Beware the Perils of Filing an Improper Aircraft Lien

In Maine, the right to place a lien on an aircraft is covered in a broader mechanics lien statute that protects those who perform labor and materials for storage and repair of vehicles, aircraft, and parachutes. [...]California's lien law provides that the right to assert an aircraft lien "...

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Bibliographic Details
Published in:Airport business 2023-08, Vol.37 (4), p.32-33
Main Author: Grocki, Paul
Format: Magazinearticle
Language:English
Subjects:
Aeronautics
Air transportation
Air transportation industry
Aircraft
Airports
Criminal liability
Exemplary damages
Fees & charges
Filing
Fraud
Liability
Liens
Litigation
Personal property
Subdivisions
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Summary:In Maine, the right to place a lien on an aircraft is covered in a broader mechanics lien statute that protects those who perform labor and materials for storage and repair of vehicles, aircraft, and parachutes. [...]California's lien law provides that the right to assert an aircraft lien "shall not apply to aircraft operated exclusively by an air carrier or a foreign air carrier, as defined in subdivisions (2) and (19) of Section 1 of Chapter 601 of the Statutes of the Seventy-fifth United States Congress, Second Session (1938), engaged in air transportation as defined in subdivision (10) of the same section while there is in force a certificate by, or a foreign air carrier permit of, the Civil Aeronautics Board of the United States, or its successor, authorizing such air carrier to engage in such transportation." Civil Liability Risks Associated with Filing an Improper Aircraft Lien If you file an improper lien on an aircraft, it could result in: (1) a civil lawsuit initiated by the aircraft owner to determine the legal rights to the aircraft or to quiet title to the aircraft; or (2) the assertion by the aircraft owner of successful legal defenses once you initiate the lien foreclosure proceeding that will invalidate the lien. Maryland's criminal statute provides that "[a] person may not file a lien or an encumbrance in a public or private record against the real or personal property of another if the person knows that the lien or encumbrance is (1) false; or (2) contains or is based on a materially false, fictitious, or fraudulent statement or representation."
ISSN:1072-1797
2150-4539