ORDER GRANTING IN PART AND DENYING IN PART THIRD PARTY MOTION FOR RECONSIDERATION
Pending before the Court is the Motion for Reconsideration (doc. # 99) filed by third-party defendant Helisul Taxi Aero, LTDA (“Helisul”), as well as Helisul’s Amended Motion for Reconsideration (doc. # 102). After review, the Court concludes that Helisul has consented to jurisdiction for all of Bell’s claims against it. The Court further concludes that it has specific jurisdiction over Helisul. As a result, the Court will deny both motions.
I. Background
As described in the Court’s previous order denying Helisul’s motion to dismiss for lack of personal jurisdiction, this case arises from a helicopter crash in the Brazilian Amazon jungle in January 2004. At the time of the crash, the helicopter was being piloted by Sergio Augusto dos Santos, a Brazilian national. Dos Santos, who died in the crash, was the only occupant of the helicopter. Maria Dalva Viera de Olivera dos Santos (Plaintiff), the wife of the pilot, then brought this action alleging negligence and strict products liability against the manufacturer of the helicopter, defendanVthird-party plaintiff Bell Helicopter Textron, Inc. (“Bell”). After Bell filed its third-party complaint against Helisul, Plaintiff amended to add a claim of negligence against Helisul. Plaintiff contends that her husband was operating the helicopter under normal conditions when its tailboom attach fittings failed, causing the tailboom to separate from the helicopter.
Helisul filed its motion to dismiss for lack of personal jurisdiction (doc. # 61) on April 14, 2008. Bell’s response argued that the Court had both specific and general jurisdiction over Helisul and that Heli
As an initial matter, Bell was required to respond to the Court’s observation that, in prior similar litigation, Bell had taken an apparently inconsistent position regarding personal jurisdiction over Helisul.
See Da Rocha v. Bell Helicopter Textron, Inc.,
The helicopter involved in the crash, a Bell 206L-4, was one of four purchased by Helisul from Bell in 1996. The purchase of the Bell 206L-4 was made by way of a ten-year lease-purchase agreement (“the Agreement”), which Helisul financed through promissory notes. The Agreement contained a clause entitled “Jurisdiction, Applicable Law,” which in its entirety states:
This Lease shall be construed in accordance with the laws of the State of Texas, U.S.A. Lessee consents to the non-exclusive jurisdiction of the courts of general jurisdiction for the State of Texas, County of Tarrant, or in the Federal District Court of the Northern District of Texas, Fort Worth Division. Nothing contained herein, shall prevent or limit Lessor’s right to bring suits or institute any judicial proceeding in any jurisdiction were [sic] the Aircraft or Lessee’s assets may be registered or located from time to time, including without limitation the competent courts of Brazil.
(Def.’s Resp. App., doc. # 93, at 47.) Helisul further agreed to “indemnify Lessor, defend and hold Lessor harmless from any and all liability, loss, damage, expense (including legal expenses and reasonable attorney’s fees), suits, claims or judgment arising from injury to person or property, ... and shall, at [Helisul’s] own cost, defend any suits which may be brought against Lessor, either alone or in conjunction with others, regarding any such liability of [sic] elaim(s).” (Id. at 43.)
After the Court entered its order denying Helisul’s motion to dismiss, Helisul filed its first motion for reconsideration (doc. # 99). In that motion Helisul challenges the Court’s characterization of various of Helisul’s contacts with the state of Texas. But the Court’s order denying Helisul’s motion to dismiss did not rest upon a minimum-contacts analysis. And to the extent that this order does analyze Helisul’s contacts with Texas, such contacts are supported by the evidence submitted by Bell. Accordingly, Helisul’s motion for reconsideration is DENIED.
Helisul has also filed an amended motion for reconsideration (doc. # 102). In that motion Helisul argues that Bell is not a party to the Agreement and, therefore, cannot invoke the forum-selection clause against Helisul. Helisul also argues that the Court should conclude that Bell is judicially estopped from arguing that Helisul is subject to personal jurisdiction in the United States.
In responding to the amended motion for reconsideration, Bell notes that it possesses certain documents that demonstrate it is entitled to invoke the Agreement’s forum-selection clause. On January 14, 2009, after review of the motion to reconsider, the Court ordered Bell to produce
Bell timely produced the documents, and, although not requested by the Court, Bell accompanied them with a brief (doc. # 112) advancing arguments as to their significance. Helisul filed a response (doc. # 122). The Court now turns to Helisul’s arguments in favor of reconsideration and dismissal.
II. Discussion
A. Standard for Reconsideration
“[T]he Federal Rules of Civil Procedure do not recognize a general motion for reconsideration. ...”
St Paul Mercury Ins. Co. v. Fair Grounds Corp.,
A court reconsiders an interlocutory order under Rule 54(b).
See
Fed. R. Civ. P. 54(b) (“[A]ny order or other decision, however designated, that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties ... may be revised at any time before the entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities.”);
see also Lavespere v. Niagara Mach. & Tool Works, Inc.,
B. Judicial Estoppel
As noted in the Court’s order denying Helisul’s motion to dismiss, judicial estoppel is an equitable doctrine that may in a court’s discretion be invoked to “prevent[ ] a party from asserting a claim in a legal proceeding that is inconsistent with a claim taken by that party in a previous proceeding.”
New Hampshire v. Maine,
C. Personal Jurisdiction
1. Forum-Selection Clause
The United States Supreme Court has stated that “because the personal jurisdiction requirement is a waivable right, there are a variety of legal arrangements by which a litigant may give express or implied consent to the personal jurisdiction of the court.”
See Burger King, Corp. v. Rudzewicz,
In its motion for reconsideration, Helisul asserts that neither Bell nor any of its subsidiaries is a party to the Agreement. Hence, according to Helisul, Bell may not enforce the Agreement’s provisions, including the forum-selection clause. Helisul insists that only Textron Financial Corporation (“TFC”), the company that is named as the lessor in the Agreement and through which the Agreement was financed, may enforce the forum-selection clause. Bell responds that under the terms of an agreement between itself and TFC, and in light of the course of dealing of all of the companies involved in the purchase of the helicopter at issue, it is entitled to enforce the forum-selection clause.
As noted, in responding to Helisul’s motion, Bell has produced certain documents in support of its contention that it may enforce the forum-selection clause. Bell and TFC are subsidiaries of Textron, Inc. (“Textron”), a multi-industry company consisting of various subsidiaries and divisions. To facilitate TFC’s financing of lease and purchase agreements, such as the lease-purchase agreement at issue in this case, Textron, Bell, TFC, and two other Textron subsidiaries entered into certain agreements (Bell’s In-Camera Doc. Br. App., doc. # 112, at 4, Exhibits A, B, and C.). The agreements consist of three documents. First, there is a “Receivables Purchase Agreement.” (Ex. A.) The Receivables Purchase Agreement provides that “TFC may purchase Textron products and lease them to customers identified by Textron or Textron’s dealers and distributors.” (Ex. A. at 3.) This provision ex
Most importantly to Bell’s argument, the Receivables Purchase Agreement includes a section titled “Recourse to Tex-tron.” (Id.) This section first establishes the default rule that Textron, and thus Bell, would bear the ultimate credit risk of lease and purchase agreements unless an operating memorandum provides otherwise. (Id. at 4.) The section goes on to provide “full recourse to Textron” in that TFC has the right at all times and within its sole discretion to sell to Textron any account receivable on which Textron bears the credit risk that has become overdue or uncollectible. (Ex. A at 4.) As part of such a sale, Bell apparently acquires TFC’s rights to enforce the related agreement and collect on the account. (Bell’s In-Camera Doc. Br.App. at 4.)
The Receivables Purchase Agreement further provides that “[t] he terms and conditions upon which such products shall be purchased and leased by TFC shall be as agreed and as reflected in Operating Memoranda from time to time.” (Ex. A at 3.) Bell has included an operating memorandum (Ex. B) between the same parties involved in the Receivables Purchase Agreement to establish that the default rule has not been altered. (Ex. B at 1.) An “Operating Agreement,” which contains the same relevant terms as the Receivables Purchase Agreement, has also been provided by Bell. (Ex. C.)
Bell insists that the effect of the full-recourse provision of the Receivables Purchase Agreement and the Operating Agreement is to “transfer[] the [Agreement] from TFC to Bell in its entirety in the event that the account becomes overdue.” (Bell’s In-Camera Doc. Br. at 4 (emphasis added).) And although not cited in connection with this argument, Bell has provided evidence that Helisul’s account became overdue as early as March 1999 and was overdue as late as January 2002. (Def.’s Resp. App., doc. # 93, at 311-30.) But the language of the Receivable Purchase Agreement does not provide Bell with full recourse as a result of an account’s becoming overdue. Instead, Bell is given full recourse when TFC exercises its discretionary right to sell to Bell an overdue account. Bell has pointed to no evidence that this has occurred. Thus, Bell has not established that the right to invoke the forum-selection clause has been transferred to it via the Receivables Purchase Agreement.
