Northwest Airlines v. Astraea Aviation ( 1997 )


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  •                      United States Court of Appeals
    FOR THE EIGHTH CIRCUIT
    ___________
    No. 96-2761
    ___________
    Northwest Airlines, Inc.,           *
    a Minnesota corporation,            *
    *
    Plaintiff/Appellee,           *
    * Appeal from the United States
    v.                      * District Court for the
    * District of Minnesota.
    Astraea Aviation Services,          *
    Inc., doing business as Dalfort     *
    Aviation, a Texas Corporation,      *
    *
    Defendant/Appellant.          *
    ___________
    Submitted:     March 12, 1997
    Filed:   April 24, 1997
    ___________
    Before MAGILL and MURPHY, Circuit Judges, and GOLDBERG,1 Judge.
    ___________
    MURPHY, Circuit Judge.
    Northwest Airlines, Inc. (Northwest) contracted with Astraea Aviation
    Services, Inc. (Astraea) for Astraea to perform routine maintenance on
    Northwest aircraft and to refurbish other newly acquired aircraft.    After
    problems arose in completing the work, Northwest sued Astraea for breach
    of contract in Minnesota state court.   Astraea removed the case to federal
    court and counterclaimed, alleging contract and tort claims against
    1
    The Honorable Richard W. Goldberg, Judge, United States Court
    of International Trade, sitting by designation.
    Northwest.    The district court2 denied Astraea’s motion to dismiss for lack
    of personal jurisdiction and then granted Northwest’s motion for summary
    judgment on Astraea’s counterclaims.            We affirm.
    In late 1993, representatives of Astraea attended several meetings
    in   Minnesota concerning proposals for undertaking work to refurbish
    aircraft which Northwest had purchased from another carrier. These meetings
    included a preliminary meeting attended by several potential bidders for
    the refurbishment contracts, as well as meetings where Astraea submitted
    proposals and negotiated the refurbishment contracts.          In addition, Astraea
    made numerous phone calls to Northwest’s offices in Minnesota during this
    time.
    Several   contracts   resulted.     On     December   10,   1993,   the   first
    refurbishment contract was executed by the parties in Minnesota.                   This
    contract was amended by a letter agreement in March 1994, which also
    created a second refurbishment contract and provided that Astraea would
    refurbish additional planes.       Finally, the parties then entered into a
    maintenance contract in September 1994, under which Astraea was to provide
    routine maintenance for some Northwest aircraft.
    All three contracts contained choice of law provisions stating that
    the laws of Minnesota would govern.             The refurbishment contracts stated
    that    they “shall be deemed entered into within” Minnesota, and the
    maintenance contract contained a choice of forum provision which stated
    that “[Astraea] hereby submits to the jurisdiction and venue of the courts
    of the State of Minnesota with respect to all disputes arising hereunder.”
    2
    The Honorable Richard M. Kyle, United States District Judge
    for the District of Minnesota.
    -2-
    After   the    contracts   were   executed,   Northwest   began   delivering
    aircraft to Astraea in Dallas, sending twenty-five planes to Astraea’s
    hangars over the course of more than a year.        Northwest stationed some of
    its employees in Dallas to oversee the work and sent to Dallas engineering
    information, operating manuals, and parts to be used in the planes from
    various locations, including Minnesota.            Astraea representatives also
    traveled to Minnesota on at least three occasions to discuss issues under
    the contracts.   As the work progressed, disputes arose about its quality,
    and there were delays in completing the aircraft.
    After these problems arose, a reporter for a Minneapolis newspaper
    contacted a Northwest representative at its Minnesota headquarters about
    the disputes.      The representative told the reporter that Northwest had
    concerns about the quality of Astraea’s work, including defective parts and
    a leaky fuel line and undetected tail crack on one of the aircraft.         Those
    statements were included in an article in the Minneapolis newspaper.
    Copies of the article were faxed to Northwest employees in Texas, and
    Astraea claims that a Northwest employee distributed copies of the faxed
    article to Astraea customers.    A Texas newspaper also reprinted the article
    in Texas.
    On July 14, 1995, Northwest sued Astraea in Minnesota state court
    under all three contracts,3 alleging that Astraea had
    3
    Astraea had previously filed a complaint in Texas state court
    on July 12, 1995; it effected service on Northwest on July 18.
    Under Texas law, a suit is commenced when it is filed, as long as
    the plaintiff exercises diligence in effecting service. One 1991
    Chevrolet Blazer v. State, 
    905 S.W.2d 443
    , 444 (Tex. Ct. App.
    1995). Northwest commenced its action under Minnesota law on July
    14 when it filed and served Astraea. Minn. R. Civ. P. 3.01. The
    counterclaims filed in this action are basically identical to the
    claims asserted by Astraea in its Texas complaint.
    -3-
    breached the contracts by delivering the planes late and not performing to
    specifications.     Astraea removed the suit to federal district court and
    moved to dismiss for lack of personal jurisdiction.             After the district
    court ruled that Northwest had made a sufficient prima facie showing of
    jurisdiction, Astraea     counterclaimed, alleging breach of contract, fraud,
    and defamation by Northwest as well as other tort and unjust enrichment
    claims.   Northwest pled the affirmative defense of accord and satisfaction
    to the breach of contract claims and moved for summary judgment on the
    counterclaims.    After the district court granted the motion, the parties
    settled the remaining claims which were dismissed with prejudice.              Astraea
    appeals the assertion of jurisdiction over it and the dismissal of its
    counterclaims.
    I.
    Astraea     claims   there   was   no    personal   jurisdiction   over    it   in
    Minnesota because it did not have a “general presence” in the state and the
    acts giving rise to the claims did not occur in it.           The district court’s
    decision on personal jurisdiction is reviewed de novo.           Northrup King Co.
    v. Compania Productora Semillas Algodoneras Selectas, S.A., 
    51 F.3d 1383
    ,
    1387 (8th Cir. 1995).
    The Minnesota long-arm statute, Minn. Stat. § 543.19, is applied to
    the fullest extent permitted under the due process clause of the fourteenth
    amendment.   Valspar Corp. v. Lukken Color Corp., 
    495 N.W.2d 408
    ,               410-11
    (Minn. 1992).     The due process clause requires that a defendant have
    sufficient minimum contacts with the forum so that traditional notions of
    fair play and substantial justice are not offended.         International Shoe Co.
    v. Washington, 
    326 U.S. 310
    , 316 (1945).         To establish sufficient minimum
    contacts, a defendant must have “purposefully avail[ed] itself of the
    privilege of conducting activities within the forum
    -4-
    state, thus invoking the benefits and protections of its laws.”        Burger
    King Corp. v. Rudzewicz, 
    471 U.S. 462
    , 475 (1985) (quoting Hanson v.
    Denckla, 
    357 U.S. 235
    , 253 (1958).    Three primary factors, (1) the nature
    and quality of the contacts, (2) the quantity of the contacts, and (3) the
    relation of the cause of action to the contacts, are then considered, as
    well as two secondary factors, (1) the interest of the forum state in the
    litigation, and (2) the convenience of the parties, to determine whether
    personal jurisdiction comports with fair play and substantial justice.
    Minnesota Min. & Mfg. v. Nippon Carbide Indus., 
    63 F.3d 694
    , 697 (8th Cir.
    1995), cert. denied, 
    116 S. Ct. 1288
    (1996).
    Astraea claims that the choice of law clauses in the contracts,
    telephone calls into the state, and meetings in Minnesota were not
    sufficient to create personal jurisdiction when viewed in the context of
    the parties’ dealings. Personal jurisdiction depends upon a “defendant’s
    contacts with the forum in the aggregate, not individually” and the
    “totality of the circumstances.”     Northrup 
    King, 51 F.3d at 1388
    .    While
    a choice of law provision in itself is insufficient to create personal
    jurisdiction, it remains a relevant consideration in determining whether
    a defendant has purposefully availed itself in the forum state.    Wessels,
    Arnold & Henderson v. National Med. Waste, Inc., 
    65 F.3d 1427
    , 1434 (8th
    Cir. 1995).   Phone calls into a state are also a relevant contact, although
    they also do not in themselves establish jurisdiction.         See Digi-Tel
    Holdings, Inc. v. Proteq Telecommunications (PTE), Ltd, 
    89 F.3d 519
    , 523
    (8th Cir. 1996).
    Astraea had several contacts with Minnesota which related to the
    disputed contracts under which Northwest brought its breach of contract
    claims.   Some relevant contract discussions took place in Minnesota, and
    representatives of Astraea went there on several
    -5-
    occasions to negotiate the contracts in late 1993.              In one of these
    meetings the parties signed a letter of intent and drafted the tentative
    form of the refurbishment contract.     Astraea made over 200 phone calls to
    Northwest in 1993, and the first refurbishment contract was signed by both
    parties in Minnesota in December 1993.       Over the course of the contractual
    period, Astraea representatives went to Minnesota at least three more times
    to discuss the contracts in 1994 and 1995.
    All three contracts which Northwest and Astraea negotiated stated
    that they would be governed by Minnesota law, and Astraea expressly agreed
    in the maintenance contract to submit to the jurisdiction of Minnesota
    courts for any disputes arising under that contract.        These provisions and
    Astraea’s   other   state   contacts   related   to   the   contracts   show   that
    it“purposefully availed” itself of conducting business in Minnesota and
    that it could have reasonably expected to be sued there.            The district
