ARTICLE · 01 APRIL 2015

Courts Consider "Airworthiness" Requirement And "As Is Where Is" Disclaimer

Holland & Knight

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Recently, a District Court in the Western District of Tennessee weighed in on the scope of the term "airworthy" and its sometimes complicated relationship to an "as is where is" clause.

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Marc Antonecchia

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Marc L. Antonecchia is a Partner in our New York office.

HIGHLIGHTS:

There is a natural discord between an "as is where is" disclaimer and an "airworthiness" requirement in an aircraft purchase agreement.
Rules of construction will determine which party bears the risk of loss.

Courts continue to analyze the term "airworthy" and its implications. Recently, a District Court in the Western District of Tennessee weighed in on the scope of the term "airworthy" and its sometimes complicated relationship to an "as is where is" clause. The decision is now on appeal with the Sixth Circuit. (See Holland & Knight alert, "District Court Evaluates Express Warranty of 'Airworthiness,'" Nov. 5, 2014.)

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