Jet Aviation Flight Services Incorporated v. 7BD LLC, et al.

District Court, D. Arizona·Decided March 17, 2026·No. 2:23-cv-00059·Unknown

Opinion

WO

Jet Aviation Flight Services Incorporated, No. CV-23-00059-PHX-DJH

Plaintiff, ORDER

v.

7BD LLC, et al.,

Defendants. On May 22, 2025, Jet Aviation Flight Services, Inc. (“Plaintiff” or “Jet Aviation”) filed a Motion to Confirm Binding Arbitration Award (Doc. 49). On June 23, 2025, 7BD LLC (“7BD”) and DePonte Investments (“DePonte”) (collectively, “Defendants”) filed a Motion to Vacate Arbitration Award (Doc. 54). Both Motions are fully briefed. (See Docs. 53, 56, 57).1 I. Background This case generally arises out of contractual disputes between the parties. Despite originally filing suit with the Court, the claims in this case were eventually resolved through arbitration proceedings. A. The Parties’ Agreements Throughout 2021, Plaintiff entered into five contracts (collectively, the “Agreements”) with 7BD and/or DePonte. (See Docs. 49-2–49-6). These contracts include two Aircraft Services Agreements, executed in March 2021 (“March ASA”) and in October

1 Plaintiff’s Reply to its Motion to Confirm acts simultaneously as a Response in Opposition to Defendants’ Motion to Vacate. (See Doc. 56). 2021 (“October ASA”), as well as two corresponding “Dry Leases.” (See Docs. 49-2, 49- 3, 49-5, 49-6). In essence, these agreements memorialized the parties’ intent for 7BD to pay Jet Aviation for its management, maintenance, and charter services for two aircrafts owned by 7BD: a Dassault Falcon 900EX and a Dassault Falcon 2000 Classic. (See generally id.). Deponte is listed as the “operator” on both the ASAs. (Doc. 49-2 at 2; Doc. 49-5 at 2). DePonte and Jet Aviation, additionally, entered into the Flight Support Services Agreement (“FSSA”) to provide support personnel for the Dassault Falcon 2000 Classic in conjunction with the March ASA. (Doc. 49-4). During the course of the Agreements, Plaintiff claimed that Defendants failed to pay it amounts owed under the Agreements. (Doc. 21 at ¶¶ 29–34). As a result of the alleged nonpayments, Plaintiff originally brought suit against Defendants in this Court on January 10, 2023. (See Doc. 1). Citing arbitration clauses in their Agreements, the parties subsequently filed a Joint Motion to Stay pending Arbitration (Doc. 22), which the Court granted on August 4, 2023. (See Doc. 24). B. Arbitration Proceedings The parties agreed to conduct binding arbitrations using Judicial Arbitration and Mediation Services (“JAMS”) alternative dispute resolution, governed by the JAMS Rules. (Doc. 22 at 2). On August 9, 2023, Plaintiff filed its First Amended Statement of Claims with JAMS, bringing a singular breach of contract claim. (Doc. 49-10). Defendants, in answering the First Amended Statement, brought affirmative defenses as well as counterclaims of breach of contract and the implied covenant of good faith and fair dealing against Jet Aviation. (Doc. 49-11). Later that same month, the parties stipulated that Daniel Platt, Esq. would serve as the Arbitrator throughout the JAMS proceedings. (Doc. 49-7 at 2). On November 2, 2023, the parties attended a preliminary hearing and received the original schedule for their arbitration. (Doc. 49-12 at 2). Initial disclosures were to be completed by November 30, 2023, the discovery cut-off would be thirty days prior to the evidentiary hearing, and motions to compel discovery had to be filed and served no later than five days after the discovery cut-off. (Id. at 3–4). The evidentiary hearing was first set to begin on April 29, 2024. (Id. at 5). However, the discovery process proved to be highly contentious, requiring the Arbitrator to settle multiple discovery disputes and extend the time needed for the parties to complete the necessary discovery. (See Doc. 49-13 at 2–3, 5–6, 8–10, 12, 14, 16–20, 22–23). Therefore, the original scheduling order was amended, and the evidentiary hearing was reset to begin on August 26, 2024. (Doc. 49-14). Following further discovery, including the deposition of two Jet Aviation witnesses, Defendants moved to continue the evidentiary hearing, which Plaintiff opposed. (Doc. 49-16 at 2). The Arbitrator granted the motion to continue and set a five-day evidentiary hearing to be conducted on September 9, 10, 17, 2024 and October 2 and 3, 2024. (Id.) An additional arbitration date was then added and scheduled for October 11, 2024. (Id. at 5). On August 28, 2024, Defendants filed a “Motion for Appointment of Discovery Master, Motion to Compel and Continue Depositions, Motion to Continue Arbitration,” which sought the “following relief: (1) the appointment of a Discovery Master at Claimant’s expense; (2) additional time to depose the corporate designees on topics 1, 2, 3, 6, 7, 8, 11, 12, 14, 16, 17 and 18; (3) to continue the evidentiary hearing; and (4) additional time to bring a motion to compel.” (Doc. 49-17 at 2–3). The Arbitrator held a telephonic hearing on the motion that same day and subsequently denied all of Defendants’ requested relief. (Id. at 2–3). Despite the forthcoming evidentiary hearing on September 3, 2024, Defendants filed a complaint in Maricopa County Superior Court against Jet Aviation, bringing accounting and fraud claims related to the Agreements and parties’ ongoing arbitration. (See 7BD, LLC et al. v. Jet Aviation, CV2024-024192 (“Case Two”). Plaintiff subsequently removed Case Two to this Court. (See Case No. 2:24-cv-02645).2 Notwithstanding Defendants’ decision to file Case Two, the parties proceeded with arbitration on their initial claims, and a six-day evidentiary hearing was held before the

