4:19-cv-00997
S.D. Tex.Sep 30, 2019Background
- Spectre leased two aircraft engines to Delta and hired Crane to ship them from Tianjin, China to Delta TechOps at Gate 6, Hartsfield‑Jackson Atlanta Airport.
- Upon arrival the engines were moved to a handling‑agent warehouse; Crane’s subcontractor loaded them onto a truck for delivery to Gate 6.
- Delta TechOps twice rerouted the engines between Gate 4 and Gate 6 before directing the subcontractor to return to Gate 6; movement between those gates remained on airport property.
- During the final trip on airport premises the subcontractor tightened straps over the engines; Delta later observed strap damage, rejected the engines, and cancelled the leases.
- Spectre sued in Texas state court for breach, negligence, and fraud; Crane removed under federal question jurisdiction invoking the Montreal Convention, and Spectre moved to remand arguing the Convention did not apply because the damage occurred on the ground.
- The court held the damage occurred while the cargo was in the carrier’s charge on airport premises, so the Montreal Convention governs and removal was proper; remand was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Montreal Convention applies (i.e., whether damage occurred during "carriage by air") | Damage occurred on the ground at the airport after air carriage ended, so Convention inapplicable | Damage occurred before final delivery while cargo remained in carrier’s charge on airport premises, so Convention applies | Convention applies because damage occurred during carrier’s charge on airport premises; remand denied |
Key Cases Cited
- Willy v. Coastal Corp., 855 F.2d 1160 (5th Cir. 1988) (removing party bears burden; removal strictly construed)
- Gasch v. Hartford Accident & Indem. Co., 491 F.3d 278 (5th Cir. 2007) (doubts about propriety of removal resolve in favor of remand)
- Bridgeman v. United Continental Holdings, Inc., [citation="552 F. App'x 294"] (5th Cir.) (Montreal Convention preempts state‑law claims relating to international air carriage)
- Am. Home Assurance Co. v. Kuehne & Nagel (AG & Co.) KG, 544 F. Supp. 2d 261 (S.D.N.Y. 2008) (carrier under Convention includes contracting party and its agents)