LNS Enterprises LLC v. Continental Motors Incorporated

CourtDistrict Court, D. Arizona
DecidedJune 3, 2020
Docket2:19-cv-05221
StatusUnknown

This text of LNS Enterprises LLC v. Continental Motors Incorporated (LNS Enterprises LLC v. Continental Motors Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona 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 Incorporated, (D. Ariz. 2020).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

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

10 Plaintiffs, ORDER

11 v.

12 Continental Motors Incorporated, et al.,

13 Defendants. 14 15 Pending before the Court are four motions to dismiss for lack of personal 16 jurisdiction under Federal Rule of Civil Procedure 12(b)(2). (Docs. 10, 15, 19, 51.) The 17 movants are Defendants Continental Motors Inc., Leading Edge Aviation Inc., Kelly 18 Aerospace Thermal Systems LLC, and Textron Aviation Inc.1 Plaintiffs Peter and Lynn 19 Spanganberg, LNS Enterprises LLC, and Sonoma Oral and Facial Surgery PLLC 20 responded, (Docs. 29, 34, 44, 55), and Defendants replied, (Docs. 38, 42, 54, 57). Oral 21 argument was held on May 20, 2020. (Doc. 80.) Having considered oral argument, the 22 pleadings, and relevant case law, the Court will grant the motions and dismiss these 23 Defendants. 24 I. BACKGROUND 25 On July 31, 2017, a Columbia 400 N8725 aircraft carrying Peter Spanganberg and 26 two others was forced to make an emergency landing in a field near Chandler, Arizona

