Cpt Splash
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Flex Trng Contract?
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By Matt Thurber
Aviation International News >> March 2008
Charter
http://www.ainonline.com/ain-and-ai.../?tx_ttnews[story_pointer]=2&cHash=20bde3bfb9Pilots often wonder what happens if they sign a contract to repay training costs when accepting a flying job that involves expensive simulator training but quit before the contract has expired. Conventional wisdom is that such contracts are not enforceable and the hiring company eventually drops the issue. That was not the case for Allen Miller, who accepted a job with Bombardier Aerospace’s Flexjet fractional operation in July 2000. Miller spent 17.5 months flying for Flexjet, leaving more than half a year before the 24-month period agreed to in his contract and owing the company thousands of dollars for training.
Miller didn’t want to pay, so Flexjet sued him. The reason he didn’t want to pay back his training costs, he told AIN, “is they promised us many things and didn’t deliver.”
Miller was hired with the promise that he would receive a type rating right away and regular six-month recurrent training. Miller believed what Flexjet told him, he said, because marketing material at the time assured shareowners that they would always fly with two type-rated pilots who received recurrent training every six months.
When he went to FlightSafety International in Tucson, Ariz., for the two-week initial training course in the Learjet 60, however, “the final step of the type-rating ride never happened. That was standard practice in the industry for them.”
After Miller left Flexjet, the company asked him to pay $4,750 toward his training costs. He refused, and in October 2005 Flexjet sued him. Miller countersued, according to Flexjet, “claiming common law fraud, fraudulent inducement, fraud by nondisclosure, negligent misrepresentation, consumer fraud and declaratory judgment.”
On February 8 the jury issued its verdict, and neither Miller nor Flexjet received any damages. Miller claims that he “won,” mainly because Flexjet representatives admitted that they lied about the type-rating promises. During one of the pre-trial depositions of Flexjet chief pilot Rick Handschuch, Miller said, “he admitted that what was promised to owners was not delivered.”
Handschuch also, during the trial, claimed that the brochure telling owners that they would always fly with two type-rated pilots wasn’t in effect at the time Miller worked for the company, according to Miller. “On the stand, they tried to say, ‘We didn’t use it until after 2002,’” he said. However, Miller and his attorney, Rob Wiley, had received a copy of the brochure before the trial in the open-disclosure phase that had a time-stamp saying it expired in January 2002.
A Precedent-setting Case
The jury didn’t find that there was a contract, Wiley said. “It denied Bombardier’s contract claim.” While it didn’t award any damages to either party, the jury also found that Bombardier Flexjet engaged in deceptive trade practices against Miller, according to Wiley.
“Bombardier Flexjet is satisfied with and accepts the court’s judgment in this case,” a Flexjet spokeswoman told AIN in a written response to questions about the trial.
“Flexjet did not make any misrepresentations to Mr. Miller–intentionally, negligently or by omission. The jury verdict supports this.…All pilots employed by Bombardier Flexjet are fully trained and qualified to fly the aircraft that they operate. In fact, Flexjet’s pilots generally receive twice the annual training recommended by the FAA.
“Although the jury found that Mr. Miller failed to comply with his training contract, it also found that the parties did not agree on the interpretation of ‘training.’ The jury did, however, find in Flexjet’s favor on Mr. Miller’s counterclaims of fraud by nondisclosure, common law fraud and negligent misrepresentation. The jury rendered a contradictory verdict on the issue of consumer law fraud, answering questions on the issue in favor of each party, yet ultimately awarding Mr. Miller no damages. Mr. Miller’s claims of fraudulent inducement and declaratory judgment were dismissed.”
Wiley believes that this case sets a precedent for disputes between pilots and employers who insist that employees repay training costs if they leave before an agreed-on period of time has passed. “Now there is an actual case that got fought through to the bitter end,” he said. “This contract’s not worth the paper it’s written on.”
Aviation International News >> March 2008
Charter
http://www.ainonline.com/ain-and-ai.../?tx_ttnews[story_pointer]=2&cHash=20bde3bfb9Pilots often wonder what happens if they sign a contract to repay training costs when accepting a flying job that involves expensive simulator training but quit before the contract has expired. Conventional wisdom is that such contracts are not enforceable and the hiring company eventually drops the issue. That was not the case for Allen Miller, who accepted a job with Bombardier Aerospace’s Flexjet fractional operation in July 2000. Miller spent 17.5 months flying for Flexjet, leaving more than half a year before the 24-month period agreed to in his contract and owing the company thousands of dollars for training.
Miller didn’t want to pay, so Flexjet sued him. The reason he didn’t want to pay back his training costs, he told AIN, “is they promised us many things and didn’t deliver.”
Miller was hired with the promise that he would receive a type rating right away and regular six-month recurrent training. Miller believed what Flexjet told him, he said, because marketing material at the time assured shareowners that they would always fly with two type-rated pilots who received recurrent training every six months.
When he went to FlightSafety International in Tucson, Ariz., for the two-week initial training course in the Learjet 60, however, “the final step of the type-rating ride never happened. That was standard practice in the industry for them.”
After Miller left Flexjet, the company asked him to pay $4,750 toward his training costs. He refused, and in October 2005 Flexjet sued him. Miller countersued, according to Flexjet, “claiming common law fraud, fraudulent inducement, fraud by nondisclosure, negligent misrepresentation, consumer fraud and declaratory judgment.”
