Mokulele Airlines is suing Southwest Airmotive Corp. for alleged negligent maintenance on an engine that ultimately failed and resulted in the carrier’s pilot making an emergency landing on Piilani Highway on Maui in 2013.

Kona-based Mokulele Flight Service Inc., which does business as Mokulele Airlines, said in a lawsuit filed last month in U.S. District Court in Arizona that it is seeking damages for loss of reputation, various uninsured losses, passenger disruption costs, loss of use and other service-related expenses, and costs associated with the accident response and the time and effort of working with regulators on accident-related issues.

In addition, Mokulele said at the time of the incident it was in the midst of selling the aircraft and the sale failed because of diminished value of the plane.

Mokulele CEO Ron Hansen said Tuesday that the airline is seeking financial relief of $3 million.

A scheduling conference is set for Jan. 13 to determine discovery dates and a timeline for the case.

None of the eight passengers and two pilots aboard the single-engine Cessna Caravan turboprop was hurt, according to a National Transportation Safety Board report, even though the lawsuit claims passengers “sustained personal and bodily injuries during the landing.”

The airline claimed in the lawsuit that the maintenance and inspection work performed by Southwest “was accomplished negligently and contrary to the appropriate standards of care.”

Eloy, Ariz.-based Southwest Airmotive filed an answer to the complaint stating that it performed its duties according to industry standards and the original equipment manufacturer’s manual in complying with Federal Aviation Administration regulations.

An NTSB investigation into the incident concluded last month that it likely was caused by damage to the plane’s engine as a result of improper cleaning.

“What we’re talking about is the procedure repairing the engine, which is totally the responsibility of the overhaul shop, not Mokulele,” Hansen said. “That was determined in the NTSB report. I’m not familiar how to overhaul an engine, but apparently (Southwest Airmotive) did not follow the manufacturer’s engine overhaul manual, which caused the failure.”

Mokulele, the state’s second-largest interisland carrier with a 4 percent market share, said the manual requires that the compressor turbine (CT) disc and blades be disassembled and cleaned prior to reassembly and return to service.

“(Southwest) failed to disassemble the CT disc and blades prior to cleaning as required by the manufacturer’s overhaul manual,” the lawsuit said.

In addition, Mokulele alleges that Southwest Airmotive left cleaning contaminants inside the engine when performing maintenance and inspection services, and that the contaminants caused the engine to fail on the flight.

Dallas-based attorney Bryan Rose, who is representing Southwest Airmotive, called Mokulele’s claims “unfounded” and denied the allegations.

“We stand by our position that Southwest Airmotive is not responsible for the engine failure,” Rose said. “We followed the manual and did the repairs in accordance with FAA regulations and the manufacturer’s instructions. My client’s got a long history of doing really great work and has done work for Mokulele in the past and hopes to continue to do work with Mokulele in the future. My client is looking forward to presenting its case to a jury when the time comes, if needed.”

Southwest Airmotive, following the engine inspection, returned the Pratt & Whitney engine to service on Aug. 8, 2013, according to the lawsuit.

On Oct. 21, 2013, Mokulele Flight 1770 lost engine power while flying from Kahului to Waimea on Hawaii island, prompting head pilot Robert Fields to turn the plane around in an attempt to return to Kahului Airport. Upon determining that the plane would not be able to reach the airport, Fields brought the Cessna down in the northbound lanes of Piilani Highway.

The flight crew reported hearing a loud bang and grinding sounds just before the loss of power. First officer Mike Lisman also reported seeing sparks coming from the exhaust.

In a statement to the NTSB, Fields reported: “I chose the area with the least cars and Mike pointed out obstructions during the descent on both sides of the highway. We narrowly missed power lines, light poles and steep embankments on both sides of the highway. We touched down on top of the hill, braked hard and came to a stop after missing a car.”

The plane sustained substantial damage upon striking two highway traffic signs.

An inspection by the plane’s manufacturer found significant damage to the power turbine blades, and the compressor turbine hub was observed to have a “frosted” appearance, consistent with glass blasting. Glasslike beads and fragments were also found, “consistent with the disc assembly having been cleaned by glass media blasting in the assembled condition.”

Glass media blasting is a common method for cleaning parts. However, the manufacturer’s manual specifies that such cleaning must be performed with the disc and blades disassembled.

All 58 compressor turbine blades were found to have been fractured, and the remaining stubs were “gouged and battered,” according to the report.