plane Repo

[Unregistered]

My current partner and I are engaged in some litigation regarding the return of some money owed to us upon the termination of our participation in a flying club organization. We foolishly "invested" in the corporation that runs the club, which consists of one person. Luckily, we have a "confession of judgment" in our favor, which has gone uncontested for more than 30 days. At this point, all we need to do is exercise the judgement, and it will go to a Sheriff's Sale. The clerk said that typically, noone comes to these sales, and if it does not sell, or does not sell for enough, the item, in this case, an airplane, is handed over to the plaintiffs to satisfy the judgement. I cannot verify this, but it seems plausible.

My questions would then be:
How does the registration get changed to the new owner, without the consent of the previous owner? Does the court sign the bill of sale?

What about the log books? Any chance of recovering them?

Signed:
Hopefully this will all be over soon.

 

[poadeleted20]

How does the registration get changed to the new owner, without the consent of the previous owner? Does the court sign the bill of sale?

From 14 CFR 47.11 "Evidence of ownership":

(b) The repossessor of an aircraft must submit—
(1) A certificate of repossession on FAA Form 8050–4, or its equivalent, signed by the applicant and stating that the aircraft was repossessed or otherwise seized under the security agreement involved and applicable local law;
(2) The security agreement (unless it is already recorded at the FAA Aircraft Registry), or a copy thereof certified as true under §49.21 of this chapter; and
(3) When repossession was through foreclosure proceedings resulting in sale, a bill of sale signed by the sheriff, auctioneer, or other authorized person who conducted the sale, and stating that the sale was made under applicable local law.
(c) The buyer of an aircraft at a judicial sale, or at a sale to satisfy a lien or charge, must submit a bill of sale signed by the sheriff, auctioneer, or other authorized person who conducted the sale, and stating that the sale was made under applicable local law.

What about the log books? Any chance of recovering them?

Not much. If you seize the plane, the former owner has little incentive to hand them over, and they are very easy to "lose" in spite. Best bet is to get the sheriff to go to where the plane and logs are, and seize them all at once with no warning. If the former owner has already stashed them, or gets word you're coming, you're probably out of luck.

 

[AdamZ]

Don't know where you live which is important because the laws of that state will control. Where I am in PA The Court would order the transfer of the title and might order that the title be signed by the Sheriff. YOu will probably have to send the FAA a lot of paperwork along with the Sheriff's title. My advice would be to get an aviation attorney to advise on how to transfer the title once you are the high bidder at the sale. AOPA legal services plan can help.

Be aware if your debt is much less than the value of the plane you may have to bid reasonable value. Check with a local attorney. As for the log books my gut is your up the creek on that one. Good luck. Again check with a local attorney. This one is worth doing right.

If you do get the plane you should make sure you get a thorough inspection. I'd be concerned with sabotage. Good luck.

 

[gismo]

If you do get the plane you should make sure you get a thorough inspection. I'd be concerned with sabotage. Good luck.

JOOC, would there be any criminal sanctions for deliberate sabotage in a case like this? Say the prior owner put sugar in the fuel tank and this wasn't apparent until the fuel was tested post crash.

 

[poadeleted20]

JOOC, would there be any criminal sanctions for deliberate sabotage in a case like this? Say the prior owner put sugar in the fuel tank and this wasn't apparent until the fuel was tested post crash.

I'm reasonably sure that the answer would depend on whether the sabotage occurred before or after the transfer of ownership. Before transfer, it's his plane to do with as he wishes, and reposessor beware. After transfer, I believe it would violate Federal criminal statutes -- provided you could prove when the sabotage occurred.

 

[Unregistered]

From 14 CFR 47.11 "Evidence of ownership":QUOTE]

Thanks,
that is one I wouldn't likely have read.

 

[Unregistered]

Don't know where you live which is important because the laws of that state will control. Where I am in PA The Court would order the transfer of the title and might order that the title be signed by the Sheriff. YOu will probably have to send the FAA a lot of paperwork along with the Sheriff's title. My advice would be to get an aviation attorney to advise on how to transfer the title once you are the high bidder at the sale. AOPA legal services plan can help.

Be aware if your debt is much less than the value of the plane you may have to bid reasonable value. Check with a local attorney. As for the log books my gut is your up the creek on that one. Good luck. Again check with a local attorney. This one is worth doing right.

If you do get the plane you should make sure you get a thorough inspection. I'd be concerned with sabotage. Good luck.

I am in PA.

I am also concerned that the plane has a lien on it. I have the airplane records from the FAA, but I cannot determine if it has a lien on it. I was attempting to do this without spending too much money, but I might also have to do a title search.

If no one else bids, would I still have to pay reasonable value for the airplane or would they surrender the airplane to us for the amount of the judgement? Does it make a difference if the two of us have separate judgements?

I am not too concerned about sabotage, although the current owner will not be too impressed. He was a friend of ours, but circumstances in his life (brought on by himself) have brought a lot of financial misfortune to him.

 

[poadeleted20]

You need legal help -- get a lawyer! If you are in PA, Adam can almost certainly recommend a good one who knows this field.

 

[Maxmosbey]

What about the log books? Any chance of recovering them?

Of course there are laws governing such things, but when it comes right down to it, no one is going to pursue your interests, except you, and perhaps your lawyer, who is getting paid for it. When it comes to the authorities, it is a civil case, and you are on your own. I would locate those log books, and at least know where they are. Back in the early seventies I overhauled a motor in an airplane, and the owner stiffed me on the bill, but I had the logs, both airframe, and powerplant. Shortly thereafter, I joined the navy, and stashed the logs in my bedroom at home. All sorts of threatening letters about those logs reached me during my four years in the navy, but nothing ever happened to me over them. Five years later, after I was discharged and living back home, there came a call from a guy who had bought that plane, and wanted those logs. He ended up paying the bill for the overhaul, just to get those log books in his hands. The bottom line, there isn't a whole lot of bite when it comes to civil court. No one goes to jail for not giving up a set of log books.