Fed. Circ. Says US Off Hook For Corroded Plane Payment

Law360, New York (October 4, 2013, 4:26 PM EDT) -- The Federal Circuit Court of Appeals ruled Friday that the U.S. Coast Guard and the Department of Homeland Security were right to withhold payments for a plane it leased from TKC Aerospace Inc. after extensive corrosion was discovered on the aircraft.

In a divided ruling, the court's majority said that TKCA was on the hook for $629,536.18, which represents certain repair expenses the aircraft company had tried to recover from the agencies and certain lease payments the departments withheld for a period in which the plane...
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