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Can an airplane owner contest a lien after a creditor obtains one?

On Behalf of | Nov 5, 2024 | Aviation

Companies that operate in the aviation sector often provide services with partial payment or on a credit basis. They allow owners to delay payments for repair services, space at a hanger or fuel. Most of the time, airplane owners make good on their financial obligations as quickly as they reasonably can. Unfortunately, some airplane owners and aviation businesses are less responsible than others.

Businesses that provide fuel, parts, storage space or labor may find themselves facing an uphill battle trying to obtain payment in full for services for fuel already provided. In that situation, the best form of recourse is often to seek a lien against the aircraft. A lien protects the creditor by preventing the sale or transfer of the airplane’s title until the owner pays what they owe in full. It can also protect them by allowing them to foreclose on the lien and force the sale or refinancing of the airplane in question.

Most owners who are subject to a lien make immediate efforts to pay what they owe and protect their interest in their airplane. Others may engage in malicious communications about the company that pursued the lien. Even though there is a valid debt secured by the lien, they may try to slander the lean itself or the lien holder. In those scenarios, the party that secured the lien may be able to take legal action.

Slander of a lien can lead to damages

A party who resents being held financially accountable for debt they knowingly heard can say and do things that damage the reputation of a business or service professional. They may talk to others, disparaging the lienholder. They may leave negative reviews online even though they are responsible for their failure to pay a valid debt.

In such cases, the lien holder may be able to take the matter to court and pursue damages for the impact of slander. Testimony from other aviation professionals or details shared online can help prove the misconduct of the party subject to the aviation lien.

There can sometimes be a bit of a challenge when quantifying the economic harm that slander related to a lien could cause. The courts can award a reasonable amount of compensation based on how the slander of one party may have affected the business operations and reputation of another.

Learning more about the nuances of aviation law can be beneficial for those affected by airplane-related debts or the slander of a party that obtained a lien. Litigation can help not only secure a lien when one is necessary but can also help hold another party accountable for slandering a business for lien-related concerns.

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