ABS Partnership v. AirTran Airways, Inc.

1 A.D.3d 24, 765 N.Y.S.2d 616, 2003 N.Y. App. Div. LEXIS 10910
CourtAppellate Division of the Supreme Court of the State of New York
DecidedOctober 21, 2003
StatusPublished
Cited by11 cases

This text of 1 A.D.3d 24 (ABS Partnership v. AirTran Airways, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABS Partnership v. AirTran Airways, Inc., 1 A.D.3d 24, 765 N.Y.S.2d 616, 2003 N.Y. App. Div. LEXIS 10910 (N.Y. Ct. App. 2003).

Opinion

OPINION OF THE COURT

Saxe, J.

The question presented on this appeal is whether the parties’ contract is ambiguous on the question of how to determine the “Delivery Date” for purposes of defendant’s right to cancel orders. We find the contract to be clear on its face, and therefore affirm the grant of summary judgment to plaintiff.

Plaintiff ABS sells aircraft noise reduction equipment known as “hushkits,” which are designed to bring DC-9 aircraft into compliance with federal noise pollution regulations. Defendant AirTran Airways, Inc., successor in interest to Valujet Airlines, Inc., is a commercial passenger airline. Plaintiff ABS and defendant AirTran Airways’s predecessor in interest entered into agreements whereby defendant would purchase a total of 44 hushkits. At issue in this appeal are hushkit order numbers 38 through 41, or, more specifically, the cancellation of those orders.

The Agreement contains a “Delivery Schedule” of “Delivery Dates” for the hushkits; the set delivery dates for the four hush-kits at issue were June 15, 1999, July 15, 1999, August 15, 1999 and September 15, 1999. Section 11.2 of the Agreement, titled “Cancellation,” permits cancellation on the following terms:

“Purchaser shall be entitled to cancel all or any portion of this Agreement with respect to one or more Hushkits by notifying ABS of such cancellation and paying ABS the applicable cancellation fee in accordance with and as set forth in Exhibit 8 hereto [see below]. Upon receipt by ABS of such notice and cancellation fee, this Agreement shall terminate with respect to the Hushkits identified by Purchaser in its notice to ABS, with neither party having any further rights or obligations under this [26]*26Agreement with respect thereto. Purchaser shall pay a cancellation fee to ABS in the amount, and on the terms, set forth in Exhibit 8 hereto and such cancellation shall only become effective upon the receipt by ABS of such cancellation fee.”

The cancellation fees payable by the purchaser in order to cancel an order are set forth in exhibit 8 to the Agreement: $50,000 where the order is canceled 61 or more days prior to the delivery date,

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Cite This Page — Counsel Stack

Bluebook (online)
1 A.D.3d 24, 765 N.Y.S.2d 616, 2003 N.Y. App. Div. LEXIS 10910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abs-partnership-v-airtran-airways-inc-nyappdiv-2003.