Peninsula Aviation Services, Inc., V. Erin Oltman

Court of Appeals of Washington·Decided June 12, 2023·No. 83424-0·Published

Opinion

NOTICE: SLIP OPINION

(not the court’s final written decision)

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IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

MARCUS DUELL, an individual, No. 83424-0-I

Plaintiff,

DIVISION ONE

v.

PUBLISHED OPINION

ALASKA AIRLINES, INC., a Delaware Corporation; PENINSULA AVIATION SERVICES, INC., doing business as PenAir, a Delaware corporation;

Petitioners,

DOES 1 through 20,

Defendants,

ERIN OLTMAN, individually and as Personal Representative of the ESTATE OF DAVID OLTMAN, and on behalf of REECE OLTMAN and EVAN OLTMAN,

Respondents,

v.

ALASKA AIR GROUP, INC., and ALASKA AIRLINES, INC.,

Petitioners.

COBURN, J. — The issue before us is whether a Washington court can exercise personal jurisdiction over Peninsula Airways, Inc. (PenAir), a Delaware corporation

Citations and pincites are based on the Westlaw online version of the cited material.

83424-0-I/2

headquartered in Alaska. PenAir depended exclusively on Alaska Airlines, Inc. (Alaska Airlines), a Washington based corporation, to market and sell seats on PenAir flights between Anchorage and Dutch Harbor, Alaska. David Oltman purchased from Alaska Airlines a trip from Wenatchee, Washington to Dutch Harbor. On the third leg of his trip, the PenAir flight crashed while landing, causing his injuries and eventual death. His family sued PenAir in King County Superior Court alleging wrongful death. The court denied PenAir’s motion to dismiss for lack of personal jurisdiction. We affirm.

FACTS

Alaska Airlines’ corporate headquarters and principal place of business is in SeaTac, Washington. PenAir1 was a Delaware corporation headquartered in Anchorage. It did not own any property in Washington or operate any flights to or from Washington. In December 2018, PenAir and Alaska Airlines entered into a capacity purchase agreement (CPA). Under the CPA, PenAir operated flights between Anchorage and Dutch Harbor as “Alaska Airlines” flights. All of the flights were exclusively marketed and sold by Alaska Airlines and the purchase confirmation indicated that all flights were Alaska Airlines flight numbers. The CPA provided Alaska Airlines with a detailed level of control over the operations of PenAir, the pricing and marketing of the flights, the schedule of the flights, the use of Alaska Airlines branded passenger/cargo materials, and the rights to approve the selection of executive level employees of PenAir. Alaska Airlines also retained the right to control what safety

1

Similar to the trial court, we do not consider a declaration from Orin Seybert, former president of Peninsula Airways, Inc. That company went bankrupt in 2018 and was a different legal entity from PenAir, which incorporated in 2018 and purchased Peninsula Airways’ assets.

83424-0-I/3

standards PenAir was required to adhere to in the operation of the Dutch Harbor route. The CPA also had a choice of law provision:

This CPA shall be governed by and interpreted in accordance with the laws of the State of Washington (without regard to principles of conflicts of law) including all matters of construction, validity and performance.

In October 2019, Oltman, a Washington resident, purchased from Alaska Airlines a trip from Wenatchee, Washington to Dutch Harbor, Alaska. Oltman purchased his tickets through Alaska Airlines’ website directly from the airline. The trip had three legs. The first was from Wenatchee to Seattle, the second was from Seattle to Anchorage, and the third was from Anchorage to Dutch Harbor, a flight operated by PenAir. While landing in Dutch Harbor, the pilot was unable to stop on the runway, crashing into ballast rocks at the edge of the harbor. The left propeller struck one of the ballast rocks and sheared off, sending pieces and shrapnel into the fuselage. One or more of the propellers and/or the destroyed fuselage struck Oltman, causing injuries that eventually resulted in his death.

Oltman’s family and estate (collectively the Oltmans) initially sued Alaska Airlines and later amended their complaint adding PenAir as a defendant. PenAir filed a CR 12(b)(2) motion to dismiss asserting that the trial court lacked personal jurisdiction over PenAir. The trial court denied the motion after hearing oral argument and considering pleadings without holding an evidentiary hearing. A commissioner of this court granted PenAir’s request for discretionary review. 2

2

The Oltmans’ case had been consolidated below with a complaint filed by Marcus Duell. While this appeal was pending as to both plaintiffs, a panel of this court granted PenAir’s motion to voluntarily withdraw review as to Duell.

83424-0-I/4

DISCUSSION

This court reviews the denial of a motion to dismiss for lack of personal jurisdiction de novo. Sandhu Farm Inc., v. A&P Fruit Growers Ltd., No 83866-1-I, slip op. at 3 (Wash. Ct. App. Feb. 13, 2023), www.courts.wa.gov/opinions/pdf/838661.pdf. When a motion to dismiss for lack of personal jurisdiction is resolved without an evidentiary hearing, the plaintiff’s burden is only that of a prima facie showing of jurisdiction. State v. LG Elecs., Inc., 186 Wn.2d 169, 176, 375 P.3d 1035 (2016). This court treats the allegations in the complaint as established for purposes of determining jurisdiction. Montgomery v. Air Serv. Corp., 9 Wn. App. 2d 532, 538, 446 P.3d 659 (2019) (citations omitted).

“A court’s exercise of personal jurisdiction over a nonresident defendant requires compliance with both the relevant state long-arm statute and the Fourteenth Amendment’s due process clause.” Downing v. Losvar, 21 Wn. App. 2d 635, 653, 507 P.3d 894 (2022) (citing Daimler AG v. Bauman, 571 U.S. 117, 137, 134 S. Ct. 746, 187 L. Ed. 2d 624 (2014)). “Because a state court’s assertion of jurisdiction exposes defendants to the state’s coercive power, personal jurisdiction falls within the parameters of the clause.” Downing, 21 Wn. App. 2d at 655. The relevant portion of Washington’s “long-arm” statute permits jurisdiction over:

(1) Any person, whether or not a citizen or resident of this state, who in person or through an agent does any of the acts in this section enumerated, thereby submits said person, . . . to the jurisdiction of the courts of this state as to any cause of action arising from the doing of said acts:

(a) The transaction of any business within this state[.]

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