Max, Thanks so much for your discussion on transfering ownership to a corporation. I had a bit of exposure to the incorporation process having incorporated as an EAA chapter in the state of Oregon. It was a non-profit, but many of the forms were the same. Other than bylaws, and annual filings, it's not too bad in terms of paperwork. One question I need to figure out is how this impacts the FAA and the registration process. But I can find a local aviation lawyer I suppose to work out the details for a small fee when/if I want to cross that bridge. Thanks again. ----- Original Message ----- From: "Max Hardberger" <capt...@maritimeatty.com> List-Post: krnet@list.krnet.org Date: Tue, 12 Aug 2003 07:39:46 -0500 To: <eng...@earthlink.net>, "KR builders and pilots" <kr...@mylist.net> Subject: KR>Insurance & Liability
> As a non-KR-owner, I can only contribute to this thread from a > lawyer/pilot's general perspective: > > 1. Any airport, even public, has the right to set the conditions for > planes based there, as long as the conditions are applied equally, including > requiring reasonable liability insurance. > 2. The states shouldn't be able to require insurance on airplanes, like > they do on cars, since aviation has been held to be so "inherently Federal > in nature" that states can't even interfere in it (for example, by requiring > an additional state pilot's license). I don't know of any state that does > so. > 3. Many airports do require liability insurance, but this is usually > enforced by merely having a statement on the rental form that the owner has > it and will keep it. I have never been asked to produce a copy of the policy > or binder. > 4. A statement on the rental agreement that you have insurance doesn't > affect your liability to whomever you injure or damage subsequently at that > airport, but it does give the airport a contractual action against you in > addition to the victim's lawsuit. I cannot imagine why an airport would sue > under this clause. I would stress, however, that if there were an accident > involving a mechanical malfunction in an experimental aircraft--something > laymen would find quite foreseeable--and it were shown that the owner/pilot > had lied on his application about having insurance, it wouldn't look so > good. This would be especially true if an innocent victim were to sustain > great pain and disfigurement and a million dollars in medical bills, and is > now faced with a cash-strapped owner and no insurance company. > 5. Although this is a little off-topic, I would recommend to any owner of > an uninsured aircraft that he put the plane's record (FAA) ownership in the > name of a corporation. Although there are some simple things--primarily > regarding registering the company and keeping corporate accounts > separate--that the corporation must do, this affords strong protection > against personal lawsuits AS OWNER OF THE AIRCRAFT. This doesn't help a > negligent pilot, who can always be sued for his own negligence, but it does > help to protect an owner and non-negligent pilot. Negligence can be hard to > prove in aviation cases, so corporate ownership is well worth the money. > There is nothing improper about placing an airplane under corporate > ownership, but of course the corporation has to be formed properly BEFORE a > claim arises. The internet is full of advice on how to do it--some states > charge as little as $60. > > Above is not legal advice--an aircraft owner should talk to a lawyer in his > jurisdiction regarding whether he needs or should have insurance. > > Max Hardberger > > > _______________________________________________ > see KRnet list details at http://www.krnet.org/instructions.html -- ____________________________________________ http://www.operamail.com Get OperaMail Premium today - USD 29.99/year Powered by Outblaze
