After three-and-a-half years of failed negotiations with Westchester County officials, which has refused to allow construction of a replacement hangar at the
Westchester County Airport, Million Air filed a lawsuit on June 14 in federal court seeking more than $30 million in damages.
The suit, brought by White Plains’ Yankwitt LLP and Cuddy & Feder LLP, seeks relief pursuant to the Federal Declaratory Judgment Act. It requests an
“expedited declaration” that the county breached its lease with Million Air, a private aircraft service, by “unreasonably failing” to approve Million Air’s proposed
modifications to a second hangar adjacent to its current hangar and passenger services terminal. Russell Yankwitt and Ross Morrison, both former assistant U.S. attorneys, are leading the legal team.
“It’s unfortunate that the benefits of the second hangar are not being realized,” Yankwitt said. “Not only would it create additional jobs, improve the airport,
and increase county and municipal revenues, but it also would reduce the number of ‘unnecessary’ flights by more than 1,000, by eliminating ferry flights—flying empty planes to their home bases. Eliminating these “double” flights reduces both noise and carbon emissions, which only helps Westchester.”
Instead, the delay is causing approximately $175,000 in damages each week the county fails to comply with its obligations under the lease. “The County’s failure to approve the modified hangar is causing millions of dollars in damage to Million Air,” Yankwitt said. “Thus far with the delay, the company has forfeited millions of dollars in lost revenue, and other unnecessary costs.” Million Air claims its plans for the replacement of the aging facilities to significantly improve environmental conditions and reduce flight noise, add more jobs for county residents, and increase revenue for the county.
The lease contemplates major improvements to Million Air’s facilities at the county-owned airport. Thus, in the first phase, Million Air constructed a new
state-of-the-art 50,000-squarefoot hangar and a world-class passenger services terminal, which opened in 2018 and 2019, respectively. In November 2017, Million Air submitted plans for the second phase of the improvement project contemplated by the parties, proposing to modify the second hangar. The county’s years long bad faith refusal to approve the second hangar, in clear breach of the provisions of the lease, has forced Million Air to seek relief from the courts.
In January 2018, George Latimer took office as county executive. The lawsuit states that his administration has refused to approve the second hangar without
providing a valid reason—a clear breach of the provisions of the lease—instead “offering only conclusory and wildly inconsistent reasons” for the denial.
“The County’s actions have breached the terms of Million Air’s lease as well as the obligation of good faith and fair dealing required between parties to a contract,” Yankwitt said. “For these reasons, Million Air has no choice but to seek the Court’s intervention to enforce its rights to build the second hangar and to
be compensated for the damage caused by the County’s contractual breaches and bad faith conduct.”
(Submitted)
