Avcorp Awarded $27.4 Million In Arbitration | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Oshkosh Day One

Oshkosh Day Two

Oshkosh Day Three

Oshkosh Day Four

Oshkosh Day Five

Airborne Hi-Def On YouTube

Oshkosh Day One

Oshkosh Day Two

Oshkosh Day Three

Oshkosh Day Four

Oshkosh Day Five

Tweet Us The Coolest Things You See @OSH16!
#OSH16Coolest!

It's Alive!: AirVenture 2016 Innovation Preview on Vimeo!

It's Alive!: AirVenture 2016 Innovation Preview on YouTube!

Tue, Nov 20, 2012

Avcorp Awarded $27.4 Million In Arbitration

Payments Associated With Loss Of Work Being Performed For Cessna

An arbitration panel has found in favor of Avcorp Industries in a reimbursement dispute with Cessna, and will require the Wichita planemaker to pay the airframe component manufacturer some $27.4 million.

Avcorp received the determination of an appointed arbitration panel which was charged with resolving outstanding issues relating to cost reimbursements and compensation payable to the company in connection with the transition of Cessna Aircraft Company ("Cessna") production work back to Cessna and other suppliers. The transition of Cessna production work was first announced by the Company on December 17, 2010 and immediately following notification by Cessna, the Company had attempted to negotiate compensation payments as contemplated by the Cessna Strategic Alliance Agreement (the "SAA"). Only when negotiations and mediation were unsuccessful did the Company refer the matter to binding arbitration.

The binding arbitration award, which was delivered to the Company on November 16, 2012, determined that the SAA was an exclusive agreement between Cessna and Avcorp, and Cessna could not unilaterally transition production work from Avcorp. The panel further found that Avcorp had fulfilled the requirements of the SAA, and suffered damages as a result of Cessna transitioning production work from Avcorp.

In addition, all counterclaims that were advanced by Cessna were denied. The quantum of damages was assessed by the arbitration panel at USD 27,391,372, which amount is payable to Avcorp within 30 days of the arbitration award.

FMI: www.avcorp.com

Advertisement

More News

Airborne 07.28.16-Oshkosh Day 4: Mike Huerta Addresses Oshkosh, King Schools

Also: Evolution Aircraft, Sporty’s/Savvy Breakdown Assistance, Comprehensive Jack Pelton Interview, Part 4 FAA administrator Michael Huerta came to town at EAA AirVenture 201>[...]

Dynon Avionics Certifies Outstanding Osh16 Special Event Coverage!!

Leading Edge Sport Avionics Company Pushes The Envelope For Both Sport and General Aviation Markets! Founded in 2000, Dynon Avionics’ mission is to create the best avionics a>[...]

Pilot Training System Teaches Us The Way To Oshkosh 2016 Special Coverage!

Pilot Training System Has A Knack For Educating Aviators... Via Innovative Programs Established in 2011, Pilot Training System’s (PTS) online flight-training solution provide>[...]

Only Sporty's!!! Sporty's Pilot Shop Helps ANN Cover Oshkosh 2016!

Sporty's Pilot Shop Is A Pivotal GA Resource! Sporty’s Pilot Shop was founded over 50 years ago by a flight instructor, and ever since has been for pilots and by pilots. Hal >[...]

Trig Avionics Stacks The Deck To Provide ANN's OSH16 Special Event Coverage

Trig Excels In Affordable Avionics That Fit YOUR Panel! Trig Avionics are experts in the design and manufacture of compact and innovative certified avionics for light aviation. Our>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC