$49 Million Dallas Verdict in Jet Airplane Contract Dispute

A Dallas jury determined that the companies unlawfully converted millions of dollars in security deposits for work that was never completed on two high-end business jets.


DALLAS – Attorneys from the Dallas litigation firm Gruber Hurst Johansen Hail Shank LLP have won a $49 million verdict against Dallas-based Associated Air Center LP and Dubai Aerospace Enterprises after a Dallas jury determined that the companies unlawfully converted millions of dollars in security deposits for work that was never completed on two high-end business jets.

Jurors also found that both companies engaged in wrongful conduct that led to tens of millions in losses for the jet owners, including lost profits, out-of-pocket damages, and lost value.

Gruber Hurst name partner Brian N. Hail and firm associates Trey H. Crawford and Eric Policastro represented Tary Network Ltd. and Citadella International Group Ltd. in the two-and-a-half week trial before the Hon. Judge Phyllis Lister Brown in Dallas’ 162nd Civil District Court.

“Our clients are extremely happy that the jury saw this case for what it was, a situation where a company put its profits before its contractual promises,” says Mr. Hail. “We hope this verdict sends a clear message to companies that integrity and good faith matter.”

The Associated Air web site claims the company is “a world leader in the maintenance and modification of large transportation aircraft,” but jurors found Associated Air and its related entities failed to comply with their contractual obligations to maintain the completion slots for the two jets, engaged in bad faith with regard to pricing. and failed to timely provide the completion contracts.

In the verdict decided Feb. 28, 2013, jurors found that Associated Air Center breached its completion contracts, in addition to converting the security deposits for its own use.

Following nearly five hours of deliberations, the jury of nine women and three men unanimously ordered Associated Air and Dubai Aerospace to pay a combined verdict of nearly $49 million. The entire verdict amount is for actual damages, with no punitive damages awarded.

Gruber Hurst Johansen Hail Shank LLP focuses on the business needs of its clients in trying complex commercial litigation in courtrooms across Texas. The firm’s experience includes matters involving securities, financial services, employment, intellectual property, technology, products liability and other commercial cases. Clients include leading companies – large and small – and individuals in the fields of private equity, real estate, manufacturing, professional services, energy and retail.

For more information on Gruber Hurst Johansen Hail Shank’s $49 million verdict, please contact Barry Pound at 214-559-4630 or barry@androvett.com.

We Recommend