Acceptance Certificate Precluded Later Claims

ACG Acquisition XX LLC v Olympic Airlines (in liquidation) [2012]

Olympic Airlines leased a Bowing 737-300 aircraft from ACG for five years. The parties signed a certificate of acceptance, following which the aircraft was put into commercial service. A few weeks later defects were discovered and the aircraft's airworthiness certificate was suspended. The certificate of acceptance stated that the airline had examined and investigated the aircraft and that the aircraft and aircraft documents were satisfactory. Olympic served termination and redelivery notices. ACG argued that the aircraft was airworthy when delivered, but even if it was not, Olympic was estopped by the certificate of acceptance from asserting that it did not comply with the terms of the lease when delivered.