Dornier Wins Judgment Against Hainan

In a five year old case, Dornier Aviation North America (DANA) won a settlement against Hainan Airlines through which it successfully garnished the first of several Hainan Airlines' bank accounts in order to pay creditors. DANA’s Liquidating Trustee Wiley Rein Partner H. Jason Gold won a civil judgment of over $14 million entered against Hainan Airlines which has over $2 billion in revenue.
The suit had been brought back in December, 2003 in Federal Court and the final judgment was obtained in August of this year to recover unpaid accounts. United States Bankruptcy Judge Steven S. Mitchell presided over the case and entered the judgment. Hainan did not appeal the court's decision but has so far refused to pay the judgment.
"The recovery of this judgment will eventually permit us to pay millions of dollars to creditors of the bankrupt company Dornier Aviation of North America, including numerous individuals and American companies, large and small. The seizure of the account is just the first step in our world-wide effort to see to it that the judgment is paid. It is a privilege for foreign companies to do business in the United States. But they must obey American law, and that includes complete and prompt compliance with orders of federal courts," said Gold. "Hainan Airlines' failure to comply with the court order is perplexing given that they are currently seeking United States Department of Transportation approval to expand their service to additional locations in the United States. The law requires that air carriers who operate in this country respect and comply with orders of American courts."