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491 F. App'x 875
10th Cir.
2012
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Background

  • Sky Harbor and H. Paul Martin sued multiple defendants in Wyoming federal court; the district court granted summary judgment against them and awarded damages and attorney fees to the Board on its counterclaim related to the Paint Shop lease.
  • The Paint Shop lease was originally a Sky Harbor painting facility lease; Sky Harbor later used it for general aviation maintenance before it was terminated due to delinquent rent and broader disputes.
  • WyDOT/Aeronautics terminated its lease with Sky Harbor after an incident involving damage to a state aircraft and a subsequent investigation, with the state eventually pursuing its own hangar/facility and guiding state aviation operations away from Sky Harbor.
  • During transition, Sky Harbor sought to shift the Paint Shop lease to a different operator (GLA), but GLA was not awarded the lease and never occupied the Paint Shop.
  • Sky Harbor argued the Paint Shop lease was illegal and unenforceable, and sought to overturn liability on that basis; the district court rejected this as a late, constructive amendment and the court ultimately awarded damages to the Board for breach of the lease.
  • The court later awarded attorney fees to Shelly Reams under §1988(b), but Sky Harbor’s RICO-related fee requests were later found improper, leading to a remand on the appropriate fee award.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Illegality defense and pleading amendment Sky Harbor contends the Paint Shop lease was illegal and unenforceable. Reams/Board argued illegality was an affirmative defense not timely raised; constructive amendment was inappropriate. District court did not abuse its discretion; illegality defense was properly rejected as untimely constructive amendment.
Government defamation under §1983 Sky Harbor argues Reams/Board's statements damaged its reputation and were actionable government defamation. Statements were either not publishable within the stigma-plus framework or were true. District court's dismissal affirmed; WyDOT minutes and media statements did not satisfy stigma-plus publication requirements.
RICO predicate acts and pattern Sky Harbor asserts extortion/blackmail predicates support a RICO claim. No consent-based extortion occurred; blackmail does not meet generic extortion standard. RICO claims fail; no two predicate acts showing a pattern of racketeering.
Attorney fees under 1988(b) for RICO defense Sky Harbor challenges Reams's §1988(b) fee award, especially for RICO defense. §1988(b) does not authorize fees for defense of RICO claims; only §1983 claims are eligible. Vacate the portion of the fee award for RICO defense and remand for limited, appropriate fee calculation.

Key Cases Cited

  • Ahmad v. Furlong, 435 F.3d 1196 (10th Cir. 2006) (constructive amendments and pleading defenses basis; abuse of discretion standard)
  • Ball Corp. v. Xidex Corp., 967 F.2d 1440 (10th Cir. 1992) (notice of affirmative defenses; timing of raising defenses before trial)
  • Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (standards for awards of attorney fees in civil rights cases)
  • Fox v. Vice, 131 S. Ct. 2205 (U.S. 2011) (limits and scrutiny of attorney-fee awards; deference to district court)
  • Kan. Penn Gaming, LLC v. Collins, 656 F.3d 1210 (10th Cir. 2011) (frivolous or vexatious claims; standard for fee-shifting in civil actions)
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Case Details

Case Name: Sky Harbor Air Service, Inc. v. Reams
Court Name: Court of Appeals for the Tenth Circuit
Date Published: Jul 20, 2012
Citations: 491 F. App'x 875; 11-8004, 11-8025, 11-8062
Docket Number: 11-8004, 11-8025, 11-8062
Court Abbreviation: 10th Cir.
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    Sky Harbor Air Service, Inc. v. Reams, 491 F. App'x 875