Court Reaffirms Preemptive Effect Of Statute Protecting Aircraft Lessors

Marc Antonecchia is a Partner in Holland & Knight's New York office.

HIGHLIGHTS:

49 U.S.C. §44112(b) provides that an owner, lessor, or secured party does not have liability for an aircraft accident when not in actual possession or control of the aircraft. The broad preemptive scope of the statute extends to claims by persons on board the accident aircraft. The District Court for the Northern Mariana Islands1 has reaffirmed the proposition that an aircraft lessor is shielded from liability for injuries to persons on board an accident aircraft when the lessor is not in possession or control of the aircraft.2 The litigation arose out of a November 2012 crash of a small plane carrying five tourists from Saipan to Tinian. After takeoff, the pilot heard sounds coming from the engine and landed safely on Saipan. When the pilot took off again, allegedly over the objection of the passengers, the plane lost power in midair and crashed into trees north of the runway. The plane burst into flames. One passenger died; the others were injured.

The plaintiffs sued the operator, Star Marianas Air, Inc. (SMA); the charterer, Marianas Air Transfer, Inc. (MAT); and the maintenance company, Tinian Transportation Management Solutions, Inc. (TTMS) for fraud, wrongful death, negligence and negligent infliction of emotional distress. The defendants moved to dismiss the fraud claim as to all the defendants and to dismiss the negligence claims as to MAT and TTMS.

The court quickly dispensed with the fraud claim on the basis that the complaint asserted only that the defendants misrepresented important facts about the safety of their air operations by advertising themselves as a legitimate commercial carrier while having full knowledge of prior accidents. The court noted that the plaintiffs did not point to a specific false statement, or a statement made false by material omission. The court then turned to the negligence claims. MAT and TTMS argued that the complaint did not allege that either entity committed any negligent act or omission, and that MAT was immune from liability under 49 U.S.C. §44112(b) because it was a lessor not in actual possession or control of the aircraft.

The Federal Statute

The federal statute, 49 U.S.C. §44112(b), provides that an owner, lessor, or secured party does not have liability for an aircraft accident when not in actual possession or control of the aircraft:

Liability.-- A lessor, owner, or secured party is liable for personal...