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ISLA NENA AIR SERVICES v. Cessna Aircraft

Citations: 380 F. Supp. 2d 74; 2005 A.M.C. 2572; 2005 U.S. Dist. LEXIS 16300; 2005 WL 1870793Docket: CIV.04-1883(RLA)

Court: District Court, D. Puerto Rico; August 9, 2005; Federal District Court

Narrative Opinion Summary

This case involves a dispute between an airline company and aircraft manufacturers following an emergency water landing caused by engine failure. The plaintiffs, comprising an airline and a charter service, sought damages from the aircraft and engine manufacturers under theories of negligence and strict products liability, invoking Puerto Rico's Civil Code. The defendants moved to dismiss these claims, asserting that admiralty law governs due to the incident's occurrence in navigable waters, thus invoking the economic loss rule, which precludes recovery for purely economic losses in tort. The court granted the motion to dismiss, emphasizing that the crash met the criteria for admiralty jurisdiction, as outlined in Executive Jet Aviation v. City of Cleveland, due to its potential impact on maritime commerce and its classification as a traditional maritime activity. The court further held that the damage claims for the aircraft itself must be pursued under warranty law, consistent with both admiralty and Puerto Rico law. The plaintiffs' attempt to introduce new legal arguments based on Puerto Rico's Dock and Harbor Act was rejected due to untimely submission, resulting in the dismissal of Counts I through IV of the complaint, while indemnity claims remained unaffected.

Legal Issues Addressed

Admiralty Jurisdiction in Aviation Incidents

Application: The court determined that the crash of the aircraft into navigable waters near Culebra falls under admiralty jurisdiction due to its potential impact on maritime commerce and its relation to traditional maritime activities.

Reasoning: Ultimately, the court concludes that the criteria for exercising admiralty jurisdiction under 28 U.S.C. § 1333 are met, and maritime law is applicable.

Application of Traditional Maritime Activity

Application: The incident involving commercial transport between islands was deemed a traditional maritime activity, supporting the application of admiralty jurisdiction despite the aircraft being a land-based vehicle.

Reasoning: Courts have consistently determined that aircraft crashes during international or inter-island flights are considered traditional maritime activities.

Denial of Additional Briefing on New Legal Arguments

Application: The court denied further briefing on plaintiffs' delayed invocation of Article 3.03 of the Dock and Harbor Act, highlighting the importance of timely raising legal arguments.

Reasoning: Despite opportunities to address this in previous briefs, plaintiffs provided no justification for their nearly three-month delay in raising this issue.

Economic Loss Rule in Admiralty and Puerto Rico Law

Application: The court applied the economic loss rule to dismiss tort claims for damages solely to the aircraft itself, holding that such claims must be pursued under warranty rather than tort law, consistent with both admiralty and Puerto Rico law.

Reasoning: The economic loss rule restricts recovery in tort for defective products to damages for personal injuries or damage to other property, excluding economic losses related to the defective product itself.