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archerm

Joined: 01 Jan 2007
Posts: 21
Location: Wichta

Posted: Sun Oct 28, 2007 6:07 pm Post subject: LLC

Hello all,

  I am getting close to submitting my paper work to  the FAA and thought I would throw this out.

  



 Has any one registered their home built as an  LLC.  I have some friends that have their aircraft registered to their LLC  and they are hoping to avoid liability when or if they sell.  I am not sure  if it is worth the hassle or if it really will do much.  I am not sure  that there is really that much risk from layers on private individuals.   There just isn't that much money to go after.  It is not like going after a  large company.  There was a good article in Kitplanes or EAA a couple  months back.



Anyway.  Would like to hear opinions on ways to  reduce/manage liability.

  

 Getting close to moving to the hangar.

  

 Cheers

  

 Matt

 www.zodiacxl.com.

  

  

  

  

   [quote][b]

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_________________
Matt
www.zodiacxl.com

notsew_evets(at)frontiern
Guest

Posted: Sun Oct 28, 2007 6:21 pm Post subject: LLC

I wrote to the EAA attorney and the reply was that  to date there has been only one law suit on an Experimental.

 It was on the John Denver EZE crash and the defect  was the fuel valve.  The EAA said that lawyers dont get enough money if the  go after us "little" guys.  Its not worth their time...

 SW

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psm(at)ATT.NET
Guest

Posted: Sun Oct 28, 2007 7:05 pm Post subject: LLC

I'm not a lawyer, but an amateur student of law (as all business men must be).  I am not at all worried about lawsuits over product liability with regard to experimental airplanes.  The big "EXPERIMENTAL" sign we must have on each plane warns all potential passengers, pilots, and buyers that they are taking a significant risk.  The lawyers tend to go after folks who "Sneak up" on potential victims without warning.  



 I suppose the John Denver story is the exception that proves the rule.  In his case, apparently, there was so much money involved that it drew in even the most careful sharks.  It doesn't seem to matter that in his case it was his first flight in a strange plane he just bought and he starved it of fuel while flying over water (as I remember the reports).



 Paul

 XL fuselage

 do not archive  



 At 07:21 PM 10/28/2007, you wrote:

 [quote]I wrote to the EAA attorney and the reply was that to date there has been only one law suit on an Experimental.

 It was on the John Denver EZE crash and the defect was the fuel valve.  The EAA said that lawyers dont get enough money if the go after us "little" guys.  Its not worth their time...

 SW[b]

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dfmoeller

Joined: 19 Jun 2006
Posts: 60
Location: Austin, TX

Posted: Mon Oct 29, 2007 5:05 am Post subject: Re: LLC

While creating an LLC might shield you from liability arising from owning and operating the craft, the big issue is liability arising from building the craft.  I'm not an attorney, but is seems clear that someone must be the builder.  I don't think an LLC can build for educational reasons.  So, I wouldn't think the LLC would do you any good as protection against build related issues.



Doug

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steveadams

Joined: 10 Jan 2006
Posts: 191

Posted: Mon Oct 29, 2007 6:36 am Post subject: Re: LLC

Not a lawyer, but here's my opinion. There are really 3 areas of liability of concern; building, owning, and flying an experimental. A builder must be an individual. You cannot apply for the AW certificate as an LLC, so whatever liability you have as the builder is not mitigated by the LLC. As a pilot, you are personally liable for whatever mistakes you may make that lead to an accident. An LLC has no effect here. As the owner, you may have some liability for an accident, however, in most cases this is overshadowed by pilot liability since both (pilot and owner) are usually the same, and most accidents are pilot error in some way or another. An LLC may possibly offer a little protection here. If you will have others flying your airplane often, it may be worth looking into. Most people trying to limit their personal liability go at it backwards as in this case. If really concerned, the best way to protect yourself is to legally separate yourself from everything of value that you currently own. That way, folks can sue you and win all day long, however you'll have nothing of value to give them. For instance, having your aircraft owned by an LLC will protect it from creditors should you be sued for something not related to the aircraft, but will do little to protect you from liability related to operating the aircraft.

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rstone4(at)hot.rr.com
Guest

Posted: Mon Oct 29, 2007 10:46 am Post subject: LLC

Matt or other interested  parties.

      Here is a legal  document drawn up by a lawyer and recomended for use when selling an  experemental aircraft.  I am not a lawyer and I do not know how much value  this document would have to a seller being sued by survivors of someone killed  or injured in the aircraft that was sold.  I offer it for information  only.

  

 Bob Stone

 Harker Heights, Tx

 ZodiacXL w/Jabiru 3300

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paulrod36(at)msn.com
Guest

Posted: Mon Oct 29, 2007 12:34 pm Post subject: LLC

<?xml:namespace prefix="v" /><?xml:namespace prefix="o" /><![endif]-->  That's a nice document, but I would add another paragraph:

  

     "Seller warrants and guarantees to buyer that  operation of said aircraft, including its removal from ground level, will result  in one of four occurances on each and every occasion:

         a: Personal enjoyment

         b: Minor injury

         c: Serious injury

         d: Death"

  

 Then, no matter what happens "Buyer knew or should have known,.....:"  etc

  

 Paul Rodriguez

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Papa Foxtrot

Joined: 30 Jul 2007
Posts: 6

Posted: Mon Oct 29, 2007 1:38 pm Post subject: Re: LLC

 	  rstone4(at)hot.rr.com wrote: 	
		  Here is a legal  document drawn up by a lawyer and recomended for use when selling an  experemental aircraft. 	


Keep in mind that you can't waive someone else's rights, so those agreements would not be binding on the purchaser's survivors.  While they're not necessarily a bad idea, "hold harmless" agreements are generally worthless once you get to court.



Also, nothing can prevent you from being sued.  Even if the suit is groundless, you still have to defend yourself.



Not a lawyer's opinion, but an insurance underwriter's...

PF

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