Precision Airmotive LLC

I think the key is for the corporation (Precision in this case) to have
no assets (hence, nothing to go after with a lawsuit), so this sounds
viable. However, what if it's determined that the tooling you own were
the cause of part failures. Would you personally be liable in any way?
Maybe you put your tooling in an LLC or corporation, again, so that it
has no assets worth sueing over (except the tooling itself...and if
someone DOES sue and gets the tooling, we're back to square one...no one
will be able to produce the parts)?

Scott

Kyle Boatright wrote:
clare at snyder.on.ca wrote in message
...

On Sat, 3 Nov 2007 08:51:02 +0100, "Rob Turk"
wrote:


"Jerry Springer" wrote in message
news:u6UWi.434$lx.263@trndny05...

Peter Nielson
Product Support Mgr.
Precision Airmotive LLC
14800 40th Ave NE
Marysville, WA 98271

360-651-8282

Subject: Letter to Industry

Here is the text of a letter we are sending out to the industry today.

Precision Airmotive LLC has discontinued sales of all float
carburetors and component parts as of November 1, 2007. This
unfortunate situation is a result of our inability to obtain products
liability insurance for the product line.

This is really sad news and scary to say the least. If it becomes a trend
then there will be ever less companies able to produce aircraft parts.
Loss
of product, loss of jobs. Maybe they should consider outsourcing their
production to a less litigious country? That would help reducing the
insurance premium.

Rob

Not if they continue to be the importer/distributor. They still need
the insurance.


There are ways around product liability. Let's say I personally buy the
assets of Precision Airmotive. Then, I create a corporation to manufacture
the parts. I (personally) retain ownership of the tooling and lease it to
the corporation which makes the parts and carbs. Also, I manage the
corporation and pay myself nicely. Funny enough, the corporation never
really builds a big asset base. Nor does it carry product liability
insurance. Therefore, it probably isn't worth suing.

Even if (when?) someone sues the corporation, it simply goes out of business
and I lease the tooling to another corporation which uses essentially the
same business model.

This is similar to how BD Maule managed Maule for years.

KB



--
Scott
http://corbenflyer.tripod.com/
Gotta Fly or Gonna Die
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