Austrian Airlines v. UT Finance
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| Austrian Airlines v. UT Finance | |
| Court | Southern District of New York |
|---|---|
| Citation | 567 F. Supp. 2d 579 |
| Date decided | July 18, 2008 |
Facts
Austrian Airlines Oesterreichische Luftverkehrs AG ("Austrian") contracted to sell a used airplane to United Technologies Finance Corporation ("UT"). In turn, UT planned to re-sell the used airplane.
Between the time of the contract & the delivery date, the used-airplane market crashed. So, UT rejected Austrian's tender of the plane under the pretext that the plane's fuel tanks weren't approved by the FAA.Procedural History
Austrian sued UT.
Issues
Does a party act in bad faith when it rejects a non-conforming tender because the contract would no longer be profitable?
Arguments
Austrian argued that UT acted in bad faith by ignoring the industry custom when accepting the plane with minor non-conformities.
Holding
No. When a contract permits a party to reject a non-conforming tender, the party's subjective motive for the rejection is irrelevant.
Resources
