ROBERT G. BENDALL, et al, Appellants,
v.
SAMOA AVIATION, INC., d/b/a
Appellate Division
AP No. 18-95
April 14, 1997
[1] A court, as a separate department of government, may create a trust, transfer property to the trust, and appoint a trustee to take care of trust property for the best interest of the beneficiaries under its inherent power to do what is reasonably necessary for the proper administration of justice and where the exercise of such power is absolutely essential for the performance of the court's constitutionally mandated mission.
[2] Where a court places property which is the subject of a dispute into the hands of a trustee prior to a final determination of the merits of the case this does not divest a party claiming ownership from asserting the party’s claim for legal and ownership title and rights to the property at the subsequent trial.
Before KRUSE, Chief Justice, GOODWIN,* Acting Associate Justice, WALLACE,** Acting Associate Justice, SAGAPOLUTELE, Associate Judge, and MAILO, Associate Judge. [1ASR3d17]
Counsel: For Appellants, Togiola T.A. Tulafono
For Appellee, Marshall Ashley
OPINION AND ORDER
In 1988, Samoa Aviation, Inc., ("Samoa Air") entered into certain lease purchase agreements with Robert G. Bendall and Pace Aviation, and PAL Air, Inc., (collectively, "Bendall") for certain airplanes, engines, equipment, and spare parts (collectively, "aircraft"). In 1995, a dispute arose over compliance with the agreements and the parties sued each other. The trial court consolidated Civil Action Nos. 50-95 and 70-95 and issued a preliminary injunction enjoining Bendall from interfering with Samoa Air's possession, enjoyment and use of the aircraft.
While these
matters were pending, the Federal Aviation Administration ("FAA")
threatened to withdraw the aircraft's registration unless (a) the FAA received
flight information necessary for renewing registration renewal under the name
of a Canadian citizen (Robert G. Bendall), or (b) a
On September 7, 1995, the trial court judge granted Samoa Air’s motion and appointed Samoa Air's counsel, Marshall Ashley, a United States Citizen, as trustee for both parties "solely for the purposes of holding title to the aircraft." The court further stated that "[t]itle to such aircraft is hereby transferred to the Trustee . . . . Possession and operation of the aircraft shall remain with [Samoa Air]."
Bendall challenges the Trial Division's actions in three
respects. First, Bendall argues that the Trial Division of the
[1] Bendall argues that the court has no power to create a
trust, to transfer property to the trust, and to appoint a trustee to take care
of trust property for the best interest of the beneficiaries. However, a court has the inherent power
to do what is reasonably necessary for the proper administration of justice.
Matter of
In the instant
case, the Trial Division held that justice required maintaining the status quo
during the pendency of the trial, enjoining Bendall from interfering with Samoa Air's use of the
aircraft in its commercial airline operations, and preserving Samoa Air's
ability to provide uninterrupted inter-island transportation for the people of
[2] Furthermore, the Trial Division did not "divest" Pace Aviation of "legal and ownership title and rights to the aircrafts," as Bendall suggests, because Bendall has yet to prove that he is the lawful owner of the aircraft at trial. The court has temporarily transferred title to the aircraft to the trustee for the benefit of the aircraft's true owner, whom a trial on the merits shall determine. If a trial on the merits determines that Bendall is, as he claims, the true owner of the aircraft, then the court shall transfer the aircraft from the trust to him at the end of the trial and the registration may be modified at that time. [1ASR3d19]
Propriety
of Appointing
Bendall argues that appointing "counsel for an interested party to a dispute as a 'trustee' would fail to pass muster in any review." Because counsel cites no legal principles or authority for this proposition, and because Mr. Ashley has no powers beyond those that the court deems necessary to give him, we reject Bendall's argument.
The decision and order of the Trial Division is AFFIRMED.
**********
* Honorable
Alfred T. Goodwin, Senior Circuit Judge,
** Honorable J. Clifford Wallace, Senior Circuit Judge,
[1] Since Robert Bendall
was a Canadian citizen, the FAA would not register the aircraft in his name
until it received proof that the aircraft flew 60% of its flights within the
jurisdiction of the