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Philko Aviation, Inc. v. Shacket
Citation:
462 U.S. 406 (1983)Facts
On April 19, 1978, the Shackets purchased a new airplane from a corporation operated by Roger Smith at an Illinois airport. The Shackets paid the full sale price and took possession of the aircraft. Smith provided only photocopies of the bills of sale and assured the Shackets he would handle the recordation paperwork with the FAA. The Shackets never attempted to record their title. Smith subsequently engaged in fraud by selling the same airplane to Philko Aviation, telling Philko the plane was in Michigan for equipment installation. Philko examined the original bills of sale, checked FAA records, and at closing received the title documents which were later recorded with the FAA. When the fraud was discovered, the Shackets filed a declaratory judgment action to determine title to the aircraft.
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