707 SPECIFIC PERSONAL JURISDICTION Limited Contacts Not Sufficient (2018)

The 10th Circuit Court of Appeals held that Continental Motors contacts with Colorado were not sufficient to establish specific personal jurisdiction. In Old Republic Ins. Co. v. Continental Motors, Inc., 877 F. 3d 395 (10th Cir. 2017), the lower court dismissed the case for lack for personal jurisdiction and therefore, the Appellate Court took the allegation of the Complaint as true. On January 9, 2014, an airplane insured by Old Republic crashed in Idaho en route from Colorado where its owner resided. Neither Old Republic or Continental were incorporated in or had its principal place of business in Colorado. The crash resulted from repairs made by Arapahoe Aero, Inc., a Colorado entity. Old Republic paid the owner a settlement of $329,500.00 for the aircraft?s value.

Arapahoe subscribed, for a fee, to a FBO service from Continental which included online access to service manuals and bulletins. It used one of the manuals and two bulletins in repairing the airplane. It also had access to a Global Customer Support Center which was ?like having your own dedicated technical service representation at your facility.? The manual and bulletins allegedly provided inadequate instruction which resulted in the crash. The Court discussed in detail the evidence Plaintiff?s claimed supported specific jurisdiction. It concluded by affirming the lower Court?s grant of the Motion to Dismiss and in its opinion said,

?The bare fact that Continental Motors entered into a legal relationship with Arapahoe Aero, a Colorado entity, cannot establish sufficient contacts to satisfy the purposeful direction requirement… The record before us shows that the parties contemplated some potentially ongoing consequences of Arapahoe Aero?s participation in the FBO program. But the absence of prior negotiations, long-term contractual commitments, or any significant course of dealing distinguish this case from previous cases finding purposeful direction under the continuing relationships framework.? 877 F. 3d at 310.

Continental was represented by attorneys from Ambrecht Jackson, Ltd. and attorneys from the Denver, Colorado firm of Wheeler Trigg O?Donnell. Jack Trigg is a long time member of TAA.