Friday, October 8, 2010

A smoking gun

Thanks to commenter Cary I decided to take a closer look at the OurPlane contract. The word "lien" occurs twice. Both occurrences are in paragraph 18(g):

Pilot shall not cause or permit, through any act or failure to act, any liens, claims or encumbrances to attach to the Aircraft and Pilot agrees to indemnify OurPLANE for any and all costs incurred in defending against or removing any such lien, claim or encumbrance, including its reasonable attorneys fees.

Let's play that again, shall we? "Pilot shall not cause or permit ... any liens ... to attach to the Aircraft ..."

So not only is it an insulting insinuation that our losses are our fault because we failed to file liens, we were actually contractually prohibited from doing so!

I'd say Mr. Casson has got some 'splainin' to do.

[UPDATE:] I was mistaken. The word "lien" also occurs here:

33. Events of Default. For the purposes hereof, the term "Event of Default" shall mean the occurrence and continuation of any of the following events of default hereunder:
b) the causing or permitting by Pilot, through any act or failure to act, of any lien, claim or encumbrance to attach to the Aircraft, other than such lien, claim or encumbrance that is pre-approved in writing by OurPLANE;

So not only are we contractually prohibited from placing liens, such a placement would constitute an "event of default" on our part.


  1. "Section 40 of your purchase agreement
    provided you the opportunity to file an FAA lien on your aircraft at your discretion, which you did not do. We have already fulfilled our obligations to anyone who did exercise that right as they all have already received
    their refunds. Based on the net resale purchase price, your refund would be $17,290.

    The above is what mr.casson sent me in an e-mail on sept 5th, my last correspondence with him. So after reading the "smoking gun" post, I too, re-read the contract closer, in my version of the contract the paragraph is 20g,not 18g, but I have read all the sections and section 40, a few times, and i can't see where it says anything about having "provided you the opportunity to file an FAA lien on your aircraft at your discretion" my paragraph 40a-e is "Security for Early Termination Payment" Can anyone help me with finding in the contracts you posses where it says anything to the effect of mr casson's claim that we could or should obtain an FAA lien, maybe i am not reading this correctly?
    Also, does everyone's contract have in paragraph 25c, the following: "If puchaser chooses not to upgrade to the replacement aircraft, the use license will terminate and OurPlane will pay to Purchaser, after resale of primary aircraft, a portion of the realized resale proceeds based on the participation percentage set forth in schedule A of this agreement as reduced by one [1] percentage point."
    so I read that simply as "when the airplane sells you get a percentage of the sale price"
    Can anyone that has read the contract carefully tell Ron or I if we are completely missreading all the above?

  2. I have a PDF version of my contract, so I could do a computer search for the word "lien." It occurs only in the places I have indicated above.

    Apparently there are multiple versions of the contract, so maybe some of them included the provision that Mr. Casson refers to. But mine certainly doesn't.


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