Riggs v. Airbus Helicopters, Inc., No. 18-16396 (9th Cir. 2019)
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The Ninth Circuit affirmed the district court's order granting motions to remand to state court. AHI contended that it properly removed this case to federal court under 28 U.S.C. 1442(a)(1). Plaintiffs had filed suit in state court against the helicopter owners, the Hecker Defendants, and the manufacturer, AHI, after John Udall died in a helicopter crash while touring the Grand Canyon.
The panel held that the district court committed no error in finding that AHI was not "acting under" a federal officer by virtue of becoming an FAA-certified Designation holder with authority to issue Supplemental Certificates. In this case, AHI inspected and certified its aircraft pursuant to FAA regulations and federal law and could not make any structural or design changes without the consent of the FAA. The panel joined the Seventh Circuit in concluding that an aircraft manufacturer does not act under a federal officer when it exercises designated authority to certify compliance with governing federal regulations.
Court Description: Federal Officer Removal Statute. The panel affirmed the district court’s order granting motions to remand to state court a case that had been removed to federal court pursuant to 28 U.S.C. § 1442(a)(1). Following a fatal helicopter crash, plaintiffs filed suit in Nevada state court against the owners of the helicopter and the manufacturer, Airbus Helicopters, Inc. Airbus removed the action to federal court on the basis of § 1442(a)(1), which permits removal of an action against “any officer (or any person acting under that officer) of the United States or of RIGGS V. AIRBUS HELICOPTERS 3 any agency thereof, in an official or individual capacity, for or relating to any act under color of such office.” Federal Aviation Administration regulations set forth standards for certification of helicopters. Pursuant to 49 U.S.C. § 44702(d)(1), the FAA delegated to Airbus the authority to issue Supplemental Certificates for design changes to type-certified aircraft. Agreeing generally with the Seventh Circuit, and applying Watson v. Philip Morris Cos., 551 U.S. 142 (2007), the panel held that Airbus failed to meet the “acting under” requirement of § 1442(a)(1) because, in issuing Supplemental Certificates pursuant to its FAA delegation, Airbus was merely complying with regulatory standards. The panel concluded that an aircraft manufacturer does not act under a federal officer when it exercises designated authority to certify compliance with governing federal regulations. Dissenting, Judge O’Scannlain wrote that Airbus acted under a federal agency because it undertook duties on the FAA’s behalf, and the majority’s contrary holding misunderstood the FAA’s regulatory regime and misapplied Watson.
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