Shacket v. Philko

lPhilko Aviation , Inc . v . Shacket (462 U .S . 406

Issue

Whether the Federal Aviation Act of 1958 means that validity of a transfer or conveyance is dependent upon the recordation of the written instrument in the Federal Aviation Administration (FAA

Applicable Rule of Law

The defendant and the Court of Appeals relied upon part of Illinois Uniform Commercial Code on title transfer which permits undocumented or unprecedented transfers (462 U .S . 406 . On the petitioner , however relied upon Section 503 (a (1 ) of the Act which directs the Secretary of

Transportation to establish and maintain a system for the recording of any "conveyance which affects the title to , or any interest in , any civil aircraft of the United States (462 U .S . 406 . In interpreting the provision , the Supreme Court has considered the historical background of the bill

Application of the Rule of Law

In the resolution of the case , the court interpreted the state law and the federal law by looking into the intention of the Congress . While the state law may permit non-recording of title transfer , its validity and protection from the interest of the innocent third party is not assured In addition , the intention of the Congress in creating the law was to maintain a central clearing house for the recordation of titles for easy access by any individual as to their claim or interest in an aircraft (462 U .S . 406 . More importantly , Section 503 was purposely to obstruct state laws allowing unrecorded title transfer . Granting...