Discussion in 'Morgan Aeroworks' started by Raytol, Apr 23, 2017.
They would have insurance to cover litigation costs
In fact I would be pleased to do whatever I could to assist in the development of an Australian product of any form, but any aircraft in particular. I would not want to be paid, I am comfortable enough. Can anyone suggest a possible way. A friend told me to make two companies to restrict liability, I don't know if this works. I would also like to give away my aircraft design that I am building, it's goal is to be in the air for around $10k, on target at present. Any lawyers among us?
Geoff, this is how my business is setup, you pay more to your accountant but save in less or none to insurance, A Company is limited liability to its assets so keep it low, & make sure all correspondence is on your company letterhead. talk to your accountant before getting advice from your lawyer.
I actually have a company. Used it for over 20 years. Wife is also a director, my account tells me that that makes our home open to loss from litigation. I don't really know but it is reported to be owing to how directors are personally liable.
A couple of point that are possibly relevant to the discussion.
1. The original post mentions that the plan was to seek LSA status. That would mean that the aircraft could be factory built. This would open up the designer to much more liability than if the aircraft were just available in a kit/experimental form.
2. One way to deal with the liability is for the engineer to be "employed" by Raytol's company rather than contracting to it via the engineers company. Raytols company would need insurance to cover the design and manufacture of aircraft instead of just the manufacture component.
Yes, yes and yes.
The law is very reticent to "lift the company veil" in Australia as the Pollies and Lawyers are themselves protected by it!
It can only be done if the actions are fraudulent or grossly negligent.
Insurance companies love the "what if" situation and I would like to know if any designer/ engineer has ever been subject to
litigation in Australia and found against.
Other Australian aircraft manufacturers are still going strong even after all their problems, how?
I am a semi/retired aero engineer with my own business and project (originally with a modified (Exprimental) civil registered gyroplane) involved in a taxi test accident in 2010. 18 months after the accident I was charged with reckless operation of an aircraft "endangering myself"..! I beat that charge in the magistrates court but it was only at the third court cases that a judge finally agreed the pilot of an experimental aircraft cannot be charged with reckless operation endangering himself.? The case is still not over with final hearing in Federal Court 18 May fighting the notice of cancellation of my PPL. As far as I can see once these things get into the hands of lawyers.. truth, justice, logic and even language all take a distant back seat.
You are not being judged by people knowing in the "Ways" of the tribe. Testing means there's a need and a risk that the object being tested is not going to pass the test.. I've done a few test flights many having unusual things happen. Could I be charged with flying a plane that was unsafe, because it needed to be tested? Catch 22.. You knew it might be unsafe but still flew it.. Normally planes being tested carry minimum passengers/crew observers. That's prudent. You only had yourself. It can't be operated with less than one. Nev
That was a particularly tragic case for all concerned. The engineer who fabricated the part exactly in accordance with the approved E.O. later committed suicide after the lawyers tried to blame him for the fatal crash. He was a very likeable, hard working, fastidious worker but the stress of litigation took it's toll.
The lawyers have no conscience. They go after anyone with any assets. A senior lawyer will charge $700 per hour. If they get a judgement for their client their percentage varies according to the level of the court that gives the final judgement. Can be as high as 60% of the judgement. Unreal. Lawyers and CASA make the LAME's life hell. Many will avoid most things that they have to sign off on.
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