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Conflict of Laws Keyed to Brilmayer
Helicopteros Nacionales de Columbia, S.A. v. Hall
Citation:
466 U.S. 408 (1983)Facts
During the 1970’s, Consorcio, a Peruvian consortium, was contracted to construct a pipeline for Petro Peru, a Peruvian state-owned oil company, that would run from the interior of Peru to the coast. Consorcio was the alter ego of a joint venture named Williams-Sedco-Horn (“WSH”), which had its headquarters in Houston, Texas. Because Peruvian law forbade construction of the pipeline by non-Peruvian entities, Consorcio was formed to enable the WSH venturers to enter into the contract with Petro Peru.
Consorcio/WSH needed helicopters to move people, materials, and equipment into and out of the construction area. In 1974, the chief executive officer of Helicopteros Nationales de Colombia, S.A. (“Helicol”), a a Colombian corporation that provided helicopter transportation for oil and construction companies in South America, flew to Houston to negotiate with representatives of Consorcio/WSH. They discussed prices, availability, work conditions, fuel, supplies, and housing. The Helicol executive represented that Helicol could have the first helicopter on the job in 15 days, so the Consorcio/WSH representatives accepted the contract. Helicol began performing before the agreement was formally signed in Peru on November 11, 1974. The contract stated that controversies arising out of the contract would be submitted to Peruvian courts, and that Consorcio/WSH would make payments to Helicol’s account with the Bank of America in New York.
On January 26, 1976, one of Helicol’s helicopters crashed in Peru and four U.S. citizens employed by Consorcio died. Plaintiffs, survivors and representatives of the four decedents, brought suit for wrongful-death in the District Court of Harris County, Texas against Consorcio/WSH, Bell Helicopter Company, and Helicol. Helicol moved to dismiss the action for lack of personal jurisdiction. The trial court denied Helicol’s motion. After a consolidated jury trial, judgment was entered in the amount of $1,141,200 against Helicol. The Texas Supreme Court affirmed, ruling that Texas courts did have personal jurisdiction. The U.S. Supreme Court granted Helicol’s petition for certiorari.
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