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.

FMI: www.fbfl.us, www.mcgillaviation.com