National Union Fire Insurance v. Aerohawk Aviation, Inc.

MEMORANDUM **

National Union Fire Insurance brought this diversity subrogation action against several parties involved, either directly or indirectly, in the crash of a Cessna 425 airplane owned by National’s insured, Fred Hibberd. National settled with all parties except NSI, Inc., which was the employer of Scott Adams, one of the two pilots aboard the Cessna when the accident occurred on November 10, 2000. National asserts that NSI is vicariously liable for Adams’ alleged negligence during the ill-fated flight.

I.

Aerohawk Aviation repaired Hibberd’s Cessna in early November 2000. Aerohawk’s mechanic agreed to let pilot Jim Jorgensen conduct a maintenance-test flight of Hibberd’s Cessna 425. When the mechanic approached Jorgensen on November 10 to tell him that the plane was ready for the test, Jorgensen responded by inviting Adams, who was standing nearby, to go along. Jorgensen got into the left seat of the plane with Adams on the right. The vehicle could be piloted from either seat. Tragically, the craft crashed during the test flight, killing both Jorgensen and Adams.

NSI’s company plane was a Cessna 414, and Adams, its usual pilot, was qualified to fly the aircraft.…