NORDAM sues Cessna over cabinetry in sole-source contract

-- April 29--NORDAM Group, the Tulsa aerospace manufacturer, has filed a lawsuit against Cessna Aircraft Co. for alleged breach of contract and seeks an injunction to prevent the Wichita-based firm from transferring intellectual property to a...

"Amendment No. 16 does not mention, was not intended to cover, and does not affect the CJ4 cabinetry," NORDAM says in its complaint. "The parties had no intention to apply the Dec. 31, 2013 expiration date to the CJ4 cabinetry. Amendment No. 17, signed into effect over a full year later, not only added the CJ4 cabinetry but also established firm fixed pricing for the CJ4 cabinetry through Dec. 31, 2017."

NORDAM's lawsuit reveals that Cessna exacted a stiff price from the Tulsa company in awarding it the sole-source CJ4 cabinetry contract.

Under the CJ4 contract, NORDAM was required to purchase a CJ4 aircraft at a price of $8.49 million and to contribute $560,000 for "CJ4 program development," NORDAM says in its complaint. In addition, NORDAM was required to deliver to Cessna 11 shipsets of consigned parts without cost to the Wichita firm, NORDAM's brief alleges.

NORDAM's CJ4 cabinetry is manufactured at its plant in Wichita, although some raw materials are produced in Tulsa, company executives said.

NORDAM's Wichita facility employs 77 people.

D.R. Stewart 918-581-8451

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