North American Airlines, Inc. has announced that Alameda County (California) Superior Court Judge Robert Freedman issued an order on March 1, 2006 partially in favor of North American on its post-trial motions in an employment case brought by a former pilot, Randall Otto, against North American.

Although the court denied North American's motion for judgment notwithstanding the verdict, it denied North American's new trial motion on condition that the plaintiff accept a reduction of the December 2005 jury verdict of $12.6 million to $3.1 million for economic, non-economic and punitive damages. The plaintiff has until March 13, 2006 to consent to the court's conditional reduction of damages to avoid a new trial on those components of the verdict.  Depending on whether the plaintiff consents to or rejects the conditional reduction, appeals are possible.  Another hearing is scheduled for April 26, 2006 to assess court costs, attorneys' fees and expert witness fees.

The suit alleging wrongful termination was filed in 2003 by Otto, prior to the acquisition of North American by World Air Holdings in April 2005.  The company previously expensed $12.5 million of the award amount in the third quarter of 2005.

FMI: www.northamericanair.com