Eclipse Wins First Round in Aviace Suit

 - November 14, 2006, 10:38 AM

A federal judge in Albuquerque, N.M., Friday denied Aviace’s plea for preliminary injunction against Eclipse Aviation as part of the Swiss firm’s lawsuit alleging Eclipse violated a March 2002 sales contract. The suit accused Eclipse of wrongly canceling the order for Aviace’s first Eclipse 500 and declaring the initial deposit on that aircraft forfeited. By ruling that none of the allegations in the Aviace complaint warranted injunctive relief or were “substantially likely to succeed on [their] merits” at trial, Judge Christina Armijo effectively endorsed Eclipse’s position that Aviace violated the contract by refusing to pay a “six-month production deposit” when assembly of the first aircraft in Aviace’s 112-airplane order was about to begin. Aviace sought a preliminary injunction that would have ordered Eclipse to deliver the first aircraft in the Aviace order without pre-delivery deposit payment, to refrain from reassigning delivery positions held by Aviace or expending any of Aviace’s initial deposit.