LEGAL CORNER
THE MAINTENANCE FACILITY AND THE AIRCRAFT BAILMENT RELATIONSHIP
A
maintenance facility representative recently asked me to explain what duties the facility might owe to an
aircraft owner when the owner leaves his or her aircraft with the facility for service, other than the responsibility for performing repair or maintenance services on the aircraft as requested by the aircraft owner. This situation creates what many states refer to as a “bailment” and imposes certain additional duties upon the maintenance facility. The bailment relationship is created
when: 1. the aircraft owner (the “bailor”) delivers the aircraft to the maintenance facility (the “bailee”);
2. the aircraft owner/bailor does not transfer ownership of the aircraft to the maintenance facility/bailee;
3. the maintenance facility/bailee accepts the aircraft based upon an agreement with the aircraft owner/ bailor that the aircraft will be returned to the aircraft owner/bailor; and
4. upon return of the aircraft to the aircraft owner/bailor, the aircraft must be in at least the same condition it was in when delivered to the maintenance facility/bailee. Once the bailment relationship is
created, the maintenance facility (as a bailee of the aircraft) has a duty to exercise reasonable care with respect to the aircraft based upon the maintenance facilities acceptance of possession of the aircraft and its subsequent exclusive custody and control over the aircraft. The maintenance facility/bailee must ensure that the aircraft is in at least the same condition as it was when it was delivered to the maintenance facility/bailee.
11.12 2013
24
By Gregory J. Reigel
If the aircraft is damaged while it is in the exclusive custody and control of the maintenance facility/bailee and it is damaged (e.g., the aircraft is lost, stolen, damaged or destroyed), the maintenance facility/bailee will be responsible for the damage unless the damage occurred in spite of the maintenance facility’s/ bailee’s exercise of reasonable care. The maintenance facility/bailee will have the burden of proving that it was not at fault and the damage occurred despite its use of reasonable care. To be clear, the maintenance facility/ bailee doesn’t become an insurer of the aircraft under the bailment relationship. However, the maintenance facility/ bailee must use reasonable care — the type of care a reasonably prudent maintenance facility would exercise with respect to its own aircraft under similar circumstances. This, of course, could vary depending upon the time and place or the custom and usage of maintenance facility. Additionally, if the maintenance
facility/bailee fails or refuses to deliver the aircraft to the aircraft owner upon demand, or if it uses or permits others to use the aircraft contrary to the aircraft owner’s/bailor’s instructions, then the maintenance facility/bailee could also be liable for conversion. In that situation, the maintenance facility/ bailee could be responsible for the value of the aircraft at the time of the conversion plus interest from that time. However, the duty to return the
aircraft is qualified: a maintenance facility/bailee may condition return of the aircraft upon the aircraft owner proving that the owner has title or right to possession of the aircraft, so
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