[cwoodyfly2001]

I am looking into starting an -9 and am trying to look into the legalities of building and selling.. If I build the plane and some day down the road decide to sell, what are the legalities if the airplane was ever in an accident? Am I opening myself for being sued, years after selling because someone has purchased (third or even fourth party) the airplane I built and gets hurt or killed?
Thanks

 

[mdredmond]

I think EAA has a bunch or articles about this subject online.

I suspect there is potential liability, but it can be mitigated with proper documentation, waivers and financial planning.

 

[gpiney]

If your net worth is less than 3 million, probably not. I'm sure a flying lawyer will chime in here, but less than that, it is probably not worth the trouble. In actuality, the lawyers determine if it is worth it to them to sue. Lawsuits can take years and a lot of money. And they work on contigency. No money till they win. So they look at two things - can the case be won and will it be worth it to us. They look for Deep Pockets. If yours are empty, don't worry about it. Last I checked, no individual builder has ever been sued.
And waivers mean nothing to a grieving family. They didn't sign it.

 

[Mel]

To my knowledge no amateur-builder has been successfully sued over a homebuilt aircraft. I know of 2 that tried, but neither was successful. As builder of the aircraft, you are liable forever! You can have the purchaser sign a liability disclaimer, but in the end it will all be up to the judge. As a side note, I always have the next of kin sign as witness because that's who you will likely be dealing with. If you are uncomfortable with these facts, then you shouldn't sell.
BTW, disassembling the aircraft and selling as parts does not work. If you surrender the airworthiness certificate, the aircraft is worthless because it can no longer be registered. If you do not surrender the certificate, it remains in your name as builder.

 

[gmcjetpilot]

You are not paranoid if they really are out to get you

I agree with everything above.

I have a few strategies some are common sense and some more legal whose effectiveness is unknown until you get sued in a court of law, other wise it is expensive paper. No one knows if waivers and hold harmless work in this case because it has not been challenged to date. My ideas I would consider in part or whole.

- Build it per plans and document the building carefully

- Independent inspection pre purchase inspection by third party

- Waiver - Drafted by a Lawyer and signed by the party purchasing. Make sure they have it looked over by all concerned, their spouse, kids, dog and their lawyer, who will also sign off on it.

- Placard the aircraft to a ridiculous level - No aerobatics, No IFR, No Spins, Fuel gauges may be inaccurate, Do not fly w/ fuel level less than 1/8 in either tank. Soft field operations not recommended due to........ You could make them panel placards or limitations in the log book and/or flight manual you supply, which you have them read and sign that they understand them. Basically written proof they will not do anything stupid. The buyer can remove or ignore these placards and limitations if they so desire, which you have pictures and documents to prove you told them not to run out of fuel, at night, while doing aerobatics in IMC conditons.​

Of course the main placard that states at this is an AMATEUR BUILT aircraft and does not COMPLY with Federal Aviation Regulations is your main protection. THEY ARE BUYING AN EXPERIMENTAL AIRCRAFT that MEETS NO STANDARDS or SPECS. In other words FLY AT YOUR OWN Risk.

I realize all these things can kill a sale and add cost, but it depends how paranoid you are. Some my argue that you don't need any of these pre-cautions. Others say you are liable and there is nothing you can't do about it. BOTH ARE RIGHT.

If you are so worried about it, don't build, buy a flying RV. Clearly the plane can be sold down the road to other parties. Yes you can get sued and it will cost you bucks to defend yourself.

If you are building for profit, against the spirit and intent of the Amateur Built Experimental Class you are more liable and also subject to FAA enforcement and rightly so. Build for your own education and FUN. Selling should be a distant consideration. Also a plane you built and safely flew for a 1000 hours is a lot differnt than one you built and flew 50 hours.

Some builders I know say or claim they will dismantle their plane and never sell it. That is one way to go. Even parting it out may be subject to some liability itself. Heck a Ham Sandwich can sue YOU! Just CYA as best you can and use common sense. I am a little mad at AOPA for making comments on this subject that are prejudicial and just plan WRONG. If you are a EAA member contact EAA legal and they can give you a feel for the level of liability risk. A it stands now it has been shown to be low to non existent. However as MEL said if you are not worth 3 Mil plus you may not want to build a plane you built.

 

[Low Pass]

...Heck a Ham Sandwich can sue YOU! ...

I thought it was "a Grand Jury (District Attorney) could indict a ham sandwich"?! Just ask those college boys at Duke and Tom Delay...

 

[Jconard]

My amature guess on how to protect yourself:

There are two issues, first protecting yourself from the purchaser, their heirs etc..Second, protecting yourself from subsequent purchasers.

First,

I would hire an attorney to draft a contract of sale, with seperate signed documents for Waiver, Acceptance/Assumption of Risk, and Agreement to Indemnify. Each should specify that the buyer fully understands and waives the risks. These risks should be spelled out (including but not limited to: latent defects, improper methods, improper design alterations, etc.)

It should also contain a statement that the buyer understands that they should seek the advice from an attorney, and a mechanic prior to purchase, and that they have sought such advice to their satisfaction prior to purchase.

It should also specify that the aircraft is amature built, and that as a result even proper operation can result in injury including death, that the builder is not a commercial manufacturer, etc...

It should state that flying an amatuer built, experimental aircraft is inherently a risky activity, and that even with great caution it cannot be made risk free, and that the buyer understands that the nature of the activity is dangerous.

It should also reference the logbooks, and POH, and spell out the operating limits,

Second, for future owners:

The buyer agrees to incorporate these limits and warnings in any subsequent sale, and include the purchase documents as part of the permanent aircraft records.

I plan to make a notation in the airframe, engine, and prop logs at the time of the purchase referencing the sales documents and limits.

As a general matter no one can waive their right to recover for gross negligence. People can assume the risk of the activities the enjoy, and the riskier the activity the more risk you assume.

But remember Parker Hannafin paid the Governor's wife for a pump that did not fail.