    court did not err in denying the motion to dismiss for lack of personal
    jurisdiction.
    II.
    Astraea appeals from the grant of summary judgment on its          breach of
    contract counterclaims concerning the first refurbishment contract.              It
    argues that the district court incorrectly concluded that Northwest’s
    payment of a final bill presented by Astraea for work done under that
    contract was a settlement for those claims and resulted in an accord and
    satisfaction.   Summary judgment is reviewed de novo. Stevens v. St. Louis
    Univ. Med. Ctr., 
    97 F.3d 268
    , 270 (8th Cir. 1996).
    Astraea concedes that Minnesota law governs its breach of contract
    counterclaims and Northwest’s defense of an accord and
    -6-
    satisfaction because of the choice of law provisions in the contracts.
    Under Minnesota law, an accord and satisfaction may occur “when a creditor
    accepts part payment of an unliquidated debt which the debtor tenders in
    full satisfaction of the debt . . . and the creditor accepts that offer.”
    Don Kral Inc. v. Lindstrom, 
    173 N.W.2d 921
    , 923 (Minn. 1970).     It may be
    expressed or implied from circumstances which clearly indicate the intent
    of the parties.   Roaderick v. Lull Eng’g Co., 
    208 N.W.2d 761
    , 764 (Minn.
    1973).
    After a dispute arose concerning five aircraft to be worked on under
    the first refurbishment contract, representatives of Astraea and Northwest
    met.   Astraea told Northwest that it had incurred damages of $2.8 million
    because of Northwest’s hindrance and delays, including delays in providing
    adequate parts and documentation on the aircraft.   Northwest refused to pay
    the $2.8 million, and the parties then exchanged several letters about the
    demand for payment.
    In the first letter, Northwest’s project manager stated:
    “As per our agreement to review [Astraea’s] claims
    for additional payment with regard to aircraft
    9880, 9881, 9882, 9883, 9884, I would like to have
    you detail the claims with substantiation . . .
    .Once I receive this data, I will be in contact
    with you to work out the final resolution.”
    Astraea responded to this letter, stating that it had attached a final item
    for Northwest’s consideration “[i]n accordance with our agreement for final
    settlement on 9880-9884."   Astraea also stated that “if Northwest accepted”
    this last item, Astraea would consider it the final billing for the
    project.     Northwest then responded that it had reviewed the “final
    settlement proposal . . . for
    -7-
    aircraft 9880-9884,” and that it would pay the amount.    Astraea submitted
    a final invoice, which Northwest paid.
    Astraea argues that it did not intend to create an accord and
    satisfaction through these letters.     The plain language of the letters,
    however, expresses the parties’ understanding that these negotiations were
    to provide the “final resolution” of Astraea’s claims relating to the five
    aircraft.   The language of the letters indicates that if Northwest accepted
    Astraea’s proposed amount, its payment of that amount was to be the “final
    settlement” in relation to claims for these five aircraft.        Astraea’s
    assertion that it had a different subjective intent cannot be the basis for
    finding there was no accord and satisfaction when the plain language of the
    letters clearly expressed the parties’ objective intent to settle the
    original claims.   See Total Equip. Leasing Corp. v. LaRue Inv. Corp., 
    357 N.W.2d 347
    , 350 (Minn. Ct. App. 1984) (parties’ objective intent determines
    whether there is an accord and satisfaction); see also Goldberger v.
    Kaplan, Strangis and Kaplan, P.A., 
    534 N.W.2d 734
    , 737 (Minn. Ct. App.
    1995) (assertion that party did not subjectively intend to release all
    claims does not affect the release without a showing of mutual mistake).
    Northwest was thus entitled to summary judgment on these counterclaims.
    III.
    Astraea argues that the district court erred in its choice of law
    analysis by determining that Minnesota law applied to all the tort
    counterclaims and in granting summary judgment on them.     Astraea brought
    several tort claims, including claims for defamation, libel, slander,
    negligent breach of contract, and misrepresentation, as well as claims for
    unjust enrichment and violation of the Texas Deceptive Trade Practices Act.
    Tex. Bus. & Com. Code Ann. §§ 17.41 et seq.   Although Astraea concedes that
    -8-
    Minnesota law applies to its breach of contract counterclaims, it argues
    that Texas law should apply to the remainder of the claims because the
    conduct     giving    rise     to   them   occurred       in   Texas.    A     choice   of   law
    determination is reviewed de novo, Horn v. B.A.S.S., 
    92 F.3d 609
    , 611 (8th
    Cir. 1996), as is a grant of summary judgment.                    
    Stevens, 97 F.3d at 270
    .
    A.
    Each refurbishment contract stated: “This Agreement shall be deemed
    entered into within and shall be governed by and interpreted in accordance
    with the laws of the State of Minnesota . . . .” Minnesota generally