On February 8 the jury issued its verdict, and neither Miller nor Flexjet received any damages. Miller claims that he “won,” mainly because Flexjet representatives admitted that they lied about the type-rating promises. During one of the pre-trial depositions of Flexjet chief pilot Rick Handschuch, Miller said, “he admitted that what was promised to owners was not delivered.”
Handschuch also, during the trial, claimed that the brochure telling owners that they would always fly with two type-rated pilots wasn’t in effect at the time Miller worked for the company, according to Miller. “On the stand, they tried to say, ‘We didn’t use it until after 2002,’” he said. However, Miller and his attorney, Rob Wiley, had received a copy of the brochure before the trial in the open-disclosure phase that had a time-stamp saying it expired in January 2002.
A Precedent-setting Case
The jury didn’t find that there was a contract, Wiley said. “It denied Bombardier’s contract claim.” While it didn’t award any damages to either party, the jury also found that Bombardier Flexjet engaged in deceptive trade practices against Miller, according to Wiley.
“Bombardier Flexjet is satisfied with and accepts the court’s judgment in this case,” a Flexjet spokeswoman told AIN in a written response to questions about the trial.
“Flexjet did not make any misrepresentations to Mr. Miller–intentionally, negligently or by omission. The jury verdict supports this.…All pilots employed by Bombardier Flexjet are fully trained and qualified to fly the aircraft that they operate. In fact, Flexjet’s pilots generally receive twice the annual training recommended by the FAA.
“Although the jury found that Mr. Miller failed to comply with his training contract, it also found that the parties did not agree on the interpretation of ‘training.’ The jury did, however, find in Flexjet’s favor on Mr. Miller’s counterclaims of fraud by nondisclosure, common law fraud and negligent misrepresentation. The jury rendered a contradictory verdict on the issue of consumer law fraud, answering questions on the issue in favor of each party, yet ultimately awarding Mr. Miller no damages. Mr. Miller’s claims of fraudulent inducement and declaratory judgment were dismissed.”
Wiley believes that this case sets a precedent for disputes between pilots and employers who insist that employees repay training costs if they leave before an agreed-on period of time has passed. “Now there is an actual case that got fought through to the bitter end,” he said. “This contract’s not worth the paper it’s written on.”
Club ORD FO
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Cpt Splash
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The guy in the lawsuit won on a technicality. He wasn't given a type till after 6 months with the company. Flexjet was claiming to the customers at the time that all their crews were typed, when in fact that wasn't the case.
What I'm wondering if there was been anybody who left within the 2yrs and had Flex come after them? If so, how did Flex handle the issue? Did they send the former crew member a bill itemizing all costs associated with the training, or did Flex just have a collection agency handle the issue, thus affecting ones credit rating?
I hear rumors that run the spectrum. I'm looking for actual cases, and what were the circumstances.
What I'm wondering if there was been anybody who left within the 2yrs and had Flex come after them? If so, how did Flex handle the issue? Did they send the former crew member a bill itemizing all costs associated with the training, or did Flex just have a collection agency handle the issue, thus affecting ones credit rating?
I hear rumors that run the spectrum. I'm looking for actual cases, and what were the circumstances.
Photoflight
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Better to be pissed off than pissed on... Smart move I think
[/quote]I think the better quote would be, "Never burn a bridge."
Better to be pissed off than pissed on... Smart move I think
[/quote]However in this case, he pissed on himself as he had to pay $75K in attorney fees.
Cautious Belly
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justmeinmsp
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Club ORD FO
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One more thing...I am not an attorney but I thought a contract has to be mutually beneficial to both parties. The FJ contract is not. It says that you have a contract for training $20,000 and initial $650 for uniforms, totaling $20,650 pro-rated over 24 months, but it does not specify that you are contractually hired for 24 months. You sign a paper that says that you are an "at-will" employee to be disposed of at the companies discretion. Some may argue that the the type-rating is the mutually beneficial part to the pilot , but; when you are hired it is the companies responsibility for you to meet the requirements of both the FAA and the contract they sign with their owners. just my .02 cents.
-FlyAuburn-
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I agree. Training is just a cost of doing business. There should be no training contracts, period. If companies are afraid of losing employees it's probably because they have lousy pay and benefits. For instance, I doubt many pilots bail on NetJets after the type rating. I'm sure there are a few knuckleheads but by and large I would imagine this almost never happens.
rumrnr78
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I know 3 people who left inside a year and were not asked to repay the contract. The aforementioned lawsuit aside, the legal defense (if needed) can be found in the following:
equitable estoppel
A type of estoppel that bars a person from adopting a position in court that contradicts his or her past statements or actions when that contradictory stance would be unfair to another person who relied on the original position. For example, if a landlord agrees to allow a tenant to pay the rent ten days late for six months, it would be unfair to allow the landlord to bring a court action in the fourth month to evict the tenant for being a week late with the rent. The landlord would be estopped from asserting his right to evict the tenant for late payment of rent. Also known as estoppel in pais.
Cheers- Rum
equitable estoppel
A type of estoppel that bars a person from adopting a position in court that contradicts his or her past statements or actions when that contradictory stance would be unfair to another person who relied on the original position. For example, if a landlord agrees to allow a tenant to pay the rent ten days late for six months, it would be unfair to allow the landlord to bring a court action in the fourth month to evict the tenant for being a week late with the rent. The landlord would be estopped from asserting his right to evict the tenant for late payment of rent. Also known as estoppel in pais.
Cheers- Rum
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