Monday, August 17, 2015

Prince Edward Island court dismisses fight over Colombian police airplane engines

A supreme court judge has dismissed an application by a Canadian aircraft manufacturer for a declaration of ownership of two aircraft engines sent to P.E.I. for repairs by police in Colombia.

Supreme Court Justice Gordon Campbell ruled the actions of a sovereign state, legitimately taken with its territory, are to be shown deference and respect by another sovereign state.

"Prince Edward Island has no jurisdiction to interfere with the actions and legal determination of a foreign state unless such actions offend Canadian public policy and violate our 'essential morality' or 'fundamental values,' " Campbell wrote in his decision. "Such was not the situation in this case."

The engines in question, which were installed in a Haviland Dash 8, were delivered to Vector Aerospace Engine Services in Summerside on behalf of the National Police of Colombia (NPC) for overhaul and repair work.

While the engines were undergoing that work, Dash 224, LCC (Dash), filed a motion seeking an interim preservation order requiring the two engines remain in the possession of Vector in P.E.I.

That interim order was granted to Dash on May 27, 2013 for 30 days without any notice being given to NPC.

On June 24 of that year the court extended the preservation order for a further 30 days on the condition that Vector's storage fees would be paid by Dash.

Dash and Vector subsequently consented to extend the preservation order to Aug. 5 and then to Aug. 15.

Dash subsequently amended its original application to request a declaration of ownership of the Haviland Dash 8-311 aircraft, including its two Pratt and Whitney Canada engines.

Colombian Police, on learning what had transpired in Canada, asked to be added to the court proceedings to argue a single issue, the validity of the original May 27 order and the extensions to that order.

The aircraft at the center of this case had been seized by authorities in Colombia because it was illegally imported into the country.

In 2011 the aircraft was subsequently forfeited to the Colombian tax agency. 

The Colombian government then donated it to the NPC to be used solely for public purposes, with a prohibition on using it for any commercial purpose.

When the engines were in need of maintenance, they were sent to Prince Edward Island for service.

It was upon learning that the engines were shipped to P.E.I. that Dash applied for a preservation order and declaration of ownership in their favor.

Source:  http://www.theguardian.pe.ca

Published on July 31, 2014:    National Police of Colombia win payment for possible legal fees involving aircraft engines now in storage on P.E.I.

A company that is in a legal battle with Colombian police over airplane engines that were undergoing an overhaul in Summerside will have to pay a $500,000 bond while the case is before the courts.

In a recent unanimous decision, the P.E.I. Court of Appeal ordered Dash 224 pay the bond to cover the National Police of Colombia’s (NPC) costs in the event NPC wins.

The issue revolves around two engines worth $1 million each from a De Havilland Dash 8 airplane the Colombian government seized in 2011 and sent to Vector Aerospace in Summerside for an overhaul.

A company called Regional One Inc. owned the plane and was leasing it to Aerovias de Avacion Regional Aires when it entered Colombia in 2010 without the proper paperwork.

Regional One has since transferred its interest in the plane to Dash 224, which is an affiliated business and trying to get the engines back.

Dash 224 successfully sought a temporary order through the P.E.I. Supreme Court to keep the engines in the province.

In the appeal decision written by Justice John Mitchell, he wrote that it will probably be at least another six months before the matter gets to trial, but if the NPC wins the onus will be on it to prove its legal costs and losses.

The judges allowed an amendment request from Dash 224 that will continue the legal proceedings.

Although Mitchell said Dash 224 was largely the victor, he awarded the NPC $11,130 in costs and disbursements because of the timing of Dash 224’s amendment, which Mitchell said was sprung on the Colombian police at the last minute.

Source:  http://www.theguardian.pe.ca

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