Daily Journal Top Stories
Monday, March 17, 2008

Lawyer Wins $7.7 Million
For Orient Global Aviation

By Greg Katz
Daily Journal Staff Writer

LOS ANGELES - A Santa Monica lawyer has won a $7.7 million arbitration award for his client, Singapore-based Orient Global Aviation, against San Antonio-based Gore Design Completions.

Orient claimed mistakes made by Gore employees while Orient's Boeing 737 luxury jet was in Texas for upgrades, led to a complete meltdown of the plane's circuitry.

"Gore managed to join the AC and DC electrical buses," said Orient's lawyer Patrick Bailey of Bailey & Partners in Santa Monica .

Moreover, Bailey said, Gore then placed a lien on the plane and would not release it until Orient paid for the allegedly faulty work. Orient Global Aviation v. Gore Design Completions, 50 181 T 00239 06.

Charles L. Smith of the American Arbitration Association's International Centre for Dispute Resolution issued the award on March 7.

The problems arose when Gore attempted to install an entertainment system that would have given passengers remote control over televisions, windows and other amenities, according to the arbitration agreement. The resulting electrical failures grounded the plane for months, the agreement stated.

After destroying the electrical systems, Bailey said, Gore placed a lien on repairs to the private luxury jet.

"It would be like you taking your car into the shop and saying, 'Please install the upgraded stereo-on-steroids,'" Bailey said. "Two days later, the shop calls you and says, 'Some bad news: The stereo system doesn't work, and neither does your car. It no longer runs, and we're going to place a lien on it until you pay for everything.

In his ruling, Smith found Gore's lien fraudulent. Smith wrote that employees working for Gore had been negligent, and clauses pertaining to negligence in an agreement between Gore and Orient did not protect Gore in this case.

Neither Gore's lawyers, Ross Cunningham and Michael McCrea of Rose Walker in Dallas , nor the company's representatives were available for comment.

According to the award, Gore contended that Orient was barred from recovery due to clauses in the original agreement between the companies.

Bailey said the two weeks of arbitration sessions included expert witnesses from around the world, including the technical director of London-based Trade Air, which maintains many jets of the same model.

Trade Air's representative testified that the extensive electrical damage was like nothing he had seen in his 24 years of aviation experience, Bailey said.

Orient also was represented by Charles H. Smith and Bryan David of Smith & Moore in Dallas.

For more information regarding Bailey & Partners, please contact us at 310-392-5000 or visit our web site at www.baileypartners.com.