Document Type

Article

Publication Date

2-1-1989

Abstract

Defendant-appellant Austin Travel Corp. ("Austin") appeals from a summary judgment entered in the United States District Court for the Southern District of New York (Pollack, J.) awarding plaintiff-appellee United Air Lines, Inc. ("United") $408,375 in liquidated damages and unpaid debt plus interest and costs. United sued Austin to recover (i) damages for breach of leases obligating Austin to use a United computerized reservation system ("CRS") called Apollo and a United business and accounting system known as Apollo Business System ("ABS"), and (ii) unpaid accrued rentals. Austin claimed that the liquidated damages clauses of its Apollo contracts with United were unreasonable and unenforceable and that United's CRS practices violated federal and New York State antitrust laws.

The district court held that the liquidated damages clauses were reasonable and enforceable and that Austin could not prevail on claims of monopolization, attempted monopolization, restraint of trade and price discrimination. 681 F.Supp. 176 (S.D.N.Y.1988). On appeal, Austin reasserts its liquidated damages and antitrust claims. Because we hold that the liquidated damages provisions of the United-Austin contracts were at the time of execution a reasonable forecast of damages in case of breach and because there was no showing at the district court of any antitrust violation by United, we affirm the entry of summary judgment in United's favor.

Comments

867 F.2d 737 (1989)

UNITED AIR LINES, INC., Plaintiff-Appellee,

v.

AUSTIN TRAVEL CORPORATION, Larry Austin, Jeffrey Austin, Defendants, Appeal of AUSTIN TRAVEL CORPORATION, Defendant-Appellant.

No. 166, Docket 88-7474.

United States Court of Appeals, Second Circuit.

Argued October 31, 1988. Decided February 1, 1989.

New York Law School location: File #653, Box #122

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