News
National Aircraft Finance Association Files Amicus Curiae Brief with the Supreme Court of the United States
by Scott Burgess, released on Wednesday, January 25, 2012
The National Aircraft Finance Association ("NAFA") recently took action to protect the aircraft leasing industry by filing an amicus curaie brief with the Supreme Court of the United States in the case of Aerolease of America, Inc. v. Vreeland. The Latin term "amicus curaie" translates literally to "friend of the court". Amicus curaie briefs are often filed in appeals concerning matters of broad public interest, and may be filed only with the consent of the parties to the appeal.
In Vreeland v. Ferrer, the Florida Supreme Court ruled that federal law does not protect aircraft lessors from liability for property damage and/or personal injury to, or wrongful death of, aircraft passengers and crew. Courts in Michigan, Illinois, and Indiana have made similar rulings.
Aerolease of America, Inc., the aircraft lessor affected by the Florida Supreme Court's decision, appealed to the Supreme Court of the United States seeking a determination that it is immune from liability associated with the crash pursuant to federal law (49 U.S.C. 44112); this section of the United States Code shields an aircraft lessor from liability for personal injury, death and property loss arising from its lessee's negligence where: (a) the lease is for a period of thirty (30) days or more, (b) the aircraft is not in the actual possession or control of the lessor at the time of the incident, and (c) the personal injury, death or property damage occurs on land or water because of (i) the aircraft, engine, or propeller, or (ii) the flight of, or an object falling from, the aircraft, engine, or propeller.
NAFA believes it is essential that the liability of aviation lenders be clearly and uniformly defined and, in keeping with federal law, the duties and obligations for the safe operation of aircraft be placed on those who are directly responsible for and involved in aircraft operations, rather than on lenders who have no operational control. By filing its amicus curaie brief, NAFA is asking the Supreme Court of the United States to accept jurisdiction over the case in order to resolve the conflict between federal law and the decisions of the state courts of Florida, Michigan, Illinois and Indiana.
The Aviation Working Group (AWG), joined by the National Business Aviation Association (NBAA), the Aircraft Owners and Pilots Association (AOPA), Airlines for America (A4A), the Equipment Leasing and Finance Association (ELFA), and the General Aviation Manufacturer's Association (GAMA), also filed an amicus curiae brief. The AWG's objectives are to contribute to the development and acceptance of policies, laws, regulations, and rules that facilitate advanced international aviation financing and leasing; the AWG's members comprise the major aviation manufacturers and a number of leading financial institutions involved in aviation finance, including most of the world's largest aviation-product leasing companies.
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