Bell also argues that the parties’ course of dealing allows it to invoke the forum-selection clause. According to Bell, despite the fact that the Agreement names TFC as the lessor, Bell stepped into TFC’s shoes in administering the lease. Helisul applied for financing with Bell, not TFC. (Id. at 307-310.) And the overall transaction and the financing terms were negotiated by Helisul with Bell. (Bell’s In-Camera Document Br.App. at 5.) These facts likely led Eloy Biesuz, Helisul’s president, to state at multiple points in his deposition that Helisul obtained financing through Bell. (Def.’s Resp. App. at 376, 377, 378, and 390-91.)
Bell also points to caselaw to show that a broad range of “transaction participants,” rather than solely parties to a contract, may invoke a forum-selection clause.
See, e.g., Manetti-Farrow, Inc. v. Gucci America, Inc.,
But the “close relationship” standard is so vague as to be unworkable.
See Frietsch,
Courts have also compared a non-signatory’s attempt to invoke a forum-selection clause to an attempt by a non-signatory to invoke an arbitration clause.
See Alternative Delivery Solutions v. R.R. Donnelley & Sons Co.,
No. SA-05-CA-0172-XR,
A review of the cases relied upon by Bell demonstrates that the “close relationship” standard incorporates third-party-beneficiary principles.
See, e.g., Coastal Steel Corp. v. Tilghman Wheelabrator, Ltd.,
With this in mind, the Court concludes that under either the more general statement of the “close relationship” standard, or the more strict third-party-beneficiary principles, Bell has established its authority to invoke the forum-selection clause. Bell is clearly closely related both to TFC and this transaction. Bell and TFC have a common parent company and Bell sold the helicopter involved in the crash to TFC under a long-standing operating agreement.
Moreover, Helisul dealt with Bell directly on issues that would appear to be more properly the province of TFC as the financing company, such as the initial application for financing and negotiation of the terms of financing. Indeed, the purported error in the Court’s previous ruling and the advancement of Helisul’s motion for reconsideration flow from Helisul’s own characterization of Bell as a party to the Agreement.
These facts establish that Bell was not merely closely related to the transaction and a party thereto — it was an intended beneficiary of the Agreement. Helisul knew the subject of the Agreement was a Bell helicopter and its course of dealing with Bell demonstrates that Helisul knew Bell was involved with and would benefit from the transaction. To the extent that this arrangement and financing through TFC facilitated what amounted to Bell’s sale of a helicopter to Helisul, Bell benefit-ted as much from the Agreement as did TFC.
Having determined that Bell may invoke the forum-selection clause, the Court must determine the scope of such clause.
See Marinechance Shipping v. Sebastian,
After a review of the relevant provisions, the Court concludes that all of Bell’s claims against Helisul fall within the scope of the forum-selection clause. The Agreement provides that “Lessee consents to the non-exclusive jurisdiction of the courts of general jurisdiction for the State of Texas, County of Tarrant, or in the Federal District Court of the Northern District of Texas, Fort Worth Division.” This clause does not attempt to limit Helisul’s consent to claims for breach of the Agreement. The Agreement goes on to provide that Helisul would “indemnify [Bell], defend and hold [Bell] harmless from any and all liability, loss, damage, expense (including legal expenses and reasonable attorney’s fees), suits, claims or judgments arising from injury to person or property, or resulting from or based upon
Bell’s negligence and contribution claims are also within the scope of the clause. Again, the language of the clause is not limited to breach-of-contract claims.
Cfi Maxen Capital, LLC v. Sutherland,
No. H-08-3590,
2. Specific Jurisdiction
The Court further concludes that, independently of the forum-selection clause, it may exercise personal jurisdiction over Helisul as to all of Bell’s claims. A court may exercise specific jurisdiction over a party when the party “has ‘purposefully directed’ his activities at residents of the forum and the litigation results from alleged injuries that ‘arise out of or relate to’ those activities.”
Burger King Corp. v. Rudzewicz,
a. Purposeful Availment
“So long as it creates a ‘substantial connection’ with the forum, even a single act can support jurisdiction.”
