Hill Aircraft & Leasing Corp. v. Fulton County, Ga.

561 F. Supp. 667, 1982 U.S. Dist. LEXIS 17490
CourtDistrict Court, N.D. Georgia
DecidedDecember 30, 1982
DocketCiv. A. C81-1292
StatusPublished
Cited by28 cases

This text of 561 F. Supp. 667 (Hill Aircraft & Leasing Corp. v. Fulton County, Ga.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hill Aircraft & Leasing Corp. v. Fulton County, Ga., 561 F. Supp. 667, 1982 U.S. Dist. LEXIS 17490 (N.D. Ga. 1982).

Opinion

ORDER

ORINDA D. EVANS, District Judge.

This ease is before the Court on Motions for Summary Judgment filed by all Defendants. For the reasons set forth, Defendants’ Motions are GRANTED.

Plaintiff Hill Aircraft & Leasing Corp. (“Hill”) is a fixed base operator at Fulton County Airport (“the Airport”). As such, Hill services, maintains and sells fuel to aircraft using the Airport.

Defendant Hangar One, Inc. (“Hangar One”) is the other primary fixed base operator at the Airport. Defendant Fulton County (“Fulton County”) owns the land on which the Airport is situated and leases it to various tenants, including Hill and Hangar One. Defendants Brownlee and Phillips are Fulton County officials with administrative responsibilities for the Airport.

This case primarily concerns Fulton County’s allocation of space suitable for fixed base operations as between Hill and Hangar One. Hill contends Fulton County has given Hangar One preferential treatment and that this alleged favoritism, coupled with certain other unfair acts of Defendants directed at Hill, has damaged and/or will likely lead to the demise of Hill as a viable business. Hill seeks relief under various legal theories, each of which is discussed in detail below.

From 1956 until 1980, Hill had practically all of the fixed base business at the Airport. Hangar One began attempting to acquire space for a fixed base operation in 1971. Initially, it was not successful. Finally, in 1979, Hangar One succeeded in acquiring the stock or assets of various entities which held leases on airport space suitable for use by a fixed base operator. 1 Fulton County did approve the assignment of these leases to Hangar One and ultimately, in April 1981 these various leases were consolidated into one lease between Fulton County and Hangar One. Hangar One’s space at the Airport is now roughly equivalent to Hill’s in size. However, Hill complains that Hangar One has space on both sides of Hill’s position. Hill contends it should have been given an opportunity to bid competi- ■ tively on the space leased to Hangar One.

Although there is no evidence in the record that Fulton County actively courted Hangar One to seek space at the Airport, it is clear that this eventuality was compatible with the mutually expressed desires of City of Atlanta and Fulton County officials, who desired to attract general aviation 2 traffic away from Hartsfield Airport and to Fulton County Airport. In order to do that, Fulton County needed additional runway space and additional fixed base operators at its Airport.

Apparently Fulton County Airport has been designated as a “reliever airport” by the Secretary of Transportation under the Airport and Airway Development Act of 1970. One of the consequences of such designation is that Fulton County Airport has received and will in the future receive federal funding assistance.

Defendant Hangar One presently conducts fixed base operations at Fulton County Airport, and at eleven other airports.

Since Hangar One has been operating at the Airport, Hill’s share of fuel, maintenance and repair sales has declined. In 1979, Hill received 92% of the maintenance and repair sales revenues at the Airport; for the first two months of 1982, it had 63%. Similarly, in 1979, Hill had 92% of the storage and tiedown services revenues at the Airport. For the first two months of 1982, it had 68% of such revenues. According to Hill’s President, Guy Hill, the net worth of *670 the corporation has declined dramatically since Hangar One began operations at the Airport.

Hill also contends that Fulton County has given Hangar One preferred treatment in making a $10,000,000 bond commitment to it through the Fulton County Bond Authority for construction of facilities at the Airport. The fact of this commitment is not disputed. However, Hangar One points out that in 1972 and 1973 Fulton County constructed hangars which were leased to Hill at cost plus 7% interest amortized over thirty years. Also in 1978 and 1981 Fulton County constructed additional facilities which it leased to Hill for thirty years on the basis of cost plus 8%. These facilities constructed for Hill entailed initial outlays of approximately $1,250,000 by Fulton County.

Finally, Hill complains of miscellaneous other instances of unfair treatment. The first pertains to a parcel at the Airport previously leased to Fulton Air Service. This parcel, which is presently leased by Hangar One, adjoins a parcel leased by Hill. Hill contends the property lines overlap. Hill’s lease predates Hangar One’s lease. Hill claims Fulton County’s subsequent lease of the FAS parcel to Hangar One constitutes an unlawful taking of Hill’s property, to the extent of any overlap, and evidences an equal protection violation.

Another claim relates to a so-called “tank farm” or fuel storage facility at the Airport. The storage tanks, which are physically situated underground, were purchased by Hill from their original owner, Texaco. However, at the time of purchase Hill did not buy the land. Instead Hill made an informal arrangement with the lessee of the land for access to the tanks. Subsequently, Hangar One acquired the stock of the lessee. This land is now included in the consolidated lease between Hangar One and Fulton County referred to above. At the time Fulton County approved Hangar One’s acquisition of the land, it assured Hill that its interest in the tanks would be protected. Hill’s argument appears to be that Fulton County’s lease of the property to Hangar One violates due process and equal protection guarantees.

To date, Hangar One has not taken any action to deprive Plaintiff of the use of the strip of land which allegedly has been “double leased” or access to the tank farm.

Hill complains of Fulton County’s lease of various parcels at the Airport without using a competitive bid process. These include: Hangar One’s option to lease lots 5 and 6, and the lease of three separate parcels to Coca-Cola, Cox Enterprises, Inc., and HillWillford, Inc., respectively.

I. Claims Arising Under Federal Aviation Statutes

Plaintiff asserts claims under 49 U.S.C. § 1718 of the Airport and Airway Development Act of 1970 (as amended, 1976) and 49 U.S.C. § 1349(a) of the Federal Aviation Act of 1958.

The Airport and Airway Development Act provides in part that prior to approving a request for airport improvement funds, the Secretary of Transportation must receive assurances that fixed-base operators using the airport will not be subjected to unjust discrimination. Plaintiff contends that Fulton County has unjustly discriminated against it and that same gives Plaintiff a private cause of action under the Airport and Airway Development Act.

The Federal Aviation Act of 1958, 49 U.S.C. § 1349

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Bluebook (online)
561 F. Supp. 667, 1982 U.S. Dist. LEXIS 17490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-aircraft-leasing-corp-v-fulton-county-ga-gand-1982.