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

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne On ANN

ADR 02.13.17

Airborne 02.13.17

Airborne 02.14.17

Airborne 02.15.17

Airborne 02.16.17

Airborne 02.17.17

Airborne-HD On YouTube

ADR 02.13.17

Airborne 02.13.17

Airborne 02.14.17

Airborne 02.15.17

Airborne 02.16.17

Airborne 02.17.17

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 02.17.17: Privatization Fight Is ON, X-37B Stays Up, TSA Arrests

Also: HeliTrak PMA, Aviation’s Next Big Fight, New KC Airport, Verifly, CFM Orders, Purdue Aviation, P&W Expansion Some of the aviation industry’s worst fears appea>[...]

Aero-News: Quote of the Day (02.19.17)

Aero-News Quote of the Day "Although our navigation algorithms can get even better, and we need to test them in many other parts of the world, this is a positive sign for Loon&rsqu>[...]

ANN's Daily Aero-Term (02.19.17): Takeoff Hold Lights (THL)

Takeoff Hold Lights (THL) The THL system is composed of in-pavement lighting in a double, longitudinal row of lights aligned either side of the runway centerline. The lights are fo>[...]

ANN's Daily Aero-Linx (02.19.17)

Aero Linx: Modification and Replacement Parts Association (MARPA) MARPA is the non-profit trade association that represents the Parts Manufacturer Approval (PMA) community. A PMA i>[...]

ANN FAQ: What Does The Airborne Partnership Initiative Mean For Your Business

Get Your Breaking News Out To The Industry A partnership between ANN and others in the aviation/aerospace industry offers more exposure, a greatly lessened strain on individual res>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC