Eastern Air Lines, Inc. v. Trans-Caribbean Airways, Inc.

• Decision Date: 27 November 1968
• Docket Number: TRANS-CARIBBEAN
• Citation: Eastern Air Lines, Inc. v. Trans-Caribbean Airways, Inc., 296 N.Y.S.2d 153, 23 N.Y.2d 709, 243 N.E.2d 756 (N.Y. 1968)
• Parties: , 243 N.E.2d 756 EASTERN AIR LINES, INC., Appellant, v.AIRWAYS, INC., Respondent.
• Court: New York Court of Appeals Court of Appeals

Page 153

296 N.Y.S.2d 153

23 N.Y.2d 709, 243 N.E.2d 756

EASTERN AIR LINES, INC., Appellant, v.TRANS-CARIBBEAN AIRWAYS, INC., Respondent.

Court of Appeals of New York.

Nov. 27, 1968.

Appeal from Supreme Court, Appellate Division, first Department, 29 A.D.2d 379, 288 N.Y.S.2d 317.

First airline and second airline entered into agreement whereby first airline undertook to overhaul two aircraft of second airline.Article XI provided that first airline should carry insurance against risks of fire.The second airline brought a prior action for damages against first airline for loss of one of the aircraft from fire, and the first airline filed counterclaims.On motion of the second airline the counterclaims were stricken, and the first airline's cross-motion to dismiss the complaint was denied, and the orders entered thereon were affirmed on appeal, Eastern Airlines, Inc. v. United States Aviation Underwriters, 27 A.D.2d 804, 279 N.Y.S.2d 153.

Thereafter the first airline brought action against the second airline for reformation of the contract on ground of alleged mutual mistake.The first airline alleged that Article XI did not say what the parties in tended it to mean and that it was the actual intent of the parties that the first airline should perform the work without obtaining any additional insurance, and that the first airline only learned of the alleged mutual...