United Hit With $16M Suit Over Vietnam Airlines Fire

Law360, New York (July 29, 2011, 3:25 PM EDT) -- Vietnam Airlines Co. Ltd. and two insurers hit United Air Lines Inc. with a $16 million breach of contract suit Thursday in Illinois, seeking to hold United's engineers liable for an engine fire in a passenger aircraft.

The airline and its insurers, Baominh Insurance Corp. and Vietnam National Reinsurance Corp., allege that United’s engineers breached the airlines’ ground handling agreement by negligently running a grounded aircraft’s engine while it contained fuel, causing the engine to ignite and damage the aircraft.

In July 2008, a Vietnam Airlines Boeing 777-200 engine caught fire shortly...
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