Signature Flight Support Corp. v. Landow Aviation Ltd. Partnership

698 F. Supp. 2d 602, 2010 U.S. Dist. LEXIS 24877, 2010 WL 1006631
CourtDistrict Court, E.D. Virginia
DecidedMarch 17, 2010
Docket1:08cv955 (JCC/TRJ)
StatusPublished
Cited by2 cases

This text of 698 F. Supp. 2d 602 (Signature Flight Support Corp. v. Landow Aviation Ltd. Partnership) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Signature Flight Support Corp. v. Landow Aviation Ltd. Partnership, 698 F. Supp. 2d 602, 2010 U.S. Dist. LEXIS 24877, 2010 WL 1006631 (E.D. Va. 2010).

Opinion

MEMORANDUM OPINION

JAMES C. CACHERIS, District Judge.

This matter is before the Court on a bench trial which took place pursuant Plaintiffs Amended Complaint alleging a Breach of Contract (Count II) by Defendant. Plaintiff further requests a Declaratory Judgment (Count I), an Accounting and Disgorgement (Count IV), and a Permanent Injunction (Count V) in the Amended Complaint. Defendant counterclaimed for a Declaratory Judgment (Counts I and III) regarding, inter alia, fuel service standard, location of the taxi-lane centerline and permit issues. 1

After thoroughly reviewing and considering the relevant records and evidence including exhibits, deposition summaries, and observing and evaluating witness testimony at trial, the Court makes the following findings of fact and conclusions of law.

I. Findings of Fact 2

1. Plaintiff Signature Flight Support Corporation (“Signature” or “Plaintiff’) is a Delaware corporation and is one of the two authorized Fixed Base Operator (“FBO”) concessions located at Washington Dulles International Airport (“Dulles” or “Airport”). (Pl.’s Tr. Ex. (“PTE”) 1.) Landmark Aviation (“Landmark”), formerly known as Piedmont Hawthorne, is the other FBO located at Dulles. Signature operates a network of more than 100 FBOs at a number of airports within the United States and internationally.

2. Defendant Landow Aviation Limited Partnership (“Landow” or “Defendant”) is a Virginia limited partnership formed to design, construct, own, and operate a service facility named the Dulles Jet Center (the “Dulles Jet Center” or “DJC”).

3. Landow Aviation, Inc., a Maryland Corporation, is a general partner of Landow. Landow Aviation, Inc. has two principals: Nathan Landow and his son, David Landow. Both the Landows are Maryland *608 residents. David Landow’s duties for the Landow entities include, among others, handling real estate development and various contract matters. (Landow at 173:3-21, Sept. 15, 2009.)

4. In order to operate as an FBO and provide the services as an FBO at Dulles, the Metropolitan Washington Airports Authority (“MWAA”) conducts a competitive public procurement process. Signature and its predecessors have been authorized to be an FBO since the 1960s pursuant to various FBO concession contracts with MWAA. These contracts are of finite nature and prior to their extension, MWAA solicits competitive bids for the follow-on contracts.

5. In 1997, after winning the public procurement process, Signature entered into a concession contract for the management and operation of an FBO concession at Dulles (“Concession Contract”) with MWAA. (PTE 1.) As part of the Concession Contract, Signature renewed its leasehold interest from MWAA for general aviation terminal facilities, hangars, and ramp space at Dulles to provide its FBO services there. (PTE 1.)

6. The Concession Contract sets forth the rights, duties and obligations of Signature as an FBO at Dulles. Under the Concession Contract, Signature is required to provide various products and services as specified therein as an FBO at Dulles.

7. For example, Section 3.02 of the Concession Contract grants Signature “[t]he right to establish, conduct and operate a full service FBO concession.” Further it states that Signature “shall have the exclusive right ... to provide the services authorized by” the Concession Contract. (PTE 1 at § 3.02.)

8. Under Section 3.03(a)(2) of the Concession Contract, Signature must provide “the sale of ramp assistance [to those] desiring to utilize the Premises including, but not limited to, hangaring of based and transient aircraft, aircraft lead-in, lead-out and repositioning services, loading and unloading passengers, baggage and cargo; aircraft parking including protective storage and tie-down of based and transient aircraft....” (PTE 1 at § 3.03(a)(2).)

9. Transient aircraft are those that are not permanently based at Dulles but are traveling through Dulles between the beginning and end point of their trip. (Farmer at 55:15-23, Aug. 31, 2009 A.M.) An FBO provides a number of services to the transient aircraft market.

10. MWAA’s Minimum Fixed Base Operator Standards (“Minimum Standards”), Exhibit F to the Concession Contract, further expounds Signature’s obligation as an FBO at Dulles. It requires that Signature, as a Class I FBO at Dulles, provide certain Basic Aeronautical Services to transient aircraft at Dulles such as fuel sales, ground handling and customer services, and aircraft and powerplants maintenance. (PTE 1; Ex. F.) The Minimum Standards define “ground handling and customer services” to include “aircraft lead-in/lead-out services; aircraft parking guidance; aircraft tie down and hangar storage; chock management and monitoring engine start-up safety; aircraft repositioning; ground power and oxygen service; de-icing; on-Airport transportation of passengers, crews, and baggage; assistance with the ground transportation and accommodation; landing fee collection.... ” (PTE 1, Ex. F at 6-7.)

11. Signature, as an authorized FBO at Dulles, must comply with a set of rules and regulations overseen by MWAA and the Federal Aviation Administration (“FAA”). For example, MWAA requires Signature meet certain operations, security, and safety requirements, such as remaining open 24 hours a day, 7 days per week, with a sufficient number of trained and skilled personnel to provide required services to *609 general aviation aircraft. (PTE 1; Ex. A at §§ 3.08, 3.10.)

12. Signature must not delegate the authority MWAA granted to it absent MWAA’s approval. Signature has no authority to create another FBO at Dulles. (PTE 1 at § 3.05(a).)

13. Signature assesses various fees and charges to transient aircraft using its FBO at Dulles such as overnight parking fees, handling fees if such aircraft do not purchase fuel, and other additional fees for ancillary services. (Farmer at 62:1-63:12, Aug. 31, 2009, A.M.)

14. For the right to be an FBO at Dulles, Signature pays significant amount of concession fees to MWAA. For example, in 2008, Signature paid over $9 million to MWAA in concession fees including fees on fuel sales, aircraft parking, and other ancillary services. (Farmer at 73:15-17, Aug. 31, 2009, A.M.)

15. Under Section 3.03(b)(7) of the Concession Contract, Signature was granted the option to develop a 19-acre parcel abutting its premises at Dulles for “additional ramp and/or general aviation hangars” in the future. (PTE 1 at § 3.03(b)(7).)

16. Due to the temporary closing of the Ronald Reagan Nation Airport to general aviation following the events of September 11, 2001, general aviation traffic and business dramatically increased at Dulles. Due to this fact, Signature decided to exercise its option to develop the parcel at Dulles. (Farmer at 74:1-22; 75:21-76:16, Aug. 31, 2009, A.M.) This parcel is later referred to as the “Corporate Hanger Premises” under the Supplemental Agreement executed between MWAA and Signature. (PTE 9.)

17. In 2002, Signature was approached by Nathan Landow about the possibility of developing the parcel for corporate hanger facilities.

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Bluebook (online)
698 F. Supp. 2d 602, 2010 U.S. Dist. LEXIS 24877, 2010 WL 1006631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/signature-flight-support-corp-v-landow-aviation-ltd-partnership-vaed-2010.