Closely held aviation corporation may be liable for officer's allegedly negligent helicopter inspection

Law Reporter, Aug 1999

Closely held aviation corporation may be liable for officer's allegedly negligent helicopter inspection.

Herzberg v. Moseley Aviation, Inc., - P. 2d _, Nos. 96C12278, CA A100885,1999 WL 157465 (Or. Ct. App. Mar. 24, 1999).

An Oregon appellate court held that a closely held aviation corporation could be liable for harm allegedly caused by an officer's negligent helicopter inspection.

Here, Herzberg was injured in a 1994 helicopter crash allegedly caused by a cracked engine compressor. He sued Moseley Aviation, Inc. (MAI). Evan Moseley was the president of the corporation and he and his brother were its sole shareholders. Among other claims, plaintiff alleged MAI negligently failed to detect a crack in the engine compressor. Asserting there was no evidence MAI did any work on the engine and that the work Moseley performed was not in his capacity as a representative of the corporation, defendant moved for summary judgment. The trial court granted the motion.

Reversing, the appellate court concluded there was evidence that Moseley was acting on behalf of MAI when he inspected the engine in 1990 and certified the helicopter as airworthy in 1993. After the crash, Moseley wrote to plaintiff's attorney on MAI letterhead claiming that the engine was maintained in accordance with Federal Aviation Administration regulations. Moseley later executed an affidavit in support of summary judgment denying that MAI supplied the helicopter or supplied, installed, or serviced the engine or engine compressor. Based on this evidence, the appellate court found that a trier of fact could reasonably believe Moseley inspected the engine on behalf of MAI and that the corporation could thus be held liable for negligent inspection. Consequently, the court remanded.

Plaintiff's Counsel:

*J. Michael Alexander, Salem, Or.