Private aviation membership program LIVT, customers facing lawsuit

Elevate Jet LLC and Elevate Aviation Group, LLC have filed a lawsuit against LIVT, Corp, a private aviation membership program, and 10 of its customers, alleging they owe $136,400 for a charter flight.

The roundtrip between Miami and South America was canceled after the deadline for canceling.

That means that the full cost of the charter was owed to the operator, in this case, Elevate Aviation Group.

What Happened?

According to the filing, on January 30, 2025, Elevate Jet and LIVT agreed to fly LIVT’s customers from Miami to Rio De Janeiro, Brazil, on February 19, 2025.

A return and flight was scheduled for February 23.

The trip was scheduled on a Falcon 7X managed by Elevate with a seating capacity for 14 passengers.

LIVT paid the initial deposit for the flight of $24,071.00 on February 4, 2025.

The Texas-based private aviation membership seller was supposed to pay the remaining balance of the charter at least 72 hours before departure.

According to the filing, “While LIVT continuously noted that the flight was to move ahead as planned, on February 14, 2025, the last business day before the payment deadline the following morning, the remaining balance had not yet been paid.”

On February 18, one day before the scheduled flight, LIVT, through its CEO and co-founder, Justin Smith, sought to terminate the agreement, per the allegations.

Smith claimed an unspecified “issue” with the passengers, also named in the lawsuit.

Settlement Agreement

Livt and Elevate then reached a settlement agreement.

According to the filing:

‘Elevate Jet informed Mr. Smith that, pursuant to the executed agreement, there would be a 100% cancelation fee. Elevate Jet demanded payment of the remaining balance following cancelation of the flight, and correspondence between LIVT’s CEO and Co-Founder, Justin Smith, and Elevate Jet’s General Counsel, Hannah Blonshteyn, ensued, concluding with a signed and notarized settlement agreement…through which, LIVT agreed to pay the remainder of the $136,400.40 balance, plus 10% interest, on an agreed-upon schedule’

On March 7, LIVT missed the first payment of $10,000.

It was paid 12 days later.

LIVT’s second payment of $40,000.00 was scheduled for March 26, 2025.

According to the filing, “Elevate Jet gave LIVT 14 extra days to try and meet its obligations under the Settlement Agreement, but to this date, LIVT has failed to make its next payment and still owes $140,040.44.”

The April 10, 2025 filing in the United States District Court, District of New Hampshire, notes that “LIVT has now also breached the settlement (agreement) of its debt.”

Elevate, in its filing, notes, “Because LIVT’s cancelation of the flight less than 48 hours before departure does not relieve LIVT of its obligation to pay the remainder of the balance in the agreement, LIVT (as it has admitted) has breached the agreement and caused plaintiffs to suffer.”

It’s not clear what transpired between LIVT and its customers.

Terms of service on the LIVT website state:

‘Customers and Passengers shall indemnify LIVT and keep LIVT indemnified against any claims, demands, liens, judgment, penalties, awards, remedies, debts, liabilities, damages, costs (including, but not limited to, legal costs and attorney fees) arising out of their conduct and/or non-compliance with these Terms or the Operator’s Terms, during carriage on board an aircraft. Such indemnity shall be in effect for any claims brought against LIVT by an Operator in respect of cancellation fees payable under the Operator’s Terms or any other fee or penalty, including fees or penalties for cleaning, catering services, de-icing, hangar use, and airport or FBO fees of any kind.’

Elevate Aviation Group is the parent of Private Jet Services Group.

READ: Beware of this sentence in jet card and ad hoc charter contracts

What is LIVT?

According to a paid profile in the Houston Business Journal last November, “LIVT (is) an exclusive private aviation membership company whose name embodies its mission: lifestyle, innovation, vision, and time.”

Smith told the newspaper, “Our growth rate of over 150% per year reflects the demand for a more accessible, member-focused approach to private aviation. We’re dedicated to helping people fly private in a way that’s both affordable and meaningful.”

LIVT promotes four regional membership options centered around the Pilatus PC-12 and Citation Excel.

It states, “We are truly unique as we provide an exclusive regional private jet membership model that only accepts a select number of members annually.”

However, it adds, “We still give you the flexibility to undertake longer trips as an additional service when needed.”

DOWNLOAD: Elevate_Jet_LLC_et_al_v_LIVT_Corp_et_al__nhdce-25-00142__0001.0

Before LIVT

The Department of Transportation has scrutinized two Houston-based companies associated with Smith.

In 2015, the DOT sued Smith, ASI Aviation, LLC, and Aircraft Charter Management Services, LLC.

The DOT alleged, “After investigating these practices by defendants, the FAA determined that Defendants were employing a sham dry lease to avoid the regulations applicable to commercial aircraft operators.”

Per its filing.

‘Defendants present the agreements with ASI and ACMS as a package deal, and lessees do not understand that the arrangement differs from a charter or other commercial flight. Many of (the) Defendants’ lessees believe that they are entering into contracts like those offered by legitimate charter flight companies (i.e., wet leases). Defendants do not tell their lessees that the agreements with ASI and ACMS purport to assign the lessee the obligation of complying with FAA commercial aircraft operator regulations.’

ASI, ACMS, and Smith contested the DOT findings, and the case was settled in 2016.

Read the DOT’s allegations against Smith here:

United_States_of_America_v_Smith_et_al__txsdce-16-00884__0023.1

And the settlement agreement:

United_States_of_America_v_Smith_et_al__txsdce-16-00884__0001.0

Smith did not respond to a request for comment.