United States
Securities and Exchange Commission
Washington, D.C. 20549
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Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report: October 24, 1997
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BOEING CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 95-2564584 0-10795
(State or other jurisdiction of (I.R.S. Employer (Commission File No.)
Incorporation or Organization) Identification No.)
4060 Lakewood Boulevard, 6th Floor o Long Beach, California 90808-1700
(Address of principal executive offices)
(562) 627-3299
(Registrant's telephone number, including area code)
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Item 5. Other Events
The Company is a party to litigation pending in the United States
District Court, Southern District of Florida, entitled McDonnell Douglas Finance
Corporation adv. Aviaco International Leasing, Inc., Aviaco Traders
International, Inc. and Craig L. Dobbin with Related Counter-Claims. The
foregoing litigation arose out of an action brought by the Company in July 1991
seeking remedies on account of defaults by the other parties to the litigation
under loan and related documents involving a $17.9 million loan made by the
Company. In January 1994, in response to the Company's foreclosure of two
aircraft and a related aircraft lease agreement which had been collateral for
the loan, Aviaco Traders International, Inc., Aviaco International Leasing, Inc.
and Craig L. Dobbin (collectively referred to as "Aviaco")filed a counter-claim
against the Company, asserting nine claims for alleged damages based on various
tort and contractual theories relating to the Company's foreclosure.
The case proceeded to jury trial on three of the nine claims which
survived the Company's Motion for Summary Judgment. The case was submitted to
the jury on October 16, 1997. On October 17, 1997, the jury returned a verdict
in favor of Aviaco awarding aggregate damages of approximately $12.2 million,
including damages of approximately $10.0 million for the failure to exercise
reasonable care with regard to the related lease agreement. The jury also
awarded pre-judgment interest, which under applicable law is 7% per annum, to be
determined by the Judge.
The Company believes the $10.0 million award is not supported by the
record evidence or by applicable law. The Company intends to take appropriate
action to contest that award through post-trial motions and, if necessary, an
appeal. Given the inherent uncertainties of litigation, however, no assurance
can be given that the Company will be successful in reducing the jury's verdict.
In the event the Company is ultimately unsuccessful in eliminating the $10.0
million award, this litigation would have a material adverse impact on the
Company's earnings.
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Boeing Capital Corporation
October 24, 1997 /s/ Steven W. Vogeding
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Steven W. Vogeding
Vice President and Chief Financial
Officer (Principal Financial Officer) and
Registrant's Authorized Officer
