Law Office of Barry L. Siders: Lawsuit Filed Against CNF/Emery Worldwide Airlines

Seeks Damages in Excess of $500,000,000


SAN MATEO, Calif., Aug. 27, 2002 (PRIMEZONE) -- The law offices of Barry L. Siders and the law offices of Thomas R. Port today announced that a lawsuit has been commenced (filed Aug. 12, 2002) on behalf of some of the Pilots, First Officers and Flight Engineers formerly employed by Emery worldwide Airlines, a CNF (NYSE:CNF) company.

The complaint states that as a result of CNF/Emery Worldwide Airline's deliberate diversion of funds and assets, to other CNF entities and away from Emery Worldwide Airline's maintenance, the maintenance of Emery Worldwide Airline's fleet of DC-8 and DC-10 heavy aircraft was allowed to deteriorate to a level below FAA mandated safe minimums. The intentional failure by the company to provide the resources required to maintain its aircraft resulted in over 100 serious FAA safety violations as well as the requirement to pay a one million-dollar fine to the FAA. The complaint alleges that CNF/EWA chose to allow the maintenance to deteriorate to such a level that resulted in the FAA requiring that Emery Worldwide Airlines cease flight operations. The suit alleges that this was done as a deliberate attempt to bust the pilots' union. Emery Worldwide Airlines still continues to fly its freight using contracted airlines. CNF/Emery Worldwide Airline's management blames the FAA for the airline's demise and refuses to acknowledge its role in the airline closure. The complaint alleges that as a result of cessation of flight operations the company is able to avoid fulfilling its obligations with regard to the ALPA union contract and lockout the union pilots.

Emery Worldwide Airlines ceased flight operations voluntarily on August 13, 2001, ten months after the Plaintiffs entered into a Union Collective Bargaining Agreement with CNF, Emery Worldwide and Emery Worldwide Airlines. Emery Worldwide Airlines furloughed all of its pilots, first officers and flight engineers, as well as some of its other personnel. Emery still keeps a crew at the Dayton hub to meet FAA minimum manning standards to retain its certificate to operate an airline, while claiming it is out of business.

According to Hugh Seagraves, ALPA's Maintenance Liaison and a member of the Emery Flight 17 Accident Investigations Board: "Emery Worldwide Airlines was not complying with safety and maintenance requirements and recommendations."

There were several incidents involving near accidents during the last two years the company was flying aircraft across the United States and around the world. Some of the incidents include an order to change an engine from a DC-8 aircraft. The engine was not changed, and six weeks later the engine stalled violently causing a loss of the cowlings on the engine in flight. This incident occurred over Montana requiring an emergency landing in Denver and could have easily caused the airplane to crash with attendant loss of the aircraft, crew and damage on the ground. Also, a hydraulic problem that had been previously noted in the logbook was not repaired correctly, which led to a gear up landing in Nashville with similar potential for loss of life and disaster.

Maintenance personnel were under-trained, or untrained on the aircraft. Staff maintenance personnel failed to rig ailerons correctly on one aircraft, which almost led to a total loss of control of the DC-8. The airplane had to be diverted to Austin, Texas and made an emergency landing. On another occasion, one of the wheels of a DC-8 came off during a landing in Seattle. Yet on another occasion, an aircraft almost hit the Seattle control tower because of faulty navigation equipment, which had been noted in the logbooks and were not corrected properly. Navigational and radar equipment was not maintained properly throughout the airline. Another incident, was a main cargo door that came open during take off in Dayton, leading to very serious control problems. The most serious accident involved loss of control due to a maintenance error causing the crash of Flight 17 at Mather Field in Sacramento, California and loss of life of the three crewmembers. Fortunately this accident did not occur in an area that was heavily populated. The accident is still under investigation by the National Transportation Safety Board, but it appears uncontroverted that this accident was the result of an improperly installed bolt.

According the Jerry Pryce, who was a member of the MEC (ALPA Union), "There is now absolutely no question in my mind that CNF had put a plan into motion during our contract negotiations to shift flying to contractors to circumvent the union."

Plaintiffs seek to recover damages for past, present and future loss of earnings and employment benefits in an amount according to proof, for general damages for emotional distress resulting from loss of homes, cars, ruination of credit, loss of life savings, loss of retirement benefits and ability to be employed by another airline as well a loss of family income and support, in an amount according to proof for punitive damages, for costs of suit, and for such other and further relief as the court may deem proper.



            

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