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How to handle an aviation contract breach, like unpaid fuel bills

On Behalf of | Apr 4, 2022 | Business Litigation

Perhaps you run a business providing fuel at a local airport. Maybe you are a mechanic who helps repair planes that suffer damage due to mishaps or require upgrades due to age. Often, you will provide those supplies or services without receiving payment in full ahead of time.

When you have an agreement with an airplane’s owner to provide materials or services, you expect them to make good on their obligations. Unfortunately, once the owner has the fuel in the airplane or the repairs performed, they might try to breach the contract by denying payment or delaying it.

Although you have a written agreement with the other party, you may still feel like you have a few options. Learning about your collection rights may motivate you to more aggressively pursue repayment.

Florida law extends you the right to file a civil lawsuit

If someone won’t pay, taking them to court may seem like a waste of time and energy. What if they don’t have the resources in their bank account to pay you afterward? Thankfully, you aren’t dependent on their liquid assets. You can place a lien against an airplane under Florida law.

As someone who provided services or materials for the aviation industry, you can potentially ask for a lien against that airplane. The process of securing a lien is relatively complex when the asset involved is an airplane. However, with the right guidance and support, you can potentially convince the court to uphold your contract through the creation of a lien.

An aviation lead will prevent the owner of the airplane from transferring the plane or refinancing it without first paying what they owe you. In extreme cases, you may be able to enforce the lien and foreclose on the airplane due to non-payment by the owner. 

There may be other collection options as well

Depending on the contract that you have and exactly how much money the other party owes, there may be other collection options available to those dealing with a significant breach of contract related to aviation supplies or services.