M&C Wins Dismissal at Trial for Major Aircraft Supplier Client

May 19, 2009

William T. DelHagen, Paul R. Flaherty, and Lisa D. Angelo obtained a dismissal on behalf of their client, a major supplier of private aricraft in the U.S., on claims of breach of warranty and fraud at trial.

Plaintiff’s corporate businesses bought a single engine aircraft for personal use. The aircraft had a series of engine problems and was also subject to a special service program to strengthen a sheet metal component in the wing. At the conclusion of this warranty work, plaintiff signed releases of all claims. Several years later, the engine shuddered and experienced increased oil consumption. Plaintiff and his corporations sued the aircraft manufacturer and the engine manufacturer for breach of warranty and fraud, attempting to apply state and federal “lemon law” statutes to an aircraft transaction.

After contentious discovery proceedings revealed that plaintiffs’ tax treatment of the aircraft was incompatible with personal use of the aircraft, plaintiffs dismissed their state law warranty claim.  The aircraft manufacturer brought a Motion for Summary Judgment on the federal warranty and fraud causes of action, arguing the federal statutory warranty claim could stand absent a state law warranty claim and seeking to enforce the releases signed by plaintiffs at the conclusion of the prior warranty work. The Court denied this motion, as it did for a subsequent writ on these issues. The case proceeded to trial.

Nevertheless, the trial judge granted Motions in Limine excluding all evidence of the prior warranty work; thus, enforcing the releases. The judge also narrowed plaintiffs’ warranty case to the single issue of whether either defendant had guaranteed that the aircraft engine would operate for 2,000 hours, which was the recommended Time Between Overhaul interval. After these rulings, plaintiffs dismissed their case against M&C’s client for a waiver of costs.