Case brief · Civil Procedure

NARKIEWICZ-LAINE v. SCANDINAVIAN AIRLINES SYSTEMS Case Brief

United States District Court, N.D. Illinois, Western Division • 2008
Holding checked against the opinion
587 F.Supp.2d 888 Civil Procedure Federal Courts International Law
AI-generated from the opinion text. Read the opinion before you rely on it.

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Case Brief Summary & Legal Analysis

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tl;dr: Narkiewicz-Laine alleged that Scandinavian Airlines Systems breached contracts involving a delayed flight and an unused ticket. The court held that the Montreal Convention did not completely preempt his state-law claims and remanded for lack of subject matter jurisdiction.

Legal Significance: The decision distinguishes complete preemption supporting removal from treaty-based affirmative defenses. Extending Sompo’s reasoning concerning the Warsaw Convention, the court treated the Montreal Convention’s conditions and liability limits as defenses that do not create federal-question jurisdiction over state-law contract claims.

Case Facts & Court Holding

Key Facts & Case Background

Christian K. Narkiewicz-Laine sued Scandinavian Airlines Systems in the 15th Judicial Circuit Court, Jo Daviess County, Illinois, alleging two breaches of contract. He alleged that a delayed Dublin-to-Copenhagen flight on March 6, 2008, caused him to miss his Helsinki connection and arrive in Helsinki 1½ hours later than originally scheduled. He also alleged that the airline refused to refund or re-book a Dublin-to-Oslo ticket for June 21, 2006, although he called on the departure date to report that illness prevented travel. The airline removed under 28 U.S.C. § 1441, asserting federal-question jurisdiction under 28 U.S.C. § 1331 through complete preemption by the Montreal Convention. It conceded that the Oslo-ticket claim fell outside the Convention but asserted supplemental jurisdiction under 28 U.S.C. § 1367. Plaintiff moved to remand, and defendant moved to transfer venue to the Eastern Division of the Northern District of Illinois.

Court Holding & Legal Precedent

Issue: Does the Montreal Convention completely preempt plaintiff’s state-law breach-of-contract claims, thereby supplying federal-question jurisdiction supporting removal?

The court remanded for lack of subject matter jurisdiction because the Montreal Convention did not completely preempt plaintiff’s state-law contract claims. Article 29 permits claims founded in contract or tort while subjecting them to treaty-based conditions and liability limits, which operate as affirmative defenses. The court denied defendant’s transfer motion as moot and denied plaintiff’s motion for sanctions concerning that motion.

IRAC Legal Analysis

Legal Issue

Does the Montreal Convention completely preempt plaintiff’s state-law breach-of-contract claims, thereby supplying federal-question jurisdiction supporting removal?

Conclusion

The decision supports treating the Montreal Convention’s conditions and liability limits as affirmative defenses rather than complete preemption supporting removal of state-law contract claims. It resolves federal jurisdiction without deciding the merits of the alleged breaches.

Legal Rule

Federal-question jurisdiction ordinarily depends on the plaintiff’s well-pleaded complaint. City of Chicago v. Comcast Cable Holdings, L.L.C., 384 F.3d 901, 904 (7th Cir.2004). Federal preemption ordinarily supplies only a defense and cannot support removal. Metro. Life Ins. Co. v. Taylor, 481 U.S. 58, 63 (1987). Complete preemption is an exception when federal law entirely replaces state-law claims. Franciscan Skemp Healthcare, Inc. v. Central States Joint Bd. Health & Welfare Trust Fund, 538 F.3d 594, 596 (7th Cir. 2008). Under Montreal Convention Article 29, the Convention’s conditions and liability limits operate as affirmative defenses to state-law claims rather than grounds for federal-question jurisdiction, extending the reasoning of Sompo Japan Ins., Inc. v. Nippon Cargo Airlines Co., Ltd., 522 F.3d 776, 785 (7th Cir.2008).

Legal Analysis

The court distinguished ordinary preemption, which supplies a defense, from complete preemption, which can transform a state-law claim into a federal claim supporting removal. The question was whether the Montreal Convention accomplished that jurisdictional transformation.

Article 19 addresses damages occasioned by delay. Article 29 subjects damages actions, however founded, to the Convention’s conditions and liability limits while expressly referring to actions in contract, tort, or otherwise. The court compared that language with amended Article 24 of the Warsaw Convention. In Sompo, the Seventh Circuit reasoned that Article 24 contemplated contract and tort actions and that the Warsaw Convention’s liability limitations operated as affirmative defenses.

Because Article 29 uses nearly identical language and extends it to passengers and baggage as well as cargo, the court applied Sompo’s reasoning to the Montreal Convention. Plaintiff’s contract claims therefore remained state-law claims subject to possible treaty defenses. Those defenses supplied no federal-question jurisdiction. The airline’s concession that the Oslo-ticket claim was outside the Convention did not establish an independent federal jurisdictional basis. The court resolved jurisdiction without deciding whether plaintiff could recover on either alleged breach.

The Opinion

Summary

  • The Montreal Convention does not completely preempt state-law claims for damages in international air carriage.
  • The Convention’s liability limits and conditions function as an affirmative defense to state-law claims, not as a basis for federal removal jurisdiction.
  • A case raising such claims must be remanded to state court if federal jurisdiction is otherwise lacking.

Full text

Complete unedited opinion text as published by the court

PHILIP G. REINHARD, Judge.

PHILIP G. REINHARD, Judge.

