Wood Automotive Inc v. Morrow Aviation LLC et al

On February 18, 2025, Wood Automotive Inc., a Michigan-based automotive parts manufacturer, filed a civil action in the U.S. District Court for the Eastern District of Michigan against Morrow Aviation LLC and maintenance provider AeroTech Maintenance Inc. The lawsuit arises from a December 2024 incident in which a Citation X business jet leased by Wood Automotive experienced a runway excursion during landing in Denver, Colorado, injuring CEO Michael Wood. The plaintiff alleges that Morrow Aviation breached the dry lease agreement by failing to ensure the aircraft's airworthiness and that AeroTech negligently performed engine control system repairs. The defendants moved to dismiss based on exculpatory clauses in the lease contract. The court denied the motions, allowing discovery on fraud and gross negligence exceptions to proceed.

Pending. The court denied defendants' motions to dismiss in a May 2026 opinion, ruling that the allegations of gross negligence and fraudulent concealment, if proven, could void the contractual liability waivers. Discovery is ongoing, and trial is scheduled for April 2027.

Whether exculpatory and limitation-of-liability clauses in a corporate aircraft dry lease are enforceable under Michigan law when the lessee alleges gross negligence and fraudulent concealment of known mechanical defects, and whether the maintenance provider owed an independent duty of care to passengers of the leased aircraft.

The case has drawn significant attention in the business aviation sector, prompting lessors and charter operators to review and tighten aircraft lease agreements and maintenance documentation. Insurance underwriters have also reassessed liability coverage for dry-leased corporate jets, while industry groups warn of higher transaction costs and a potential chilling effect on fractional ownership structures.