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Midwest Helicopters Airways, Inc. v. Sikorsky Aircraft

Citations: 849 F. Supp. 666; 1994 U.S. Dist. LEXIS 4865; 1994 WL 135420Docket: Civ. A. 91-C-1393

Court: District Court, E.D. Wisconsin; February 23, 1994; Federal District Court

Narrative Opinion Summary

In the case involving Midwest Helicopters Airways, Inc. and Midwest Truxton International, Inc. against Sikorsky Aircraft, the plaintiffs sought recovery for damages following a helicopter crash attributed to a tail rotor drive system failure. The helicopter, originally manufactured for military use and later remanufactured for civilian purposes, was owned by Midwest. The claims were based on theories of negligence and strict liability. Sikorsky moved for summary judgment, arguing that the claims were barred by Wisconsin's economic loss doctrine. The court agreed, finding that the economic loss doctrine precluded recovery for purely economic damages in tort, as there was no damage to property other than the helicopter itself. The decision referenced Wisconsin case law, emphasizing that tort claims can proceed without privity only when other property is damaged. Moreover, the helicopter and its components were considered an integrated system, negating claims of damage to separate property. Consequently, the court granted Sikorsky's motion for summary judgment, dismissing Midwest's and its insurer's claims.

Legal Issues Addressed

Economic Loss Doctrine in Wisconsin

Application: The economic loss doctrine bars negligence or strict liability claims for purely economic losses in Wisconsin, with exceptions for damage to other property.

Reasoning: The economic loss doctrine generally bars negligence or strict liability claims for purely economic losses, a principle established in Sunnyslope Grading, Inc. v. Miller, Bradford. Risberg, Inc.

Integration in Product Systems

Application: The court found that the helicopter and its tail rotor drive system function as an integrated system, thus not qualifying for tort claims for damage to other property.

Reasoning: Here, the tail rotor drive system and the helicopter are seen as integral components of a single system provided by Sikorsky, thus not qualifying as separate property.

Summary Judgment Standards

Application: Sikorsky's motion for summary judgment is granted due to the lack of genuine issues of material fact and the application of the economic loss doctrine.

Reasoning: Sikorsky seeks summary judgment, which is appropriate if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.

Tort Claims and Privity Under Wisconsin Law

Application: Wisconsin law permits tort claims without privity if there is damage to other property, distinguishing between contractual and tort recovery.

Reasoning: Notably, while the plaintiffs lacked privity, the court still applied the economic loss doctrine, indicating that privity is not a necessary element under Wisconsin law.