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- 2004 WL 2801601
Contributed by UnreasonableWoman
Plaintiff and Defendant were in a lease agreement for airplanes. After 9/11, the airline industry tanked, and Defendant went bankrupt, did not renew its lease, and returned damaged planes to Plaintiff.
Issue
Do the unforeseen events of 9/11 constitute an intervening cause significant enough to render the contract impracticable or impossible?
Conclusion
No – Changes in the market after 9/11 are not enough to make the performance of the contract impossible.
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Rule
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Analysis
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum
Facts
- Plaintiff U.S. Bancorp sold aircraft to Defendants Ameriquest Holdings and U.S. Airways on a lease plan. After 9/11 devastated the aircraft market, Defendant Ameriquest did not renew the lease and returned the damaged aircraft to Plaintiff. It also did not make the balloon payments required by their loan agreement. Defendant U.S. Airways also went bankrupt and did not renew their lease. Plaintiff now moves for summary judgment and seeks to enforce the contracts and collect on the defaulted loan amounts.
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Holding
- Hey! This is the holding for Pennoyer v. Neff. It probably isn't the holding for the brief you're looking at. Join LSD+ for full access.
- A named property within the court's jurisdiction is attached to satisfy an unrelated claim, despite the owner of said property being a non-resident of the state.
- A named property within the court's jurisdiction is attached as the basis for the suit (e.g., to quiet title), despite the owner of said property being a non-resident of the state.
- An individual is sued who is a resident of the state, or who has been served with process while physically located within the state.
- jurisdiction - Neff is neither a resident, nor was served while within the state. Service by publication may be valid for an
- proceeding, where the owner would be made aware of the suit due to their property being seized, but not for
- jurisdiction - the action was on the basis of a suit to receive payment owed, and did not relate directly to a property within the state.
- jurisdiction, as the Oregon property was not attached to the initial suit, but rather was added in after the suit happened - note that Neff did not even purchase the property until after the suit had concluded.
- Accordingly, the Oregon court did not have jurisdiction over the initial suit between Neff and his lawyer.
- Enforcement of a judgment without jurisdiction denies due process!
- Additionally, although judgments rendered by other states are entitled to full faith and credit, if that state did not have jurisdiction to render the judgment, it loses such entitlement.
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