2 Defendants’ Case Two suit has muddied the waters here. After removal, Case Two was consolidated with the present case (Doc. 48). The claims in Case Two were then subsequently referred to arbitration. (See Doc. 58). The parties are still in the early stages of the arbitration proceedings on Defendants’ Case Two claims. (See Doc. 65). Arbitrator on September 9, 10, 17, and October 2, 3, and 11, 2024. (Doc. 55-17 at 4). In advance of the hearing, the parties submitted opening briefs to the Arbitrator, and in lieu of oral closing arguments, the parties filed closing briefs. (Docs. 49-18, 49-20). Throughout the hearing, both parties examined and cross-examined expert and lay witnesses, and they had the opportunity to present evidence and argument to the Arbitrator. (See generally Docs. 55-1–55-5) (hearing transcripts)). Ultimately, the Arbitrator found for Jet Aviation on all claims and awarded it damages against 7BD in the amount of $1,295,161.00 and against DePonte in the amount of $215,158.00. The Arbitrator also awarded Jet Aviation $736,169.73 in attorney fees, assessed jointly and severally against Defendants. (See Doc. 55-17 at 2–26). Following the Arbitrator’s Final Award, the parties filed cross motions to either confirm or vacate the award, which are now before the Court. (Docs. 49, 54). II. Legal Standard Judicial review of an arbitration award is “limited and highly deferential.” Comedy Club, Inc. v. Improv W. Assocs., 553 F.3d 1277, 1288 (9th Cir. 2009) (internal quotation omitted). The Federal Arbitration Act (“FAA”) enumerates limited grounds on which a federal court may vacate, modify, or correct an arbitral award. Bosack v. Soward, 586 F.3d 1096, 1102 (9th Cir. 2009). Courts may only vacate an arbitration award: (1) where the award was procured by corruption, fraud, or undue means;

(2) where there was evident partiality or corruption in the arbitrators, or either of them;

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Jet Aviation Flight Services Incorporated v. 7BD LLC, et al., (D. Ariz. 2026).

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