Editorial: Aviation in Illinois

01 July 2008

The aviation industry is encountering difficult times. Instability in the financial markets, increasing fuel costs and a dip in consumer spending have seen a number of carriers go out of business this year. Bankruptcies and workouts may well increase in the coming 12 months. It is against this backdrop that the demand for lawyers with specific industry knowledge remains high. In total we have identified 18 lawyers from nine separate firms with a range of expertise. Leading commercial and aircraft finance lawyers rub shoulders with some of the industry's major names for contentious matters arising out of major aircraft accidents.

Vedder Price PC remains the leading firm on the finance side with a total of four highly rated lawyers making the chapter. Dean Gerber chairs the firm's equipment finance group and emerges as the most nominated of the Vedder Price team. Rated by sources as a "quite exceptional for aircraft financing matters", he played a leading role in the restructuring of United Airlines. Gerber works extensively for lessees, lenders and equity participants and has recently been expanding his practice into the field of business aviation finance. Joshua Gentner was another name never far from the lips of respondents to our survey. Like Gerber he is known for his work on behalf of the Export-Import Bank of the United States. Highlights include working on financings for LAN Chile, COPA and Air India. He is also acknowledged as a capital markets expert although current market conditions have seen a slow-down in this area. Geoffrey Kass is another strong performer from what one rival lauded as "the leading firm in Chicago for aircraft finance". Kass's structured finance expertise was once again made clear to researchers. Jonathan Bogaard helped to found the firm's equipment finance group and remains a leading figure at Vedder Price. Bogaard's corporate tax expertise is said to be "second to none".

Mayer Brown LLP is also strong on the finance side, with both Ralph Dudziak and Jonathan Kron appearing on the following pages. Dudziak represents both domestic and foreign banks, leasing companies, insurers, airlines and institutional investors on a wide array of financings. One prominent source noted, "I have the utmost respect for Ralph's skills as a lawyer." Kron is another prominent individual who is "vastly experienced", according to sources. He is said to be particularly strong on the matters relating to airline bankruptcies, particularly when it comes to cutting-edge commercial and tax issues. Skadden Arps Slate Meagher & Flom LLP is another firm with an excellent reputation in the field. Ann Pollock was consistently endorsed by some of the practice area's high flyers. Pollock is said to be "quite exceptional on the tax side" and representative clients include Banc One Capital Corporation, Citigroup and US Airways Group, to name but a few. Arnold Gough represents Winston & Strawn LLP on the following pages, building upon an excellent showing in the previous edition's research. Gough is rated by rivals as "the main one at the firm for aviation finance" and a "top-tier" practitioner to boot. Gough represents lessees and equity investors on a wide range of matters and has been involved in structured finance and leveraged lease transactions at the firm for around 20 years. Richard Klein leads the lease finance and aviation finance group at Chapman & Cutler LLP, representing financiers, equity providers, arrangers and lessees on various matters. The group also comes recommended for its work on airline bankruptcies and workouts. Representative matters for the group include a leveraged lease financing of two Boeing 747s to a Far East airline. They also worked on a US$1.2 billion aircraft lease portfolio securitisation in which they represented the purchaser of a portion of the equity interest in the aircraft finance trust.

The October 2007 merger between Texas-based Locke Liddell & Sapp PLLC and the Chicago-headquartered Lord Bissell & Brook LLP created Locke Lord Bissell & Liddell LLP, a 700-lawyer firm with offices in 11 US cities and one in London. The combined entity maintains Lord Bissell & Brook's reputation as a major player for contentious and insurance matters in the aviation sector. Gary Westerberg has over 30 years' experience in this field of law and comes rated as a "top name for products liability and insurance", areas in which he acts for manufacturers, airlines, operators and insurers. Westerberg is currently representing a security company that conducted the passenger screening for the hijacked American Airlines Flight 11 on 11 September 2001. He is also currently working for the lessors on issues arising from the crash of a Flash Airlines B737 aircraft into the Red Sea. Ann Taylor comes recommended as "an excellent insurance coverage lawyer" and a "first-rate litigator". Taylor has over 15 years' experience in the sector, during which time she has represented manufacturers, suppliers, carriers, security providers and leasing companies on a wide range of issues encompassing wrongful death, breach of warranty, product defects and negligence. Chris Barth also builds on a strong performance in the previous edition with votes from many of the practice area's leading figures. Barth is another partner with a strong emphasis on both aviation and insurance law. Representative clients include Avioserv San Diego, Smiths Aerospace, Saab Aircraft, as well as operators and leasing companies such as Cathay Pacific Airways, Air Canada and International Lease Finance Corp.

Kevin Murphy, a strong performer in the previous edition, recently left Adler Murphy & McQuillen to join Allianz Aviation Managers, LLC. In spite of this, the firm still puts in a strong performance in this year's research with two highly rated individuals making the grade. Their experience led one rival to label the group "excellent" and "our main competitor on the contentious side". Michael McQuillen leads the duo in terms of nominations and he comes recommended for his representation of insurers, aircraft and product manufacturers as well as airlines. John Adler is similarly well regarded and his reputation as a "first-rate trial lawyer" with "vast experience" saw him elected as a member of the prestigious American College of Trial Lawyers. Lawyers from the firm have been involved in some of the industry's most high-profile cases including the Cirrus SR-20 accident in New York City on 10 October 2006 when an aircraft carrying New York Yankees pitcher Cory Lidle crashed into an apartment building on the Upper East Side of Manhattan.

Kaplan von Ohlen & Massamillio LLC also puts in a strong performance with both Larry Kaplan and Robert von Ohlen once again appearing in the upper reaches of our research. Kaplan received numerous recommendations from both the domestic and London markets and comes recommended as an "accomplished litigator". Kaplan has represented insurers, airlines and aerospace manufacturers on a wide variety of matters. Robert von Ohlen has served as lead counsel for carriers on issues relating to in-flight fires, domestic and international cargo matters, the Warsaw Convention, airline regulation, National Transportation Safety Board investigations and air disasters involving multidistrict litigation. Von Ohlen is evidently one of Illinois's leading lights and rivals "admire his work".

Sheila Sundvall flies the flag for Sidley Austin LLP in the following chapter. Rated by sources as "consistently excellent" and "at the top of the profession", Sundvall comes recommended for litigation on behalf of airlines, manufacturers and other defendants in personal injury and wrongful death lawsuits. Among other matters, she has worked on suits arising from accidents such as Lion Air Flight 538 in Indonesia in 2004 and Garuda Indonesia Flight 421 in Indonesia in 2002. Jeffrey Morof completes our breakdown of the leading aviation lawyers in Illinois. Morof is currently managing partner of Bryan Cave LLP's Chicago office and "receives some very significant defence instructions" according to sources. Morof's use of computer animation in the courtroom drew praise from respondents to our survey and, among other matters, he is serving as lead trial counsel for an aircraft manufacturer in litigation arising from the FedEx MD-11 accident at Newark International Airport and the ValuJet Flight 592 accident near Miami.