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MAJURO, Marshall Islands (August 24, 2001 – Marshall Islands Journal)---Air Marshall Islands won a $4.1 million lawsuit against German aircraft manufacturer Dornier Luftfahrt in the High Court on Friday.

AMI had filed suit against the company -- which makes the Dornier 228s that AMI uses primarily for domestic services -- last year and had received a partial summary judgment against Dornier on issues of liability in May when it failed to submit court documents in accordance with High Court timetables.

On Friday, after hearing both written and oral testimony from attorneys representing Dornier and AMI, High Court Judge H. Dee Johnson rejected Dornier’s request that the partial summary judgment ruling be set aside.

Then the court heard evidence from various witnesses on AMI’s damage claim.

Johnson ruled from the bench at the conclusion of the hearing Friday, saying that Dornier "has failed to answer or otherwise defend as provided in the Marshall Islands rules of Civil Procedure" and is totally in default.

He also declared that an agreement signed between Dornier and Marshall Islands government officials in February, 1999 for the purchase of two new Dornier 328s, a 30-seat plane made by the company, was not a valid or binding agreement between AMI and Dornier.

He awarded a total of $4,180,410.92 in damages and pre-judgment interest. Dornier will also have to pay court costs.

The German company is expected to appeal the decision to the Supreme Court.



MAJURO, Marshall Islands (August 24, 2001 – Marshall Islands Journal)---Air Marshall Islands’ lawsuit against Dornier was filed in 2000 after the German aircraft manufacturer refused to return a more than $2 million deposit that AMI made as down-payment on two Dornier 328 planes.

The deal that had been made in 1999 for the new planes was cancelled by the AMI board selected by President Note last year.

AMI officials indicated also that they had lost money on the sale of the Saab 2000 plane after Dornier representatives caused an intending buyer to back out of a planned sale of the aircraft. Ultimately, AMI sold the plane for $5.3 million, less than a third of its original price tag.

The Marshall Islands Journal, Box 14, Majuro, Marshall Islands 96960 E-mail: journal@ntamar.com  Subscriptions (weekly): 1 year US $87.00; international $213.00 (air mail).

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