UK start-up business aircraft manufacturer Farnborough Aircraft (FACL) is suing US general aviation specialist Epic Aircraft's parent Aircraft Investor Resources (AIR) and its chief executive Rick Schrameck for up to $100 million following the collapse of a secret joint venture last week.
A US federal court in the Oregon state capital Eugene found in favour of the UK start-up airframer in an injunction hearing and compelled AIR and Schrameck to enter into arbitration as proposed by FACL. The court papers reveal that since September 2003 the two companies pooled engineers and tooling to produce Epic's high speed six-seater LT turboprop kitplane and FACL's eight-place F1 turboprop, with around 70% commonality.
However, the relationship soured in November 2004 after FACL had concentrated its resources on helping Epic to produce a flying prototype of the Epic LT in time for the 2004 US Experimental Aircraft Association AirVenture air show in Oshkosh, Wisconsin. The court instructed AIR to hand over the F1 prototype and all parts required to complete it. AIR was also ordered to deliver a new wing to FACL within four weeks and the court heard FACL contend that the Bend, Oregon company had removed the F1 wing from secure storage and adapted it to fit an Epic LT.
AIR is maintaining it has "never been in a partnership with Farnborough [Aircraft]".
During the relationship breakdown, FACL had signed a memorandum of understanding with Abu Dhabi-based Gulf Aircraft Maintenance (Gamco) to establish a sub-contracted assembly line in the emirate and market the F1 as the JP100 Kestrel. FACL alleges that this deal was scuppered after AIR filed a lawsuit against Gamco in the USA claiming breaches of intellectual property rights. It claims this could cost the manufacturer up to $100 million in investment, which could have come from United Arab Emirates government support of the project.
FACL is now suing for damages and expects to hear a ruling in arbitration hearings scheduled for 20 March.
Source: Flight International
