LNS Enterprises LLC v. Continental Motors Incorporated

District Court, D. Arizona·Decided June 3, 2020·No. 2:19-cv-05221·Unknown

Opinion

WO

LNS Enterprises LLC, et al., No. CV-19-05221-PHX-SMB

Plaintiffs, ORDER

v.

Continental Motors Incorporated, et al.,

Defendants. Pending before the Court are four motions to dismiss for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). (Docs. 10, 15, 19, 51.) The movants are Defendants Continental Motors Inc., Leading Edge Aviation Inc., Kelly Aerospace Thermal Systems LLC, and Textron Aviation Inc.1 Plaintiffs Peter and Lynn Spanganberg, LNS Enterprises LLC, and Sonoma Oral and Facial Surgery PLLC responded, (Docs. 29, 34, 44, 55), and Defendants replied, (Docs. 38, 42, 54, 57). Oral argument was held on May 20, 2020. (Doc. 80.) Having considered oral argument, the pleadings, and relevant case law, the Court will grant the motions and dismiss these Defendants. On July 31, 2017, a Columbia 400 N8725 aircraft carrying Peter Spanganberg and two others was forced to make an emergency landing in a field near Chandler, Arizona

1 The other, non-moving defendants are Aviation Industry Corporation of China, Columbia Aircraft Manufacture Corporation, Cessna Aircraft Company, Chandler Aviation Services Inc., Skylancer Aviation Services Inc., Lone Mountain Aviation Inc., and Falcon Executive Aviation Inc. For purposes here, the movants are referred to as “Defendants.” after the engine failed midflight. (Compl.2 ¶¶ 7, 65, 88-90.) The National Transportation Safety Board’s (“NTSB”) post-incident inspection report indicates that the aircraft’s underside was covered in oil and the engine had a hole in it, consistent with decreased oil and manifold pressure that would cause in-flight engine failure. (Id. ¶ 91.) Because Spanganberg had to make an emergency landing, the aircraft suffered significant structural damage and total engine loss. (Id. ¶ 92.) About a year before the emergency landing, Spanganberg bought the 2006 aircraft, equipped with a Continental Motors TSIO-550-C engine, from an unidentified individual to fly within Arizona for work. (Id. ¶¶ 65, 71.) The aircraft was serviced in Oregon by Leading Edge Aviation Inc. (“LEA”), an Oregon corporation with its principal place of business in Oregon, at some point before the incident,3 (id. ¶¶ 55-56, 83; Doc. 15-1 at 1), and allegedly manufactured, designed, and distributed by Cessna Aircraft Company (“Cessna”) and its parent company, Textron Aviation Inc. (“Textron”),4 both Kansas corporations with their principal places of business in Kansas, (Compl. ¶¶ 35-38). The aircraft’s engine was designed, manufactured, and distributed by Continental Motors Inc. (“CMI”), a Delaware corporation with its principal place of business in Alabama, (id. ¶¶ 9-12, 71-74), while Kelly Aerospace Thermal Systems LLC (“KATS”), a Delaware corporation with its principal place of business in Ohio, designed, manufactured, and distributed the aircraft’s deicer system, (id. ¶¶ 26-28, 68-69). Unlike Plaintiffs Peter and Lynn Spanganberg, LNS Enterprises LLC, and Sonoma Oral and Facial Surgery PLLC, which are each located in Arizona, none of these entities are incorporated, operated, or headquartered here. (Id. ¶¶ 6-9, 26, 35-36, 55.) Two years following the incident, Plaintiffs sued these Defendants and others in 2 Plaintiffs’ complaint is attached to the Notice of Removal. (See Doc. 1-3 at 12-32.) 3 Other defendant entities, ones uninvolved in these motions, also serviced the aircraft sometime before the incident. (See id. ¶¶ 78-82, 84-86.) 4 The complaint alleges that Textron “is a parent company or holding company for Cessna Aircraft Company and/or owns and or does business as Cessna.” (Compl. ¶ 36.) Textron relatedly argues that “Cessna is not properly named as a separate defendant” because “[it] was merged into [Textron] and ceased to exist as a separate corporate entity.” (Doc. 19 at 2 n.1.) Because Plaintiffs do not contest this assertion, the Court refers to both entities as Textron and treats its motion to dismiss as one concerning both parties. Maricopa County Superior Court before it was removed to this Court on September 19, 2019. (Doc. 1.) Plaintiffs’ complaint alleges claims of negligence, negligence per se, strict products liability, and breach of warranty against the various fifteen original Defendants. (Compl. ¶¶ 96-156.) Four of the remaining Defendants now move to dismiss the complaint, which alleges that “[t]his Court has jurisdiction . . . over [them],” (id. ¶ 1), for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). Before trial, a defendant may move to dismiss the complaint for lack of personal jurisdiction. Data Disc, Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1285 (9th Cir. 1977); Fed. R. Civ. P. 12(b)(2). Plaintiff bears the burden of establishing personal jurisdiction, Ziegler v. Indian River Cty., 64 F.3d 470, 473 (9th Cir. 1995), and “need only make a prima facie showing of jurisdictional facts” “in the absence of an evidentiary hearing,” Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir. 1990) (citation omitted). In determining whether a plaintiff has established a prima facie case for personal jurisdiction over a defendant, the complaint’s uncontroverted allegations are accepted as true and “conflicts between the facts contained in the parties’ affidavits must be resolved in [plaintiff’s] favor.” Am. Tel. & Tel. Co. v. Compagnie Bruxelles Lambert, 94 F.3d 586, 588 (9th Cir. 1996). “When no federal statute governs personal jurisdiction, the district court applies the law of the forum state.” Freestream Aircraft (Bermuda) Ltd. v. Aero Law Grp., 905 F.3d 597, 602 (9th Cir. 2018). Arizona exerts personal jurisdiction to the “maximum extent permitted by the Arizona Constitution and the United States Constitution.” Ariz. R. Civ. P. 4.2(a); see, e.g., A. Uberti and C. v. Leonardo, 892 P.2d 1354, 1358 (Ariz. 1995). Thus, analyzing personal jurisdiction under Arizona law and federal due process are identical. Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800–01 (9th Cir. 2004). To comport with due process, “[a]lthough a nonresident's physical presence within the territorial jurisdiction of the court is not required, the nonresident generally must have certain minimum contacts . . . such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Walden v. Fiore, 571 U.S. 277, 283 (2014) (internal quotation marks and citations omitted). This requirement ensures “that a defendant be haled into court in a forum State based on his own affiliation with the State, not based on the ‘random, fortuitous, or attenuated’ contacts he makes by interacting with other persons affiliated with the State.” Id. at 286 (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475 (1985)). “Depending on the strength of those contacts, there are two forms that personal jurisdiction may take: general and specific.” Picot v. Weston, 780 F.3d 1206, 1211 (9th Cir. 2015) (citation omitted); Cybersell, Inc. v. Cybersell, Inc., 130 F.3d 414, 416 (9th Cir. 1997). General jurisdiction exists when the defendant has “continuous and systematic” contacts with the forum state, whereas specific jurisdiction exists when the controversy arises from or is related to the defendant’s contacts with the forum state. See Helicopteros Nacionales de Colombia, S.A. v. Hall,

LNS Enterprises LLC v. Continental Motors Incorporated, (D. Ariz. 2020).

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