CHICAGO (Legal Newsline) – Boeing is facing a breach of contract suit by a Dublin, Ireland, aircraft leasing and subleasing company that had contracted to buy 737 MAXs prior to Boeing halting production of the aircraft.
Timaero Ireland Limited filed a complaint Dec. 17 in the U.S. District Court for the Northern District of Illinois, Eastern Division against The Boeing Co. alleging fraudulent inducement, breach of contract, breach of duty of good faith and fair dealing and tortious interference with a business expectancy.
According to the complaint, Timaero entered into a contract on Jan. 10, 2014, to purchase 20 Boeing Model 737-8 aircraft (7373 MAX). Boeing and Timaero also entered into supplemental agreements in 2016 and 2017 for the conversion of two Boeing 737-800 aircraft into 737 MAX aircraft, the suit states.
Timaero claims Boeing failed to honor the agreement, and "misrepresented the airplanes and fraudulently induced" it into the contract. Timaero also claims due to Boeing's suspension of the 737 MAX's production, the aircraft are now "worthless or seriously diminished in value."
The plaintiff seeks an order for the rescission of the purchase agreement, compensation damages, costs and any other relief the court deems just and equitable. It is represented by Patrick F. Solon and Gretchen L. Schmidt of Vitale, Vickrey, Niro, Solon and Gasey of Chicago.
U.S. District Court for the Northern District of Illinois Eastern Division case number 1:19-CV-08234