Aircraft Maintenance Agreement

TERMS OF AIRCRAFT MAINTENANCE AGREEMENT

  • THIS AGREEMENT (the "Agreement") is entered into between Latitude Aviation ("Latitude"), with its principal place of business located at 2950 W Cessna Ave, Hayden ID 83835, and the individual signing below who is obtaining maintenance services from Latitude (Customer):
  • Summary of Agreement

    Latitude is engaged in the business of providing services involving aircraft maintenance and inspections.

    This agreement sets forth the terms and conditions relating to this maintenance service and related transactions. Therefore, Latitude and Customer herein agree as follows:
  • Estimates and Scope of Work

    When the Customer requests maintenance services, Latitude will provide an Estimate via electronic or physical means that also, once approved by the Customer, will be a statement of the work to be performed. Customer agrees to pay the charges as described on the Estimate. Customer agrees to pay 50% of the charges as described on the Estimate prior to work beginning due at the completion of the work. An estimate may not be provided, and prepayment may also not be required, for incidental, minor, or preventative maintenance work.

    This Estimate is provided in good faith and represents only an estimate of the time and materials required to complete the work requested by the Customer. If, in the course of completing the authorized work, additional maintenance must be performed in excess of $500 or 10% of the estimate (whichever is more), work will stop and the Customer will be provided an updated Estimate and must approve the additional work prior to maintenance resuming.

    It is quite common to perform minor tasks at the Customer’s request such as preventative maintenance, tire changes, oil changes etc in the absence of a written Estimate. In those cases, the verbal authorization of the Customer for the work to be performed is to be considered all that is required to begin work. If there are problems discovered or additional maintenance that is deemed necessary by Latitude to complete the authorized maintenance, the work will stop and the Customer will be notified and additional authorization obtained prior to continuing work.

    Estimates may not include shipping, freight, fuel costs etc. which may become due and payable when work is completed.
  • Storage of aircraft

    Latitude maintains a heated hangar space for use by visiting aircraft undergoing maintenance and inspection AS WELL AS Latitude’s fleet of aircraft used for flight training and rental. Best practices involving marshalling of aircraft will be observed, but it is considered likely that customers and Latitude staff may have cause to move a Customer’s aircraft for various reasons. The Customer understands and authorizes such movement as may be necessary to meet the needs of the shared hangar space.

    The Customer also understands, unless previously arranged in writing with Latitude management, that there may be cause to move the visiting aircraft outside to the West Ramp of the Coeur d Alene Airport using available means such as vehicle tow (preferred) or by operating the aircraft sufficient to taxi it to an available parking space. Such operation shall only be performed by persons who are both a Latitude staff member and a certificated Pilot.
  • Completion of Annual or Periodic Inspection

    When the Estimate includes an Annual Inspection, there will be at least two items described on the Estimate. The Customer agrees to the Estimate as a minimum charge to complete the Annual Inspection in accordance with 14 CFR 43 Appendix D, as well as any service work required during annual or periodic inspection as described by the applicable Manufacturer’s Service Manual for that aircraft make and model.

    In the event discrepancies are found during the required periodic Inspection, the Customer will be provided with an Estimate detailing the estimate of labor and materials, including any parts to be purchased, required to return the aircraft to airworthy status. In the event the Customer elects NOT to authorize Latitude to perform the maintenance, they still agree to pay for the Annual Inspection and required service work that was incurred. The Customer will then be furnished with a written copy of the Estimate that constitutes a list of discrepancies. The following will be entered in the aircraft logbooks IAW 14 CFR 43.11:

    Total Time, Date, and “I certify that this aircraft has been inspected in accordance with an annual inspection and a list of discrepancies and unairworthy items dated (date) has been provided to the aircraft owner or operator.”
  • Payment Terms

    As stated previously, 50% of the estimate is due and payable prior to the commencement of any work or maintenance. Thereafter, the final balance is due upon completion of the work. In some cases, Latitude Aviation may demand an additional advance payment depending on the scope of work for the work to be performed, or if expensive parts or materials are involved. It may also be reasonable and typical to bill weekly for ongoing work.

    Failure to pay
    Latitude is entitled to charge 1.5% each accumulating month of delayed payment up to a maximum rate of 18% per year.

    Right of possession
    Latitude is entitled to payment for all repair services performed on the component or the aircraft. Until such time as the total amounts owed have been paid, Latitude has a right to maintain possession of the component and aircraft and all original logbooks associated therewith. Upon full payment for all repair services performed on the component or aircraft, Latitude shall release the aircraft and its accompanying original logbooks to the customer or any other person so designated, in writing, by the owner of the aircraft. For purposes of this section, the owner of the aircraft is to be determined by reference to the most recently recorded Bill of Sale on file with the Federal Aviation Administration (FAA) registry whether it be an individual or entity.

    Lien Enforcement
    If, prior to the time that full payment for repair services has been made, Latitude elects, in its sole and exclusive discretion, to release possession of the aircraft or component, the parties mutually agree that this release of possession constitutes a good and valuable benefit in favor of the customer. For consideration of this benefit, the parties mutually agree that the customer knowingly and intentionally waives any right to contest the validity of any mechanic’s lien recorded pursuant to Idaho law due to Latitude’s failure to have actual possession of the aircraft at that time. Regardless of whether Latitude relinquishes possession of the aircraft prior to receipt of full payment for repair services, Latitude is entitled to maintain possession of the original aircraft or component logbooks until such time as full payment is received.

    Fees for Storage
    In the event that Latitude is required to maintain possession of the aircraft due to nonpayment of repair services, Latitude is entitled to collect a fee for hangar storage or storage equal to that amount Latitude customarily charges for storage of an aircraft or component of like type, commencing upon default of the demand for amounts due and owing. Latitude shall thereafter be entitled to maintain and enforce a lien for hangar rent or storage in accordance with applicable Idaho Statutes.

    No Bailment
    No bailment is created by Latitude’s possession of the aircraft. The customer bears the risk of loss of the aircraft or component due to unforeseen hazards or events. Latitude shall not be liable for any failure to perform repair services due to causes beyond its control, including but not limited to strikes, lockouts or other labor difficulties, machinery breakdowns, inability to obtain transportation, delays of carriers or suppliers, fires, floods, acts of God, acts of terrorism, war or other outbreaks of hostilities, and any foreign or domestic embargoes. Under no circumstances shall either party be liable to the other party for indirect, consequential, special, or exemplary damages, whether in contract or tort (including strict liability and negligence) such as, but not limited to, loss of use or diminution in value.
  • Severability

    If a court of competent jurisdiction determines that any section of this agreement is not enforceable, or otherwise void or illegal, the remainder of the agreement shall remain in full force and effect, and the parties remain bound by its provisions.
  • Applicable Law

    This agreement is to be construed in accordance with the laws of the State of Idaho, United States.
  • Dispute Resolution

    Any disputes arising under this agreement, including claims regarding actions leading to the execution of this contract, or for any repair services performed hereunder, shall be resolved by adjudication in the civil courts of Kootenai County, Idaho, United States. The parties agree to waive a jury trial in any such litigation.
  • Attorney’s Fees

    If Latitude is required to take any action to enforce the provisions of this agreement, Customer agrees to compensate Latitude for the incursion of any court costs and attorney’s fees. Attorney’s fees include appellate fees.
  • Customer Supplied Parts

    Latitude will not be liable for any labor or part warranty on customer supplied parts if the part(s) fails to operate correctly. Customer supplied parts must be accompanied with all approved documentation prior to installation, as required. Cores for customer supplied parts are the sole responsibility of the customer once returned to the customer. Latitude is not liable for any charges assessed for customer supplied parts.
  • LIMITATION OF LIABILITY

    LATITUDE AVIATION’S LIABILITY ON ANY CLAIM OF ANY KIND, INCLUDING BREACH OF CONTRACT OR WARRANTY OR FOR NEGLIGENCE OR OTHER CONDUCT, FOR ANY LOSS OR DAMAGE ARISING OUT OF, CONNECTED WITH, OR RESULTING FROM THIS AGREEMENT, OR FROM THE PERFORMANCE OR BREACH THEReOF, OR FROM THE SALE, DELIVERY, RESALE, OR REPAIR OF ANY GOODS COVERED BY OR FURNISHED UNDER THIS AGREEMENT SHALL IN NO CASE EXCEED THE PRICE ALLOCABLE TO THE WORK, GOOD, OR PART THEREOF WHICH GIVES RISE TO THE CLAIM. IN NO EVENT SHALL LATITUDE AVIATION BE LIABLE FOR ANY FOR INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS. THE LAWS OF SAME STATES DO NOT PERMIT CERTAIN LIMITATIONS ON WARRANTIES OR REMEDIES. IN THE EVENT SUCH A LAW APPLIES, THE FOREGOING EXCLUSION AND LIMITATIONS ARE AMENDED INSOFAR, AND ONLY INSOFAR, AS REQUIRED BY SAID LAWS.

    I the Customer agree to these Terms and Conditions as presented to me this date.

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