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    SBD Properties To Appeal Fuel Farm Ruling; Vow Of More Legal Action Against Airport Board

    Feb. 22, 2012
    The Airport Authority ended its 25-year contract with the company on Feb. 7 after an incident six days earlier that revealed only 1,100 gallons of fuel were in the farm's fuel tanks.

    Source San Bernardino County Sun (California)

    Sbiafuelfarm 10632207

    SAN BERNARDINO - A company connected to airport developer Scot Spencer filed an appeal Tuesday against a Superior Court judge's recent ruling that allowed airport officials to terminate its contract for not maintaining minimum fuel reserves for aircraft.

    "Yes, the appeal did get filed. So, I can confirm that," said Coby King, spokesman for San Bernardino Airport Management, the umbrella corporation that owns SBD Properties LLC.

    Judge Brian McCarville had given SBD Properties until 3 p.m. Tuesday to appeal his Feb. 17 ruling in favor of San Bernardino International Airport Authority. The appeal was filed in San Bernardino Superior Court, Appellate Division, according to court personnel.

    King had few details regarding the appeal. Though he said SBD Properties would be pursuing damages against the Airport Authority as a result of the contract termination.

    The judge said in his ruling, essentially, that the contract with the Airport Authority was a personal services contract, King explained. Since they have a contract and can terminate it, the judge said there may be damages, he continued.

    "Obviously, we appreciate that, and we are going to be pursuing damages against the Airport Authority," said King.

    However, King said they believe there are differences between that kind of contract and the kind that SBD Properties had with the Airport Authority.

    McCarville's ruling lifted a temporary restraining order against the Authority, which was granted Feb. 10 at the request of SBD Properties, and also denied a preliminary injunction sought by the company.

    Both SBD Properties and the corporation are managed by Spencer and T. Milford Harrison, the airport's former executive director. Spencer's and Harrison's names appear jointly on multiple company filings doing business at the airport, all of which are under investigation by the FBI.

    Attorney Karen Feld, who represents the Airport Authority, said Tuesday the appeal would have no impact on McCarville's ruling.

    "It doesn't change anying," Feld said by telephone. An appeal simply means they think the judge was wrong, she said.

    The Airport Authority, which entered into the fuel services agreement with SBD Properties in 2008, ended its 25-year contract with the company on Feb. 7 after an incident six days earlier that revealed only 1,100 gallons of fuel were in the farm's fuel tanks.

    SBD Properties, per the fuel services agreement, is required to keep a minimum of 20,000 gallons of Jet-A fuel stocked at the fuel farm at all times, and was to inform airport officials if reserves fell short. The fuel farm has a 150,000-gallon storage capacity.

    A.J. Wilson, interim executive director of the airport, said SBD Properties does not earn its profits from the fuel farm, but from deliveries of fuel to aircraft owners, which the company can still do. But now, SBD Properties will have to buy the fuel directly from the airport or through a third party. Reach Mike @sbcourts.

    Copyright 2012 MediaNews Group, Inc.All Rights Reserved

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