In the Matter of Gary Aircraft Corporation, Debtor. Gary Aircraft Corporation v. General Dynamics Corporation

WISDOM, Circuit Judge:

I

This dispute over the ownership of one airplane and of the proceeds of the sale of another requires us to determine the reach of the Federal Aviation Act and its impact on state law. We also explore the protection accorded buyers against secured creditors by state law.

In December 1971, Gary Aircraft Corporation (“Gary”), the plaintiff-appellee, entered into a letter of understanding stating its intention to purchase four airplanes from Frederick B. Ayer & Associates, Inc. (“Ayer”), a dealer in aircraft. Two of these airplanes are the subject of the controversy here.…