JACKSONVILLE, Fla., July 27 /PRNewswire-Asia/ -- Shandong Airlines, a Chinese provincial carrier based in Jinan, China won a $1.7 million judgment in an international contract dispute with a Florida flight training school. On June 26, 2009, U.S. District Judge Timothy J. Corrigan ruled against Capt, LLC and Flight Training Services International (FTSI) in the breach of contract dispute.
Shandong Airlines had engaged CAPT, LLC, a school owned by FTSI, to provide flight training to 24 of its Chinese pilot cadets, according to Miami-based Diaz Reus & Targ, LLP attorneys Brant Hadaway and Vince Li, who represented the airline.
Under the contract, CAPT, LLC was to provide a 52-week course at its Northeast Florida facilities in Palm Coast, including housing and a weekly living allowance, in exchange for a $68,000 payment per student from Shandong Airlines. Instead, CAPT, LLC breached that contract, demanded more money from Shandong Airlines, and threatened to terminate the students' visas, according to Hadaway and Li.
Hadaway said Shandong had paid CAPT, LLC more than $1.4 million since the 24 Shandong students were admitted into the United States on April 23, 2008 on M-1 vocational student visas, and had met all terms of the contract.
However, on March 27, 2009, CAPT, LLC sent Shandong a letter stating it considered the existing contracts "to be null and void" and said it would withdraw sponsorship of all Shandong student visas unless the airline paid additional money for the training, according to the complaint.
Hadaway and Li acted promptly to seek remedies for Shandong by obtaining a temporary restraining order to prevent CAPT, LLC from unilaterally terminating its contract, withdrawing its sponsorship for the Shandong cadets' M-1 visas, and undertaking any activity that would jeopardize CAPT LLC's FAA licenses. Judge Corrigan supported that request, and ultimately ruled in favor of Shandong.
After entering judgment, Judge Corrigan granted a request for issuance of a writ of garnishment to garnish proceeds of an auction of CAPT's alleged remaining assets in Florida to prevent any further defrauding of Shandong Airlines.
Miami-based Diaz Reus is a full-service international law firm focusing on trade and business transactions, complex commercial, civil, and criminal litigation and arbitration matters. The firm operates full service offices in Miami, Florida, Shanghai, China, Frankfurt, Germany, and Caracas, Venezuela as well as affiliate offices in Bogota, Colombia, Monte-Carlo, Monaco, and Sao Paulo, Brazil. For more information, visit http://www.diazreus.com .