Comair Ordered to Produce Witness in Boeing Dispute Over 737-8 Deal
Comair, the South African airline under provisional liquidation, has been ordered to produce a witness in its ongoing legal dispute with Boeing over the alleged breach of a 2013 contract for eight Boeing 737-8 aircraft. On November 6, 2024, Judge Ricardo S. Martinez of the United States District Court, Western District of Washington, partially granted Boeing’s motion to compel, directing Comair to provide a witness for remote deposition by December 4. Both parties were instructed to collaborate to prevent further court intervention.
This ruling is the latest development in a legal battle in which Comair claims that Boeing’s failure to deliver the aircraft led to financial losses of over USD 83 million, contributing to the airline’s eventual liquidation in June 2022. Comair filed the lawsuit on February 6, 2023, accusing Boeing of fraud and failing to fulfill the terms of the 2013 agreement. According to court records, Comair agreed to search for electronically stored information (ESI) dating from January 2013 to June 2022. However, Boeing alleges that Comair has not produced any documents from before May 2018 and has only provided 6,600 pages of data, including irrelevant media articles and reports.
Boeing also raised concerns about the absence of critical documents, such as Comair’s proposal to Boeing, as well as financial data supporting the airline’s damages claims. The manufacturer has argued that Comair’s refusal to provide witnesses for deposition has hindered progress. Although Comair initially suggested remote depositions for its former executives, including former CEOs Erik Venter and Wrenelle Stander, it failed to set dates or locations.
Comair, in turn, has dismissed Boeing’s requests as “discovery on discovery,” arguing that there is no evidence that the airline intentionally destroyed or mishandled any documents. The airline claims that Boeing’s requests are based on speculation rather than concrete proof that more electronic information should exist.
The roots of the case trace back to September 2013, when Comair, a British Airways franchisee, signed a contract with Boeing to purchase eight 737-8 aircraft. Comair paid over USD 45 million in advance for seven of the planes, with the final payment made in February 2019. However, following the global grounding of the 737 MAX after two fatal crashes, Comair unilaterally terminated the contract in February 2020. Although Boeing agreed to cancel the second and third deliveries, the airline rejected Boeing’s attempt to deliver the fourth aircraft in February 2021. Comair alleges that Boeing refused to return the advanced deposits, worsening its financial troubles.
In May 2020, Comair entered business rescue in South Africa and later sought recognition of its foreign proceedings in the U.S. Bankruptcy Court in New York. As the statute of limitations neared its expiration, Comair filed a lawsuit in Seattle District Court, which took over the document disclosure issues from the bankruptcy court.
This ongoing legal case remains critical for both Comair’s financial recovery and Boeing’s accountability in the disputed contract. The outcome will likely influence future contract negotiations and legal strategies in the aviation industry.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com