Aersale v. Ibrahim

U.S. DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Contracts

, New York Law Journal

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Judge Katherine Forrest

On Oct. 25, 2010, the Aersale plaintiffs and Air Nigeria Development Ltd. entered into two agreements, containing an identical condition precedent, for the lease of two Boeing 737-300 jetliners together with their engines and parts. On Nov. 12, 2010, Ibrahim, Air Nigeria's chairman, executed a personal guaranty for both aircraft (Guaranty). Air Nigeria defaulted on payments. After their Dec. 20, 2012, letter to Air Nigeria and Ibrahim demanding $7.68 million, the Aersale plaintiffs took possession of the aircraft on July 5, 2012. District court granted the Aersale plaintiffs summary judgment against Ibrahim on their claims that Ibrahim breached his guaranty to promptly pay and perform all of Air Nigeria's present and future obligations under the subject lease agreements. The court also denied Air Nigeria's July 13, 2013, motion to intervene. There was no triable issue as to any element required to enforce a written unconditional guarantee, nor did Ibrahim raise an issue as to any bona fide defense. The Guaranty was unconditional, barring the assertion of defenses. Despite raising oddities in the Guaranty—which were insufficient to raise an issue as to the Guaranty's validity—Ibrahim did not contest that he signed the Guaranty.

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