Sikorsky Aircraft Corp. v. Lloyds TSB General Leasing (No. 20) Ltd.

774 F. Supp. 2d 431, 2011 U.S. Dist. LEXIS 35861, 2011 WL 1313310
CourtDistrict Court, D. Connecticut
DecidedApril 1, 2011
DocketCivil Action 3:10-CV-00954 (CSH)
StatusPublished
Cited by8 cases

This text of 774 F. Supp. 2d 431 (Sikorsky Aircraft Corp. v. Lloyds TSB General Leasing (No. 20) Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sikorsky Aircraft Corp. v. Lloyds TSB General Leasing (No. 20) Ltd., 774 F. Supp. 2d 431, 2011 U.S. Dist. LEXIS 35861, 2011 WL 1313310 (D. Conn. 2011).

Opinion

RULING ON DEFENDANTS’ MOTION TO DISMISS PLAINTIFFS’ THIRD AMENDED COMPLAINT

HAIGHT, Senior District Judge:

This action for declaratory relief arises out of the crash of a helicopter into international high seas waters of the Atlantic Ocean during a flight between St. John’s, Newfoundland, Canada and an offshore oil production facility. The lead plaintiff, an American company, had contracted with a Canadian company to build the helicopter and sell it to that Canadian company. Plaintiff and an affiliate seek declarations that the named defendants, the Canadian buyer’s successors in interest, subsequent helicopter users, and hull insurers covering the helicopter against loss, cannot sue plaintiffs in contract or tort, in Canada or anywhere other than Connecticut, for damages caused by the crash. Plaintiffs ask this Court to adjudicate the rights and liabilities of the parties, and to enjoin the defendants from proceeding against plaintiffs in Canadian courts or elsewhere in the world. Plaintiffs assert that this Court has subject matter jurisdiction under (1) diversity of citizenship and (2) the admiralty law of the United States. They invoke Rule 57, Fed.R.Civ.P., and the Declaratory Judgment Act, 28 U.S.C. §§ 2201 and 2202.

*433 The lead plaintiff filed the instant action in this Court for declaratory relief on June 16, 2010. On June 24, 2010, the defendants in this case filed an action against the plaintiffs and the Canadian Ministry of Transport in the Supreme Court of Newfoundland and Labrador, Canada, asserting claims sounding in tort and breach of contract for damages caused by the helicopter crash.

Defendants herein now move this Court to decline to exercise jurisdiction over the plaintiffs’ declaratory judgment action, and to dismiss the action under Rule 12(b)(1), Fed.R.Civ.P., for lack of subject matter jurisdiction. The lead defendant also moves to dismiss the action against it under Rule 12(b)(2), for lack of personal jurisdiction. Plaintiffs resist these motions.

I. BACKGROUND

A. The Third Party Complaint’s Factual Allegations

According to plaintiffs’ Third Amended Complaint (“TAC”) [Doc. 20], whose well-pleaded factual allegations must be accepted on this motion, Plaintiff Sikorsky Aircraft Corporation (“Sikorsky”) is a Delaware corporation with its principal place of business in Connecticut. TAC ¶ 1. Sikorsky builds helicopters and sells them to those desiring to buy them. On January 29, 2004, Sikorsky and CHC Helicopter Corporation (“CHC”), a Canadian corporation, entered into an S-92 New Helicopter Sales Agreement, contract no. 921003038 (“the 2004 Sales Contract”), whereby CHC agreed to buy from Sikorsky 12 new S-92 helicopters. TAC ¶¶ 16-17.

The 2004 Sales Contract provided that Sikorsky would present to CHC all S-92s at Sikorsky’s facility in Connecticut for inspection, acceptance, delivery and title transfer; CHC was entitled to a test flight for each helicopter before taking delivery; CHC would evidence its acceptance of a helicopter by executing a Certificate of Helicopter Acceptance; the contract would be interpreted in accordance with the plain English meaning of its terms and construed under Connecticut law; notices would be sent to Sikorsky at its Stamford, Connecticut office; the U.S. Federal Aviation Administration (“FAA”) would grant certificates for the helicopters, which would be manufactured in accordance with FAA regulations; and Sikorsky would train CHC’s pilots at a Sikorsky facility in Florida. TAC §§ 18-25.

