Did Company Fail To Properly Handle Corrosion?

Moving quickly to claim a stake of what little funds may be available, lawyers representing the families of victims in the December 19 loss of a Chalk's Ocean Airways seaplane have filed a lawsuit against the company's insurance policy, claiming the company's failure to take adequate steps to check for corrosion led to the fatal accident.

John Ruiz, attorney for one of the plaintiffs, said he sued now because Chalk's in on shaky financial ground, and the only money victims may get is from the airline's %50 million insurance policy.

"There's really not much more in the way of assets," Ruiz told the South Florida Sun-Sentinel, adding he believes the airline's financial value "is minimal if not nonexistent."

The wrongful death suit, filed on behalf of at least six families of the 20 victims who died when the right wing of their Grumman G-73T Mallard separated inflight, alleges the airline failed to properly inspect its aircraft after evidence of corrosion was found in one of its aircraft in the early 1990s.

Such an inspection, according to the lawsuit, would have required a "rigorous maintenance plan," including X-rays and peeling back the plane's skin for a detailed inspection.

"We believe that the [accident] plane was not being properly maintained," Ruiz said.

Investigators in the Chalk's accident have found evidence of wing spar cracking where the right wing separated from the aircraft, and it is believed such cracks brought down Flight 101. As was reported in Aero-News, the FAA has since grounded all Turbo Mallards pending intensive inspections of the wing spars for cracking.

According to the lawsuit, even before the accident Chalk's had significant financial problems, including $1.5 million in losses in 2001 and 2002. Current owner James Confalone has tried to sell the airline, which he bought it out of bankruptcy in 1999.

Adding to the losses is that Chalk's hasn't flown since December 21, two days after the accident.

Anticipating a lack of available funds from Chalk's should the company be found negligent, Ruiz wants a judge to order that any successful claims against the airline be paid out equitably from the insurance proceeds -- meaning regardless of the amount awarded to passenger's families in lawsuits over the accident, each would get a proportional share of the $50 million policy.

FMI: www.flychalks.com