[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 67 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 67

 To regulate interstate commerce by providing for uniform standards of 
     liability for harm arising out of general aviation accidents.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 21 (legislative day, January 5), 1993

 Mrs. Kassebaum (for herself, Mr. Dole, Mr. McCain, Mr. Danforth, Mr. 
 Smith, and Mr. Gorton) introduced the following bill; which was read 
     twice and referred to the Committee on Commerce, Science, and 
                             Transportation

_______________________________________________________________________

                                 A BILL


 
 To regulate interstate commerce by providing for uniform standards of 
     liability for harm arising out of general aviation accidents.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``General Aviation Accident Liability 
Standards Act of 1993''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) transportation by air of passengers continues to 
        comprise an increasingly important component of the Nation's 
        overall transportation system;
            (2) although the incidence of injuries to passengers in 
        general aviation accidents has decreased, the number of general 
        aviation accident liability claims against general aviation 
        aircraft manufacturers and the amount of damages sought in such 
        claims is increasing at disproportionate rates, beyond any 
        relationship to the quality of the aircraft manufactured and in 
        use;
            (3) the current system for determining liability and 
        damages for compensating individuals injured in general 
        aviation accidents is inadequate;
            (4) competent general aviation manufacturers and component 
        part manufacturers are ceasing or limiting production of 
        general aviation aircraft or some models of such aircraft 
        because of the increasing costs and unavailability of product 
        liability insurance;
            (5) the increase in the number of liability claims and the 
        size of awards and settlements, and the excessive time and 
        expense devoted to the resolution of such claims, impose a 
        substantial economic burden on general aviation manufacturers 
        and their dealers;
            (6) the Federal Government has an interest in the general 
        aviation accident liability system because the Federal 
        Government has established a comprehensive system for 
        regulating general aviation, including--
                    (A) establishing standards for design, 
                construction, and certification of general aviation 
                aircraft;
                    (B) establishing standards for maintenance of 
                aircraft, licensing of repair facilities, and licensing 
                of persons who may perform or approve maintenance, 
                repairs, and inspections;
                    (C) establishing standards for training and 
                licensing of pilots;
                    (D) establishing a comprehensive air control 
                system;
                    (E) conducting investigations to determine the 
                probable cause of aviation accidents and prevent future 
                accidents; and
                    (F) conducting other activities necessary to assure 
                a safe air transportation system;
            (7) this Federal system is the exclusive legal authority 
        for regulating aviation operations and safety;
            (8) it is in the national interest to reduce unnecessary 
        expenditures related to general aviation accident liability 
        claims while providing more rapid and more efficient 
        compensation for individuals harmed in general aviation 
        accidents; and
            (9) Federal action to reform the general aviation accident 
        liability system will result in--
                    (A) the maintenance of airworthy general aviation 
                aircraft; and
                    (B) a more rational general aviation accident 
                liability system.
    (b) Purpose.--It is the purpose of this Act to establish standards 
for determining liability for harm arising out of general aviation 
accidents.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the Federal Aviation Administration;
            (2) the term ``claimant'' means any person who brings a 
        general aviation accident liability action subject to this Act, 
        and any person on whose behalf such an action is brought, 
        including--
                    (A) the claimant's decedent; and
                    (B) the claimant's parent or guardian, if the 
                action is brought through or on behalf of a minor or 
                incompetent;
            (3) the term ``general aviation accident'' means any 
        accident which arises out of the operation of any general 
        aviation aircraft and which results in harm;
            (4) the term ``general aviation aircraft'' means any 
        powered aircraft for which a type certificate or an 
        airworthiness certificate has been issued by the Administrator 
        under the Federal Aviation Act of 1958 (49 U.S.C. App. 1301 et 
        seq.) which, at the time such certificate was originally 
        issued, had a maximum seating capacity of fewer than 20 
        passengers, and which is not, at the time of the accident, 
        engaged in scheduled passenger carrying operations, as defined 
        in regulations issued under the Federal Aviation Act of 1958 
        (49 U.S.C. App. 1301 et seq.);
            (5) the term ``general aviation manufacturer'' means--
                    (A) the builder or manufacturer of the airframe of 
                a general aviation aircraft;
                    (B) the manufacturer of the engine of a general 
                aviation aircraft; and
                    (C) the manufacturer of any system, component, 
                subassembly, or other part of a general aviation 
                aircraft;
            (6) the term ``harm'' means--
                    (A) property damage or bodily injury sustained by a 
                person;
                    (B) death resulting from such bodily injury;
                    (C) pain and suffering which is caused by such 
                bodily injury; and
                    (D) emotional harm (including bereavement and loss 
                of affection, care, or society) which is caused by such 
                bodily injury;
            (7) the term ``product'' means a general aviation aircraft 
        and any system, component, subassembly, or other part of a 
        general aviation aircraft; and
            (8) the term ``property damage'' means physical injury to 
        tangible property, including loss of use of tangible property.