Burger King,
The Agreement represents the culmination of negotiations between Bell and Helisul. In his deposition, Helisul’s president asserts that the Agreement was written on a standard form used by Bell, and that Bell would not negotiate its terms. (Helisul’s Reply App. at 55-56.) But evidence in the record indicates that there were, in fact, negotiations related to the Agreement that amounted to contacts by Helisul with the State of Texas. He also acknowledges that his company specifically sought out Bell helicopters because of their quality. (Def.’s App. at 388-91.) The helicopter at issue was outfitted with various accessories at an additional cost of $68,500. (Id. at 168-74.) Addenda to the Agreement, apparently sent by Helisul to Bell in Texas, indicate Helisul requested that certain accessories be added and others be removed from the helicopter. (Id.)
Bell claims that the Agreement was executed in Texas. But Helisul representatives appear to have signed the Agreement in Brazil. (Id. at 51). The copies of related documents submitted by Bell, which were purportedly executed in Texas, are of such a poor quality that the Court cannot determine their content and will not consider them. (Id. at 82-89.)
The terms of the Agreement must also be considered in evaluating Helisul’s contacts with Texas.
Gundle Lining Construction,
This conclusion is particularly strong in this case given the other terms of the Agreement. Helisul acknowledges that, for all legal purposes, it is the owner and operator of the helicopter and, as such, is fully and solely responsible for any and all civil liabilities arising out of such ownership and operation. Helisul further agrees to defend and indemnify Bell with regard to any and all civil liabilities that may arise out of Helisul’s ownership or operation of the helicopter. And Helisul agrees to operate and maintain the helicopter in accordance with the laws of the United States. In this context, Helisul, without restriction, consented to this Court’s jurisdiction. This supports a finding of purposeful availment.
See id.
at 205-06 (concluding nonresident defendant’s entry into contract with Texas plaintiff containing agreement
Additionally, the Agreement contains a choice-of-law provision selecting Texas law as governing construction of the Agreement. (Def.’s App. at 47.). Helisul took delivery of the helicopter in Texas.
(Id.
at 386-87.) These aspects of the purchase of the helicopter further strengthen the conclusion that Helisul has purposefully availed itself of the benefit of doing business in Texas.
See Burger King,
Moreover, the Agreement resulted in a business relationship between Helisul and Bell with significant long-term consequences.
See Burger King,
Perhaps most importantly in a case such as this, the Court must look to the parties’ course of dealing and the realities of the transaction to determine whether Helisul is subject to jurisdiction in Texas.
See id.
at 479,
b. Relation of Contacts to Claims
To establish specific jurisdiction, the claims must “arise out of or relate to” the defendant’s purposeful contacts with the forum.
Burger King,
Bell alleges that Helisul was negligent with regard to its ownership, inspection, maintenance, and operation of the helicopter. (Third-Party Compl., doc. # 41, at 4-5.) As discussed above, Helisul has clearly consented to jurisdiction regarding Bell’s indemnity claim. And the indemnity provision, along with the other circumstances of this case, establish that Bell’s negligence and contribution claims relate to the Agreement.
In the Agreement, Helisul agrees to defend and indemnify Bell from any and all claims, suits, damages, expenses, or judgments resulting from Helisul’s operation, maintenance, or control of the helicopter, as well as to accept full and sole legal responsibility for the operation and maintenance of the helicopter. (Def.’s App. at 42-43.) Thus, the Agreement creates a duty on the part of Helisul to defend, indemnify, and otherwise protect Bell from loss, liability, or expense that may be attributed to Helisul’s maintenance or operation of the helicopter. In this way, claims based on Helisul’s operation and maintenance of the helicopter relate to the Agreement, and this Court’s exercise of specific jurisdiction over Helisul with regard to such claims is proper.
Cf. Burger King,
D. Interlocutory Appeal
Finally, Helisul requests that, in the event the Court does not grant its motion to reconsider, the Court allow an interlocutory appeal under 28 U.S.C. § 1292(b). Under § 1292(b) a court may certify for appeal an otherwise unappealable order when such order involves a controlling question of law as to which there is substantial ground for difference of opinion and when immediate appeal would materially advance the ultimate termination of the litigation.
See
28 U.S.C. § 1292(b). The issue of personal jurisdiction over Helisul certainly controls as to any claims against it. As discussed above, there is at
III. Conclusion
Accordingly, the Court concludes that Helisul consented to jurisdiction regarding all of Bell’s claims. The Court further concludes that Helisul has purposefully established minimum contacts with the state of Texas, and that Bell’s negligence and contribution claims relate to such contacts, such that this Court may exercise specific jurisdiction over Helisul. Helisul’s motion to reconsider is, therefore, DENIED. Helisul’s request for certification to appeal an interlocutory order under 28 U.S.C. § 1292(b) is also DENIED.