    recognizes choice of law clauses.                 Hagstrom v. American Circuit Breaker
    Corp., 
    518 N.W.2d 46
    , 48 (Minn. Ct. App. 1994).                  Astraea asserts, however,
    that the contractual choice of law provisions do not govern the negligent
    performance, misrepresentation, deceptive trade practices, and unjust
    enrichment claims because they are not contract claims.
    Astraea’s        claims    for    negligent         performance,    misrepresentation,
    deceptive     trade    practices,      and       unjust    enrichment    raise     issues     of
    performance    and     compensation        for    work    done   under   the    refurbishment
    contracts.      Although mainly styled as torts, these claims stem from
    Northwest’s alleged failure promptly to provide functioning parts and
    adequate support for the refurbishment project, as required under the
    contracts.    The unjust enrichment claim concerns the amount of compensation
    which Astraea should receive for refurbishing aircraft pursuant to a
    contract.     These claims are closely related to the interpretation of the
    contracts and fall within the ambit of the express agreement that the
    contracts would
    -9-
    be governed by Minnesota law.                  Astraea thus consented to the application
    of Minnesota law to such claims.4
    Astraea contends that even under Minnesota law, the district court
    erred       in    dismissing     its     fraudulent     and   negligent     misrepresentation
    counterclaims.           In Astraea’s answer and counterclaims, it asserted that
    Northwest made misrepresentations to it before the contracts were executed
    concerning         facts      relevant    to    bidding.        These    statements   included
    representations that five of the sixteen aircraft would be “sister ships”
    and that Northwest would provide technical support, ferry the planes
    quickly, and promptly provide Astraea with material lists and other
    information.
    In       order   to    support     a    fraud   claim    under    Minnesota   law,   a
    misrepresentation must relate to a past or present fact.                      See H.J., Inc.
    v. International Tel. & Tel. Corp., 
    867 F.2d 1531
    , 1546 (8th Cir. 1989).
    Broken promises generally do not constitute fraud, International Travel
    Arrangers v. Northwest Airlines, Inc., 
    991 F.2d 1389
    , 1402 (8th Cir. 1993)
    (applying Minnesota law), unless the plaintiff shows “affirmative evidence”
    that the promisor had no intention to perform.                           Hayes v. Northwood
    Panelboard Co., 
    415 N.W.2d 687
    , 690 (Minn. Ct. App. 1987).                        A contract
    claim cannot be converted into a fraud claim, even when there is a bad
    faith breach of the contract.                  Wild v. Rarig, 
    234 N.W.2d 775
    , 790 (Minn.
    1975).
    4
    The district court did not err in applying Minnesota law to
    dismiss the claims for negligent performance, violation of the
    Texas Deceptive Trade Practices Act, Tex. Bus. & Com. Code Ann. §§
    17.41 et seq., or unjust enrichment. Minnesota does not recognize
    negligent performance claims. Lesmeister v. Dilly, 
    330 N.W.2d 95
    ,
    102 (Minn. 1983), and the deceptive trade practices claim rests on
    a Texas statute not available under Minnesota law.         Finally,
    Minnesota does not allow recovery under an unjust enrichment theory
    when there is an express contract which governs the parties’
    relations.   Sharp v. Laubersheimer, 
    347 N.W.2d 268
    , 271 (Minn.
    1984).
    -10-
    On a motion for summary judgment, the nonmoving party must set forth
    specific facts sufficient to raise a genuine issue for trial and cannot
    rest on allegations in the pleadings.   Celotex Corp. v. Catrett, 
    477 U.S. 317
    , 324 (1986).
    Astraea has not made out a claim of misrepresentation based on
    Northwest’s statements before the contracts were executed.     It made no
    showing that at the time Northwest entered into the contracts, Northwest
    had the present intent not to perform its responsibilities or that it knew
    its statements were false.   To avoid summary judgment, Astraea had the
    burden to show each element of the fraud claim.5    Since it did not, the
    district court did not err in granting summary judgment.
    5
    On appeal, Astraea claims it also pled fraud based on
    misrepresentations about information and parts Northwest provided
    after the contracts were executed.   Astraea’s counterclaims do not
    clearly allege such a theory, but even if they did, it appears that
    theory would fail.     After discovering the alleged errors in
    information and problems with parts, Astraea continued to perform
    under the contracts and ultimately completed performance.        By
    continuing to perform after the alleged fraud was discovered,
    Astraea waived any recovery in fraud. Zochrison v. Redemption Gold
    Corp., 
    274 N.W. 536
    , 539 (Minn. 1937) (party cannot elect to
    perform after discovering fraud and still recover for it).
    -11-
    B.
    Astraea also argues that the district court erred by applying
    Minnesota law and dismissing its slander, defamation, and libel claims.
