Trans States Airlines began this suit in 1992 with a complaint in the Northern District of Illinois against Pratt & Whitney Canada, Inc., seeking damages that arose from the July 17, 1991, catastrophic failure of the left engine (manufactured by Pratt & Whitney) on an aircraft Trans States was leasing, as the airplane approached the Greater Peoria Airport in Illinois. Fortunately, the pilot was able to regain control of the plane and to land safely, but the engine failure resulted in damage to the engine itself and to the airframe in which it was housed. In addition, two passengers suffered minor personal injuries, and Trans States lost revenues from canceled flights. Trans States relied on three theories in its complaint: (1) negligence, (2) breach of warranty, and (3) strict liability.
Pratt & Whitney moved for summary judgment, claiming that the Illinois economic loss doctrine barred recovery by Trans States. Two different district judges rejected that argument.
See Trans States Airlines v. Pratt & Whitney Canada, Inc.,
[Wjhether PWC’s gas turbine engine and the Aerospatiale airframe were an integrated unit of the Trans States airplane, under the economic loss doctrine set forth in the Supreme Court’s decision in East River S.S. Corp. v. Transamerica Delaval, Inc.,476 U.S. 858 ,106 S.Ct. 2295 ,90 L.Ed.2d 865 (1986).
We agreed that the scope of Illinois’s economic loss doctrine was a “controlling question of law as to which there is substantial ground for difference of opinion,” in the words of § 1292(b), and that immediate appeal was likely materially to affect the ultimate disposition of the case, and we therefore accepted the appeal. Upon further consideration, we decided also that Illinois law, which all agree governs here, was sufficiently uncertain that we should seek guidance from the Illinois Supreme Court under that Court’s certification procedure. See 111. Sup.Ct. R. 20. We did so, explaining our decision in an opinion published at
The Illinois Supreme Court agreed to decide the certified questions presented in our opinion, which it summarized as follows:
(1) For purposes of the economic loss doctrine, as developed by the Illinois Supreme Court in Moorman Manufacturing Co. v. National Tank Co.,91 Ill.2d 69 ,61 Ill.Dec. 746 ,435 N.E.2d 443 (1982) and its progeny, does Illinois recognize a “sudden and calamitous occurrence” exception to the doctrine under which recovery in tort is possible for injury to the single product?
(2) Can a product and one of its component parts ever constitute two separate products?
(3) Did the airframe and the engine that failed in this case-constitute a single product or two distinct products?
Trans States Airlines v. Pratt & Whitney Canada, Inc.,
The Illinois Supreme Court began by noting that “[generally speaking, a defective product can cause three types of injury: personal injury, property damage, and economic loss.”
Id.
at 487,
Turning to the remaining two questions (which had been expressed as one in our opinion certifying the case to the Illinois Supreme Court), the Court noted that the key question is the methodology by which products are characterized as one or several. See
id.
at 494-95,
Upon receiving the Illinois Supreme Court’s decision, we invited the parties to submit statements of position indicating what action they thought this court should now take. Trans States argued that this court should pay heed to the three dissenting justices and that we should regard the question ‘What did the parties bargain for?” as open for further proceedings on remand. It also suggested that the case must be remanded for resolution of the contribution claim for payments to an injured passenger, since this plainly did not involve “economic loss” as the Illinois Supreme Court has now authoritatively defined that term.
Cf. id.
at 487,
As an initial matter, we agree with Pratt & Whitney that the Illinois Supreme Court’s opinion has definitively resolved the question whether there is one product or two in the case before us, and it has found that there is only one. Coupled with the rule of law on the economic loss doctrine announced by that Court, Trans State’s claims based on negligence and products liability (counts I and III) must be dismissed. However, neither this court nor the Illinois Supreme Court had before it any arguments relating to the warranty claim. The mere fact that the district court ruled in favor of Pratt & Whitney on the eonscionability of the limited warranty’s time and scope does not persuade us to resolve any questions relating to the warranty at this time, particularly without full briefing from both sides. Cf. id. (district court’s caveat that certain remaining questions about the warranty remained open subject to additional evidence). We therefore decline Pratt & Whitney’s invitation to do so.
We also reject Pratt & Whitney’s argument that diversity jurisdiction is no longer proper. This suggestion misstates the rule with respect to federal subject matter jurisdiction. Both diversity of citizenship
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and the allegations relating to the amount in controversy are matters that are determined at the commencement of a suit in federal court.
See Moore v. Ashland Oil, Inc.,
We therefore Vacate the district court’s earlier rulings on the negligence and product liability claims presented here and Remand for further proceedings consistent with this opinion. The costs of the appeal shall be taxed against Trans States.
