Federal Aviation Administration and United States of America v. M. Marshall Landy and International Aircraft Leasing, Inc.

705 F.2d 624, 13 Fed. R. Serv. 100, 36 Fed. R. Serv. 2d 494, 1983 U.S. App. LEXIS 28918
CourtCourt of Appeals for the Second Circuit
DecidedApril 11, 1983
Docket448, 455, Dockets 82-6132, 82-6162
StatusPublished
Cited by91 cases

This text of 705 F.2d 624 (Federal Aviation Administration and United States of America v. M. Marshall Landy and International Aircraft Leasing, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Aviation Administration and United States of America v. M. Marshall Landy and International Aircraft Leasing, Inc., 705 F.2d 624, 13 Fed. R. Serv. 100, 36 Fed. R. Serv. 2d 494, 1983 U.S. App. LEXIS 28918 (2d Cir. 1983).

Opinions

OAKES, Circuit Judge:

M. Marshall Landy and International Aircraft Leasing, Inc. (IAL) appeal from a judgment imposing civil penalties of $378,-000 against Landy and $189,000 against IAL for violations of safety regulations promulgated under the authority of subchapter VI of the Federal Aviation Act, 49 U.S.C. §§ 1421-32 (1976 & Supp. IV 1980). The United States District Court for the Southern District of New York, Robert L. Carter, Judge, entered the judgment after a jury returned special verdicts finding by a preponderance of the evidence that Landy and IAL both operated a Boeing 707 for compensation or hire on forty-three separate flights from May 2,1977 to August 2,1977.1 Each flight violated twenty-seven Federal Aviation Regulations (FARs); one flight violated twenty-eight FARs.2 The factual [628]*628and legal defense was that the plane’s operations did not make Landy and.IAL subject to these regulations, found in 14 C.F.R. Part 121, because Landy and IAL were not commercial operators of the Boeing 707, but rather subleased it to customers who operated it. On appeal, they challenge the sufficiency of the evidence on this point. Additionally, they challenge procedural and evidentiary rulings, the court’s charge to the jury, and the scope of the sanctions.3 We hold that the jury’s findings of fact were neither clearly erroneous nor affected by an erroneous charge; that the trial judge neither erred as a matter of law nor abused his discretion in the rulings; and that the calculation of fines was correct, and we therefore affirm the judgment.

I. The Regulatory Scheme

The Federal Aviation Administration (FAA) has authority to promote aircraft safety by regulation of civil aircraft in air commerce. 49 U.S.C. § 1421(a). Any operation that “directly affects, or which may endanger safety in, interstate, overseas, or foreign air commerce” is included in the definition of air commerce. 49 U.S.C. § 1301(4). Pursuant to general statutory authority, the Administrator of the FAA has issued extensive rules, regulations and minimum standards designed to enhance the safety of civil aeronautics. See generally 14 C.F.R. Parts 1-199.

Of particular relevance to this case are two portions of those regulations, Part 91 and Part 121. Part 91 sets forth “general operating and flight rules” for “the operation of aircraft ... within the United States” and, with limited exceptions, for the operation of “civil aircraft of U.S. registry outside of the United States.” 14 C.F.R. § 91.1(a)-(b). In addition to these rules of general applicability, the FAA has promulgated a far more extensive and stringent set of rules for certification and operation of aircraft for what is commonly considered commercial aviation.4 Part 121 appliés to two types of aviation: (i) air carriers, 14 C.F.R. § 121.1(a)(l)-(4), and (ii) commercial operators when they engage “in the carriage of persons or property in air commerce for compensation or hire.” 14 C.F.R. § 121.1(a)(5). This case concerns the second of these two categories.

