Mooney Aerospace Group Ltd. Announces Preliminary Arbitration Award 5/7/2004 1:23:00 PM
KERRVILLE, Texas, May 7, 2004 (BUSINESS WIRE) -- Mooney Aerospace Group Ltd. (MASG) announced today the completion of arbitration proceedings of a claim for alleged damages due to termination of its lease at its former headquarters building in Long Beach, Calif.
In response to the award, Mooney is seeking a jury trial in the South District of Los Angeles County. The preliminary award of the arbitrator was $23,901,617.90, plus attorney's fees to be determined separately later. Mooney believes the arbitrator's preliminary award is non-binding, and the decision of whether there is any liability to the former landlord, AP Long Beach Airport LLC, will ultimately be decided by a jury in a trial that will be presided over by the Hon. Tracey Marino in Long Beach, Calif.
Mooney President J. Nelson Happy stated: "Although the arbitrator made a preliminary award to the plaintiff, we do not believe it is binding on us and we look forward to positive resolution at a jury trial. We believe that we have substantial defenses to the landlord's claim. I am pleased that the process is moving along, and the arbitrator's preliminary award will have no effect whatsoever on our operating subsidiary, Mooney Airplane Company."
Mooney believes that under California's Judicial Arbitration Act, it retained its right to seek a jury trial on the issues while separately pursuing arbitration. According to Mr. Happy, "This procedure allowed us to hear the landlord's case, so we will be fully prepared to respond to it at the jury trial." However, Mr. Happy said he also expects that AP Long Beach Airport LLC will argue that the arbitration award is final and should be enforced. "It will require several weeks to resolve the issue of the finality of the award," Mr. Happy said.
Mooney Aerospace Group Ltd. is a general aviation holding company, located in Kerrville, Texas. Mooney currently sells five models; the highest-performing four-place single-engine piston-powered aircraft, the Bravo DX, which is available with the Garmin G-1000 glass panel display as the GX; and its stablemates, the highly rated Ovation2 DX and GX, and the economical Ovation. Mooney is celebrating is 51st Anniversary in Kerrville, Texas this year, where it has manufactured more than 10,000 aircraft which have been delivered worldwide. Complete information about Mooney aircraft is available at www.mooney.com.
Mooney Aerospace Group Ltd.
Terry Freeman
Louis Schreiner Field
Kerrville, Texas 78028
Phone: 830-792-2935
SOURCE: Mooney Aerospace Group Ltd.
Mooney Aerospace Group Ltd., Kerrville
Terry Freeman, 830-792-2935
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