    Astraea contends that the conduct giving rise to the claims occurred in
    Texas, and that Texas law should therefore apply.
    In a diversity case, a federal court applies the choice of law rules
    of the forum state.       In this case that means Minnesota       choice of law
    rules.   Klaxon Co. v. Stentor Elec. Mfg. Co., 
    313 U.S. 487
    , 496 (1941).
    The first step in Minnesota is to consider whether a conflict actually
    exists   between    the   different   states    and   whether   there   would   be
    constitutional problems with either law.         Jepson v. General Cas. Co. of
    Wis., 
    513 N.W.2d 467
    , 469 (Minn. 1994).      If there is an actual conflict and
    both laws can constitutionally be applied, then five factors are considered
    in order to make a choice: “(1) predictability of result; (2) maintenance
    of interstate and international order; (3) simplification of the judicial
    task; (4) advancement of the forum’s governmental interest; and (5)
    application of the better rule of law.”        
    Id. at 470.
    Minnesota law considers a corporation a public figure and requires
    it to show that a statement was made with actual malice to establish a
    defamation claim.   See Jadwin v. Minneapolis Star & Tribune Co., 
    367 N.W.2d 476
    , 487 (Minn. 1985) (malice standard applies to heavily regulated
    corporation in securities industry).           Astraea and Northwest are both
    heavily regulated by the Federal Aviation Administration, and under Jadwin
    both would appear to be public figures.      Texas law, on the other hand, does
    not consider a corporation a public figure unless it has entered a public
    controversy in order to influence the outcome.         See Durham v.
    -12-
    Cannan Comms., Inc., 
    645 S.W.2d 845
    , 851, (Tex. Ct. App. 1982).        Astraea
    asserts that this difference between Minnesota and Texas law does not
    present a real conflict because the Minnesota actual malice standard has
    only been applied to media entities.       In applying its defamation law,
    however, Minnesota has not indicated that distinctions should be made based
    on the media status of a defendant when the statements were made about
    someone in the public realm.     See Britton v. Koep, 
    470 N.W.2d 518
    , 521
    (Minn. 1991) (“Minnesota affords to nonmedia defendants the same first
    amendment protection for criticisms of public officials that it grants to
    the mass media.”). There is thus a conflict in laws.
    The substantive law of either state could constitutionally be applied
    because they each have significant contacts with the case, so that choice
    of either state’s laws would be “neither arbitrary nor fundamentally
    unfair.”     Allstate Ins. Co. v. Hague, 
    449 U.S. 302
    , 312-13 (1981)
    (plurality   opinion).      Astraea’s   headquarters    are   in   Texas,   and
    republication   of   the   statements   occurred   in   Texas.     Northwest’s
    headquarters are in Minnesota, and the statements giving rise to the claims
    were made in Minnesota and first published there.
    The question then is which state law should be applied under the
    Minnesota choice of law factors.        Under the five choice influencing
    considerations, the first (predictability of results), second (maintenance
    of interstate order), and fourth (advancement of the forum’s interests)
    have the most relevance in this case.   The third factor, simplification of
    the judicial task, has no real significance since either state law could
    easily be applied.
    The first factor, predictability of results, is most relevant when
    parties have expectations about the applicable law, such as in “consensual
    transactions where people should know in advance what
    -13-
    law will govern their act,” but has less relevance in cases such as
    accidents when the parties could not reasonably have such expectations.
    Milkovich v. Saari, 
    203 N.W.2d 408
    , 412 (Minn. 1973).            Here, the statements
    contained in the newspaper articles were made in Minnesota to a local
    newspaper, were first published in Minnesota, and involved the performance
    of contracts that the parties had agreed would be governed by Minnesota
    law.     Although the statements were subsequently republished in Texas, it
    is unlikely that Northwest expected Texas law to apply to statements made
    to a newspaper in Minnesota.            This factor therefore points to applying
    Minnesota law.
    Maintenance of interstate order is satisfied if applying Minnesota
    law would not show disrespect for Texas’ sovereignty or impede interstate
    commerce.    Jepson v. General Cas. Co. of Wis, 
    513 N.W.2d 467
    , 471 (Minn.
    1994).    In examining this factor, a court looks at the contacts the state
    has with the issues being litigated,             Myers v. Government Employees Ins.
    Co., 
    225 N.W.2d 238
    , 242 (Minn. 1974), and the risk of encouraging forum
    shopping by applying that state’s law.             Hague v. Allstate Ins. Co., 
    289 N.W.2d 43
    , 49 (Minn. 1979), aff’d on other grounds, 
    449 U.S. 302
    (1981).
    Here, Minnesota has several important contacts with the issues being
