Top Flight Aviation, Inc. v. Washington County Regional Airport Commission

224 F. Supp. 2d 966, 2002 U.S. Dist. LEXIS 18293, 2002 WL 31155356
CourtDistrict Court, D. Maryland
DecidedMarch 21, 2002
DocketCIV.A. WMN-99-2581
StatusPublished

This text of 224 F. Supp. 2d 966 (Top Flight Aviation, Inc. v. Washington County Regional Airport Commission) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Top Flight Aviation, Inc. v. Washington County Regional Airport Commission, 224 F. Supp. 2d 966, 2002 U.S. Dist. LEXIS 18293, 2002 WL 31155356 (D. Md. 2002).

Opinion

MEMORANDUM

NICKERSON, District Judge.

Before the Court are cross motions for summary judgment. Paper Nos. 82 (Plaintiffs); 83 (Defendant Aero-Smith, Inc.’s) and 84 (motion of Defendants Hag-erstown Regional Airport Advisory Commission, Board of County Commissioners of Washington County, and Carolyn Motz). The motions are fully and exhaustively briefed. Upon a review of the motions and the applicable case law, the Court deter *968 mines that no hearing is necessary (Local Rule 105.6) and that Defendants’ motions shall be granted, and Plaintiffs denied.

I. FACTUAL BACKGROUND

This case arises out of the manner in which aircraft refueling operations are regulated at the Hagerstown Regional Airport (Airport). The Airport is owned and operated by Defendant Board of County Commissioners of Washington County, Maryland (County Board). Defendant Hagerstown Regional Airport Advisory Commission (Commission) promulgates and enforces the regulations concerning which entities may operate on airport property. Defendant Caroline Motz is the current manager of the Airport. (The County Board, the Commission and Motz are hereinafter referred to as “the County Defendants.”)

Plaintiff Top Flight Aviation, Inc. is a Maryland corporation that operates an aircraft refueling business on the premises of Top Flight Airpark (Airpark), a parcel of property located immediately adjacent to the Airport. A taxiway connects the Airport and the Airpark and airplanes use that taxiway to access Top Flight’s services. In order to have this access, Top Flight is assessed a fuel flow fee by the Airport, based on gallons of fuel sold by Top Flight.

Top Flight’s current President, sole shareholder, officer, and director is Scott Peterson. Scott Peterson’s father, Barrie Peterson, was Top Flight’s incorporating director and the sole shareholder until he began giving his ownership interest over to Scott in 1990, and eventually gave over complete ownership in 1992. Barrie was also an officer and director of Top Flight until 1996. The Airpark property leased by Top Flight is owned by First Flight, L.P. (First Flight), which also owns the fuel tanks and tank trucks used by Top Flight. Scott and Barrie Peterson each own a 49% interest in First Flight.

Defendant Aero-Smith, Inc. is also in the business of supplying aircraft fuel and related services to airplanes using the Airport. Unlike Top Flight, Aero-Smith operates out of facilities located on Airport property and is an “into-plane refueler,” ie., its fuel trucks are permitted to drive out to the airplanes in order to refuel them. Aero-Smith pays the same fuel flow fee as Top Flight.

Top Flight filed this action to obtain an order of the Court requiring the County Defendants to allow Top Flight to come onto Airport property to offer refueling services, and also to recover damages from Defendants’ alleged wrongful denial of access in the past. Top Flight asserts violations of §§ 1 and 2 of the Sherman Act, denial of due process and equal protection, violation of Article 41 of the Maryland Declaration of Rights, and tortious interference with business relations. A brief history of the relationships amongst the parties is helpful in placing Top Flight’s claims in their proper context.

Top Flight Aviation began its operations in the 1980s. In 1988, the Commission and County Board began to impose fuel flow fees on all “fixed based operations” (FBOs), 1 located either on or off of airport property. The parties, including Top Flight, agreed at that time that the fuel flow fee was the fairest means of collecting revenue to support the Airport’s operational costs.

In 1989, the Commission established certain “Minimum Operating Standards, Rules and Regulations” (Minimum Standards) for all entities that would engage in aeronautical activity on Airport property. The Standards were adopted pursuant to the County Board’s statutory authority to *969 “establish and operate” an airport and “lease or grant to any person, on the terms and conditions it considers proper, any right or interest in the airport or facility.” Md.Code Ann: Transp. I § 5 — 418(a)(1)— (2). These Minimum Standards were revised in 1995 and the revised standards state that they are to apply to “everyone using the Airport and shall be observed in the interest of safety, security and the financial well being of the parties.” Minimum Standards, 1995 Revision, County Defs.’ Exh. 2 at 1.

Included in the 1989 Minimum Standards are provisions that would seem to imply that, in order to operate as an FBO on Airport property, it is necessary to lease property on the Airport property itself. The Standards define an FBO as “a person or corporation who has entered into a lease agreement with the [Commission] establishing Airport space lease terms.... ” 1989 Minimum Standards, County Defs.’ Exh. 1 at 8. They also provide that “an FBO may provide or conduct only those services for which he has executed a lease agreement.” Id. While Top Flight acknowledges that it has never applied to become an FBO, it now opines that if such an application had been made, it would have been denied because Top Flight has never leased property on Airport property.

In February 1990, the Commission issued what Top Flight has characterized as a “policy statement that limited Top Flight Aviation to refueling on Airpark property only.” Pi’s Motion at 6. This “policy statement” is actually a brief entry in the minutes of the February 1990 Commission meeting which states, in toto,

Topflight -Fuel Flow Fee Versus Access (User’s Fee):
The Commission reiterated their position concerning an agreement with Topflight Airpark in that Topflight Airpark would be allowed to function as a fixed based operator selling fuel on their property, with the standard four cent fuel flow fee, but would not be allowed to operate on the airport itself. Their operations would strictly be limited to their property.

Commission Minutes, February 14, 1990, Pi’s Exh. 6 at 4. Regardless of the import of this statement, it is clear from the record that, at least through the first half of the 1990s, Top Flight “wasn’t particularly concerned about going onto the Airport property.” Scott Peterson Dep. at 196. According to Scott Peterson, the issue of Top Flight’s access to Airport property did not “come to a head” until “probably ’97’ish.” Id. at 197.

Well before that, in 1998, Defendant Aero-Smith expressed interest in operating as an FBO on Airport property, to replace the on-property FBO that was then in operation. Aero-Smith submitted a written bid proposal to the County Board, and Aero-Smith principals met with the Commission, the Airport Manager, and the County Attorney. Aero-Smith’s bid was eventually approved and the Commission and Aero-Smith entered into a Fixed Base Operations Agreement on June 21, 1993. Fixed Base Operation Agreement, Aero-Smith’s Exh. 3. The agreement was subject to the restrictions and conditions of the Minimum Standards. Id. at 2.

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224 F. Supp. 2d 966, 2002 U.S. Dist. LEXIS 18293, 2002 WL 31155356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/top-flight-aviation-inc-v-washington-county-regional-airport-commission-mdd-2002.