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GAMA Applauds Rep. Ehlers’ Efforts To Provide Liability Protections For Parts Manufacturers

GAMA NEWS 07-25 For Immediate Release: Dec 7, 2007

Washington, DC, December 7, 2007 – Today, Representative Vern Ehlers (R-MI) announced that he and Representative Todd Tiahrt (R-KS) would introduce legislation to provide general aviation (GA) airplane parts manufacturers with common sense protections against frivolous lawsuits. These lawsuits are driving up insurance costs and, in some cases, forcing manufacturers to stop production of parts certified by the Federal Aviation Administration (FAA).

Ehlers’ announcement comes a month after Precision Airmotive, a GAMA member, shut down production on its float carburetor because the cost of insurance exceeded total sales revenue. The carburetor has been manufactured since the 1930’s, but despite an excellent safety and sales record, it could no longer sustain the cost to defend its product in lawsuits.

“Frivolous lawsuits are making it difficult and sometimes impossible for parts manufacturers to stay in business,” said GAMA President and CEO, Pete Bunce. “It is unacceptable for American manufacturers that produce safe equipment to be shutting down production and laying-off workers because of frivolous lawsuits costing millions of dollars in legal fees and increased insurance rates.”

“This legislation is desperately needed to restore some balance and fairness in our legal system,” said Bunce. “This is a job-restoring and job-creating measure and we thank Congressman Ehlers for leading this effort. We look forward to working with him to get this legislation signed into law.”

Communications Director:
Andre Castro:
General Aviation Manufacturers Association
Headquarters: (+1) 202-393-1500
European Office: (+32) 2 550-3900

GAMA exists to foster and advance the general welfare, safety, interests, and activities of the global business and general aviation industry. This includes promoting a better understanding of general aviation manufacturing, maintenance, repair, and overhaul and the important role these industry segments play in economic growth and opportunity, and in serving the critical transportation needs of communities, companies, and individuals worldwide.