Trump Taj Mahal Associates v. Costruzioni Aeronautiche Giovanni Agusta, S.P.A.

761 F. Supp. 1143, 1991 U.S. Dist. LEXIS 4746, 1991 WL 52876
CourtDistrict Court, D. New Jersey
DecidedApril 11, 1991
DocketCiv. A. 90-3245(JFG)
StatusPublished
Cited by19 cases

This text of 761 F. Supp. 1143 (Trump Taj Mahal Associates v. Costruzioni Aeronautiche Giovanni Agusta, S.P.A.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trump Taj Mahal Associates v. Costruzioni Aeronautiche Giovanni Agusta, S.P.A., 761 F. Supp. 1143, 1991 U.S. Dist. LEXIS 4746, 1991 WL 52876 (D.N.J. 1991).

Opinion

OPINION

GERRY, Chief Judge:

This case arises from the notorious helicopter crash on October 10, 1989 in Lacey Township, New Jersey, in which three top executives in Donald Trump’s organization were killed. Plaintiffs are the three Trump owned Atlantic City casinos (collectively “Trump”) and Helicopter Air Services, Inc., a Delaware corporation with its principal place of business in Linden, New Jersey. Defendants are Costruzioni Aeronautiche Giovanni Agusta S.p.A. (“CAGA”), Agusta S.p.A., and Gruppo Agusta (collectively “Agusta”), the Italian corporate entities that manufactured the Agusta A109 helicopter that crashed in the above accident; their United States subsidiary, Agusta Aviation Corporation (“AAC”); and Paramount Aviation, Inc. (“Paramount”), which was “in the business of operating, maintaining and managing the helicopter.” Complaint (Compl.) ¶ 9. (Paramount also employed the pilot of the helicopter, who also died in the crash.)

Plaintiffs filed in New Jersey state court. Defendants removed here. Before the court are plaintiffs’ motion to remand and defendants’ motion to dismiss. Paramount is named in three of the eight counts and joins in Agusta’s motion to dismiss those counts.

The Trump plaintiffs seek recovery on two grounds. First, plaintiffs seek reimbursement of benefits they paid to decedents’ beneficiaries under New Jersey’s worker’s compensation law. Second, plaintiffs invoke eight theories of liability to recover damages flowing from the death of their three “key” employees. Compl. ¶ 32-33. Although framed in eight counts, these damages theories are in essence different ways of articulating a wrongful death claim.

Helicopter Air Services seeks to recover $300,000 in damages based on the diminution in value of an Agusta A109 helicopter it owns, a cause of action arising solely as “a further result of the conduct of the Defendants and the public mistrust *1146 over the safety of continued operation of the Agusta 109 helicopters” since the October 10, 1989 crash. Compl. ¶138. Defendants argue that such a cause of action is “frivolous” and should be “summarily dismissed.” We agree. Helicopter Air Services has not opposed the motion, which will be granted.

The motion to remand turns on two issues. First, defendant Agusta S.p.A. removed on the basis that it is an Italian corporation, owned by the Italian government, and so qualifies for removal as a “foreign state.” Plaintiffs challenge Agus-ta’s status as a “foreign state.” Second, plaintiffs argue that the presence of a non-diverse New Jersey defendant, Paramount Aviation, makes removal improper. Defendants argue that removal is proper at the sole discretion of the “foreign state,” despite the presence of a non-diverse defendant. We find that defendant Agusta S.p.A. was entitled to remove this action regardless of the presence of a non-diverse defendant, and will therefore deny the motion to remand.

The key question regarding plaintiffs’ claim for reimbursement of worker’s compensation benefits is whether defendants received statutory notice from plaintiffs. Because we find that plaintiffs did not provide the expressly provided statutory notice, we will grant summary judgment for defendants on this claim.

The threshold question raised by defendants on their motion to dismiss is whether a corporation can ever recover damages flowing from the death of its employees. Defendants argue that courts have unanimously held that a corporation may not recover for losses arising from the death (as opposed to injury) of its employees; and that no matter what theories of liability plaintiffs invoke, at bottom this is a wrongful death action, and corporations are not a statutorily approved beneficiary of such damages. No matter how properly plaintiffs may have stated a claim for strict liability or negligence, for example, the basis of their claim is the damages they have suffered from the death of their three employees, and defendants assert that that is an impermissible basis for recovery by a corporation. We agree and will dismiss the complaint. 1

Defendants also attack plaintiffs’ theories of liability in Count VI, “wilful destruction and spoilation of evidence, and breach of agreement to preserve trial evidence and fraud”; and Count VIII, “willful, intentional interference with contractual employment relations.” These counts name only the Agusta defendants. We find that New Jersey does not recognize the cause of action in Count VI, and plaintiffs fail to state a claim against these defendants under Count VIII. These counts would therefore be dismissed even if plaintiffs were entitled to seek damages arising from the death of their employees.

I. FACTS

The following facts are drawn from the complaint and are accepted as true for purposes of the motion to dismiss:

13. Sometime prior to 1984, the Defendants Agusta designed a seven place twin turbine helicopter known as the Agusta 109 (“109”).
14. The 109 was designed with four metal rotor blades consisting of a front aluminum spar and aluminum honeycomb filler with an aluminum outer skin.
15. The military variant of the 109 was designated the Agusta “109K,” and sold to international military establishments, except in the United States, and were equipped with the same main rotor blades....
16. The main rotor blades were designed, built and sold with a represented *1147 service life of 3,000 hours between replacement.
17. Shortly before the introduction of the 109 and 109K, and long before either aircraft achieved 3,000 hours on the main rotor blades, the Agusta Defendants received reports of design and manufacturing defects that resulted in cracks developing in the main rotor blades.
18. The cracks, some of which were usually invisible to the unaided eye, were generally accompanied by vibrations of varying magnitude, which could not be adjusted out of the helicopter through normal maintenance techniques.
19. At all times, the Agusta Defendants held themselves out as experts in the design, construction and maintenance of helicopters and the ultimate authority on the 109 and 109K, upon which expertise the Plaintiffs, the United States Government, and the Italian equivalent of the Federal Aviation Administration relied.
20. Long prior to 1989, the Defendant Paramount acquired the rights to operate the [109] helicopter in charter service under the Paramount certificate of authority.
21. Paramount then arranged and performed management and maintenance of the [109] helicopter, operation of the helicopter under Part 135 of the Federal Aviation Regulations in helicopter taxi service, and was responsible for the scheduling, inspections, maintenance and overhaul of the helicopter and its components.
22.

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Bluebook (online)
761 F. Supp. 1143, 1991 U.S. Dist. LEXIS 4746, 1991 WL 52876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trump-taj-mahal-associates-v-costruzioni-aeronautiche-giovanni-agusta-njd-1991.