any one of the [657] authorized instrument approach procedures for the airport. At this point, the aircraft began to descend continuously until it leveled off at 3,500 feet about 35 miles from the airport. The aircraft crashed at this altitude into the side of Mt. Dutton, which has a peak elevation of about 4,961 feet and is located a little more than 19 miles from the airport. All six individuals aboard the aircraft were killed, and the aircraft was destroyed. World Airways and the heirs of the individuals who were killed in the crash instituted tort actions against both Jeppesen and the government.2

Prior to trial, the two defendants entered into a “stipulation of compromise settlement” which provided, inter alia, that Jeppesen relinquished any right it might have to proceed against the government for indemnity or contribution in exchange for an undertaking by the government to indemnify Jeppesen for that part of any judgment covered pursuant to 118 of the agreement.3

The parties subsequently agreed, pursuant to 1110 of the agreement, on special interrogatories to be submitted to the jury in order to fulfill the condition of the compromise settlement. However, the trial judge decided that since neither defendant had filed a cross claim, the indemnification question was not before that court and thus, the interrogatories should not be submitted to the jury, nor should he decide the question himself.

On June 27,1983, after a 49 day trial, the jury rendered a general verdict against Jeppesen in the total amount of $11,630,-000.00. At the close of trial the judge suggested possible alternatives for handling the indemnity issue, but the co-defendants were evidently unable to agree on an alternative procedure. The government then indicated to Jeppesen that it believed the indemnity agreement had become unenforceable and it intended to enter into settlement negotiations with plaintiffs. Afterward the government settled with plaintiffs for 5 million dollars. After adding prejudgment interest, and crediting the government’s settlement, the final judgment against Jeppesen was $12,785,580.81. That amount, plus post-judgment interest, was paid by Jeppesen in 1985.

B. Flight Procedure and Alaska Supplement

Pursuant to 14 C.F.R. § 97, the FAA designs instrument approach procedures for use by pilots landing at an airport when they have no visual reference to the ground and must depend upon instruments for navigation. The FAA’s approach procedures are described in tabular form on FAA Form 8260-5. This standard FAA form is completed by FAA approach procedure specialists who develop the courses, minimum altitudes, and other necessary data to describe the procedure in accordance with 14 C. F.R. § 97. The data are then utilized by both governmental and private chart makers to design pictorial procedure charts which are sold to pilots and operators on a subscription basis. Thus, while the data comprising the procedure are developed by the FAA, the manner in which the data are depicted is left to the discretion and artistry of private cartographers.

In addition to the information contained on Form 8260-5, the FAA publishes a number of other documents which contain information relevant to approach procedures, for example, Notices to Airmen (NO-TAMS). The NOTAM at issue was one regarding usability restrictions on the Cold Bay radio navigation aids, specifically the VORTAC,4 below certain altitudes. This [658] NOT AM was published by the government in a document known as the Alaska Supplement and was in effect at the time of the accident. The NOTAM explicitly warned pilots that the Cold Bay VORTAC’s navigation signal could not be intercepted in the vicinity of the initial approach fix5 beyond 40 nautical miles (DME)6 from the airport at an altitude of less than 5,500 feet. In addition, the Alaska Supplement warns that the VORTAC is unusable below certain other altitudes in certain other zones.

This is a case involving mistaken zones and locations. At trial, evidence was submitted that the aircraft crew must have believed that the aircraft was at a radial of 113-14 degrees, rather than at its actual location on the 087 degree radial, where the VORTAC restriction is 9,000 feet beyond 40 DME. In contrast, the usability restriction between 110 and 160 degrees is 5,500 feet. Consequently, the VORTAC signals received by the aircraft presumably were erroneous.

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Jeppesen Sanderson, Inc. v. United States, 21 Cl. Ct. 655, 1990 U.S. Claims LEXIS 397, 1990 WL 162237 (cc 1990).

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