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Contracts
Breach of Implied Warranty
Negligence

Frederick E. Young, et al. v. Standard Aero Inc., et al.

Published: Sep. 21, 2004 | Result Date: Jun. 23, 2004 | Filing Date: Jan. 1, 1900 |

Case number: SACV03481JVS Verdict –  $2,850,680

Judge

James V. Selna

Court

USDC Central


Attorneys

Plaintiff

Mike Danko
(Danko Meredith)


Defendant

James W. Hunt
(Fitzpatrick & Hunt, Pagano, Aubert LLP)

Peter C. Ver Halen

Peter Busher


Experts

Plaintiff

Robert Waldron
(technical)

Douglas Herlihy
(technical)

Richard H. Hart Jr.
(technical)

David C. Jones
(medical)

Patrick F. Mason Ph.D.
(technical)

Defendant

Gary I. Fowler
(technical)

Mike Woodyard
(technical)

Ronald Smith
(technical)

Vernon Albert
(technical)

Facts

The plaintiff, Fred Young, is a helicopter pilot. He and his wife, Audrey, own and operate a small helicopter flying service, A&P Helicopters in Yuba City. They acquired their helicopter, an MD-369, in 1988. Since their acquisition, Reliance Insurance Company has insured the helicopter. In 1999, the plaintiffs decided to refurbish their helicopter to a like new condition. As the first step in the project, Standard Aero Corporation, a Canadian company, was hired to overhaul the three primary modules of the helicopter's Allison (now known as Rolls-Royce) Model 250-C20B turbine engine. In June 1999, Standard Aero overhauled the engine gearbox, and in October 1999, it overhauled the engine's turbine module. The plaintiff flew with the overhauled engine for approximately 65 hours and then, in late December 1999, he delivered the helicopter to the defendant, Platinum Aviation, based in Reno, Nev. for refurbishment of the aircraft's interior and airframe. During the refurbishment, Standard Aero installed a newly overhauled compressor to the engine. The helicopter remained at Platinum's facility from late December 1999 until March 10, 2000. After Platinum completed the refurbishment of the helicopter and Standard Aero installed the overhauled compressor, Platinum performed the FAA required annual inspection of the helicopter. After finishing its work, Platinum certified the aircraft as "airworthy" and released it to Fred Young. On March 10, 2000, Fred Young boarded the helicopter which he now considered his "show piece" to fly it from Reno back to Yuba City. Twenty five minutes into the 45-minute flight, a "chip light" illuminated in the cockpit, indicating the presence of metal in the engine's oil system. Because he was flying over rugged, forested terrain, he decided to divert to a nearby airport in Grass Valley to make a precautionary landing. Before he reached the airport, the helicopter's engine seized. He performed an auto rotation, a procedure in which the main rotor is allowed to spin faster than the engine driving it, thereby permitting the pilot to maintain control of the helicopter. During the forced landing northwest of Grass Valley, the helicopter hit a tree. The plaintiff suffered serious injuries, including a fracture of his vertebrae at L2. The helicopter was almost completely destroyed. The plaintiffs' insurance carrier intervened as a plaintiff in the action to recover what it had paid to the plaintiffs and others for the hull damage and other property damage claims.

Specials in Evidence

$499,423 (including lost earnings)

Injuries

Frederick Young fractured his vertebrae at L2 and underwent a spinal fusion. He claimed lost wages and medical expenses for $499,423; and $1,616,000 for pain and suffering. Audrey Young claimed loss of consortium for $150,000. The plaintiff A&P Helicopters sought the value of the helicopter above and beyond what its insurance carrier paid on the hull claim. Plaintiffs-in-intervention, Reliance Insurance Company claimed reimbursement of what it paid to the plaintiffs on their hull claim and reimbursement for amounts paid to settle property damage claims associated with the crash and other expenses incurred. The defendants contended that the plaintiff was exaggerating his damages as he was able to return to work within three months of the accident and suffered no loss of functioning as a result of his surgery.

Result

The jury found Standard Aero 100 percent liable for both negligence and breach of express warranty. The jury exonerated the pilot and Platinum Aviation. The jury awarded $1,616,000 for pain and suffering and the plaintiff spouse, for loss of consortium, $150,000. The court also awarded $357,000 to Reliance Insurance Company. Following the jury verdict, the court awarded prejudgment interest to plaintiffs.

Other Information

PLEASE PROVIDE THE NAME OF THE JUDGE

Deliberation

one day

Length

three weeks


#98123

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