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Date: 08-20-1999

Case Style: Michael R. Hayes v. Bering Sea Reindeer Products, et al.

Case Number: S-8452

Judge: Walter L. Carpeneti

Court: District Court First Judicial District, Juneau, Alaska

Plaintiff's Attorney: Robert S. Spitzfaden of Gruening ans Spitzfaden, APC, Juneau, Alaska.

Defendant's Attorney: James A. Brown of Juneau, Alaska.

Description: Breach of Contract - Federal Aviation Administration – NCI contracted to purchase a Beechcraft E-18 aircraft for $73,000 from Bering Sea Reindeer Products. NCI intended to use the aircraft for commercial purposes. After making the initial $25,000 down and taking possession of the aircraft, NCI discovered that it would require extensive repairs before it would pass FAA inspection. NCI made no further payments on the aircraft. Bering Sea sued bothers Arthur and Michael Hayes individually and in their capacity as partners in NCI. Michael communicated infrequently with his brother, and assumed that he would defend the litigation. Arthur retained a defense attorney who soon quit because Arthur was unable to pay him. As a consequence NCI and Arthur failed to defend against Bering Sea's claims. The court entered default judgment against NCI and Arthur but granted Michael's request for a continuance so he could obtain counsel and contest the claims against him. Michael asserted defenses to Bering Sea's breach of contract claim, and counterclaimed for breach of contract and misrepresentation. Michael also filed a third-party claim of misrepresentation against Bering Sea's representative Will Sherman. The court dismissed his counterclaims on summary judgment because it had already determined that sovereign immunity barred similar claims asserted against Bering Sea by NCI and Arthur. After a bench trial on Bering Sea's claims against Michael and Michael's claim against Sherman, the trial court entered judgment against Michael on all claims. It ruled that Michael was liable to Bering Sea as a result of the prior judgment against NCI and Arthur.

Outcome: Trial Court entered judgment against Michael on all claims. It also ruled that Michael was liable to Bering Sea as a result of the prior judgment against NCI and Arthur.

Plaintiff's Experts: None

Defendant's Experts: None

Comments: The decision was affirmed by the Supreme Court of Alaska. See: 983 P.2d 1280 (Alaska 1999). The date above reflects the date of the appellate decision and not the trial date. Reported by EMDH.



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