The 2004 Sales Contract contained an express limited warranty, a disclaimer of implied warranties, and an exclusion of certain other remedies. TAC ¶ 26. On November 10, 2005, Sikorsky and CHC agreed to amend the 2004 Sales Contract so that the 2004 express warranty began to run on “final acceptance of the Completion Services by the Customer.” TAC ¶ 27.

Apparently the first helicopter built for delivery under the 2004 Sales Contract was designated model S-92A and bore serial number 920048. This is the aircraft involved in the crash forming the subject matter of this action. I will refer to it hereafter as “the Helicopter.” On October 27, 2006, Sikorsky, CHC and the lead Defendant in this action, Lloyds TSB General Leasing (NO. 20) Limited (“Lloyds 20”), signed a Novation Agreement (“the 2006 Novation”). Lloyds 20 is a company incorporated under the laws of England and Wales, with a registered office in London, U.K. The 2006 Novation recited the agreement of these three parties that Lloyds 20 would buy the Helicopter from Sikorsky “in place of CHC” in order that CHC Helicopters International, Inc. (“CHII”) could hire the Helicopter from Lloyds 20 under the terms of a hire purchase agreement to be entered into between Lloyds 20 *434 and CHII. TAC ¶¶ 3, 30. The 2006 Novation further provided that Lloyds 20 would “assume the rights and liabilities of CHC” under the 2004 Sales Contract with respect to the Helicopter; perform the obligations of CHC under that contract; be “bound by the terms” of that contract “in every way” as if Lloyd’s 20 had been a party to the 2004 Sales Contract with respect to the Helicopter “as the buyer as at the date it was executed”; and Lloyds 20 appointed CHC as its agent to perform all obligations and exercise all Lloyds 20’s rights under the 2004 Sales Contract, other than the obligation to pay the purchase price, the right to take title to the Helicopter, and any rights that CHII would perform on behalf of Lloyd’s 20. TAC ¶¶ 31-34.

On October 27, 2006, Lloyds 20 and CHII, a Canadian company, signed a Hire Purchase Agreement for the Helicopter which characterized Lloyds 20 as the owner of the Helicopter and recited that the Helicopter was the subject of the 2004 Sales Contract between CHC and Sikorsky. TAC ¶¶ 35-37.

On March 13, 2007, CHII and Defendant Cougar Helicopter Inc. (“Cougar”), a Canadian company with its principal place of business at St. John’s International Airport, Newfoundland and Labrador, signed an Aircraft Lease General Terms Agreement for the Helicopter which provided that CHII would make available to Cougar the benefit of all Sikorsky’s warranties with respect to the repair or remedy of any defect in the Helicopter to the extent permitted to do so. On the same date, CHII and Cougar signed an Aircraft Specific Lease the Agreement which recited that Lloyds 20 was the owner of the Helicopter, and required Cougar to fix and maintain a nameplate in the aircraft’s cockpit or cabin stating that the Helicopter was owned by Lloyds 20, leased to CHII, and operated by Cougar. TAC ¶¶ 4, 38-42.

On March 31, 2007, pursuant to the 2004 Sales Contract, Cougar executed for and on behalf of Lloyds 20 a Certificate of Completion Services Acceptance with respect to the Helicopter, certifying that the aircraft had completed 10.7 flight hours and accepting delivery under the contract in Connecticut. On April 26-27, 2007, Sikorsky and CHC reaffirmed by amendment that the 2004 Sales Contract, except as modified therein, remained in full force and effect, unaffected by any other agreement. TAC ¶¶ 43-44.

On March 12, 2009, while on a flight from St.

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774 F. Supp. 2d 431, 2011 U.S. Dist. LEXIS 35861, 2011 WL 1313310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sikorsky-aircraft-corp-v-lloyds-tsb-general-leasing-no-20-ltd-ctd-2011.