Breach of Contract and Fraud

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RAYTHEON E-Systems Inc. v. Learjet Inc., Greenville, Texas

When Raytheon Integration Systems found itself responsible as the prime contractor for the Federal Aviation Administration, it turned to Rose Walker for a solution and got more than it asked for. Learjet, a Bombardier subsidiary, and Bombardier had supplied aircraft to Raytheon for its contract with the FAA to provide state-of-the-art flying test platforms for aviation flight safety.

Learjet provided six Lear 60s, and Bombardier provided three Challengers, to be completed by Raytheon to FAA specifications. When Raytheon went to work, it found that the planes didn’t meet the promised specifications, which were critical to the program. Raytheon fixed the aircraft and sought redress. Rose Walker discovered that the manufacturers knew their aircraft wouldn’t comply with FAA specifications but supplied them anyway.

At trial, the jury awarded damages to Raytheon for breach of contract and fraud, as well as punitive damages, in the largest verdict in the history of Hunt County, Texas. The jury agreed that Learjet’s conduct warranted punishment, doubling the damages that Raytheon had proved it suffered.