recover training costs from departing pilots doesn’t mean that it will. Enforcing a contract is not cost- or risk-free. However, to collect monies that they believe are owed
to them, employers have other options apart from litiga- tion—such as sending the claim to a collection agency, which may affect a pilot’s credit score, in addition to trig- gering calls and letters. Additionally, the Pilot Record Improvement Act of 1996 (PRIA) requires operators to respond to inquiries from new employers about a pilot’s past performance. Operators have the option, however, of declining to provide any positive feedback that is not required by law—or even providing negative feedback (such as disciplinary records not related to aircraft operations) along with the legally required records.
Training Contract Issues Some cases involving training contracts have generated reported court decisions. (It’s likely that many others have been filed but have ended with settlements or decisions that have not been widely distributed.) Below are a few recent examples that illustrate some of the complexities
around the issue and the different possible outcomes. ■ A pilot was hired by a charter operator, with a two-year obligation to reimburse it for his training costs. Te pilot left the operator after two months, and the company did not sue until four years later. An Arizona court ruled that the delay exceeded the “statute of limitations”—essentially, the limited time in which the carrier was allowed to sue under the contract—and not only dismissed the case but awarded legal fees to the pilot.
■ In contrast, the same charter operator sued another pilot who had departed after only two months. In this case, the pilot’s defense was that he had been constructively
terminated because he had been required to fly an unair- worthy aircraft. But the court concluded that the pilot had failed to present sufficient evidence and therefore ruled that the operator could recover not only the training costs ($40,000) but also legal fees from the pilot.
■ A different operator sought reimbursement of training costs from a pilot who quit 18 months into a two-year obligation. A Florida court concluded that the operator was entitled to some but not all of its requested damages and awarded the company $6,600 out of the $20,400 requested. Te court’s reasons included that one of the pilot’s certifications that resulted from the training was valid for only one year and the carrier had fully benefited from it. In addition, there was a $2,000 offset due the pilot because the carrier had failed to fully pay him for flights. Te court also concluded that the carrier was not entitled to legal fees because it had not prevailed on the majority of the issues.
■ A new complaint was filed earlier this year on behalf of a Part 135 all-cargo carrier’s pilots. Te pilots’ complaint states that they are required to repay between $20,000 to $30,000 if they leave the carrier’s employ within 18 to 24 months. Te complaint goes on to allege that the received training costs the carrier far less than that amount and that the training is moreover of limited practical value. Te case alleges that the repayment obligations violate federal and state law. Te carrier has not yet responded to the complaint. Te bottom line: a training contract should be considered
the legal equivalent of inclement weather. It doesn’t nec- essarily mean that you shouldn’t proceed—but you need to understand the conditions and be prepared for what to do if things go wrong.
Stay on Top of VTOL News
Visit
RotorMedia.com
Or Subscribe at
rotor.org/subscribe
48 ROTOR JUNE 2023
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