    litigated since one of its residents made the comments in the state.                The
    statements were made to a Minnesota newspaper, and they were initially
    contained in an article published in that newspaper.                   Texas also has
    contacts because the statements were made about a Texas corporation and
    were republished in Texas.        Minnesota law is more favorable to Northwest
    than     Texas   law,   a   situation    which    could   lead   to   forum   shopping.
    Northwest’s complaint for breach of contract (to which Astraea added its
    defamation counterclaims) could reasonably be expected to be raised in a
    Minnesota court, however, since one of the contracts expressly provided
    that Astraea
    -14-
    submitted to personal jurisdiction in Minnesota and all stated that
    Minnesota law would govern.        Applying Minnesota law would thus not show
    disrespect for Texas.
    The fourth factor, advancement of the forum’s interests, is relevant
    to this case and considers both Minnesota’s governmental interests and the
    relative interests of Texas.       Nesladek v. Ford Motor Co., 
    46 F.3d 734
    , 739
    (8th Cir.), cert. denied, 
    116 S. Ct. 67
    (1995).        Minnesota’s governmental
    interests as expressed by the Minnesota Supreme Court in Jadwin are to
    limit damages to the reputations of heavily regulated corporations to cases
    where there is actual malice.       
    Jadwin, 367 N.W.2d at 487
    .   This policy is
    based on the court’s belief that highly regulated corporations should be
    subject to the same level of scrutiny as public figures because of the
    “strong interest in the free flow of commercial information.”         
    Id. Texas also
    has a strong policy to “ensure broad liberty of speech”, Davenport v.
    Garcia, 
    834 S.W.2d 4
    , 8 (Tex. 1992), but it does not consider all
    corporations public figures and would sometimes allow a corporate plaintiff
    to   recover   without   showing    actual   malice.   Minnesota’s   interest   in
    encouraging the free flow of commercial information is implicated because
    the alleged defamatory statements were made to and published in a Minnesota
    newspaper and were at least partly about a Minnesota corporation.            Both
    states have an interest in providing relief for tort victims, although
    Texas would sometimes permit recovery for a corporate plaintiff without a
    showing of actual malice.    Applying Texas law in this case, however, would
    directly undermine Minnesota’s policy while the application of Minnesota
    law would not so directly conflict with Texas policy.          On balance, this
    favors applying Minnesota’s defamation law.
    The fifth factor, the question of the better law, does not need to
    be reached, since the previous factors show that it was
    -15-
    appropriate to apply Minnesota law.         
    Myers, 225 N.W.2d at 244
    .        It would
    not be counter to the parties’ expectations to apply Minnesota law, and
    Minnesota had contacts with the dispute giving rise to significant state
    interests   which   would    be    undermined   by   applying   Texas    law,   making
    application of Minnesota law fair.
    Astraea argues that even under Minnesota law, summary judgment for
    Northwest on the defamation claims should not have been granted because it
    made a sufficient showing of malice.         To avoid summary judgment, Astraea
    had to show with “convincing clarity” that Northwest made its statements
    with actual malice.    
    Jadwin, 367 N.W.2d at 483
    .        Actual malice means “with
    knowledge that the statements were false or with reckless disregard of
    whether they were true or false.”          
    Britton, 479 N.W.2d at 524
    .          Actual
    malice is not established by showing that a reasonably prudent person would
    have investigated the statement before publishing it, but instead requires
    a demonstration that the “defendant in fact entertained serious doubts as
    to the truth of [its] publication.”        Britton, 
    470 N.W.2d 524
    (quoting St.
    Amant v. Thompson, 
    390 U.S. 727
    , 731 (1968)).
    There is no evidence in the record that Northwest had any doubts, let
    alone serious doubts, about the truth of the statements.                The Northwest
    representative told the newspaper about problems discovered on aircraft on
    which Astraea had worked.         Astraea claims there is actual malice because
    Northwest refused to retract the statement and further investigation on its
    own computer system could have shown that Astraea was not responsible for
    the reported problems.      This evidence does not show that Northwest had any
    doubts about the statements or that it had reason to investigate.               Astraea
    has not shown actual malice, and the district court did not err in granting
    summary judgment on the defamation claims.
    -16-
    IV.
    In sum, there was personal jurisdiction over Astraea in Minnesota,
    and the district court did not err in applying the law or dismissing the
    counterclaims on summary judgment.   For these reasons, the judgment is
    affirmed.
    A true copy.
    Attest:
    CLERK, U.S. COURT OF APPEALS, EIGHTH CIRCUIT.
    -17-
    

