Fri, Dec 07, 2007
Would Provide Liability Protections
On Friday, Congressman Vern Ehlers
(R-MI) announced he and Representative Todd Tiahrt (R-KS) would
introduce legislation to provide general aviation (GA) airplane
parts manufacturers with common sense protections against frivolous
lawsuits, according to the General Aviation Manufacturers
Association.
GAMA notes such lawsuits drive up insurance costs and, in some
cases, forcing manufacturers to stop production of parts certified
by the Federal Aviation Administration (FAA).
Ehlers’ announcement comes a month after Precision
Airmotive, a GAMA member, shut down production on its float
carburetor because the cost of insurance exceeded total sales
revenue. The carburetor has been manufactured since the
1930’s, but despite an excellent safety and sales record, it
could no longer sustain the cost to defend its product in
lawsuits.
“Frivolous lawsuits are making it difficult and sometimes
impossible for parts manufacturers to stay in business,” said
GAMA President and CEO, Pete Bunce. “It is unacceptable for
American manufacturers that produce safe equipment to be shutting
down production and laying-off workers because of frivolous
lawsuits costing millions of dollars in legal fees and increased
insurance rates.”
“This legislation is desperately needed to restore some
balance and fairness in our legal system,” said Bunce.
“This is a job-restoring and job-creating measure and we
thank Congressman Ehlers for leading this effort. We look forward
to working with him to get this legislation signed into
law.”
GAMA is an international trade association headquartered in
Washington, DC representing 60 of the world's leading manufacturers
of general aviation aircraft, engines, avionics and related
equipment.
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