Mon, Aug 23, 2010
City Of Fernandina Beach Out As Much As $2 Million In Legal
Battle With FBO
The small northeast
Florida town of Fernandina Beach has been informed by an
arbitrator for the court that it is liable for more than $2 million
in damages, attorney's fees, and other costs associated with a
lawsuit it filed against McGill Aviation, the FBO at the city-owned
airport (KFHB).
The money the court says the city owes McGill includes $750,000
in damages. A hearing this week will determine how much of the
FBO's attorney's fees will be paid by the city. The court determined McGill was
not liable for any of the city's attorney's fees, which amounted to
about $1 million. McGill reportedly has paid lawyers
about $1.2 million making its case.
The Fernandina Beach News Leader reports that there is
also about $400,000 in an interest-bearing account representing the
rent paid by McGill while the dispute was being resolved. The city
had refused to accept rent payments during the litigation, and that
money will be returned to McGill, along with about $35,000 in
interest.
The dispute arose in 2004. At that time, the city claimed the
FBO was taking over more land than was stipulated in the lease. But
when the city tried to evict McGill, the company charged that the
city was violating FAA regulations. Circuit Judge Brian Davis
halted the eviction at that time, and the case made its way through
the courts. Davis found in McGill's favor on August 9th. It is
expected that about 80 percent of the money owed by the city will
be paid by its insurance carrier.
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