Exclusive Jets LLC v. A1 Aviation LLC

CourtDistrict Court, E.D. North Carolina
DecidedJuly 15, 2025
Docket4:22-cv-00151
StatusUnknown

This text of Exclusive Jets LLC v. A1 Aviation LLC (Exclusive Jets LLC v. A1 Aviation LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exclusive Jets LLC v. A1 Aviation LLC, (E.D.N.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA EASTERN DIVISION

NO. 4:22-CV-151-FL

EXCLUSIVE JETS, LLC, ) ) Plaintiff, ) ) v. ) ) ORDER A1 AVIATION, LLC, ) ) Defendant ) _ _ _ )

A1 AVIATION, LLC, ) ) Counterclaim ) Plaintiff, ) ) v. ) ) EXCLUSIVE JETS, LLC, ) ) Counterclaim ) Defendant. )

This matter comes before the court on plaintiff’s motions to modify case management order (DE 87) and to reconsider order allowing partial judgment on the pleadings and for leave to file first amended complaint (DE 88).1 The issues raised are ripe for ruling. For the following reasons, the instant motions are denied. STATEMENT OF THE CASE Plaintiff commenced this action with complaint filed November 18, 2022, in the Superior

1 Also pending but not yet ripe is defendant’s motion for summary judgment, (DE 91), the briefing schedule for which the court addresses further herein. Court of Lenoir County, North Carolina, asserting claims for declaratory judgment, breaches of contract and quiet enjoyment, unjust enrichment, and lost profits, related to an aircraft it leased from defendant. Plaintiff seeks damages, declaratory judgment, costs, and attorneys’ fees. Defendant removed to this court December 5, 2022, on the basis of diversity jurisdiction under 28 U.S.C. §§ 1332(a) and 1441(b). On December 9, 2022, defendant denied plaintiff’s

claims in answer including counterclaims for conversion, breach of contract, and tortious interference with contract or prospective contract. Defendant also moved for an order granting claim and delivery of described aircraft materials pursuant to N.C. Gen. Stat. §§1-472 et seq. The court granted that motion at hearing February 3, 2023. On February 15, 2023, the court entered case management order governing discovery deadlines and setting expedited date for trial. Pursuant to the case management order, motions for leave to amend the pleadings were due from plaintiff by February 17, 2023, and from defendant by March 3, 2023. Defendant thereafter amended its answer and counterclaims to include factual allegations concerning additional asserted breaches of the contract by plaintiff and plaintiff’s

alleged interference with a proposed sale of the aircraft. Plaintiff answered, and defendant filed motion for judgment on the pleadings April 24, 2023, seeking dismissal of plaintiff’s claims, judgment as a matter of law on plaintiff’s declaratory judgment claim, and judgment as a matter of law on defendant’s counterclaims. In the meantime, plaintiff moved to continue trial, and defendant moved to expedite the court’s approval of its proposed sale of the aircraft. Plaintiff did not oppose sale but requested that the sale proceeds be held in escrow. Following telephonic hearing May 10, 2023, the court approved expedited sale of the aircraft and ordered $200,000.00 in proceeds from that sale be paid into the office of the clerk of court during pendency of the litigation.2 By separate order entered May 12, 2023, the court stayed discovery activities not initiated as of the date of hearing and continued trial pending disposition of the motion for judgment on the pleadings. In order entered January 5, 2024, (hereinafter, the “prior order”), the court granted in part defendant’s motion, dismissed plaintiff’s claims for unjust enrichment and special damages, and

lifted the stay. The parties recommenced discovery pursuant to amended case management order entered February 1, 2024. Deadlines were twice extended upon the parties’ joint motions. As amended November 1, 2024, the case management order set deadline for completion of all discovery on February 27, 2025, and deadline for dispositive motions on March 13, 2025. Plaintiff filed the instant motions February 19, 2025, relying upon lease agreement and amendment, letter from defendant’s officer Jon Parrish (“Parrish”) to plaintiff’s president Thomas J. Segrave (“Segrave”) and counsel L. Forrest Owens (“Owens”), letter from Owens to Parrish, draft lease, email exchange between Owens, Jet 1 Charter, Inc. co-owner Keaton Phillips, and defendant’s officer Joseph R. Locker, Jr. (“Locker”); deposition testimony by Locker, defendant’s

corporate representative Casey S. Askar (“Askar”), Parrish, Pinnacle Aviation employee Douglas William Young, II (“Young”), Keaton Phillips, Jet 1 Aviation, Inc. CEO Jeffrey Scott Phillips (“Scott Phillips”), and Segrave; and 125 deposition exhibits. Defendant responded in opposition March 12, 2025, relying upon 14 documents earlier filed on the docket; defendant’s objections to plaintiff’s corporate deposition topics; deposition testimony of Segrave, plaintiff’s corporate representative Darryl Shearer, Scott Phillips, Keaton Phillips, Young, Locker, Parrish, and Askar; notice of deposition of Deerwood Bank, Inc.; correspondence between counsel; the parties’ respective designations of experts and rebuttal

2 On August 8, 2023, defendant moved again for expedited court approval of the sale of the aircraft where the first buyer did not complete the sale. The court granted the motion the next day, on the same condition of deposit. experts; defendant’s supplemental discovery responses; and plaintiff’s responses to defendant’s first set of discovery requests. Plaintiff replied March 26, 2025, relying upon chronology of events. In the meantime, defendant filed motion for summary judgment March 12, 2025. On its own initiative, March 18, 2025, the court stayed plaintiff’s deadline to respond to defendant’s

motion pending disposition of the instant motions. STATEMENT OF FACTS The relevant facts alleged in the complaint and the documents attached thereto may be summarized as follows. Plaintiff operates an “aircraft charter company,” (Compl. ¶ 4), and defendant owns “a Cessna model 560XL with serial number 560-5145” (“the aircraft”). (Id. ¶ 3). On March 2, 2020, the parties agreed that plaintiff would lease the aircraft pursuant to a written agreement (“the lease”). (See id. ¶ 6; DE 11 at 10-29).3 Plaintiff now alleges that during lease negotiations plaintiff was represented by outside counsel Owens, defendant was represented by its officer Locker, and Keaton Phillips acted as an

intermediary. (See Prop. Am. Compl. (DE 81-3) ¶ 44). The lease includes the following relevant language: 8.4 CROSS INDEMNIFICATION. As between the parties hereto, such insurance coverage as is afforded by the Insurance Policies as set out herein shall provide and be the sole remedy for each entity for any and all loss or damage incurred by any party hereto, including but not limited to injury or death of persons, except in the case of the gross negligence or willful misconduct of a party (collectively, “Excess Damages”).

a. [Plaintiff’s] Indemnity. With respect to Excess Damages, [plaintiff] hereby indemnifies and agrees to hold harmless [defendant], its officers, directors, agents, trustees, servants and employees from and against any and all liabilities, claims, demands, suits, judgments, damages, losses,

3 Unless otherwise specified, page numbers in citations to the record in this order refer to the page number of the document designated in the court’s case management and electronic case filing (CM/ECF) system, and not to page numbering, if any, specified on the face of the underlying document.

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Exclusive Jets LLC v. A1 Aviation LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exclusive-jets-llc-v-a1-aviation-llc-nced-2025.