Aviation Outfitters

Aviation Outfitters

Retaining Counsel

Proposal

Executive Summary

Aviation Outfitters (AO) formalized the Legal Counsel Research Team (Team) to research and recommend an outside lawyer or law firm to review a new $50,000,000 contract with Flight Express (FE). The Team developed a scope, identified key requirements, and researched and interviewed various lawyers and law firms. As a result, the Team recommends Johanson, Williams and Henderson, L.L.C. because of their experience in numerous areas of aviation law as a viable entity that will aid AO in its legal needs.

Additionally by seeking counsel now, AO can better protect itself and save money by establishing access to legal counsel before any legal problems occur (Brooks).

Scope

To recommend a lawyer(s) or law firm to act as counsel for AO to review the contract presented by FE as well as act as general legal counsel for future needs.

Approach

The Team will achieve selection of counsel based on the experience of the law firm (counsel), its ability to address our needs, and an appropriate culture match and mission fit. We will also seek counsel with similar ethics and values.

* Identify AO's business needs for a potential lawyer/client relationship

* Determine counsel requirements

* Research and interview outside lawyers or law firms to review the contract between AO and FE and provide legal counsel for matters related to aviation litigation

* Determine adequate terms

* Recommend the most appropriate lawyer or law firm that will meet AO's objective

* Obtain approval from Robert Ornellas (Manager)

History of Aviation Outfitters

Founded in 1943, AO is the brainchild of James and Thomas Melville. Borrowing $30,000 from their father, the Melville brothers opened their doors in an attempt to help support the American efforts during World War II. The brothers' vision has enabled the company to maintain its reputation for excellence while developing technologies that have made it a forerunner in today's aviation manufacturing market.

AO has been the supplier of landing gear parts for small aircraft for 58 years and is a leader in the industry both during wartime and peace. AO is committed to providing quality products at fair and reasonable prices and has an excellent reputation for accountability and integrity.

Aviation Outfitters legal needs

FE recently awarded a $50,000,000 five-year subcontract to AO to purchase landing gear parts for use as original equipment in the next generation of commercial airplanes manufactured by FE. AO provided FE with landing gear parts as replacement parts prior to this agreement.

The awarding of the new contract catapults AO into a new and adventurous arena of which we have limited experience. Given that we do not have an internal legal counsel nor have we ever been involved in any litigation, we need to select an outside lawyer or law firm that will serve as an outside counsel and review the 50-page subcontract prepared by FE's legal department. In addition, we would turn to this counsel if litigation erupts, questions about product liability arise, and/or to ensure compliance with the Federal Aviation Administration (FAA) and National Transportation Safety Board (NTSB).

In addition to requiring counsel to review the contract, the Team identified additional areas where counsel may be useful:

* Contract review

* AA, NTSB, and OSHA compliance - industry standard requirements, report filings, etc.

* Employment contracts consulting-the new contract may require additional employees.

* Counsel in areas such as contractual, securities, property, and environmental matters (Brooks)

* Antitrust laws consulting

* Counsel in patents, trademarks, service marks, and copyrights (Brooks)

* Counsel in original parts manufacturing.

Required Counsel Experience

General Law Experience

We should seek counsel with extensive experience working with:

* Contracts

* Litigation

* Product liability

* Class action suits

* Tax implications

* Regulatory compliance

* Original Aviation equipment suppliers/manufactures

Aviation Law Experience

Selected candidate(s) should have extensive experience with the Federal Aviation Administration and the National Transportation Safety Board. They should have prior experience working with aviation-related businesses and should have extensive familiarity with laws that directly affect airplane part manufacturers' liabilities, such as the Aviation Revitalization Act of 1994, which limits the liability of aircraft manufacturers. A brief description of the act follows:

On August 17, 1994, President Bill Clinton signed into law product liability reform that will serve to reduce the liability faced by aviation manufacturers. This came forward in the form of the General Aviation Revitalization Act. Under the General Aviation Revitalization Act, manufacturers will retain less liability than they had previously. A full copy of the Act can be viewed by typing its name into Thomas, the Web search page maintained for the results of the 103rd U.S. Congress. With the reduction of liability to manufacturers of aircraft, production should be able to regain momentum from the low level at which it is now. The cost of liability insurance has substantially reduced the investment into research and development by the general aviation manufacturers. This, in turn, has reduced the quality of the aircraft produced as well as the development of technologies within the general aviation field. The export of small aircraft once contributed