Wood County Airport Authority v. Crown Airways, Inc.

919 F. Supp. 960, 1996 U.S. Dist. LEXIS 3690, 1996 WL 142660
CourtDistrict Court, S.D. West Virginia
DecidedMarch 25, 1996
Docket6:95-0518
StatusPublished
Cited by12 cases

This text of 919 F. Supp. 960 (Wood County Airport Authority v. Crown Airways, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood County Airport Authority v. Crown Airways, Inc., 919 F. Supp. 960, 1996 U.S. Dist. LEXIS 3690, 1996 WL 142660 (S.D.W. Va. 1996).

Opinion

MEMORANDUM OPINION AND ORDER

HADEN, Chief Judge.

Pending is Defendants’ Motion for Summary Judgment. The parties have submitted memoranda in support of their respective positions and the matter is mature for the Court’s consideration. Based on the absence of a genuine issue of material fact and the law, the Court GRANTS the motion.

I.

THE STANDARD

Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment is proper only:

“If the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to summary judgment as a matter of law.”

Fed.R.Civ.P. 56(c). A principal purpose of summary judgment is to isolate and dispose of meritless litigation. Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party has the burden of initially showing the absence of a genuine issue concerning any material fact. Adickes v. S.H. Kress & Co., 398 U.S. 144, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970). Once the moving party has met its initial burden, the burden shifts to the nonmoving party to “establish the existence of an element essential to that party’s case and on which that party will bear the burden of proof at trial.” Celotex, 477 U.S. at 322, 106 S.Ct. at 2552. To discharge this burden, the nonmoving party *963 cannot rely on its pleadings but instead must have evidence showing that there is a genuine issue for trial. Id. at 324, 106 S.Ct. at 2553.

“Unsupported speculation is not sufficient to defeat a summary judgment motion.” Felty v. Graves-Humphreys Co., 818 F.2d 1126, 1128 (4th Cir.1987). Further, evidence that would be inadmissible at trial may not be considered. 1 Fed.R.Civ.P. 56(e); Anheuser-Busch, Inc. v. Natural Beverage Distrib., 69 F.3d 337, 345 n. 4 (9th Cir.1995); Horta v. Sullivan, 4 F.3d 2, 8 (1st Cir.1993) (In deciding motion for summary judgment, inadmissible evidence may not be considered. “ ‘Mere allegations, or conjecture unsupported in the record, are insufficient to raise a genuine issue of material fact.’”) (quoting August v. Offices Unlimited, Inc., 981 F.2d 576, 580 (1st Cir.1992)); Charles A. Wright & Arthur R. Miller, 10A Federal Practice and Procedure § 2727, at 156 (1983) (“Material that is inadmissible will not be considered on a motion for summary judgment because it would not establish a genuine issue of material fact if offered at trial and continuing the action would be useless.”).

II.

THE UNDISPUTED FACTS

Wood County Airport Authority (“the Airport Authority”) operates the Wood County Airport (“the airport”) near Williamstown, West Virginia. From the early 1980’s to the early 1990’s, Crown Airways, Incorporated (“Crown”) was a commercial air carrier providing commercial air service to and from the airport. For over a decade, Crown leased and occupied Hangar 5 at the airport. During that period, the Airport Authority and Crown enjoyed a productive working relationship.

In the late 1980’s, around the time Crown and the Airport Authority were negotiating the renewal of Crown’s existing lease, Crown sought expansion of its operations. Crown informed the Airport Authority it would be acquiring two new 360 Shorts aircraft. These larger airplanes required more space than was available in the existing hangars at the airport. In 1989 and 1990, the parties began discussing the possibilities of either enlarging Hangar 5 or constructing a larger hangar to be known as Hangar 6.

In the spring of 1990, a local engineering firm advised the parties modifying Hangar 5 was not feasible. The parties elected to proceed with the construction of a new hangar. The Airport Authority began pursuing funding for the project and, by the summer of 1991, obtained commitments for much of the financial resources necessary for construction. 2

The parties executed a Lease Agreement (“Lease”) for Hangar 6 on December 14, 1992. The term of the Lease commences on the date of occupancy and extends for a period of fifteen (15) years thereafter. The Lease was drafted by Robert Tebay, house counsel to the Airport Authority and ex offi-cio member of its board. This document is the primary focus of the controversy.

Carolyn Strock, Manager of the Airport Authority, and Mr. Tebay testified Crown’s obligations under the Lease were limited to the payment of rent and utilities and other incidental obligations. Ms. Strock and Mr. Tebay further admitted the Lease does not obligate Crown to retain a maintenance facility at the airport or to retain any particular number of maintenance employees in connection with Hangar 6. The Airport Authority also admitted “[tjhere is no written contract between [the Airport Authority] and either of the defendants relative to a maintenance facility.” (Pl.’s Ans. to Defs. First Set of Requests for Admissions (“Pl.’s Admissions”), No. 1). Mr. Tebay testified “in hindsight” he should have included a provision in the Lease obligating Crown to retain the maintenance facility.

*964 The following spring, the Airport Authority retained local engineering firms to design Hangar 6. In July 1993, difficulties were encountered when the West Virginia Fire Marshal would not approve a proposed fire suppression system for the hangar. The increased cost of a more elaborate fire suppression system prompted the Airport Authority to request the Economic Development Administration (“EDA”) to allocate funds to assist in the construction. 3

On December 15, 1993, Crown and Mesa Airlines, Incorporated (“Mesa”) executed an Agreement of Purchase and Sale of Assets wherein Mesa agreed to purchase certain assets and to assume certain liabilities of Crown. Prior to this agreement, but subsequent to the execution of the Lease, Mesa conducted a due diligence investigation of the assets and liabilities of Crown in conjunction with its possible purchase of Crown. During that time, Mesa also examined the Lease.

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Bluebook (online)
919 F. Supp. 960, 1996 U.S. Dist. LEXIS 3690, 1996 WL 142660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-county-airport-authority-v-crown-airways-inc-wvsd-1996.