Dreamliner Litigation Sample Clauses
The Dreamliner Litigation clause addresses legal disputes or claims specifically related to the Dreamliner aircraft. It typically outlines the procedures, responsibilities, and potential liabilities of the parties involved in such litigation, including how costs are allocated and which party is responsible for managing the defense or settlement of claims. By clearly defining the handling of Dreamliner-related legal matters, this clause helps allocate risk and ensure that both parties understand their obligations in the event of litigation, thereby reducing uncertainty and potential conflict.
Dreamliner Litigation. In July 2013, an unoccupied Boeing 787 Dreamliner aircraft operated by Ethiopian Airlines was damaged by a fire while parked at London Heathrow Airport. Ultralife Corporation participated in and provided technical assistance in support of an investigation of this incident conducted by U.K. and U.S. regulatory authorities as well as by the manufacturer of the aircraft, as we are one of many downstream suppliers to that manufacturer. A final report was issued by the Air Accidents Investigative Branch - UK Civil Aviation regulatory authority, with findings indicating that the fire was primarily caused by circumstances related to the plane’s emergency locator transmitter (“ELT”) manufactured and installed by another company. A component of the ELT is a battery pack which incorporates Ultralife Corporation’s industry-standard lithium manganese dioxide non-rechargeable D-cell. Ultralife Corporation has had this cell in production since 2001, with millions of units produced and this cell is widely-used for global defense and commercial applications. This battery product has gone through rigorous safety and qualification testing, including United Nations Transport of Dangerous Goods, Manual of Tests and Criteria, and is authorized for use in aerospace applications under Technical Standard Order C142. On May 4, 2015, Ultralife Corporation was notified of a lawsuit in which it was named as a defendant, along with other suppliers to the aircraft manufacturer, concerning that 2013 fire. The suit was filed by Ethiopian Airlines Enterprise in the Commercial Court, Queen’s Bench Division of the High Court of Justice, London. The suit seeks as damages $42,000 plus other unspecified amounts, including those for loss of use and diminution in value of the aircraft. Ultralife Corporation maintains liability and products liability insurance through reputable providers, and in accordance with our corporate practices, immediately advised and referred this matter to our insurers. Ultralife Corporation is working with those insurers and their counsel to respond to and actively defend against this action, which is ongoing. At this time, we believe that there is not a reasonable possibility that this incident will result in a material financial exposure to the Company.