27 1 The other, non-moving defendants are Aviation Industry Corporation of China, Columbia Aircraft Manufacture Corporation, Cessna Aircraft Company, Chandler Aviation Services 28 Inc., Skylancer Aviation Services Inc., Lone Mountain Aviation Inc., and Falcon Executive Aviation Inc. For purposes here, the movants are referred to as “Defendants.” 1 after the engine failed midflight. (Compl.2 ¶¶ 7, 65, 88-90.) The National Transportation 2 Safety Board’s (“NTSB”) post-incident inspection report indicates that the aircraft’s 3 underside was covered in oil and the engine had a hole in it, consistent with decreased oil 4 and manifold pressure that would cause in-flight engine failure. (Id. ¶ 91.) Because 5 Spanganberg had to make an emergency landing, the aircraft suffered significant structural 6 damage and total engine loss. (Id. ¶ 92.) 7 About a year before the emergency landing, Spanganberg bought the 2006 aircraft, 8 equipped with a Continental Motors TSIO-550-C engine, from an unidentified individual 9 to fly within Arizona for work. (Id. ¶¶ 65, 71.) The aircraft was serviced in Oregon by 10 Leading Edge Aviation Inc. (“LEA”), an Oregon corporation with its principal place of 11 business in Oregon, at some point before the incident,3 (id. ¶¶ 55-56, 83; Doc. 15-1 at 1), 12 and allegedly manufactured, designed, and distributed by Cessna Aircraft Company 13 (“Cessna”) and its parent company, Textron Aviation Inc. (“Textron”),4 both Kansas 14 corporations with their principal places of business in Kansas, (Compl. ¶¶ 35-38). The 15 aircraft’s engine was designed, manufactured, and distributed by Continental Motors Inc. 16 (“CMI”), a Delaware corporation with its principal place of business in Alabama, (id. ¶¶ 17 9-12, 71-74), while Kelly Aerospace Thermal Systems LLC (“KATS”), a Delaware 18 corporation with its principal place of business in Ohio, designed, manufactured, and 19 distributed the aircraft’s deicer system, (id. ¶¶ 26-28, 68-69). Unlike Plaintiffs Peter and 20 Lynn Spanganberg, LNS Enterprises LLC, and Sonoma Oral and Facial Surgery PLLC, 21 which are each located in Arizona, none of these entities are incorporated, operated, or 22 headquartered here. (Id. ¶¶ 6-9, 26, 35-36, 55.) 23 Two years following the incident, Plaintiffs sued these Defendants and others in 24 2 Plaintiffs’ complaint is attached to the Notice of Removal. (See Doc. 1-3 at 12-32.) 25 3 Other defendant entities, ones uninvolved in these motions, also serviced the aircraft sometime before the incident. (See id. ¶¶ 78-82, 84-86.) 26 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 27 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 28 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. 1 Maricopa County Superior Court before it was removed to this Court on September 19, 2 2019. (Doc. 1.) Plaintiffs’ complaint alleges claims of negligence, negligence per se, strict 3 products liability, and breach of warranty against the various fifteen original Defendants. 4 (Compl. ¶¶ 96-156.) Four of the remaining Defendants now move to dismiss the complaint, 5 which alleges that “[t]his Court has jurisdiction . . . over [them],” (id. ¶ 1), for lack of 6 personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). 7 II. LEGAL STANDARD 8 Before trial, a defendant may move to dismiss the complaint for lack of personal 9 jurisdiction. Data Disc, Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1285 (9th Cir. 10 1977); Fed. R. Civ. P. 12(b)(2). Plaintiff bears the burden of establishing personal 11 jurisdiction, Ziegler v. Indian River Cty., 64 F.3d 470, 473 (9th Cir. 1995), and “need only 12 make a prima facie showing of jurisdictional facts” “in the absence of an evidentiary 13 hearing,” Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir. 1990) (citation omitted). In 14 determining whether a plaintiff has established a prima facie case for personal jurisdiction 15 over a defendant, the complaint’s uncontroverted allegations are accepted as true and 16 “conflicts between the facts contained in the parties’ affidavits must be resolved in 17 [plaintiff’s] favor.” Am. Tel. & Tel. Co. v. Compagnie Bruxelles Lambert, 94 F.3d 586, 588 18 (9th Cir. 1996). 19 “When no federal statute governs personal jurisdiction, the district court applies the 20 law of the forum state.” Freestream Aircraft (Bermuda) Ltd. v. Aero Law Grp., 905 F.3d 21 597, 602 (9th Cir. 2018). Arizona exerts personal jurisdiction to the “maximum extent 22 permitted by the Arizona Constitution and the United States Constitution.” Ariz. R. Civ. P. 23 4.2(a); see, e.g., A. Uberti and C. v. Leonardo, 892 P.2d 1354, 1358 (Ariz. 1995). Thus, 24 analyzing personal jurisdiction under Arizona law and federal due process are identical. 25 Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800–01 (9th Cir. 2004). 26 To comport with due process, “[a]lthough a nonresident's physical presence within 27 the territorial jurisdiction of the court is not required, the nonresident generally must have 28 certain minimum contacts . . . such that the maintenance of the suit does not offend 1 traditional notions of fair play and substantial justice.” Walden v. Fiore, 571 U.S. 277, 283 2 (2014) (internal quotation marks and citations omitted). This requirement ensures “that a 3 defendant be haled into court in a forum State based on his own affiliation with the State, 4 not based on the ‘random, fortuitous, or attenuated’ contacts he makes by interacting with 5 other persons affiliated with the State.” Id. at 286 (quoting Burger King Corp. v. Rudzewicz, 6 471 U.S. 462, 475 (1985)). “Depending on the strength of those contacts, there are two 7 forms that personal jurisdiction may take: general and specific.” Picot v. Weston, 780 F.3d 8 1206, 1211 (9th Cir. 2015) (citation omitted); Cybersell, Inc. v. Cybersell, Inc., 130 F.3d 9 414, 416 (9th Cir. 1997).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
United States v. Rosen
130 F.3d 5 (First Circuit, 1997)
Torres v. Commonwealth of PR
485 F.3d 5 (First Circuit, 2007)
Goodyear Dunlop Tires Operations, S. A. v. Brown
131 S. Ct. 2846 (Supreme Court, 2011)
J. McIntyre Machinery, Ltd. v. Nicastro
131 S. Ct. 2780 (Supreme Court, 2011)
A. UBERTI & C. v. Leonardo in & for PIMA
892 P.2d 1354 (Arizona Supreme Court, 1995)
Boschetto v. Hansing
539 F.3d 1011 (Ninth Circuit, 2008)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)
Flood v. Bank of America Corporation
780 F.3d 1 (First Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
LNS Enterprises LLC v. Continental Motors Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lns-enterprises-llc-v-continental-motors-incorporated-azd-2020.