The statute provides that “[a]ny person who causes or authorizes the operation of the aircraft, whether with or without the right of legal control (in the capacity of owner, lessee, or otherwise) of the aircraft, shall be deemed to be engaged in the operation of aircraft” within the meaning of the Federal Aviation Act. 49 U.S.C. § 1301(31) (Supp. IV 1980). A “commercial operator” [629]*629is defined by its ordinary meaning.5 Operators for compensation or hire must obtain FAA approval.6 Together with an operating certificate, 14 C.F.R. § 121.3(f), they must also obtain operations specifications, which determine such matters as the type of operations authorized, areas of operation, time limits for inspections and overhauls, airport authorizations and limitations, and weight and balance requirements for the aircraft. 14 C.F.R. § 121.45(b). To obtain a certificate and operations specifications, operators must demonstrate to the FAA their ability to comply not only with their terms, but also with the other regulations of Part 121 applicable to operations for compensation or hire. These regulations go to such varied matters as qualifications and training of maintenance and flight personnel, equipment required in the aircraft and on the ground, and preparation of detailed manuals governing inspection, maintenance and operation of the aircraft.

Under the Federal Aviation Act, noncompliance may result in revocation of certification, 49 U.S.C. § 1429, civil fines, id. § 1471, or criminal penalties, id. § 1472. Failure to comply with any of the applicable regulations subjects a person to civil penalties “not to exceed $1000 for each such violation;” each day of continuing violations is a separate offense. 49 U.S.C. § 1471(a)(1). See 49 U.S.C. § 1430(a)(5) (prohibiting operation of aircraft in air commerce in violation of FAA rules, regulations, or certification). Collection of such penalties is ordinarily by civil suit against the violator, 49 U.S.C. § 1473(b)(1), and either party may demand a trial by jury “of any issue of fact” that has not previously been determined in an administrative hearing. Id.7

II. Operation of the Aircraft

Landy bought a Boeing 707 from a German airline in 1976. The plane was converted to carry cargo. Landy and IAL executed a one year lease agreement on April 28, 1977. Between May 2 and August 2, 1977, IAL entered into a series of subleases. Most of these subleases, operating out of Newburgh, New York, involved transportation of livestock to foreign airports. On occasion, the plane was ferried by an American crew to a foreign airport, and these crews flew seven trips between foreign airports. A typical sublease contract stated that the shipper-lessee would have

full and exclusive possession, use and control of the Aircraft, shall have the sole responsibility for operation, use and control, for pilot assignment and direction, and for all other aspects of utilization of the Aircraft.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sterusky v. Cooper
W.D. Kentucky, 2024
Rattray v. Cadavid
S.D. New York, 2021
McMillen v. Windham
W.D. Kentucky, 2019
United States v. Univar U.S. Inc.
294 F. Supp. 3d 1314 (Court of International Trade, 2018)
Ballard v. Kerr, M.D, Silk Touch Laser
378 P.3d 464 (Idaho Supreme Court, 2016)
Kovaly v. Wal-Mart Stores Texas, LLC
157 F. Supp. 3d 666 (S.D. Texas, 2016)
CFE Racing Products, Inc. v. BMF Wheels, Inc.
793 F.3d 571 (Sixth Circuit, 2015)
Tillman v. C.R. Bard, Inc.
96 F. Supp. 3d 1307 (M.D. Florida, 2015)
Balloons Over the Rainbow, Inc. v. Director of Revenue
427 S.W.3d 815 (Supreme Court of Missouri, 2014)
Alvarado v. Oakland County
809 F. Supp. 2d 680 (E.D. Michigan, 2011)
Puckett v. Mt. Carmel Regional Medical Center
228 P.3d 1048 (Supreme Court of Kansas, 2010)
Gorman v. National Transportation Safety Board
558 F.3d 580 (D.C. Circuit, 2009)
Martinez v. Porta
601 F. Supp. 2d 865 (N.D. Texas, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
705 F.2d 624, 13 Fed. R. Serv. 100, 36 Fed. R. Serv. 2d 494, 1983 U.S. App. LEXIS 28918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-aviation-administration-and-united-states-of-america-v-m-marshall-ca2-1983.