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Mason v. Schweizer Aircraft Corp.

11/14/2002

he defendant] is part of the general aviation industry which GARA was specifically enacted to "revitalize," . . . and [the defendant] is thus precisely the type of entity GARA was designed to protect from the long tail of liability. The central objective of GARA would be materially undermined if its protection did not apply to a successor to the manufacturer who, as part of its ongoing business, acquired a product line long after the particular product had been discontinued and years after the statute of repose had run as to the original manufacturer. To construe GARA to allow liability claims against the successor manufacturer in these circumstances while barring the same claims against the actual manufacturer would defeat its purpose. Id. at 132.


The plaintiff here argues that under Iowa law governing the corporate liability of successor entities, the defendant is not a successor manufacturer. We, like the court in Burroughs, do not think state law should govern the determination of who is a successor manufacturer under GARA. Id. There is a "general assumption that `in the absence of a plain indication to the contrary, . . . Congress when it enacts a statute is not making the application of the federal act dependent on state law.'" Mississippi Band of Choctaw Indians v. Holyfield, 490 U.S. 30, 43, 109 S. Ct. 1597, 1605, 104 L. Ed. 2d 29, 43 (1989) (citation omitted). One reason for this presumption is that "federal statutes are generally intended to have uniform nationwide application." Id. at 43, 109 S. Ct. at 1605-06, 104 L. Ed. 2d at 43. We find nothing in GARA to indicate that the liability of a successor manufacturer depends on where the suit is filed. Moreover, it would be contrary to Congress's intent to revitalize the entire industry to have application of the protective statute of repose vary from state to state. Therefore, we decline Mason's request to examine the defendant's status as a successor manufacturer under Iowa law.


In summary, we conclude Schweizer is a "manufacturer" within the meaning of GARA. By acquiring the type certificate to the model 269 product line, it stepped into the shoes of the original manufacturer and is entitled to the protection of the eighteen-year statute of repose.


IV. Is This Action Brought Against Schweizer "in its Capacity as a Manufacturer"?


GARA's statute of repose bars only those civil actions brought against a manufacturer "in its capacity as a manufacturer." 49 U.S.C. § 40101 note, § 2(a). The claims pled against Schweizer are premised on theories of strict liability, implied warranty of merchantability and implied warranty of fitness for a particular purpose, as well as negligence. As the plaintiff implicitly concedes on appeal, the strict liability claims and warranty claims are indisputably based on Schweizer's status as a manufacturer and, accordingly, are barred by the statute of repose unless these claims fall within the statutory extension for new parts or components, an issue we address later. See 49 U.S.C. § 40101 note, § 2(a)(2) (providing that the limitation period for any new component or part begins "on the date of completion of the replacement or addition"). Therefore, our only concern at this juncture is whether Schweizer's alleged liability for a negligently performed undertaking is based on its capacity as the manufacturer of the helicopter.


Mason contends that its negligence claim rests on Schweizer's undertaking to sell maintenance materials and its failure to include in those materials a warning of the potential risks of a cracked housing and that such cracks would render the helicopter not airworthy. He asserts Schweizer's duty to warn under these circumstances is independent of its ob

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