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Case Study #12
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| Case Type: |
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Contracts; Breach of Contract, Commercial
Paper - Promissory Notes. |
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| Background: |
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Plaintiff sold an aircraft (1981
Citation 2) to defendants through defendant's
principal owner and president in March 2002. Plaintiff
required defendant to assume the existing financing
within 45 days of the purchase/sales contract.
The amount of the purchase was $1,775,000. The
plaintiff gave $225,000 to the defendant as a
credit for overhauling one engine and required
repayment of the note upon demand if defendant
did not assume financing within 45 days of the
execution of the contract.
Defendant did not assume financing within 45 days
of the contract nor repay the loan as required.
The aircraft was ultimately repossessed by the
finance company.
Plaintiff claimed that it disclosed all existing
conditions to the defendant. It sued the defendant
and its principal for breach of contract and breach
of the promissory note.
The defendants argued that the plaintiff failed
to disclose that an overhaul was required for
one of the engines.
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| Injury: |
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Specials in the amount of $2.6
million were introduced through the former president
of the plaintiff company.
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| Verdict: |
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The jury found that the defendants
breached the contract and the promissory note.
The plaintiff was awarded damages in the amount
of $1,775,000, plus prejudgment interest, attorney
fees and costs.
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© 2006-2004 LawFund Management Group, LLC.
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