Aircraft fail to meet contract specifications: Breach of contract: Fraud: Completion costs: Verdict: Punitive damages
Law Reporter, May 2002
Aircraft fail to meet contract specifications: Breach of contract: Fraud: Completion costs: Verdict. Punitive damages.
Raytheon E-Sys., Inc. v. Learjet Inc., Tex., Hunt County 196th Jud. Dist. Ct., No. 62284, Jan. 16, 2002.
Raytheon was awarded a contract by the Federal Aviation Administration to modify six Learjet aircraft for use in a federal flight inspection program. Raytheon then contracted with Learjet Inc., to perform the modifications.
The completed aircraft allegedly failed to meet the required specifications. Later, Raytheon allegedly discovered that Learjet had misrepresented the heating and cooling capabilities of the planes. Learjet refused to reimburse Raytheon for the cost of bringing the aircraft up to federal standards. As a result, Raytheon estimates that it suffered damages of more than $13 million.
Raytheon sued Learjet, alleging breach of contract and fraud. Specifically, plaintiff claimed that defendant had fraudulently induced plaintiff to enter into the contract by misrepresenting the heating and cooling capabilities of the planes. In addition, plaintiff contended defendant knew the planes could never meet the specifications of the contract but failed to reveal this information to plaintiff.
Learjet countersued, arguing plaintiff failed to pay invoices and gas and freight charges, and had converted defendant's parts.
A jury awarded plaintiff about $24.2 million, including about $11.6 million punitive damages.
Defendant was later awarded about $19,200 on its countersuit.
Plaintiff's accounting expert witness was Tim Overman, Dallas, Tex.
Plaintiff's Counsel
Harold H. Walker Jr., *Martin E. Rose, James J. McGoldrick, and Leave Capps Medford, all of Dallas, Tex.
Most Recent Reference Articles
- Not Part of the Public: Non-indigenous policies and the health of indigenous South Australians 1836-1973
- Homophobia: An Australian History
- Social inclusion and sport: culturally diverse women's perspectives
- Who to serve? The ethical dilemma of employment consultants in nonprofit disability employment network organisations
- Vocational education, self-employment and burnout among Australian workers

