Appeals Court Rules Lycoming Committed Fraud In Crankshaft Case | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 04.20.15

Airborne 04.21.15

Airborne 04.22.15

Airborne 04.23.15

Airborne 04.24.15

Airborne Hi-Def On YouTube

Airborne 04.20.15

Airborne 04.21.15

Airborne 04.22.15

Airborne 04.23.15

Airborne 04.24.15

Sun, Nov 04, 2007

Appeals Court Rules Lycoming Committed Fraud In Crankshaft Case

Court Set Aside Previous $96 Million Damage Award

The Fourteenth Court of Appeals in Houston, TX handed down a decision this week in an aviation fraud case involving Lycoming engines division, upholding key components of the jury's verdict while setting aside the damages award because the damages were not recoverable by Texas law.

In 2005, a jury in Grimes County, TX found the Lycoming engines division of Providence, RI-based Textron liable for fraud, and ordered the company to pay approximately $96 million to Navasota, TX-based Interstate Southwest Ltd., according to the company.

Later Lycoming launched a countersuit in its home state of Pennsylvania, asking indemnity of $173 million.

In its decision, the court upheld the jury's finding the crankshaft failures were caused solely by a defect in Lycoming's design, and also held that the contract provision under which Lycoming sought indemnity was unenforceable.

"The important thing to remember is that we defeated Lycoming's $173 million claim, and that's still true," says Marty Rose of Rose Walker, L.L.P., lead counsel for Interstate Southwest. "And it's still true that the jury found Lycoming committed fraud."

Between 2000 and 2002, there were 24 failures and 12 deaths in Cessnas, Pipers and other airplanes equipped with Lycoming engines. Interstate Southwest supplied Lycoming with the crankshaft forgings for those engines.

Lycoming blamed Interstate for the failures, but testing by Interstate's legal team showed the trouble was a defect in Lycoming's own design for the crankshafts.

The 2005 jury also found Lycoming committed fraud on Interstate, and awarded Interstate nearly $10 million in actual damages and another $86 million in exemplary damages. The trial court later entered judgment for the full $96 million which the recent decision ruled un-recoverable.

The courtroom victory by the appellate court effectively nullified Lycoming's $173 million counterclaim.

FMI: www.interstatesw.com, www.lycoming.textron.com/

Advertisement

More News

Airborne 04.24.15: DA62 Cert, Flt Design's C4, Sporty Transitions, 1st Flt Fight

Also: Legend Cub, Piper Orders, Postal UAVs?, IMC Club 'Brown Jacket Award', X-47B Refueling The Diamond DA62 has received its EASA Type certificate. After a sunny and warm day Wed>[...]

Airborne 04.23.15: Able Flight, Diesel Archer, RutanRC!

Also: United Bars Security Expert, Airborne Advisors, NTSB Video, Avidyne, Cessna, Airport Access Tempest Plus Marketing Group has announced support for Able Flight as a Platinum L>[...]

Aspen Avionics, True Innovators, Present SnF2015 Special Event Coverage!

SnF2015 Sponsor: Always-Innovative Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products in>[...]

Amazing Amphib! Lakeland 2015 Sponsor Progressive Aerodyne Goes EVERYWHERE

Progressive Aerodyne Does it All -- Land, Sea and Sky! Explore 'no limits' living in the newly FAA certified Searey Elite Amphibious Light Sport Airplane. This distinctive aircraft>[...]

ANN's Daily Aero-Linx (04.26.15)

Aerospace Web Aerospaceweb.org is a non-profit site operated by engineers and scientists in the aerospace field. The goal of this site is to provide educational information on a va>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC