Wisconsin Business Loses Insurance Row in Executive’s Air Crash

Aug. 9, 2023, 9:16 PM UTC

A water recycling company lost its bid for an insurer to pay for a crashed corporate aircraft because the executive who flew the plane lacked a Federal Aviation Administration medical certificate.

David Schmutzler, former owner and president of Port Washington, Wis.-based Jadair International Inc., was killed when the Cessna aircraft he was piloting crashed in May 2020. Jadair’s aircraft insurance policy with American National Property & Casualty Co. required covered pilots to have the medical certificate, among other provisions.

“Because Schmutzler undisputedly lacked a current and valid FAA medical certificate at the time of the accident, this exclusion precludes coverage of Jadair’s claim,” the US Court of Appeals for the Seventh Circuit said in a Wednesday opinion, affirming a lower court’s ruling. Schmutzler’s previous certificate had expired at the time of the accident.

The court also denied Jadair’s motion to certify a question to the Wisconsin Supreme Court. “Unneeded certification orders waste the time of the litigants,” the appeals panel said.

Jadair didn’t immediately respond to a request for comment.

This case is Jadair International, Inc. v. American National Property & Casualty Company, 7th Cir. App., No. 22-3053, 8/9/23.


To contact the reporter on this story: Yun Park at ypark@bloombergindustry.com

To contact the editor responsible for this story: Michael Smallberg at msmallberg@bloombergindustry.com

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