Island Air, Inc. v. LaBar

United Parcel Service, Inc. (U.P.S.) entered into an oral contract with Skyline Air Service, Inc., in 1964 or 1965, for the delivery of parcels to the San Juan Islands. Skyline Air Service was owned in part by Marjean Wilson. About 1969, Skyline Air Service, Inc., merged with Puget Sound Airlines, Inc., which took over the U.P.S. contract, and the parcel delivery contract was reduced to writing. In October 1970, Puget Sound Airlines went into bankruptcy and ceased doing business.

Marjean Wilson, with a second principal (whose interest was later purchased by John Carabba), formed Island Air,…