Wahl v. Pan American World Airways, Inc.

• Decision Date: 04 March 1964
• Citation: 227 F. Supp. 839
• Parties: Albert WAHL and Minnie Wahl, Plaintiffs, v. PAN AMERICAN WORLD AIRWAYS, INC., Middle East Airlines and Scandinavian Airlines Systems, Defendants. Ralph H. HOPP, individually and as next friend of Thomas Hopp and Susan Hopp, Minors, and Dorothy G. Hopp, Plaintiffs, v. MIDDLE EAST AIRLINES and Pan American World Airways, Inc., Defendants. Alex N. DRAGNICH, individually and as next friend and guardian of George Steven Dragnich, a Minor, Adele J. Dragnich and Alix Sandra Dragnich, Plaintiffs, v. MIDDLE EAST AIRLINES and Pan American World Airways, Inc., Defendants.
• Court: U.S. District Court — Southern District of New York

227 F. Supp. 839

Albert WAHL and Minnie Wahl, Plaintiffs, v. PAN AMERICAN WORLD AIRWAYS, INC., Middle East Airlines and Scandinavian Airlines Systems, Defendants.

Ralph H. HOPP, individually and as next friend of Thomas Hopp and Susan Hopp, Minors, and Dorothy G. Hopp, Plaintiffs, v. MIDDLE EAST AIRLINES and Pan American World Airways, Inc., Defendants.

Alex N. DRAGNICH, individually and as next friend and guardian of George Steven Dragnich, a Minor, Adele J. Dragnich and Alix Sandra Dragnich, Plaintiffs, v. MIDDLE EAST AIRLINES and Pan American World Airways, Inc., Defendants.

United States District Court S. D. New York.

March 4, 1964.

Theodore E. Wolcott, New York City, for plaintiffs.

Symmers, Fish & Warner, New York City, for defendant Middle East Airlines.

BONSAL, District Judge.

These are three wrongful death actions brought by American citizens residing in the United States as survivors of American citizens who, while fare-paying passengers on an airplane owned and operated by defendant Middle East Airlines (MEA) were killed on or about February 1, 1963 when the MEA plane collided with a Turkish Government Air Force Plane near Ankara, Turkey.

Defendant MEA has moved, pursuant to Rule 12 of the Federal Rules of Civil Procedure, for an order dismissing the actions as to the defendant MEA, or, in the alternative, quashing the service of summons on said defendant on the grounds: (1) that it is a corporation organized and existing under the laws of Lebanon and is not subject to service of process within the State of New York or the Southern District of New York; (2) that summons was not served on any officer, director or managing agent of the defendant nor on any other agent authorized or designated by law to receive service of process on the defendant's behalf and (3) forum non conveniens.

Service of the summonses and complaints was made on Mr. Labib Majdalani at his offices at 680 Fifth Avenue, New York, N. Y. on November 27, 1963. Mr. Majdalani describes himself as Sales Manager, North and South America, for MEA, with offices located at 680 Fifth Avenue, New York City.

MEA is a Lebanese corporation with its principal place of business in Beirut, Lebanon, and operates in the Middle East, Europe and Africa. MEA's time tables list its sales offices, including an office at 680 Fifth Avenue, and a similar listing appears in the "Official Airline Guide".

Prior to the accident here involved, MEA on November 12, 1961 entered into a general sales agency agreement with Pan American World Airways, Inc., which agreement became effective January 1, 1962. According to Mr. Majdalani, the purpose of this agreement was to "service and promote the sales of Middle East Airlines on travel which originates within the United States", since some of MEA's business consists of passengers whose travel originates within the United States on the aircraft of other airline companies and subsequently involves segments of travel on MEA's planes. Mr. Majdalani further states that his duties in the United States are to provide liaison between Pan American and MEA in connection with the agreement, but that neither he nor any other employee of MEA makes any sales in the United States on behalf of MEA. It appears from the aforesaid agreement that such sales are made by Pan American as general sales agent for MEA, Pan American agreeing to "perform such services as may be appropriate to promote passenger, mail, express and cargo traffic over the lines of MEA and, in cooperation with MEA, to arrange for transportation of passengers, baggage, mail, express and cargo over such lines." Each of these functions is detailed at length in the agreement.

It is not denied that at the time of the accident, the activities carried on in the United States under the aforesaid general sales agency agreement, and by Mr. Majdalani as "Sales Manager, North and South America", were of a continuing and substantial nature and were for the purpose of developing passenger and freight business for MEA. Therefore, the test is whether these activities meet the test of "minimum contacts with this country and district to warrant the assertion of the federal judicial power over the controversies to the extent that under traditional notions of fair play they ought to be personally amenable to that judicial power". Maryland for Use of Mitchell v. Capital Airlines, Inc., D.C., 199 F.Supp. 335, 337; Lawson v. Pan American World Airways and Panair do Brasil, 30 Misc.2d 274, 216 N.Y.S.2d 549.

In the view of the Court, the minimum contact test has been amply met under the facts in this case and, indeed, it would be offensive to our notions of fair play to put these plaintiffs, as American citizens, to the expense of pursuing their remedy in Lebanon where MEA's principal office is located, or in Turkey where the accident occurred. MEA having solicited American business in the manner herein described, should be held to answer here for any legitimate consequences of such activity. MEA has by its activities subjected itself to the jurisdiction of this Court, and service on Mr. Majdalani was valid under Rule 4(d) (3) as he meets the test of Managing or General Agent of the business being...