Finance, Taxes, Insurance
Lessor Liability Ruling Stands as Top Court Declines Case

A legal case that could hold serious ramifications for the aircraft financing and leasing industry met its end with a blow against the lenders when the U.S. Supreme Court refused to hear an appeal.

Central to the case was the question of whether lessors are liable for damages in cases where they do not have operational control of an aircraft. While a federal statute (49 U.S.C. 44112) states that a “lessor, owner or secured party is liable for personal injury, death or property loss or damage on land or water only when a civil aircraft, aircraft engine or propeller is in the actual possession or control of the lessor, owner or secured party,” the top courts of several states in the past have interpreted this statute to rule against the lessors.

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