SEC. 4. PREEMPTION; APPLICABILITY.

    (a) Effect on State Laws.--This Act supersedes any State law 
regarding recovery, under any legal theory, for harm arising out of a 
general aviation accident, to the extent that this Act establishes a 
rule of law or procedure applicable to the claim.
    (b) Effect on Sovereign Immunity.--Nothing in this Act shall be 
construed to supersede or to waive or affect any defense of sovereign 
immunity asserted by the United States or any State.
    (c) Effect on Liability.--Nothing in this Act shall be construed to 
affect the liability of a manufacturer, owner, or operator of any 
aircraft that is not a general aviation aircraft, or a person who 
repairs, maintains, or provides any other support for any aircraft that 
is not a general aviation aircraft, for damages for harm arising out of 
the operation of an aircraft that is not a general aviation aircraft.
    (d) Workers' Compensation.--No right of action for harm exists 
under this Act if that right would be inconsistent with the provisions 
of any applicable workers' compensation law.
    (e) Applicability.--The provisions of this Act shall apply only 
to--
            (1) any manufacturer, owner, or operator of any general 
        aviation aircraft, and any person who repairs, maintains, or 
        provides any other support for such an aircraft;
            (2) any occupant of a general aviation aircraft at the time 
        of a general aviation accident, and any person who brings an 
        action for harm caused by such accident on behalf of such 
        occupant; and
            (3) any nonoccupant of a general aviation aircraft at the 
        time of a general aviation accident, only if such nonoccupant 
        is bringing an action for harm caused by such accident which 
        arises out of the harm to an occupant of such aircraft at the 
        time of such accident.

SEC. 5. UNIFORM STANDARDS OF LIABILITY FOR GENERAL AVIATION ACCIDENTS.

    (a) In General.--Any person claiming damages for harm arising out 
of a general aviation accident may bring an action against a party and 
may recover damages from such party, if such party was negligent and 
such negligence is a proximate cause of the claimant's harm.
    (b) Actions Against General Aviation Manufacturers.--
            (1) Defective condition.--Any person claiming damages for 
        harm arising out of a general aviation accident may bring an 
        action against a general aviation manufacturer of a product and 
        may recover damages from such general aviation manufacturer 
        if--
                    (A) the product, when it left the control of the 
                manufacturer, was in a defective condition unreasonably 
                dangerous for its intended purpose, according to 
                engineering and manufacturing practices which were 
                reasonably feasible;
                    (B) the defective condition is a proximate cause of 
                the claimant's harm; and
                    (C) the general aviation aircraft was being used at 
                the time of the accident for a purpose and in a manner 
                for which it was designed and manufactured.
            (2) Extent of knowledge.--Any person claiming damages for 
        harm arising out of a general aviation accident may bring an 
        action against a general aviation manufacturer of a product and 
        may recover damages from such general aviation manufacturer 
        if--
                    (A)  at  the  time  that  the  product  left the 
                control of the manufacturer, the manufacturer--
                            (i) knew, or in the exercise of reasonable 
                        care should have known, about a danger 
                        connected with the product that caused the 
                        claimant's harm; and
                            (ii) failed to provide the warnings or 
                        instructions that a person exercising 
                        reasonable care would have provided with 
                        respect to the danger which caused the harm 
                        alleged by the claimant, unless such warnings 
                        or instructions, if provided, would not have 
                        materially affected the conduct of the user of 
                        the product; or
                    (B)  after  the  product  left  the  control  of 
                the general aviation manufacturer, the manufacturer--
                            (i) knew, or in the exercise of reasonable 
                        care should have known, about the danger which 
                        caused the claimant's harm; and
                            (ii) failed to take reasonable steps to 
                        provide warnings or instructions, after the 
                        manufacture of the product, which would have 
                        been provided by a person exercising reasonable 
                        care, unless such warnings or instructions, if 
                        provided, would not have materially affected 
                        the conduct of the product user,
                and the failure to provide warnings or instructions 
                described in subparagraph (A) or (B) is a proximate 
                cause of the claimant's harm.
            (3) Express warranties.--Any person claiming damages for 
        harm arising out of general aviation accident may bring an 
        action against a general aviation manufacturer of a product and 
        may recover damages from such general aviation manufacturer 
        if--
                    (A) the manufacturer made an express warranty with 
                respect to the product;
                    (B) such warranty relates to that aspect of the 
                product which caused the harm;
                    (C) the product failed to conform to such warranty; 
                and
                    (D) the failure of the product to conform to such 
                warranty is a proximate cause of the claimant's harm.
    (c) Defenses.--
            (1) In general.--In an action governed by subsection (b), a 
        general aviation manufacturer shall not be liable if such 
        manufacturer proves, by a preponderance of the evidence, that--
                    (A) the defective condition could have been 
                corrected by compliance with action described in an 
                airworthiness directive issued by the Administrator; 
                and
                    (B) such directive was issued at a reasonable time 
                before the date of the accident and after the product 
                left the control of the general aviation manufacturer.
            (2) Admissibility of certain evidence.--In any action 
        governed by subsection (b), evidence of compliance with 
        standards, conditions or specifications established, adopted or 
        approved by the Federal Aviation Administration shall be 
        admissible with regard to whether the product was defective and 
        unreasonably dangerous for its intended purpose.

SEC. 6. COMPARATIVE RESPONSIBILITY.

    (a) In General.--All actions for harm arising out of a general 
aviation accident shall be governed by the principles of comparative 
responsibility. Comparative responsibility attributed to the claimant's 
conduct shall not bar recovery in an action under this Act, but shall 
reduce any damages awarded to the claimant in an amount proportionate 
to the responsibility of the claimant. The trier of fact shall 
determine comparative responsibility by making findings indicating the 
percentage of total responsibility for the claimant's harm attributable 
to the claimant, each defendant, each third-party defendant, and any 
other person not a party to the action.
    (b) Several Liability.--Except as provided in subsection (c), a 
defendant is severally but not jointly liable in any action for harm 
arising out of a general aviation accident, and the liability of any 
defendant in any such action shall be determined on the basis of such 
defendant's proportionate share of responsibility for the claimant's 
harm.
    (c) Exception.--In any action for harm arising out of a general 
aviation accident--
            (1) a general aviation manufacturer who is the builder or 
        manufacturer of the airframe of the general aviation aircraft 
        involved is jointly and severally liable for harm caused by a 
        defective system, component, subassembly, or other part of such 
        aircraft that the manufacturer installed or certified as part 
        of the original type design for such aircraft; and
            (2) a general aviation manufacturer who is the manufacturer 
        of a system or component of the general aviation aircraft 
        involved is jointly and severally liable for damages caused by 
        a defective subassembly or other part of such system or 
        component.
    (d) Actions for Indemnity.--A general aviation manufacturer and any 
other person jointly liable under subsection (c) shall have the right 
to bring an action for indemnity or contribution against any person 
with whom they are jointly liable under subsection (c).

SEC. 7. TIME LIMITATION ON LIABILITY.

    (a) Limitation on Civil Actions.--Except as provided in subsection 
(b), no civil action for harm arising out of a general aviation 
accident which is brought against a general aviation manufacturer may 
be brought for harm which is alleged to have been caused by an aircraft 
or a system, component, subassembly, or other part of an aircraft and 
which occurs more than--
            (1) 20 years from--
                    (A) the date of delivery of the aircraft to its 
                first purchaser or lessee, if delivered directly from 
                the manufacturer; or
                    (B) the date of first delivery of the aircraft to a 
                person engaged in the business of selling or leasing 
                such an aircraft; or
            (2) with respect to any system, component, subassembly, or 
        other part which replaced another product in, or which was 
        added to, the aircraft, and which is alleged to have caused the 
        claimant's harm, twenty years from the date of the replacement 
        or addition.
    (b) Express Warranty Exception.--Subsection (a) does not apply in 
the case of harm to a claimant which occurs after the period set forth 
in subsection (a) if the general aviation manufacturer or the seller of 
the product that caused the claimant's harm gave an express warranty 
that the product would be suitable, for the purpose for which it was 
intended, for a longer period of time.
    (c) Effects on Other Duties.--Nothing in this section shall be 
construed to affect a person's duty to provide, after the sale or lease 
of an aircraft, to aircraft owners, and to repair facilities to which a 
license or certificate to perform repairs has been issued by the 
Administrator, additional or modified warnings or instructions 
regarding the use or maintenance of such aircraft or any system, 
component, or other part of such aircraft.

SEC. 8. SUBSEQUENT REMEDIAL MEASURES.

    In any general aviation accident liability action governed by this 
Act, evidence of any measure taken after an event which, if taken 
previously, would have made the event less likely to occur is not 
admissible to provide liability. Such evidence is admissible to the 
extent permitted under rule 407 of the Federal Rules of Evidence.

