Russell v. SNFA

CourtAppellate Court of Illinois
DecidedMarch 31, 2011
Docket1-09-3012 Rel
StatusPublished

This text of Russell v. SNFA (Russell v. SNFA) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Russell v. SNFA, (Ill. Ct. App. 2011).

Opinion

FIRST JUDICIAL DISTRICT SIXTH DIVISION MARCH 31, 2011

No. 1-09-3012

JOHN RUSSELL, as Executor of the Estate of ) Appeal from the Michael Russell, Deceased, ) Circuit Court of ) Cook County. Plaintiff-Appellant, ) v. ) No. 05 L 1112 ) SNFA, ) Honorable ) Jeffrey Lawrence, Defendant-Appellee. ) Judge Presiding.

JUSTICE ROBERT E. GORDON delivered the judgment of the court, with opinion. Justices Cahill and McBride concurred in the judgment and opinion.

OPINION

Plaintiff’s brother died during a helicopter crash in Illinois. Defendant SNFA,

a French company, made a part for that helicopter, which plaintiff claims was

defective and the cause of the crash. Defendant moved to dismiss on the ground

that Illinois had no jurisdiction over it, and the trial court dismissed for lack of

personal jurisdiction. For the reasons discussed below, we reverse and remand for

further proceedings consistent with this opinion. No. 1-09-3012

BACKGROUND

I. The Parties

On January 28, 2003, Michael Russell (Russell) died during a helicopter

crash in Illinois. Russell, who was the pilot and sole occupant, was working for Air

Angels, a medical air service that did business primarily in Illinois and, in particular,

Cook County. Russell died leaving a wife and two sons. Plaintiff John Russell

(plaintiff) is Michael Russell’s brother and the executor of Michael Russell’s estate.

In his complaint, plaintiff alleged that the crash was caused, specifically, by

the failure of one of the helicopter’s tail-rotor drive-shaft bearings, which defendant

manufactured. Plaintiff alleged that, as a result of this failure, the drive shaft

fractured, leaving the tail rotor inoperable. The helicopter then spun out of control,

crashing to the ground.

Defendant is a French manufacturer of both custom-made aerospace bearings

and helicopter tail-rotor bearings.

II. The Product at Issue

In its brief to this court, defendant admitted the following facts.

The helicopter involved in the accident was an A 109 helicopter

manufactured by Agusta S.p.A. (Agusta) in Italy in 1989. The helicopter contained

2 No. 1-09-3012

seven tail-rotor bearings manufactured by defendant. These bearings were custom-

made by defendant for use in Agusta’s A 109 helicopters. The helicopter in question

had several owners and operators. In 1998, a German company sold it to Metro

Aviation in Louisiana, which in turn sold it to Air Angels, which was Russell’s

employer at the time of the crash.

In 1998 and again in 2002, M etro Aviation replaced some of the bearings.

The replacement bearings had been manufactured by defendant in France, and then

sold to Agusta in Italy, which in turn sold them to its American subsidiary, Agusta

Aerospace Corporation (Agusta AC), which then sold them to Metro Aviation in

Louisiana. Defendant acknowledges that Agusta AC sells SNFA’s custom-made

bearings to owners of A 109 aircraft around the world.

Specifically for Agusta, defendant manufactures several different custom-

made tail-rotor bearings. Agusta provides defendant with precise specifications, and

defendant manufactures the bearings according to those specifications. Defendant

acknowledges that it knows that its custom-made tail-rotor bearings are

incorporated by Agusta into helicopters and also sold as individual replacement

parts.

Defendant states that it is in the business of providing custom-made bearings,

3 No. 1-09-3012

mostly to European customers. Defendant manufactures custom-made bearings for

both the aerospace industry and for helicopters. Defendant claims that it has no

American customers for its helicopter bearings, but admits that it does have three

American customers for its aerospace bearings: (1) Rolls Royce, a jet-engine

manufacturer; (2) Honeywell, an engine manufacturer; and (3) Hamilton Sundstrand,

a subsidiary of United Technologies Corporation.

III. Orders Appealed From

On August 26, 2010, the trial court granted defendant’s motion to dismiss for

lack of personal jurisdiction, but it stayed the order. The trial court’s written order

stated that its ruling was “made in accordance w/ [sic] transcript.” In open court,

the trial court explained, as follows, why it rejected plaintiff’s claim that defendant

was doing business in Illinois:

“Now, in the case before me, there is no office,

there is no showing whatsoever of the derivation of a

substantial portion of overall business in Illinois.

There is only the most minimal showing of physical

presence in Illinois. Two visits are discussed, but only

one of those visits falls within the parameter of which the

4 No. 1-09-3012

cases say the Court should consider, in determining the

existence of general jurisdiction. ***

So, I selected a slightly broader period of two-and-

a-half years, but the first visit was in 2000, and the

accident didn’t occur [until] 2003.

So, during the relevant period, we have a single

visit of a SNFA representative to Hamilton Sundstrand in

Rockford, and we have invoicing done through Rockford,

although the product, itself, was shipped to San Diego.

At best, we have a decent dollar amount of sales

reflected in the invoices, not quite a million dollars, if I

rely on that figure in that contract that I mentioned.

Whereas, in Riemer [v. KSL Recreation Corp., 348

Ill. App. 3d 26 (2004)], $6 million in sales by a much

smaller company than SNFA were held insufficient, and

the Court found a lack of general jurisdiction in that case.

So, my conclusion is that the plaintiff in this case

has failed to meet its burden of showing continuous and

5 No. 1-09-3012

systematic presence in Illinois.”

In open court, the trial court also explained why it rejected plaintiff’s claim that the

court had jurisdiction over defendant due to the fact that the helicopter crashed in

Illinois:

“[I]f the plaintiff was to make a case at all, it had to be

based on general jurisdiction, simply because the

[helicopter] accident didn’t arise out of their Illinois

contacts.

So, it doesn’t meet – putting aside the question of

purposefully-directed activity, [the accident] simply did

not arise out of the Illinois activity.”

On September 24, 2008, the trial court found that there was no just reason to

delay either enforcement or appeal of its ruling. Plaintiff filed a notice of appeal,

appealing the orders dated August 26, 2009, and September 24, 2009, as well as

earlier orders related to discovery. This appeal followed.

ANALYSIS

I. Standard of Review

“The plaintiff bears the burden of establishing a prima facie basis upon

6 No. 1-09-3012

which jurisdiction over an out-of-state resident may be exercised.” Roiser v.

Cascade Mountain, Inc., 367 Ill. App. 3d 559, 561 (2006); Alderson v. Southern

Co., 321 Ill. App. 3d 832, 846 (2001); Khan v. Van Remmen, Inc., 325 Ill. App. 3d

49, 53-54 (2001). “If jurisdictional facts remain in controversy, then the court must

conduct a hearing to resolve those disputes.” Knaus v. Guidry, 389 Ill. App. 3d

804, 813 (2009). “When the circuit court decides a jurisdictional question solely on

the basis of documentary evidence” and without an evidentiary hearing, as it did in

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