Facts

This action by Kalitta Air, L.L.C. ("Kalitta"), a cargo airline, against Central Texas Airborne Systems, Inc. ("CTAS"), an FAA-approved aircraft modification facility, was filed in January 1997 and is now 15 years old.

The case had been tried twice before and was tried for a third time in November 2011.

The case involves the conversion of 747 passenger aircraft into cargo aircraft, pursuant to an FAA-approved Supplemental Type Certificate ("STC"). The modification takes approximately four months and involves more than 2000 engineering drawings and the installation of thousands of parts. Defendant modified two aircraft owned by plaintiff pursuant to this STC. Thereafter, another office of the FAA issued an Airworthiness Directive ("AD") which found that the STC was unsafe and effectively grounded plaintiff's two modified aircraft.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendant should have discovered an alleged discrepancy in the design of the STC, and taken some action to correct it, and that the grounding of these two aircraft ultimately caused loss to its business, resulting in $235 million in damages.

DEFENDANT'S CONTENTIONS:
Defendant contended that there was no discrepancy in the STC and that the STC was safe, that defendant had performed the modification in complete compliance with the STC, that the AD had been issued by the FAA in error, and that plaintiff 's damages were due to mismanagement and poor business practices rather than the grounding of two aircraft in its large cargo fleet.

Damages

Kalitta sought damages of $235 million (which could have been more than doubled including interest and other items).

Result

The jury ruled for the defense.

Poll

9-0