VANCOUVER – An arbitration panel has awarded British Columbia-based Avcorp Industries $27.4 million in compensation to be paid by the Cessna Aircraft Company.

The compensation stems from an incident in which Cessna transferred production work back to themselves and affiliated suppliers. The work was initially brought back to Cessna on December 17th, 2010, and immediately thereafter Avcorp sought reimbursement. After unsuccessful negotiations Avcorp brought the issue to an arbiter.

Arbitration determined that the original agreement was exclusive to the two companies and Cessna could not unilaterally transition production work back from Avcorp.

Avcorp had fulfilled the requirements of the “Strategic Alliance Agreement” between the two companies and it was deemed they suffered damages as a result of the violation.

Furthermore, all counterclaims from Cessna were denied.

Avcorp designs and builds major airframe structures for aircraft companies such as Boeing, and Bombardier. They operate out of facilities in Delta, BC and Burlington, Ontario.