United States v. Aerodex, Inc.

469 F.2d 1003 (1972)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

United States v. Aerodex, Inc.

United States Court of Appeals for the Fifth Circuit
469 F.2d 1003 (1972)

  • Written by Liz Nakamura, JD

Facts

Aerodex, Inc. (defendant) entered into a contract with the United States Navy (plaintiff) to provide aircraft parts, including 300 new Curtis-Wright part number (PN) 171815 master rod-bearings. The contract contained both (1) an inspection clause, which stated that the government would conduct a 100-percent final inspection on the delivered bearings; and (2) a warranty clause, which expressly warranted that Aerodex would deliver new PN-171815 bearings. However, instead of providing the correct bearings, Aerodex delivered used bearings that it had reworked and reidentified as PN-171815 bearings. The reworked bearings were visually indistinguishable from PN-171815 but contained different metals. The Navy did not inspect the delivered bearings and only discovered Aerodex’s fraud after installing the bearings on Navy aircraft. The Navy paid Aerodex $27,000 for the mislabeled, reworked bearings and incurred $160,000 in retrofitting costs to remove and replace the mislabeled bearings in affected aircraft. The Navy sued Aerodex under the False Claims Act. The district court awarded the Navy approximately $380,000 in damages, calculated as follows: (a) double the $27,000 the Navy paid Aerodex for the mislabeled bearings; (b) double the $160,000 retrofitting cost; and (c) statutory damages. The district court also held that Aerodex breached the warranty clause. Aerodex appealed, arguing that (i) the mislabeled bearings were functionally interchangeable with PN-171815 bearings; and (ii) the Navy’s failure to inspect the bearings insulated Aerodex from liability for fraud or breach-of-warranty.

Rule of Law

Issue

Holding and Reasoning (Roney, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 741,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 741,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 741,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership