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National Union Fire Insurance v. American Eurocopter Corp.
692 F.3d 405
5th Cir.
2012
Read the full case

Background

  • National Union sued AEC in Hawaii for contribution to its settlement arising from a Hawaii helicopter crash involving Heli-USA.
  • The Hawaii district court lacked personal jurisdiction over AEC, denied discovery, and transferred the case to the Northern District of Texas.
  • The Texas district court applied Texas choice‑of‑law rules and dismissed, holding Texas law bars contribution claims for out‑of‑court settlements.
  • The helicopter was designed by Eurocopter S.A.S. (AEC’s parent); AEC provided parts/advice and sent bulletins from Texas to Hawaii and other places.
  • The Parts Agreement includes a Texas choice‑of‑law clause; National Union settled with most passengers and released AEC and Eurocopter notwithstanding they were not parties to the settlements.
  • National Union challenges (1) Hawaii’s transfer order and its personal jurisdiction ruling, and (2) the Texas choice‑of‑law ruling; the court lacks jurisdiction to review Hawaii orders and affirms the Texas choice of law.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Jurisdiction to review Hawaii transfer orders National Union urges review of Hawaii transfer for lack of jurisdiction. AEC argues transfer was proper and review belongs to Texas court. We lack appellate jurisdiction over Hawaii transfer orders.
Choice of law governing contribution claims Texas law should apply based on Restatement § 145/§ 6 factors. Texas policy and forum interests support Texas law; Jinkins policy. Texas law applies to National Union’s contribution claims.
Certification to Texas Supreme Court (Jinkins reconsideration) National Union seeks certification to revisit Jinkins. Certification not warranted under Tex. Supreme Court rules. National Union's certification motion denied.

Key Cases Cited

  • Beech Aircraft Corp. v. Jinkins, 739 S.W.2d 19 (Tex. 1987) (public policy against joint tortfeasor rights in purchasing claims)
  • Ellis v. Great Sw. Corp., 646 F.2d 1099 (5th Cir. 1981) (transfer choice-of-law rules depending on transfer context)
  • Tel-Phonic Servs., Inc. v. TBS Int’l., Inc., 975 F.2d 1134 (5th Cir. 1992) (transfer choice-of-law rules in inter-circuit transfers)
  • Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487 (1941) (mandatory use of forum state’s choice-of-law rules in diversity cases)
  • Torrington Co. v. Stutzman, 46 S.W.3d 829 (Tex. 2000) (Restatement § 6/§ 145 factors favor Texas law in this context)
  • Int’l Proteins Corp. v. Ralson-Purina Co., 744 S.W.2d 932 (Tex. 1988) (Texas public policy on joint tortfeasor liability)
  • W.R. Grace & Co. v. Cont’l Cas. Co., 896 F.2d 865 (5th Cir. 1990) (policy considerations in conflict of laws)
Read the full case

Case Details

Case Name: National Union Fire Insurance v. American Eurocopter Corp.
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Aug 31, 2012
Citation: 692 F.3d 405
Docket Number: 11-10798
Court Abbreviation: 5th Cir.