Aircraft Owner Liability - 101
One question I am asked quite often
has to do with accident liability... specifically, if you own an
airplane, and something bad happens, how can it be avoided?
Some of the questions I have been asked include:
What if I loan my airplane to a friend or lease it to an FBO, I have no
control over the aircraft, if a crash occurs, can I be held liable?
Can I form a corporation or a limited liability company that will
technically own my aircraft and thereby avoid personal liability if my
airplane crashes?
Unfortunately, like most legal questions, these questions do not have a
simple yes or no answer. The answers depend on the particular
circumstances involved and the specific liability laws in the various
jurisdictions where the issue may arise. For example, the “home” state
where the aircraft is hangared may have laws that differ from a
different state where the accident in question may occur. Even if the
laws are clear in one jurisdiction, the law may be different somewhere
else.
My purpose here is to discuss the basic issues of individual owner
liability, along with ways to minimize liability exposure. If you have
questions regarding your situation, you should retain an experienced
aviation lawyer and seek specific advice that will apply to your
particular situation under applicable laws, to ensure that you have the
best protection available.
Liability of Owner or
Operators
First, generally speaking, if a person is negligent and that negligence
causes injuries, the individual will be help personally liable for the
injuries. Thus, if an owner of an aircraft negligently maintains the
aircraft so as to cause injury, the owner may be liable. The same
applies to a situation where an owner is negligent in the operation of
the airplane. However, an owner is not always the operator. In some
cases, like a lease situation, the operator may be solely responsible
for the maintenance and operation of the aircraft.
An operator is “one who controls the flight of an aircraft.” The only
protection against liability for an operator is to fly safely (don’t
crash) and have plenty of insurance. An aviation insurance policy is
vital because it provides indemnity coverage that will pay for a
settlement or judgment, and also pays for the defense lawyer who will
defend you if your are sued.
What about the
Pilots
Owners With Actual Personal
Liability Exposure
Non-operator Owner Liability Exposure
Liability for Negligent Maintenance
How the "Deep
Pocket" Owners Can Avoid Liability
Disclaimer: This information is provided for informational purposes
only and does not constitute legal advice. You should seek the advise
of a lawyer in your area to discuss your situation and obtain legal
advice that applies to your situation.