Safeco Leasing, Inc. v. Gateway International Co.

499 F. Supp. 1018, 1980 U.S. Dist. LEXIS 14344
CourtDistrict Court, E.D. Virginia
DecidedOctober 9, 1980
DocketCiv. A. No. 79-1052-A
StatusPublished

This text of 499 F. Supp. 1018 (Safeco Leasing, Inc. v. Gateway International Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Safeco Leasing, Inc. v. Gateway International Co., 499 F. Supp. 1018, 1980 U.S. Dist. LEXIS 14344 (E.D. Va. 1980).

Opinion

MEMORANDUM OPINION AND ORDER

OREN R. LEWIS, Senior District Judge.

Safeco Leasing, Inc. brought this diversity action against Gateway International Co. [1019]*1019and three of its officers for $250,000 for services rendered in arranging for the sale or lease of a jet aircraft to the Guatemalan national airline (Aviateca).

The plaintiff also alleges that the named defendants conspired to defraud it of its claimed commission.

The defendants answered, denying that they entered into any oral or written contract with Dr. Leonard and/or Safeco-they also asserted that the plaintiff did not in fact arrange for or procure the lease of the aircraft in question to Aviateca.

The case was heard by the Court without a jury-at the close of the plaintiff’s case, the three individual defendants were dismissed without objection. There was no proof that any of the defendants had conspired to defraud the plaintiff of its claimed fee.

The transcript of the proceedings and the remaining defendants’ post — trial brief have been filed-the case is now ready for disposition.

The issue confronting the Court in this case is simply one of fact; /. e., whether or not Gateway International orally agreed to pay Safeco Leasing $250,000 if they sold or leased the B-727 aircraft to Aviateca.

Safeco’s claim is based on an express oral contract-not on quantum meruit.

The burden is on the plaintiff to prove its claim by a preponderance of the evidence-this it has failed to do.

The uncontradicted evidence discloses that the plaintiff’s counsel sent letters to Gateway on January 23, 1979 and March 2, 1979-claiming that Gateway owed Rene Leonard a brokerage fee-in May of 1979, Rene Leonard filed suit against the named defendants in the United States District Court for the District of Columbia claiming that he (not Safeco Leasing) was the entity to whom Gateway had agreed to pay the claimed $250,000 brokerage fee.

Safeco Leasing, Inc. — not Rene Leonard-is the named plaintiff in this suit.

Safeco alleged in the original complaint that:

It entered into an agreement with the defendants, and each of them, whereby plaintiff was to secure the sale or lease of a certain B-727 aircraft for and on behalf of the defendants, and each of them, in consideration for which plaintiff was to receive a fee in the amount of $250,000 for said services.

In its amended complaint, Safeco alleged that:

On November 16-21 and 28, 1978, it entered into an oral agreement with defendants, and each of them, whereby the plaintiff was to secure the sale or lease of a certain B-727 aircraft owned and/or allegedly owned by the defendants, and each of them, for and on behalf of the defendants, and each of them, to Aviateca Airlines in Guatemala, and under the terms for and in consideration of which the plaintiff was to receive a fee in the amount of $250,000 for said services; that said agreement was for a period until said aircraft was sold or leased by said Aviateca.

The plaintiff further alleged that:

It had duly performed said services for the defendants, and each of them, as a broker and/or finder for the sale or lease of said B-727 aircraft and, in fact, the lease form used in said transaction was provided by plaintiff.

The uncontradicted evidence further disclosed that Eastern Airlines had sold a B-727 aircraft to Charlotte Aircraft Corporation for the base price of $5.2 million, adjustable upward depending on engine and airframe hours-Charlotte assigned its purchase contract to Gateway.

Gateway offered to sell this aircraft to all the major airlines, including Aviateca, by Telex, on September 13, 1978-Aviateca did not respond directly.

Charlotte told Gateway on November 6, 1978 that Aviateca was interested in the aircraft, and that the man to contact was Mr. Burt Agardy of Boreas International.

Gateway contracted to sell the airplane to Togo-this contract fell through.

[1020]*1020Gateway eventually sold the B-727 to Aircap, Incorporated-they sold it to Gateway International Leasing Co., who leased it to Aviateca in January of 1979.

Dr. Leonard came into the picture in mid-September of 1978, when Manuel Ramos, Aviateca’s Miami representative, sought his help in locating a B-727 that could be leased by Aviateca.

Ramos made it clear that Aviateca could not pay any brokerage or commission fees-that would have to come from the seller.

Leonard called and told him he had found out through some contacts that the Eastern B-727 that Gateway had acquired from Charlotte was for sale or lease, and that he was going to get all the details.

Colonel Sosa, the President of Aviateca, wrote back and told Dr. Leonard to get everything so that they could start negotiating.

Dr. Leonard arranged a meeting with Gateway on November 16 to discuss the matter-Ramos went with him — Colonel Sosa had told him to go as an informant and not to reveal anything-not to even talk to them; just to find out the details concerning the aircraft.

Prior to this meeting, sometime in mid-October, Dr. Leonard formed Safeco Leasing, Inc.-he was the sole stockholder. The charter for this corporation was granted on December 4,1978-the officers and directors were elected on December 11, 1978.

The parties do not agree as to what was said or done at the November 16 and November 21 meetings.

The Gateway people said Dr. Leonard was interested in buying the B-727 they had purchased from Charlotte. They told him they were interested in selling this airplane to anyone who had the financing for $5.5 million, but that they could not enter into any firm contract until their contract with Togo was cancelled. They expected this to happen within the next two or three days-they said that Leonard assured them he could finance some $3.2 million of the purchase money through his Miami bank, but would need some help in financing the balance. Gateway agreed to let him know if the Togo agreement can-celled out and to give him first refusal on the aircraft if he could get his finances in shape by the following week.

The Gateway people claimed nothing was said about a fee or commission-that Leonard and/or Safeco was going to buy the aircraft and lease it.

Leonard claims that he told the Gateway people during the first meeting that Aviateca could not pay a procuring fee and that they had to protect him for his fee-that he was a “hustler” who was not doing this for free-he said he told them that he had quoted his client a $5.75 million purchasing-leasing agreement, and quoted Gateway’s Vice President, Mr. Del Giudice, as saying, “That’s fine-we don’t have any objection. We will cover you for the $250,000.” Leonard said they all shook hands and he told them he would be back next week.

He came back to Washington on November 21, with Doyle and his counsel; Del Giudice, McGuire and their attorney represented Gateway.

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499 F. Supp. 1018, 1980 U.S. Dist. LEXIS 14344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safeco-leasing-inc-v-gateway-international-co-vaed-1980.