Boeing has been sued again for breach of contract arising out of the 737 Max jetliner. We previously discussed a similar lawsuit filed by a Russian aircraft leasing company in this Orlando contract lawyer blog post. Now Irish aircraft leasing company Timaero Ireland has joined in and sued Boeing to cancel its order of 22 of the troubled 737 Max aircraft and to recover over $185 Million in damages. Timaero alleges that the aircraft are now worthless, given the safety concerns after two horrible crashes.
Timaero signed a contract with Boeing in 2014 to receive 22 of the aircraft over a period of time. Two of the aircraft were delivered in December 2018 and was supposed to receive two more this year.
Details of Alleged Breach of Contract
The leasing company alleged that Boeing breached the parties’ contract by failing to provide air-worthy aircraft and because they allege Boeing knew of the problems with the plane’s flight control system, but did not divulge the information to Timaero. Although the leasing company requested that Boeing repay the millions of dollars the company paid in advance payments for the aircraft, Boeing denied the claim.
Boeing has agree to “pause” production in January, but apparently intends to continue manufacturing and selling the cursed aircraft. To date, Boeing has refused to outright cancel any orders for the 737 Max, which seems a bit hard to believe. It’s hard to imagine any sane person would ever get on a 737 Max again after the two horrific crashes it was involved in.
More than 380 737 Max aircraft were in service at the time it was grounded around the world. Since then, Boeing has built 400 more that cannot be delivered. Around $6.1 Billion has been set aside by Boeing to compensate customers, and it also plans to offer concessions and discounts on service and future orders.
Consult With An Experienced Breach of Contract Lawyer
Contact the Spence Law Firm today to schedule a free initial consultation to discuss your case in confidence.