O'Reilly & Danko Law Firm Achieves Record $165 Million Agreement in Boeing 737 Crash in the Philippines

San Mateo, Calif., March 11 /PRNewswire/ -- After seven years of litigation in Chicago, Terry O'Reilly of O'Reilly & Danko, a San Mateo-based law firm, said that an agreement has been reached between AAR Parts Trading, Inc., and Fleet, the lessors of the Boeing 737, and the families of 103 victims of the crash of Air Philippines Flight 541, at Davao, Mindanao, on April 19, 2000. The aircraft was on a commuter flight from Manila when it was diverted from the airport because another 737 was on the runway. The aircraft was seen to circle and to cross a large Island in the bay before Davao, slowly descending and crash landing in a banana plantation.

Investigation into the accident was hindered by the decision to bury the aircraft before independent investigators could inspect the wreckage. Four separate reports were released by the Government of the Philippines, all reaching different conclusions. The exact cause of the accident is still unknown.

AAR and Fleet were accused of placing a worn-out 737 in the hands of an incompetent airline without ever taking care for the safety of passengers.

The agreement was reached in London by Terry O'Reilly, and attorneys for Lloyds of London. O'Reilly noted it is the largest settlement for an Asian airline accident.

"Airlines in developing countries are often run on a shoestring and with appalling maintenance standards," said O'Reilly, who is also representing many families in the crashes of Adam Air Flight 574, a 737 which crashed in Indonesia, Garuda 200, another Indonesian 737, and Kenya Airways 507, a 737 which crashed in Mbanga Pongo, in The Cameroons.

Also involved in the case were Gerald Sterns and Mike Verna, of Oakland and Walnut Creek, California, and the Nolan Law Group. The defendants were represented by Lord, Bissell & Brook, of Chicago.