720 F.Supp.3d 1175
D. Utah2024Background
- Boulder Falcon, LLC sued Robert Brown and IFLYAJET, Inc. over rights and obligations relating to a purported "Shared Ownership Agreement" for a Dassault Falcon 50 aircraft.
- The underlying dispute centers on whether a valid, enforceable contract was formed, based not only on signature but also alleged actions consistent with contract terms (such as payments).
- Both sides assert breach of contract and various tort and equitable claims, including conversion, unjust enrichment, specific performance, and alter ego/veil piercing.
- On cross-motions for partial summary judgment, each party argued the other's claims should be disposed of as a matter of law, particularly focusing on contract formation, breach theories, remedies, and counterclaims.
- The court determined that genuine disputes of material fact remain regarding contract formation, potential breaches, and alter ego liability, making most issues appropriate for trial.
- The only claim disposed of on summary judgment was Boulder Falcon's request for specific performance, which was denied as a matter of equity; all other claims survived for trial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether contract was formed | Boulder Falcon claims conduct and payments showed intent to be bound, even if not signed. | Brown/IFJ argue no contract formed due to lack of signature/delivery after changes. | Genuine dispute exists; issue for jury. |
| Whether claim for damages is barred | Boulder Falcon says contract allows damages for breach. | Brown/IFJ say exculpation clause bars damages claims. | Damages for breach explicitly allowed; not barred. |
| Summary judgment on breach of contract | Boulder Falcon provides multiple breach theories supported by payments and conduct. | Brown/IFJ contend there was no breach or, if so, no damages, or Boulder breached first. | Most breach theories survive; insufficient basis for SJ. |
| Specific performance as remedy | Boulder Falcon seeks equitable specific performance of the agreement. | Brown/IFJ argue it isn’t available for personal property w/o special equitable reasons. | Summary judgment granted for Brown/IFJ; claim denied. |
| Conversion | Boulder Falcon claims right to possess aircraft, not title, is sufficient for conversion. | Brown/IFJ say conversion claim fails due to lack of title transfer. | Genuine dispute remains; conversion survives. |
| Unjust enrichment | Argues defendants were unjustly enriched by self-dealing and obtaining sole possession. | Defendants say payments were pass-through or justified, and title never transferred. | Genuine dispute remains; claim survives. |
| Counterclaims and alter ego | Boulder Falcon argues non-signatories can't be liable under breach or other theories. | Brown/IFJ say alter ego allows broader liability; allege undercapitalization. | Alter ego is a remedial theory; factual disputes preclude SJ. |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment standard)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (genuine dispute for summary judgment)
- Frey v. Friendly Motors, Inc., 129 Ga. App. 636 (intent to contract is a question of fact)
- Del Lago Ventures, Inc. v. QuikTrip Corp., 330 Ga. App. 138 (assent can occur through conduct; signature not always required)
- Knight v. Roberts, 316 Ga. App. 599 (causation generally jury issue)
- Jones & Trevor Mktg. v. Lowry, 2012 UT 39, 284 P.3d 630 (criteria for alter ego/veil piercing in Utah)
