Melvin Potter and Potter & Son, Inc., (collectively Potter) are named insureds under a U.S. Specialty Insurance Company (USSIC) policy that covered a Cessna 414 aircraft (the aircraft) for liability and physical damage. The policy contained specific wording regarding the pilot. It provided coverage only when the aircraft was piloted by Melvin Potter or another commercially certified pilot. That other pilot was required to have a minimum of 3,000 “logged pilot hours.” Furthermore, 1,500 of those were required to be “logged in multiengine aircraft”. Lastly, 100 of those hours were required to be “logged in the same make and model” as the aircraft listed on the policy. Mitchell Schier (Schier) was the pilot of the aircraft in September 2001 when it crashed. He and two passengers perished. He was considered by Potter to be a qualified pilot, based on the following:

·         1984 – acquired commercial license with single ratings

·         1986 ­– acquired commercial license with multiengine ratings

·         1986 – began piloting charter flights in both single and multiengine aircraft

·         1986 – obtained flight instructor’s certificate

·         2000 – became a flight instructor

USSIC investigated the Potter’s claim and ultimately denied coverage because the pilot lacked the required “logged” hours. Among Schier’s belongings, a single logbook was found which documented a mere 236 pilot hours of which all was in a single engine aircraft and all within a two-month period of 2001. While USSIC admitted that based upon Schier’s accomplishments, he likely had flown more hours than the policy requirement; those hours had not been “logged”. Potter argued that the term “logged” meant hours flown but not necessarily recorded.

Potter sued USSIC and the court entered summary judgment for USSIC. While the term “logged” is not defined in the policy, the court concluded that the intent of the term “hours logged” was “hours actually flown and reliably recorded in a flight time log.” Potter appealed and the lower court’s ruling was affirmed.

Melvin POTTER and Potter & Son, Inc., v. U.S. Specialty Insurance Company, No. 2 CA–CV, Court of Appeals of Arizona No. 2CA-CV2003–0182., Sept. 8, 2004.