Swift Air executives Jeffry Conry and Boris Van Lier have settled Saipan Air Inc.’s $12.5-million lawsuit against them for their failure to deliver three aircraft for Saipan Air’s program.
Saipan Air Inc. counsel Steven Pixley and attorney J. Nathan Duggins III, counsel for Conry and Van Lier, have informed the U.S. District Court for the NMI that they have reached a confidential settlement agreement.
Pixley and Duggins filed in court on Friday a stipulation that sought to have Saipan Air’s lawsuit dismissed with prejudice, which means Saipan Air can no longer re-file the lawsuit.
The parties, however, agreed that the court shall retain jurisdiction of the case to enforce the terms of the settlement agreement.
The amount and terms of the settlement were not disclosed.
The jury trial against Conry and Van Lier relating to Saipan Air’s fraud claims was supposed to commence today, Monday.
The parties held a telephonic conference before U.S. District Court for the NMI Chief Judge Ramona V. Manglona on Thursday.
At the conference, Pixley and Duggins updated the court on the status of the case.
Saipan Air originally filed a $50-million racketeering lawsuit against Conry, Van Lier, and Swift Air’s then chief restructuring officer Donald Stukes in July 2012.
The court allowed Saipan Air’s fraud claims against Conry and Van Lier to go through, but dismissed the claims of racketeering and unjust enrichment against the three executives.
In its amended complaint for fraud claims against Conry and Van Lier, Saipan Air sought $2.5 million in compensatory damages and $10 million in punitive damages.
Swift Air filed for bankruptcy protection in Arizona shortly after notifying Saipan Air that it would not deliver two 757 aircraft and one 737 aircraft for Saipan Air’s program.
Conry and Van Lier are currently employed by Arizona-based Swift Air, which emerged from bankruptcy in 2013.