United States v. Vertol H21c, Registration No. N8540, in Rem, Aviation Contractors, Inc., Claimant-Appellee

On October 2, 1972, the Federal Aviation Administration (hereinafter “FAA”) unilaterally determined that Aviation Contractors, Inc. (hereinafter “Aviation”) had violated certain FAA regulations relating to helicopters. Pursuant to its authority under 49 U.S.C. § 1471 (a)(1) the FAA determined to seek $6,000 in civil penalties from Aviation. On October 13, 1972, acting under 49 U.S.C. § 1473 (b)(2), the FAA seized the defendant helicopter. On November 15, 1972, this in rem action against the helicopter was begun. The government sought to have the district court impose the $6,000 in civil penalties which the FAA claimed that Aviation should be assessed. On the same day that the in rem action was begun the aircraft passed into the custody of the United States Marshal upon the issuance of a warrant of arrest by the court clerk. On May 31, 1974, acting pursuant to 49 U.S.C. § 1473 (b)(3), the FAA released the helicopter to Aviation in exchange for a certificate of deposit in the amount of $6,000.

, On June 5, 1974, the district court denied the government’s motion for summary judgment ordering Aviation to pay the $6,000 penalty. At the same time, the court granted Aviation’s motion…