Bank of Lexington v. Jack Adams Aircraft Sales, Inc.

MEMORANDUM OF DECISION

ORMA R. SMITH, District Judge.

The central issue in this case for the court to determine is which of two innocent parties will find itself $18,000 poorer on account of a third party’s default on a contractual obligation.

On December 26, 1972, the defendant, Jack Adams Aircraft Sales, Inc., (hereinafter “Adams”) and Buckeye Air Service, Inc., (hereinafter “Buckeye”) entered into an agreement whereby Adams would sell Buckeye five Douglas C-47 aircraft for $175,000. Upon receipt of Buckeye’s $17,-500 downpayment, Adams caused the aircraft to be delivered to Buckeye. Adams…