SEC. 9. ADMISSIBILITY OF CERTAIN EVIDENCE.

    In an action governed by this Act, evidence of Federal, State, or 
local income tax liability or any Social Security or other payroll tax 
liability attributable to past or future earnings, support, or profits 
and the present value of future earnings, support, or profits alleged 
to have been lost or diminished because of harm arising out of a 
general aviation accident is admissible regarding proof of the 
claimant's harm.

SEC. 10. PUNITIVE DAMAGES.

    (a) Award Standard.--Punitive damages may be awarded in an action 
under this Act for harm arising out of a general aviation accident only 
if the claimant establishes by clear and convincing evidence that the 
harm suffered was the direct result of conduct manifesting a conscious, 
flagrant indifference to the safety of those persons who might be 
harmed by use of the general aviation aircraft involved.
    (b) Evidentiary Limitation.--Evidence regarding the financial worth 
of a defendant or the defendant's profits or any other evidence 
relating solely to a claim for punitive damages under this Act is not 
admissible unless the claimant establishes, before any such evidence is 
offered, that the claimant can present evidence that will establish 
prima facie proof of conduct manifesting a conscious, flagrant 
indifference to the safety of those persons who might be harmed by use 
of the general aviation aircraft involved.

SEC. 11. TIME LIMITATION ON BRINGING ACTIONS.

    Any action for harm arising out of a general aviation accident 
shall be barred, notwithstanding any State law, unless--
            (1) the complaint is filed not later than 2 years after the 
        date on which the accident occurred which caused the claimant's 
        harm; and
            (2) the summons and complaint are properly served upon the 
        defendant not later than 120 days after the filing of such 
        complaint, unless the party on whose behalf such service is 
        required can show good cause why such service was not made 
        within such 120-day period.
Paragraph (2) of this subsection shall not apply to service of process 
in a foreign country pursuant to rule 4(i) of the Federal Rules of 
Civil Procedure or any similar State law.

SEC. 12. SANCTIONS.

    It is the intent of Congress that, with respect to any action 
governed by this Act, the sanctions for violation of rule 11 of the 
Federal Rules of Civil Procedure, including orders to pay to the other 
party or parties the amount of their reasonable expenses, including a 
reasonable attorney's fee, be strictly enforced.

SEC. 13. JURISDICTION.

    (a) In General.--The district courts of the United States, 
concurrently with the State courts, shall have original jurisdiction, 
in all civil actions where the matter in controversy exceeds the sum or 
value of $50,000, exclusive of interest and costs, for harm arising out 
of a general aviation accident and in all actions for indemnity or 
contribution described in section 6(d).
    (b) Removal to District Court.--A civil action which is brought in 
a State court may be removed to the district court of the United States 
for the district embracing the place where the action is pending, 
without the consent of any other party, by any defendant against whom a 
claim in such action is asserted for harm arising out of a general 
aviation accident.
    (c) Determination Under State Law.--In any case commenced in or 
removed to a district court of the United States under subsection (a) 
or (b), the court shall have jurisdiction to determine all claims under 
State law that arise out of the same general aviation accident, if a 
substantial question of fact is common to the claims under State law 
and to the Federal claim, defense, or counterclaim.
    (d) Venue.--
            (1) In general.--A civil action in which the district 
        courts of the United States have jurisdiction under subsection 
        (a) may be brought only in a district in which--
                    (A) the accident giving rise to the claim occurred; 
                or
                    (B) any plaintiff or defendant resides.
            (2) Motions to transfer.--In an action pending in a 
        district court of the United States under paragraph (1), a 
        district court may, on motion of any party or its own motion, 
        transfer the action to any other district for the convenience 
        of parties and witnesses in the interest of justice.
            (3) Corporate residences.--For purposes of this subsection, 
        a corporation shall be considered to be a resident of any State 
        in which it is incorporated or licensed to do business or is 
        doing business.

SEC. 14. SEVERABILITY.

    If any provision of this Act or the application of the provision to 
any person or circumstance is held invalid, the remainder of this Act 
and the application of the provision to any other person or 
circumstance shall not be affected by such invalidation.

SEC. 15. EFFECTIVE DATE.

    (a) Applicability.--This Act shall apply to any civil action for 
harm arising out of a general aviation accident which is filed on or 
after the date of enactment of this Act.
    (b) Liberal Leave To Amend.--If an action governed by this Act is 
filed not later than 180 days after the date of enactment of this Act, 
liberal leave shall be given to a party to amend any pleading, motion, 
statement of jurisdiction or venue, or other matter to conform to the 
provisions of this Act.

                                 <all>

S 67 IS----2