North American Airlines to Contest Adverse Jury Verdict in 2003 California Lawsuit
20 Dezember 2005 - 1:58PM
PR Newswire (US)
JAMAICA, N.Y., Dec. 20 /PRNewswire-FirstCall/ -- North American
Airlines, Inc., a wholly owned subsidiary of World Air Holdings,
Inc. (NASDAQ:WLDAE), announced today that a California Superior
Court jury in Alameda, Calif., has awarded a verdict against the
company totaling approximately $12.6 million in actual and punitive
damages in a suit alleging wrongful termination of North American
pilot Randall Otto in 2003. The jury's verdict and its calculation
of damages are subject to review by the trial court, which could
result in the verdict being set aside or reduced. The company plans
to aggressively appeal any adverse judgment. "We are extremely
disappointed with the jury's verdict," said Mark McMillin, general
counsel for the company. "This suit involved charges of repetitive
abusive conduct directed toward co-workers by Mr. Otto, which
culminated in his termination. Mr. Otto claimed that he was
terminated for complaining about maintenance, although he never
filed a complaint with any governmental agency. North American
Airlines has an impeccable safety record spanning 15 years of
operations. We believe the jury did not fairly take into account
all of the evidence and testimony we presented. "The company firmly
believes that North American acted properly in terminating Mr. Otto
and that the verdict should be set aside by the trial court or
overturned on appeal," McMillin said. "If an appeal becomes
necessary, we expect the process to be initiated in late February
or early March in the California Court of Appeal." The suit existed
prior to the acquisition of North American by World Air Holdings in
April 2005, and World Air Holdings was aware of the pending
litigation. The suit has no bearing on the company's ongoing
operations or operating results. The company has assessed whether
to record an accrual for the judgment based on all information
available to it. The company believes this matter is a
pre-acquisition contingency and any accrual recorded would impact
the goodwill related to the purchase of North American by World Air
Holdings. North American Airlines, a wholly owned subsidiary of
World Air Holdings, is a U.S.-certificated air carrier offering air
transportation services throughout the world for the U.S. military
and commercial customers. Founded in 1989, North American operates
a fleet of eight passenger aircraft in charter and scheduled
service. For information, visit http://www.northamericanair.com/.
["Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995: This release contains forward looking
statements that are subject to risks and uncertainties including,
but not limited to, the impact of competition in the market for air
transportation services, the cyclical nature of the air carrier
business, reliance on key marketing relationships, fluctuations in
operating results and other risks detailed from time to time in the
company's periodic reports filed with the SEC (reports are
available from the company upon request). These various risks and
uncertainties may cause the company's actual results to differ
materially from those expressed in any of the forward looking
statements made by, or on behalf of the company in this release.]
DATASOURCE: North American Airlines, Inc. CONTACT: Media, Steve
Forsyth, +1-770-632-8322, or Investors, Janice Kuntz,
+1-404-352-2841, both of World Air Holdings, Inc. Web site:
http://www.northamericanair.com/ http://www.worldairways.com/
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