Seven Years Of Litigation Result In Win For McGill Aviation

After seven years of litigation, the City of Fernandina Beach on Amelia Island, Florida has been ordered to pay McGill Aviation over $1.2 million in attorney fees & costs as the prevailing party over the local airport sponsor (FHB). The award to the fueling FBO is in addition to $400,000 in past damages, $300,000 as a rent reduction going forward, and another $80,000 in attorney fees, for a total of almost $2 million, not including interest.
 
The dispute began when the City made a series of unilateral reductions to McGill's  leasehold for City airport improvement projects.  Ultimately, the City took 3 acres of McGill's paved aircraft parking ramp.  The City refused any form of compensation for the takings, including: pavement replacement, land swaps, rent reductions, or lease extensions.  McGill claimed the takings and other City actions interfered with its operations.
 
McGill also contended that the City's airport operations ignored & violated federal requirements included in its lease.  Those federal obligations come from 1947 conveyance restrictions and subsequent grant assurances.  McGill claimed the City broke federal airport law by discriminating among tenants; by exercising monopoly rights; by imposing unreasonable rates, rules, & standards; by diverting revenue from a City golf course located on airport land; and by improperly recovering grants by charging depreciation of grant projects against current income - which raised costs, lowered income,  & ultimately meant unnecessarily high rents for airport tenants.
 
When McGill challenged the City actions, the City attempted to evict the FBO.
 
The subsequent litigation included a mediation, an arbitration, two lawsuits by the City, and one unsuccessful City appeal.  The eviction case and other City actions were found to be in retaliation for McGill's legitimate claims.  While there were factual findings indicating federal violations, any remedy for federal violations was left to the FAA.
 
The recent fee award is based upon McGill prevailing on the substantial issues of the case.  The City has again decided to appeal.  Until paid, the judgment will earn interest at 6%.

FMI: www.mcgillaviation.com