A Santa Barbara County Superior Court judge has ruled in favor of the Santa Maria Public Airport in a dispute over an unpaid loan for a long-defunct homegrown airline.
Judge Jed Beebe on Thursday granted the airport’s motion of summary judgment and canceled the planned October jury trial.
The case put the district in the awkward position of filing a lawsuit against David Baskett, who now serves on the airport board but previously launched a start-up airline, Pacific Skyway.
The district approved a loan to Baskett to help start the airline, but the money was never repaid. The airline went out of business and eventually filed for bankruptcy in 2001, listing approximately 240 creditors.
In 2013, Baskett signed a promissory note to begin paying back the airport funding, but he later defaulted, prompting the filing of a civil lawsuit in September 2016.
As of June 1, with the 4 percent annual interest rate, Baskett owed the airport nearly $122,400, court documents said.
The civil lawsuit alleged breach of contract and other claims, while Baskett maintained the district lacked foundation and authentication for its claim.
Baskett, who represented himself, argued against summary judgment, adding he would not have signed the promissory note if he had known the airport district would call the note.
The airport district was represented by attorney Gregory Connell of Roberts & Connell LLP in San Luis Obispo.
Beebe said that even if he ruled on the motion nothing would prevent Baskett and the airport district from working out a payment plan.
“I believe it harms the airport to do this,” Baskett said.
Beebe also noted that the airport district can’t forgive the debt since it’s a public entity prohibited from making “gifts of public funds.”
“I’m afraid I can’t see a basis here to deny the motion and, again, it doesn’t preclude negotiations,” he said.
At the end of the hearing, Baskett asked if the ruling would prevent him for filing a counterclaim against the airport district.
“It may or may not,” Beebe replied. “You probably should seek legal advice.”
Baskett has been involved in multiple aviation endeavors, including bringing a Russian-made tanker to the United States to serve as a firefighting plane and touting Santa Maria as a location to manufacture such aircraft.
— Noozhawk North County editor Janene Scully can be reached at jscully@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.