Florida Aviation Business Association
Serving the General Aviation and Business Aviation Community Since 1946
Friday, 19 October 2012 14:54

CRIME OR PUNISHMENT - Your Choice, Your Wallet

Written by Dennis R. Haber, Attorney at law
Rate this item
(0 votes)

Crime
Did you realize that not getting paid can be a crime? It is, or can be, perhaps more so than you realize. However, not getting paid for your hard work may be only part of your problems. You may also be violating state criminal law!

There is hardly an FBO, a mechanic or avionics shop that has not at some time, not gotten paid. Worse yet, the aircraft owner sometimes fails to pick up their aircraft in a timely fashion or in some cases, even abandons their aircraft because your bill is beyond their ability to pay: The gas is too expensive, their medical has expired, they can’t afford the additional work needed, they can’t sell their aircraft, and a myriad of other reasons people have that causes them to just walk away from their aircraft and avoid paying what they owe you. This of course leaves you holding the economic bag, and may even create criminal liability on your part.

Convergence of Events—Recently, my office has seen a convergence of changes in the law unique to aviation that affects your income, your risk, your liability, and the potential for criminal prosecution against you.

Of course, this stems in part from an aircraft owner who avoids paying their bill and walks away from the aircraft creating a multitude of problems. On its face, an aircraft sitting on your ramp or in your hangar at minimum, takes up space. Additionally, there is always the risk of hurricane damage to the aircraft, and to the neighboring aircraft. Should a storm hit, there is no way of knowing whether it will be their insurance or yours that will fall victim to the next passing weather event. Do you even know if your customer has insurance? The most obvious problems fall into a few categories.

You don’t or didn’t get paid
Aviation is full of folks that are in love with the idea of aviation, but then the bill comes, and with it comes the realization that they can’t afford the benefit of their passion. Hopefully, you have properly drafted your work order and your work order is properly signed by the client. If so, this addresses some of your risk of not getting paid. If that fails, you can always place a lien on the aircraft; however there are several critical things that you must remember.

a. You must file the lien within 90 days from the last substantial work.

b. You must be in possession of the aircraft.

c. You must file suit to recover on your mechanics lien within 1 year.

Missing any of the critical elements above will cause you to lose your lien rights. Of particular interest, and less obvious is element b. above. If you give back the plane, you lose your right to file a lien. You must maintain POSSESSION, and by the way, you can charge for storage until the matter is resolved because lien law requires possession for a valid lien.

But we are just getting warmed up here. As we all know, previously aircraft registration lasted forever but now, aircraft must be re-registered every three year. If not properly done, you may find yourself in possession of an aircraft that, notwithstanding that it is perfectly flyable, cannot be flown because is has no valid aircraft registration and at best, will take many weeks to get back to “re-registered” status. What do you do with it if you can’t fly it out, have no hangar space is available, and the storm rages on.

Enter Florida Statute 329—Are You a Criminal?
It was bad enough that they didn’t pay you, but now let’s suppose that someone left their aircraft in your possession and the three year registration has expired while it’s sitting there at your shop or on your ramp.

Florida Statute 329.10 states that it is unlawful to have in your possession, an aircraft that is not registered in accordance with the FAA. Further, any aircraft in the state owned by a person or a corporation that is no longer a legal entity is in violation of this statute. Further, any corporation that has no physical location or that has lapsed inactive, or been dissolved for more than ninty days is also in violation.

Of course the statute has a whole lot more to say and should be read in its entirety, but the up thrust of this lapse is that if you have an a

Read 1253 times