Plaintiff, Christian K. Narkiewicz-Laine, filed this action claiming breach of contract against defendant, Scandinavian Airlines Systems, in state court, the 15th Judicial Circuit Court, Jo Daviess County, Illinois. Defendant removed under 28 U.S.C. § 1441 claiming this court has subject matter jurisdiction under 28 U.S.C. § 1331 because the action arises under a treaty of the United States, the Convention for the Unification of Certain Rules for International Carriage by Air Concluded at Montreal, Canada, May 28, 1999 ("Montreal Convention"). Defendant argues this treaty preempts plaintiffs state-law claims. Plaintiff moves to remand and defendant moves to transfer venue to the Eastern Division of the Northern District of Illinois.

Plaintiff's complaint alleges two claims: 1) defendant's flight, on which plaintiff was a scheduled passenger, from Dublin to Copenhagen on March 6, 2008, was delayed causing him to miss his connection to Helsinki and the flight he was rescheduled on arrived 1½ hours later in Helsinki than his originally scheduled flight; 2) defendant did not refund or re-book another ticket plaintiff purchased to fly from Dublin to Oslo on June 21, 2006, even though plaintiff had called defendant on the scheduled day of departure and advised defendant he was sick and unable to travel.

Plaintiff seeks to remand arguing "a refund of a ticket has nothing to do whatsoever with the Montreal Convention or a Treaty with the United States.... This was a simple credit card transaction that resulted in a broken contract." Plaintiff further asserts that his claim for refusal to re-book his Oslo flight due to illness is not governed by the Montreal Convention nor any other treaty. Defendant agrees that the claim for the Oslo flight is not covered by the Montreal Convention but asserts supplemental jurisdiction under 28 U.S.C. § 1367 over this claim.

Ordinarily, when a case is removed, the court looks only to plaintiffs statement of his own claim in his wellpleaded complaint to see if it is one arising under "the Constitution or a law or treaty of the United States" so as to confer federal-question jurisdiction. City of Chicago v. Comcast Cable Holdings, L.L.C.,384 F.3d 901, 904 (7th Cir.2004) (citations omitted). Generally, federal preemption is a defense to a state law claim and does not provide grounds for removal because a defense based on federal law is not a claim arising under federal law. See Metro. Life Ins. Co. v. Taylor,481 U.S. 58, 63, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987). Complete preemption is the exception to this rule. "Complete preemption, really a jurisdictional rather than a preemption doctrine, confers exclusive federal jurisdiction in certain instances where Congress intended the scope of a federal law to be so broad as to entirely replace any state-law claim." Franciscan Skemp Healthcare, Inc. v. Central States Joint Bd. Health & Welfare Trust Fund,538 F.3d 594, 596 (7th Cir. 2008). The question is whether the Montreal Convention completely preempts any state-law claims so that this action is in reality based on the treaty. See id.

The Montreal Convention entered into force on September 5, 2003, after its ratification by the United States Senate. See Sompo Japan Ins., Inc. v. Nippon Cargo Airlines Co., Ltd.,522 F.3d 776, 781 (7th Cir.2008). The Montreal Convention replaced the Warsaw Convention and its supplementary amendments added over the years. Id. at 780-81. The Montreal Convention, according to its terms, "applies to all international carriage of persons, baggage or cargo performed by aircraft for reward." Article 1. Article 19 provides "[t]he carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo." Article 29 states "[i]n the carriage of passengers, baggage and cargo, any action for damages, however founded, whether under this Convention or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Convention without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights. In any such action, punitive, exemplary or any other non-compensatory damages shall not be recoverable."

The language of Article 29 is very similar to the language of Article 24, paragraph 2 of the Warsaw Convention, as amended by Montreal Protocol No. 4. This amendment went into effect in the United States on March 4, 1999. Paragraph 2 of amended Article 24 provides "[i]n the carriage of cargo, any action for damages, however founded, whether under this Convention, or in contract or in tort or otherwise, can only be brought subject to the conditions and limits of liability set out in this Convention." El Al Israel Airlines, Ltd. v. Tsui Yuan Tseng,525 U.S. 155, 175 n. 15, 119 S.Ct. 662, 142 L.Ed.2d 576 (1999) (quoting Article 24, as amended by Montreal Protocol No. 4). Article 29 of the Montreal Convention uses nearly identical language but applies it to the carriage of passengers and baggage, as well as cargo.

The Seventh Circuit recently considered the language of Article 24 of the amended Warsaw Convention and stated "Article 24 expressly contemplates that an action may be brought in contract or in tort. The liability limitation provisions of the Warsaw Convention simply operate as an affirmative defense." Sompo, 522 F.3d at 785. This reasoning logically extends to the strikingly similar language of Article 29 of the Montreal Convention. Accordingly, claims may be brought under the Convention or they may be brought "in contract or in tort or otherwise" but such claims are subject to an affirmative defense based on the conditions and limits of liability set out in the Montreal Convention. Plaintiff brought state-law breach of contract claims. Because the conditions and limits of the Montreal Convention are defenses to the state-law claims raised by plaintiff, they do not provide a basis for federal-question subject matter jurisdiction. See id.; Serrano v. American Airlines, Inc., No. CV 08-2256 AHM, 2008 WL 2117239 (C.D.Cal. May 15, 2008); but see, Knowlton v. American Airlines, Inc., No. RDB-06-854, 2007 WL 273794 (D.Md. Jan. 31, 2007). Plaintiffs claims do not arise under the Constitution or a law or treaty of the United States. The complete preemption doctrine does not apply. This case is remanded to the 15th Judicial Circuit Court, Jo Daviess County, Illinois for lack of subject matter jurisdiction. Defendant's motion to transfer is denied as moot. Plaintiffs motion for sanctions related to defendant's filing of the motion to transfer is denied.