Raytheon Co., the second-largest contractor to the Federal Aviation Administration, won a $25.2 million verdict against Learjet Inc. in a lawsuit over an FAA contract, Raytheon lawyers said.
The jury awarded $19,000 to Learjet, a unit of Bombardier Inc., in its counterclaim against Raytheon.
Raytheon, which had a contract to modify six Learjet Model 60 aircraft for the FAA’s flight inspection program, claimed that Learjet misrepresented the heating and cooling capabilities of its planes. Learjet refused to reimburse Raytheon the $13 million it spent to bring the planes up to FAA standards, according to Rose Walker LLP, the firm that represented Raytheon.
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In the verdict earlier this week, Raytheon was awarded $13.5 million in actual damages and fees and $11.7 million in punitive damages.
A representative from Montreal-based Bombardier couldn’t immediately be reached for comment. A Learjet attorney said the company would appeal, the Greenville Herald Banner reported.
Shares of Lexington, Massachusetts-based Raytheon rose 27 cents to $31.80 in morning trading. Bombardier rose 46 cents to C$15.45 in trading in Toronto.
Bloomberg
