We use cookies to collect and analyse information on site performance and usage to improve and customise your experience, where applicable. Click OK to use our website.

Boeing hit with $115m lawsuit from 737 Max lessee

30 Aug 2019 / international Print

Boeing is hit with $115m lawsuit from 737 Max lessee

An aircraft leasing company in Russia is suing Boeing for breach of contract after the grounding of the 737 Max.

This is believed to be the first lawsuit arising out of the safety crisis at the US manufacturer, the Financial Times reports.

Avia Capital Services is a subsidiary of the Russian state conglomerate Rostec.

In its filing it says that two aircraft crashes, with extensive loss of life, were due to “negligent actions and decisions of Boeing”. 

'Defective'

It also says the 737 Max is “defective” and that crucial information was withheld from the US Aviation Safety Regulator.

The complaint was filed in Cook County Circuit Court in Chicago on Monday. Avia is claiming $115 million in compensation plus punitive damages.

The aviation leasing firm ordered 35 Max 8 jets from Boeing before they were grounded worldwide in March.

It wants to cancel the order and wants a cash deposit of $35m returned with interest, along with $75 in lost profits.

Similar suits

Avia is represented by Miami aviation law firm Podhurst Orseck which says it is expecting further similar suits.

Boeing took a $4.9 billion charge in the second quarter of this year in expectation of compensation deals.

The Miami firm is also representing families of victims of the recent fatal air crashes involving Boeing aircraft. 

Gazette Desk
Gazette.ie is the daily legal news site of the Law Society of Ireland