Document Info

Docket Number: 96-2761

Filed Date: 4/24/1997

Precedential Status: Precedential

Modified Date: 10/13/2015

Authorities (31)

Hague v. Allstate Insurance Co. , 1979 Minn. LEXIS 1680 ( 1979 )

Total Equipment Leasing Corp. v. LaRue Investment Corp. , 1984 Minn. App. LEXIS 3741 ( 1984 )

Britton v. Koep , 1991 Minn. LEXIS 118 ( 1991 )

Hayes v. Northwood Panelboard Co. , 1986 Minn. App. LEXIS 5128 ( 1987 )

Jadwin v. Minneapolis Star & Tribune Co. , 1985 Minn. LEXIS 1064 ( 1985 )

Lesmeister v. Dilly , 330 N.W.2d 95 ( 1983 )

Goldberger v. Kaplan, Strangis & Kaplan, P.A. , 1995 Minn. App. LEXIS 997 ( 1995 )

Klaxon Co. v. Stentor Electric Manufacturing Co. , 61 S. Ct. 1020 ( 1941 )

international-travel-arrangers-a-corporation-v-nwa-inc-northwest , 991 F.2d 1389 ( 1993 )

Valspar Corp. v. Lukken Color Corp. , 1992 Minn. LEXIS 351 ( 1992 )

Durham v. Cannan Communications, Inc. , 1982 Tex. App. LEXIS 5523 ( 1982 )

mary-ann-horn-as-surviving-spouse-of-james-f-horn-sr-deceased , 92 F.3d 609 ( 1996 )

International Shoe Co. v. Washington , 66 S. Ct. 154 ( 1945 )

Celotex Corp. v. Catrett, Administratrix of the Estate of ... , 106 S. Ct. 2548 ( 1986 )

Wild v. Rarig , 302 Minn. 419 ( 1975 )

Northrup King Co. v. Compania Productora Semillas ... , 51 F.3d 1383 ( 1995 )

Linda Stevens v. St. Louis University Medical Center , 97 F.3d 268 ( 1996 )

Don Kral Incorporated v. Lindstrom , 286 Minn. 37 ( 1970 )

Roaderick v. Lull Engineering Company, Inc. , 1973 Minn. LEXIS 1212 ( 1973 )

Zochrison v. Redemption Gold Corp. , 200 Minn. 383 ( 1937 )

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