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Mon, Sep 13, 2004

This Could Be One Long Fight

Naples Airport Authority, Jet 1 Center Lock Horns In Epic Battle

When last we visited the court fight between the Naples (FL) Airport Authority and Jet 1 Center owner J. Scott Phillips, the authority was suing him for $5 million in money it says he made through illegal fuel sales at Naples Municipal.

Jet 1 Center is now in bankruptcy court and, if two recent rulings are any indication, lawyers for the airport authority are struggling. They were shot down in their attempts to have the judge take Jet 1 Center away from Phillips during bankruptcy proceedings.

The judge also denied the authority's requests to dismiss several of Phillips' allegations -- including one that says the airport authority is in violation of the Sherman anti-trust act.

This could indeed be a long fight for the airport authority.

Authority member say Phillips diverted millions in fuel revenue. Phillips says his company paid the authority every cent it was owed.

"They don't have any damages. There aren't damages," Phillips told the Naples Daily News.

The authority also accuses Phillips of breaking his lease because of the fuel sales. Now, authority members want Phillips evicted from the airport altogether. So far, there's been no ruling on that issue from the judge.

Phillips said he's approached the authority about a settlement, but members won't even consider the thought.

"They are sucking so much money out of this airport," he told the Naples newspaper. "It is just killing the viability of the airport…. This has become a moral and ethics issue with me, just as much a monetary issue. It really is. They keep thinking they can throw money at this case and outlast me. It's not going to happen. I'm in this thing to the end."

But the authority's executive director, Ted Soliday, begs to differ. While admitting to the Daily News that the judge's rulings have set his case back on its heels, he thinks it's only temporary.

"Every time we have had a chance to inform a judge and show him the facts in the case, he rules in our favor. We will win. It will just take longer," Soliday told the Daily News.

FMI: www.jet1.net

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