Airport hangar court action continues
Both sides are optimistic of victory after a ruling by a Fayette County judge in a dispute over ownership of a hangar at the Connellsville Airport. The Fayette County Airport Authority had wanted to take ownership of a hangar owned by TOL Aviation Inc., claiming the firm’s lease had expired. The authority said the firm had 90 days after the lease expired to dismantle the hangar or it would become property of the authority.
TOL Aviation countered that they had tried to renew the lease and claimed that the authority should be prevented from trying to take over the hangar.
Judge Steve Leskinen denied TOL Aviation’s request to prevent the authority from taking over the hangar but didn’t rule on the ownership issue. He urged both sides to file additional motions in support of their positions and said the firm could continue paying rent to the authority.
While the order doesn’t end the case, authority solicitor Mark Morrison said the ruling may allow the authority to eventually win the case and collect back rent on the hangar.
TOL Aviation earlier sued the authority, claiming ownership of the 12-unit hangar. What isn’t in dispute is that TOL Aviation and the authority entered into a 20-year lease in October 1982 for the hangar. Whether or not there is still a binding lease and who owns the hangar is at the crux of the legal dispute.
Early this year, believing that the authority retained ownership of the hangars, airport officials changed the locks and notified tenants of changes in rent payments. However, Leskinen previously ordered the authority to cease its actions until the dispute was resolved. The rent payments are now being held in escrow.
During a hearing in August, TOL Aviation president Richard E. Nensel testified that he hand-delivered a letter to an office worker on Oct. 4, 2002, expressing a desire to renew a lease with the authority. However, three airport authority members testified that they didn’t see the alleged letter until the day of the hearing.
Nensel testified that during the lease, he paid rent up until 1994 or 1995 and then didn’t attempt to pay again until 2001, but when a check he sent the in spring wasn’t cashed, he didn’t send any more money.
Nensel’s attorney, Charles Kelly, said during the hearing that it was his opinion that Nensel and TOL own and operate the hangar. He produced a document stating that Nensel spent $336,050.11 in construction costs for the disputed hangar.
Morrison stated during the hearing that a provision in the lease states that if the lease wasn’t renewed and TOL hadn’t begun to dismantle the hangar by 90 days after the conclusion of the lease, it is the property of the airport authority. He said the authority should retain ownership of the hangar.
Kelly said Wednesday that he was happy with the ruling, noting, “it gives TOL Aviation the opportunity to establish additional facts that reflect TOL’s right to retain ownership interest in the hangars.” He said TOL plans to submit additional facts.
Kelly said he was also happy with a decision by Leskinen allowing the parties to adopt any procedure for the collection of rents, which is mutually agreeable, including the continuation of the current arrangement.
Kelly said he views the decision by Leskinen that the current rent collection can continue as a positive aspect of the order.
Leskinen also ruled against dismissal of Nensel from the action, saying it was “raised in a procedurally improper manner.” The authority had sought to dismiss Nensel from the action for lack of standing.
Leskinen ordered the parties to file motions, permitting the authority to refile on the issues of “termination, expiration, the current amount of past-due rent and ejectment.” Both parties may also file on the issue of ownership of the hangar structure.
Following the submission of additional evidence, Leskinen may either enter a final order or direct the case to trial.