Lns Enterprises LLC v. Continental Motors, Inc.

22 F.4th 852
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 12, 2022
Docket20-16897
StatusPublished
Cited by97 cases

This text of 22 F.4th 852 (Lns Enterprises LLC v. Continental Motors, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lns Enterprises LLC v. Continental Motors, Inc., 22 F.4th 852 (9th Cir. 2022).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

LNS ENTERPRISES LLC, a limited No. 20-16897 liability company; SONOMA ORAL AND FACIAL SURGERY PLLC, a D.C. No. professional limited liability 2:19-cv-05221- company; PETER SPANGANBERG; SMB LYNN SPANGANBERG, Plaintiffs-Appellants, OPINION v.

CONTINENTAL MOTORS, INC., a Delaware corporation; TEXTRON AVIATION, INC., a Kansas corporation, Defendants-Appellees,

and

COLUMBIA AIRCRAFT MANUFACTURING CORPORATION; CESSNA AIRCRAFT COMPANY; CHANDLER AVIATION SERVICES, INC.; VAN BORTEL AIRCRAFT, INC.; SKYLANCER AVIATION LLC; LONE MOUNTAIN AVIATION, INC.; FALCON EXECUTIVE AVIATION, INC.; PROFESSIONAL AIR; UNKNOWN PARTIES, Defendants. 2 LNS ENTERS V. CONTINENTAL MOTORS

Appeal from the United States District Court for the District of Arizona Susan M. Brnovich, District Judge, Presiding

Argued and Submitted November 18, 2021 Phoenix, Arizona

Filed January 12, 2022

Before: Ronald Lee Gilman, * Consuelo M. Callahan, and Daniel A. Bress, Circuit Judges.

Opinion by Judge Gilman

SUMMARY **

Personal Jurisdiction

The panel affirmed the district court’s decision to dismiss a civil action arising from a nonfatal airplane crash for lack of personal jurisdiction and to deny plaintiffs’ request for jurisdictional discovery.

Plaintiffs conceded that the Arizona district court lacked general jurisdiction over two defendants, Continental Motors, Inc., and Textron Aviation, Inc. Citing Ford Motor

* The Honorable Ronald Lee Gilman, United States Circuit Judge for the U.S. Court of Appeals for the Sixth Circuit, sitting by designation. ** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. LNS ENTERS V. CONTINENTAL MOTORS 3

Co. v. Montana Eighth Judicial Dist. Court, 141 S. Ct. 1017 (2021), the panel held that plaintiffs also failed to establish a prima facie case of specific jurisdiction over either defendant because they did not demonstrate that defendants had sufficient minimum contacts with Arizona that were related to plaintiffs’ claims.

The panel also held that the district court properly denied plaintiffs’ request for jurisdictional discovery with regard to defendants’ contacts with Arizona because the request amounted to nothing more than a hunch that discovery might reveal facts relevant to the jurisdictional analysis.

COUNSEL

Brian J. Lawler (argued), Pilot Law P.C., San Diego, California; Robert K. Lewis, Amy M. Lewis, and Christopher A. Treadway, Lewis & Lewis Trial Lawyers, Phoenix, Arizona; for Plaintiffs-Appellants.

Laurie A. Salita (argued), Malvern, Pennsylvania; Will S. Skinner, Woodland Hills, California; for Defendant- Appellee Continental Motors, Inc.

Tracy H. Fowler (argued), Snell & Wilmer LLP, Salt Lake City, Utah; Rachael Peters Pugel, Snell & Wilmer LLP, Phoenix, Arizona; for Defendant-Appellee Textron Aviation, Inc. 4 LNS ENTERS V. CONTINENTAL MOTORS

OPINION

GILMAN, Circuit Judge:

This appeal involves claims against Defendants Continental Motors, Inc. (Continental) and Textron Aviation, Inc. (Textron) arising from a nonfatal airplane crash. Plaintiffs—the pilot, his wife, and two companies controlled by the couple—challenge the district court’s decision to grant Continental’s and Textron’s motions to dismiss for lack of personal jurisdiction and to deny Plaintiffs’ request for jurisdictional discovery.

At this point in the litigation, Plaintiffs have conceded that Arizona does not have general jurisdiction over either Defendant. Plaintiffs have also failed to establish a prima facie case of specific jurisdiction over either Defendant because Plaintiffs have not demonstrated that Defendants had sufficient minimum contacts with Arizona that are related to Plaintiffs’ claims. And Plaintiffs’ reasons for seeking jurisdictional discovery with regard to Defendants’ contacts with Arizona were properly deemed insufficient because the request amounted to nothing more than a hunch that discovery might reveal facts relevant to the jurisdictional analysis. We therefore AFFIRM the district court’s decision to dismiss this case for lack of personal jurisdiction and to deny the request for jurisdictional discovery.

I. BACKGROUND

Plaintiffs purchased what they describe as a “2006 Cessna Columbia” aircraft in 2016, equipped with a Continental engine, from an unidentified individual. The aircraft was used by Plaintiffs to fly within Arizona for work. On July 31, 2017, Sonoma Oral and Facial Surgery’s LNS ENTERS V. CONTINENTAL MOTORS 5

principal, Peter Spanganberg, was flying the plane when he was forced to make an emergency crash landing during the flight. As a result of the emergency landing, the aircraft suffered significant structural damage and the complete loss of its engine, but fortunately no one was killed in the crash.

Plaintiffs allege that various actors were involved in the manufacture and maintenance of the aircraft. The actors relevant to this appeal are Continental and Textron. Continental manufactured an engine in 2006 and shipped it to Columbia Aircraft Manufacturing Corporation (Columbia) in Oregon, where it was installed on the aircraft in question. Also in 2006, Cessna Aircraft Company (Cessna) acquired certain assets from Columbia, which was the original manufacturer of the Plaintiffs’ aircraft. Cessna did not assume Continental’s liabilities apart from the express, written aircraft warranties still in effect at the time of acquisition. In 2014, Cessna became a subsidiary of Textron, and Cessna was fully merged into Textron in 2017.

Plaintiffs filed the operative complaint in the Superior Court of the State of Arizona for Maricopa County on July 30, 2019. Their claims included negligence, negligence per se, strict products liability, and breach of warranty against 15 defendants. In the complaint, Plaintiffs alleged that Continental designed, manufactured, and distributed the engine, and that Continental was responsible for all parts and components of the engine and for all recalls and repair orders related thereto. Plaintiffs also alleged that Textron is the parent company or holding company for Cessna Aircraft Company, and that Cessna was engaged in the design, manufacture, distribution, and testing of the aircraft. But neither the aircraft nor its engine were manufactured, sold, or serviced in Arizona by either Defendant. 6 LNS ENTERS V. CONTINENTAL MOTORS

The case was removed to the United States District Court for the District of Arizona on September 19, 2019. Four of the 15 original defendants—including Continental and Textron—moved to dismiss the complaint for lack of personal jurisdiction. In connection with their motions to dismiss, Continental attached a declaration and Textron attached an affidavit from their respective corporate officers identifying their connections (or lack thereof) to Arizona. Plaintiffs opposed the motions and requested jurisdictional discovery as to Defendants if the court found that there was no personal jurisdiction.

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22 F.4th 852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lns-enterprises-llc-v-continental-motors-inc-ca9-2022.