In a recent case, U.S. Aviation Underwriters Inc. v. Nabtesco Corp., --- F. 3d ---, 2012 WL 4497342, *1 (9th Cir. Oct. 2, 2012), the Ninth Circuit held that the General Aviation Revitalization Act of 1994's ("GARA") eighteen year statute of repose begins to run when an aircraft component is delivered to the original purchaser of an aircraft, regardless of whether the component is subsequently installed in a different aircraft. This case is significant because component parts in one aircraft are often removed and installed in a different aircraft. The court found that the statute is not perfectly clear on this point—arguably, the statute of repose could reset if a used component part is removed from one aircraft and placed into another. However, the Ninth Circuit, relying on both the language in the statute and legislative history, found that the statute of repose for a used component part begins to run on the delivery date of that component part to its first purchaser.
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