Jet Traders Investment Corp. v. Tekair, Ltd.

89 F.R.D. 560, 32 Fed. R. Serv. 2d 1120, 1981 U.S. Dist. LEXIS 11460
CourtDistrict Court, D. Delaware
DecidedMarch 16, 1981
DocketCiv. A. No. 79-363
StatusPublished
Cited by35 cases

This text of 89 F.R.D. 560 (Jet Traders Investment Corp. v. Tekair, Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jet Traders Investment Corp. v. Tekair, Ltd., 89 F.R.D. 560, 32 Fed. R. Serv. 2d 1120, 1981 U.S. Dist. LEXIS 11460 (D. Del. 1981).

Opinion

OPINION

LATCHUM, Chief Judge.

Presently before the Court is the motion of Transportes Aereos De Angola (“TAAG”) to intervene in this action which involves the circumstances surrounding the aborted sale of an aircraft of which TAAG would have been the ultimate purchaser. TAAG seeks to intervene as a matter of right under Rule 24(a)(1) and (a)(2), F.R. Civ.P., and also seeks permissive intervention under Rule 24(b)(2). All of the parties to this action oppose TAAG’s motion. First, they contend that TAAG has not shown that it is entitled to intervene under any provision of Rule 24. Second, they argue that TAAG lacks standing to bring suit in the courts of the United States because it is an instrumentality of Angola, a nation which the United States does not formally recognize. Because the Court has concluded reluctantly that TAAG may not intervene under Rule 24, it will not reach the second question.

In order to determine whether or not TAAG is entitled to intervene, it is necessary to examine in some detail the claims of the various parties and the intervenor, their factual allegations, and the procedural history of the action. All well-pleaded material factual allegations contained in the intervenor’s complaint must be accepted as true. In addition, the Court may consider any facts alleged in the pleadings of the parties or contained in affidavits as long as they do not contradict the allegations of the proposed intervenor. Central States, Southeast and Southwest Areas Health and Welfare Fund v. Old Security Life Insurance Co., 600 F.2d 671, 679 (C.A.7, 1979); Stadin v. Union Electric Co., 309 F.2d 912, 917 (C.A.8, 1962), cert. denied, 373 U.S. 915, 83 S.Ct. 1298, 10 L.Ed.2d 415 (1963); Clark v. Sandusky, 205 F.2d 915 (C.A.7, 1953); Dudley v. Southeastern Factor & Finance Corp., 57 F.R.D. 177, 184 (N.D.Ga.1972); Atlantic Refining Co. v. Port Lobos Petroleum Corp., 280 F. 934 (D.Del.1922); 3B Moore’s Federal Practice ¶ 24.14 (1980).

I. Factual and Procedural Background.

TAAG is a juridical entity of the Ministry of Transport of the People’s Republic of Angola, organized under the laws of that country with its principal place of business located in Luanda, Angola.1 On May 11, 1979, TAAG entered into a written agreement (“the TAAG contract”) with the plaintiff, Jet Traders Investment Corporation (“Jet Traders”), a Florida corporation with its principal place of business in Florida.2 In the TAAG contract, Jet Traders agreed to sell and TAAG agreed to purchase for a price of $7,500,000, a Boeing 707-321F aircraft, bearing manufacturer’s serial number 19375 and United States registration mark N473 RN (“the Aircraft”).3 The Aircraft [563]*563which is the subject of the TAAG contract is of unique and special value to TAAG because it is a Boeing 707 model 321F, which unlike the more common model 321C, is a “dedicated freighter,” a plane that has been modified extensively to enhance its value as a cargo-carrying craft. It is also of a unique and special value to TAAG because these Boeing planes are the only type which TAAG’s personnel have the training to maintain and operate and because no other similar aircraft are available.4 The TAAG contract called for delivery of the Aircraft to TAAG by June 25, 1979,5 and for extensive modifications to accommodate it to the maintenance needs and operational capabilities of TAAG’s personnel.6

There appears to be no dispute that TAAG has performed all of its pre-delivery obligations under the TAAG contract, including the payment to Jet Traders of $6,550,000. As called for by the contract, this amount was made in two payments. The first payment of $750,000 was made on April 11, 1979, one month before the contract was signed and the second was made on May 11, 1979, the date upon which the contract was executed.7

At the time the TAAG contract was executed, Jet Traders did not hold title to the Aircraft. At all times title has been held by defendant Ronair, Inc. (“Ronair”),8 a Delaware corporation with its principal place of business in New York.9 On or about May 23, 1979, after the TAAG contract was signed, two other agreements were concluded with respect to the Aircraft. Each on its face purported to be a contract for the sale of the Aircraft and specified that delivery was to be made on or before June 4, 1979, in Wilmington, Delaware, or such other location as might be mutually agreed upon in writing.10 By the first contract (the “Ronair contract”),11 Ronair purported to agree to sell the Aircraft to defendant Tekair, Ltd. (“Tekair”) for a price of $4,980,000.12 Tekair is a Swiss corporation with its principal place of business in Switzerland13 and is under the domination and control of the same individuals who control Ronair.14 The second contract15 purported to be an agreement of sale of the Aircraft by Tekair to Jet Traders for a price of $6,000,000 (“the Tekair contract”).16

The nature of these contracts and the facts surrounding their negotiation are hotly disputed. The parties, other than TAAG, contend that they were separate agreements, and on their faces, they appear to be entirely separate contracts of sale. On the other hand, TAAG alleges that on or about May 7, 1979, Ronair entered into an agreement with Tekair whereby it engaged Tekair to act as its exclusive agent for the sale of the Aircraft.17 TAAG also contends that the Tekair contract was in fact an agreement by which Tekair ceded all or part of this agency to plaintiff Jet Traders.18 Thus, TAAG claims that there was really only one contract, between Ronair and TAAG, and that Jet Traders and Tekair were merely intermediate brokers and agents for Ronair. TAAG alleges that Tekair negotiated directly with TAAG concerning the sale of the Aircraft as early as [564]*564January 1, 1979.19 Finally, TAAG alleges that another unwritten contract exists between it and Ronair (“the oral contract”) wherein Ronair, by its own conduct and through the conduct of its agents, contracted with TAAG to deliver the Aircraft and to assist in assuring that the modifications called for by the TAAG contract were carried out.20

The terms of the contract or contracts were never carried out by Ronair, Tekair and Jet Traders. The Aircraft was not delivered, nor tendered for delivery on June 25, 1979, nor on any date thereafter, and Ronair has retained title in it. TAAG subsequently delivered written notice to Jet Traders, terminating the contract and demanding a refund of the amount paid toward the purchase price together with consequential damages and accrued interest. Jet Traders has failed to return any money to TAAG whatsoever.21

TAAG also alleges that certain tortious actions were committed by Ronair, Tekair and Jet Traders.

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Bluebook (online)
89 F.R.D. 560, 32 Fed. R. Serv. 2d 1120, 1981 U.S. Dist. LEXIS 11460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jet-traders-investment-corp-v-tekair-ltd-ded-1981.