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 the claim of the herein defendant would contradict the provision of sec. 503 of the Act. Furthermore, where state law and federal law are contradictory, the federal law must prevail. Hence, the title having been recorded with the FAA shall have validity against third party.
The case involves a contradicting interest arising out of valid right. While the parties may have acquired the same right, the party who has complied with the law should be protected. Sec. 503 of the Act requires recordation of any title transfer while state law permits non recordation of such. When conflict arises, the federal law is given much weight against state law. In addition, the law having a noble purpose should prevail for the benefit of the society.