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20 F. Supp. 3d 341
E.D.N.Y
2014
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Background

  • Ireland, a passenger on American Airlines Flight 331 Miami to Kingston, Jamaica (Dec 22, 2009), sues for injuries allegedly due to airline negligence.
  • Montreal Convention governs the claim and Article 35 sets a two-year limitation period from arrival at destination.
  • Defendants filed for Chapter 11 bankruptcy on Nov 29, 2011, triggering an automatic stay under 11 U.S.C. § 362(a).
  • Plaintiff did not seek relief from the stay; the stay was lifted on Dec 9, 2013 and notice of lift was filed Jan 2, 2014.
  • Ireland filed suit on Dec 21, 2012, within two years of the accident but outside the stay period; defendants moved to dismiss arguing the two-year period expired.
  • Court holds that the bankruptcy stay did not toll or extend the Article 35 two-year period, and grants dismissal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the bankruptcy stay extends Montreal Article 35 period Ireland relies on 11 U.S.C. § 108(c) to toll the period. Defendants contend Article 35 is a hard stop not tollable. Bankruptcy stay does not extend Article 35; claim is time-barred.

Key Cases Cited

  • Fishman v. Delta Air Lines, Inc., 938 F. Supp. 228 (S.D.N.Y. 1996) (Article 29 tolling rejected; two-year period a condition precedent to suit)
  • Mateo v. JetBlue Airways Corp., 847 F. Supp. 2d 383 (E.D.N.Y. 2012) (Montreal Article 35 limitation not subject to tolling)
  • New Pentax Film, Inc. v. Trans World Airlines, Inc., 936 F. Supp. 142 (S.D.N.Y. 1996) (Section 108(c) extends deadline post-stay but does not toll treaty period)
  • Husmann v. Trans World Airlines, Inc., 169 F.3d 1151 (8th Cir. 1999) (Assumes §108(c) applies to treaty period but relies on tolling analysis in Miami context)
  • Dickson v. Am. Airlines, Inc., 685 F. Supp. 2d 623 (N.D. Tex. 2010) (Article 35 treated as non-tollable limitation provision in some analyses)
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Case Details

Case Name: Ireland v. AMR Corp.
Court Name: District Court, E.D. New York
Date Published: May 15, 2014
Citations: 20 F. Supp. 3d 341; 2014 WL 2002827; 2014 U.S. Dist. LEXIS 67131; 59 Bankr. Ct. Dec. (CRR) 139; No. 12-CV-6315 (ARR)(RLM)
Docket Number: No. 12-CV-6315 (ARR)(RLM)
Court Abbreviation: E.D.N.Y
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    Ireland v. AMR Corp., 20 F. Supp. 3d 341