On Friday, Grand Rapids area Representative Vernon Ehlers issued a press release announcing that he will be working with Republican Representative Todd Tiahrt of Kansas to pass legislation at protecting the general aviation parts industry from lawsuits. The press release referred to these as "common sense protections" that are "driving up insurance costs and forcing some manufacturers to stop production on parts certified by the Federal Aviation Administration."
The press release cites the case of Washington state-based Precision Airmotive, who was forced to shut down last month due to an increase in its insurance rates following a lawsuit that found a flaw in its parts was related to the crash of a Cessna 150 plane on take-off. Ehlers' news release than features two quotes the president and CEO of the General Aviation Manufacturers Association.
However, the news release fails to mention that the General Aviation Manufacturers Association has made contributions to Ehlers reelection efforts through its PAC. In the 2006 election cycle, Ehlers was the second highest recipient of money from the PAC, receiving $4,000. This was behind the $7,000 each given to Ehlers' partner on the recent effort, Todd Tiahrt, and North Carolina Representative Robin Hayes. Ehlers also received $2,500 in 2004 and $1,000 in 2002.
It is also worth noting that the press release from Ehlers' office contains almost identical language to the General Aviation Manufacturers Association press release.
The GAMA release:
Washington, DC, December 7, 2007 - Today, Representative Vern Ehlers (R-MI) announced that he and Representative Todd Tiahrt (R-KS) would introduce legislation to provide general aviation (GA) airplane parts manufacturers with common sense protections against frivolous lawsuits. These lawsuits are driving up insurance costs and, in some cases, forcing manufacturers to stop production of parts certified by the Federal Aviation Administration (FAA).
Ehlers' announcement comes a month after Precision Airmotive, a GAMA member, shut down production on its float carburetor because the cost of insurance exceeded total sales revenue. The carburetor has been manufactured since the 1930's, but despite an excellent safety and sales record, it could no longer sustain the cost to defend its product in lawsuits.
"Frivolous lawsuits are making it difficult and sometimes impossible for parts manufacturers to stay in business," said GAMA President and CEO, Pete Bunce. "It is unacceptable for American manufacturers that produce safe equipment to be shutting down production and laying-off workers because of frivolous lawsuits costing millions of dollars in legal fees and increased insurance rates."
"This legislation is desperately needed to restore some balance and fairness in our legal system," said Bunce. "This is a job-restoring and job-creating measure and we thank Congressman Ehlers for leading this effort. We look forward to working with him to get this legislation signed into law."
GAMA is an international trade association headquartered in Washington, DC representing over 50 of the world's leading manufacturers of general aviation aircraft, engines, avionics and related equipment. GAMA's members also operate fleets of aircraft, fixed based operations, and pilot training and maintenance training facilities. For additional information, visit GAMA's website at www.GAMA.aero.
Ehlers' release:
WASHINGTON - Congressman Vernon J. Ehlers announced today that he and Rep. Todd Tiahrt (R-KS) are working on legislation to provide general aviation parts manufacturers with common sense protections against lawsuits. These lawsuits are driving up insurance costs and forcing some manufacturers to stop production on parts certified by the Federal Aviation Administration.
Congressman Ehlers' announcement comes a month after Precision Airmotive, a general aviation parts supplier based in Washington state, shut down production on its float carburetor because the cost of insurance exceeded total sales revenue. The company had manufactured carburetors since the 1930's, but despite an excellent safety and sales record, it could no longer afford liability insurance to defend its product in lawsuits.
"The risk of frivolous lawsuits is making it nearly impossible for many aviation-parts manufacturers to stay in business," said Congressman Ehlers. "We must tighten up current law to protect these manufacturers from damaging lawsuits while still providing safeguards to consumers. A common sense reform will do both without driving manufacturers out of business, just as the original protections in the 1994 law restored growth in the airplane manufacturers industry." Ehlers noted that numerous manufacturers have cited rising costs related to litigation as a major impediment to their future operations.
"Frivolous lawsuits are making it difficult and sometimes impossible for parts manufacturers to stay in business," said Pete Bunce, President and CEO of the General Aviation Manufacturers Association. "It is unacceptable for American manufacturers that produce safe equipment to be shutting down production and laying-off workers because of frivolous lawsuits costing millions of dollars in legal fees and increased insurance rates."
"This legislation is desperately needed to restore some balance and fairness in our legal system," said Bunce. "This is a job-restoring and job-creating measure and we thank Congressman Ehlers for leading this effort. We look forward to working with him to get this legislation signed into law."
No details were provided about the potential legislation in either release.
