Sky Fun 1 v. Schuttloffel

27 P.3d 361, 2001 WL 736487
CourtSupreme Court of Colorado
DecidedJuly 2, 2001
Docket00SC291
StatusPublished
Cited by16 cases

This text of 27 P.3d 361 (Sky Fun 1 v. Schuttloffel) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sky Fun 1 v. Schuttloffel, 27 P.3d 361, 2001 WL 736487 (Colo. 2001).

Opinion

Justice HOBBS

delivered the Opinion of the Court.

We granted certiorari to decide two issues arising from the court of appeals decision in Sky Fun 1, Inc. v. Schuttloffel, 8 P.3d 570 (Colo.App.2000): first, whether certain verbal statements made by a pilot's previous employer are protected by the limited lHability provision of 49 U.S.C. § 44936(g) (Supp. IV 1999) precluding a defamation suit brought by the pilot against the employer; second, whether the statutory limitation on exemplary damages contained in section 13-21-102(1)(a), 5 C.R.S. (2000), applies equally to verdicts of a jury and the bench trying a case without a jury. 1

The court of appeals decided that the verbal statements at issue here were not within the federal liability limitation, and thus allowed the pilot's state law defamation suit. The court of appeals allowed the trial court's award of exemplary damages in exeess of actual damages, despite the limitation on such damages contained in section 18-21-102(1)(a), because the exemplary damages awarded were "reasonable."

We affirm the court of appeals in part and reverse in part. We hold that the limited liability provision of § 44986(g) does not preempt a defamation suit under state law by a pilot applicant against the former employer, when the defamatory oral statements are not based on records supplied by the previous employer to the prospective employer. We also hold that the limitation on exemplary damages in section 13-21-102(1)(a) applies equally to bench and jury trials.

L.

Petitioner, Sky Fun 1, employed respondent, John Schuttloffel (Schuttloffel), as a corporate pilot. On the afternoon of May 2, 1997, Schuttloffel and Bill Kitchen (Kitchen), Sky Fun 1's chief executive officer, flew from the Raleigh/Durham area of North Carolina to Denver in Sky Fun I's corporate aircraft. At the time of the flight, both Schuttloffel and Kitchen held airline transport pilot ratings. Kitchen controlled the aircraft as the pilot in command when the plane left the ground in North Caroling, but approximately one-half hour after taking off, he retired to the back of the plane, leaving Schuttloffel in command.

Prior to takeoff, Schuttloffel filed an instrument flight plan with Flight Service and checked the weather report. Although the weather report indicated possible thunderstorm activity in line with the planned flight path, the conditions were not sufficiently severe to merit altering the planned route of flight.

During the flight, and while Schuttloffel was in command, on-board instruments showed two "cells" of weather and associated lightning directly ahead of the plane. After consulting with Air Traffic Control, Schutt-loffel elected to divert-gradually at first and then more dramatically-to the north around the two weather cells. After the diversion, approximately two hours into the flight, lightning struck the plane. Although the lightning caused significant damage, neither *364 Schuttloffel nor Kitchen was injured, and the plane landed safely.

Four days later, Kitchen informed Schutt-loffel by written memorandum that the cost of repairing the aireraft would be high, and that Sky Fun 1 no longer required his services. In the memorandum, Kitchen stated that he would be happy to recommend Scehuttloffel for employment as a pilot in the future: "For your benefit, I will not discuss this matter outside the company, and will simply tell anyone who asks that we no longer needed a full time pilot. I will be happy to recommend you to help you find new employment."

Thereafter, Schuttloffel sought employment with Mountain Air Express. Pursuant to § 44986(f), Mountain Air Express sought records maintained by Sky Fun 1 pertaining to Schuttloffel's piloting proficiency. Schutt, loffel signed a consent and release from liability form, pursuant to § 44986(§)(@Q), allowing the prospective employer to obtain the records. Kitchen filled out a standard checklist-type form used to convey such records. Next to the questions asking: (1) "Do you have any record entered within the past five years showing that the applicant was removed from flying status for any performance or professional competency reason?"; and (2) "Do you have any record entered within the past five years showing that the applicant was the subject of any disciplinary action that was not subsequently overturned?", Kitchen checked "yes" and wrote "CALL ME!" next to the entry. Both questions requested that the reviewer provide documentation if answering "yes." Kitchen provided no documentation at that time.

Naney Trapagnier-Hoffman (Trapagnier-Hoffman), the Pilot Training Coordinator with Mountain Air Express, called Kitchen to follow up on the "CALL ME!" notation. Kitchen stated that Schuttloffel was very good in flight simulators, but not a good pilot and Mountain Air Express should not hire him as he was a threat to passenger safety. Trapagnier-Hoffman requested written ree-ords supporting these statements, but Kitchen stated that Sky Fun 1 did not keep any such records. During the trial, Trapagnier-Hoffman said that she had never seen such a "CALL ME!" notation on the written reply to the standard records request and did not know of any company that employed pilots but did not keep pilot records.

Thereafter, Kitchen initiated calls to Tra-pagnier-Hoffman on several occasions, at least four or five times. During those calls, Kitchen inquired whether Mountain Air Express was going to hire Schutfloffel, and if so, why he was going to be hired. He also asked why Schuttloffel was still a part of Mountain Air Express's pilot training program, and told Trapagnier-Hoffman that Mountain Air Express should not hire Schuttloffel. The calls Kitchen made did not provide useful information and became annoyances, to the point that Trapagnier-Hoff-man would simply put Kitchen on hold in order to avoid him.

Eventually, Kitchen faxed to Trapagnier-Hoffman a document labeled "Termination Report." It detailed three incidents where Schuttloffel allegedly acted dangerously in his capacity as a pilot. The three incidents included the lighting strike occurrence, a pre-flight inspection incident involving a missing cotter pin in the nose wheel of a plane, and an irregular flight plan on departure from Aspen Airport. Kitchen did not supplement the "Termination Report" with the pilot's logbooks or any other supporting information, contrary to the typical practice in the industry. During the trial, Schuttlof-fel indicated that while he was employed by Sky Fun 1, Kitchen never supplied him with the "Termination Report," nor had Kitchen ever questioned his piloting skills.

After consulting Mountain Air Express's chief pilot and interviewing Schuttloffel about the "Termination Report," Trapagnier-Hoff-man elected to afford little weight to that document. _ Trapagnier-Hoffman believed that Kitchen likely fabricated the document to affect Mountain Air Express's hiring decision and not in the course of business, as Kitchen had previously stated that Sky Fun 1 did not keep pilot records and this report was not supplied in connection with the reply to the standard pilot records request form. Mountain Air Express hired Schuttloffel as a pilot, despite Kitchen's efforts to frustrate Schuttloffel's employment opportunities.

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Cite This Page — Counsel Stack

Bluebook (online)
27 P.3d 361, 2001 WL 736487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sky-fun-1-v-schuttloffel-colo-2001.