ILNews

FedEx wins reversal of jury's $66M award to ATA

Back to TopCommentsE-mailPrintBookmark and Share

FedEx Corp. has won an appeal that overturns a $66 million verdict in favor of defunct Indianapolis airline ATA Airlines Inc.

The 7th Circuit Court of Appeals in Chicago heard the appeal in November and issued the reversal Tuesday morning in ATA Airlines Inc. v. Federal Express Corp., No.s 11-1271, 11-1492.

ATA initially won a jury verdict over the breach-of-contract case in October 2010. FedEx unsuccessfully appealed the decision to the U.S. District Court, Southern District of Indiana before taking it to the higher court.

ATA charged in its initial lawsuit that FedEx’s unexpected decision in January 2008 to drop it as a military-charter partner forced it into bankruptcy liquidation that spring. ATA had been flying military charters for more than two decades, and it said FedEx was legally obligated to keep it on board through at least September 2009.

The appeals court said ATA’s legal experts failed to prove the amount of damages suffered because of the breach of contract. The court said ATA may well have suffered some losses due to FedEx’s actions, but because there was “no reasonable confidence in the jury’s damages award,” the case should be reversed.

The case hinged on a September 2006 letter that described how business was to be divvied up through September 2009 between ATA and another airline that was part of the FedEx military-charter team.

FedEx argued that was not a legal contract because it didn’t address financial terms and other key issues. It noted the legal standard for an enforceable contract is “a meeting of the minds of the parties, in mutual assent to all essential terms.”

In a court filing, FedEx attorneys wrote, “Given the uncontroverted evidence and the relevant law … there is simply no reasonable basis in the record on which the jury could find that an agreement on just one term of FedEx Team membership was an enforceable contract for FedEx Team membership.”

FedEx balked at the size of the jury's award, noting that in fiscal 2007, ATA earned just $2.1 million from its military charter business.

The $66 million judgment was supposed to go to ATA's creditors, who are still owed millions in the company's Chapter 7 bankruptcy. The 7th Circuit dismissed the suit with prejudice.

This story originally ran on IBJ.com Dec. 27, 2011.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Annaniah Julius annaniahjmd@ymail.com Ashlynn Ong ashlynnz@hotmail.com Baani Khanna baani2692@gmail.com boatcleaners info@boatcleaners.nl DEBBIE BISSAINTHE bissainthe56@yahoo.com Diane Galvan dianegalvan@ymail.com Dina Khalid dina.shallan@gmail.com - dinashallan@gmail.com Donna Isaiah donnaisaiah@hotmail.ca donnikki donnikki@att.net Emily Hickman emilyhickman78@yahoo.com Emma emmanoriega18@yahoo.com estherwmbau2030 estherwmbau2030@gmail.com Freddeline Samuels freddeline.samuels@gmail.com Ilona Yahalnitskaya ilona10@optonline.net Jasmine Peters jasminepeters79@ymail.com Jessica Adkinson jessica.adkinson@gmail.com - jessicaadkinson@gmail.com Jimmy Kayastha doc_jim2002@yahoo.com Jonnel Tambio syjam1415@gmail.com Katarzyna katet2806@gmail.com Katie Ali katieali.rpn@gmail.com Leah Bernaldez leij1221@gmail.com linda sahar tarabay ltarabay65@hotmail.com Ma. erika jade Carballo mej_carballo1993@yahoo.com mark voltaire lazaro markvoltaire_lazaro@yahoo.com mawires02 mawires02@gmail.com Narine Grigoryan narinegrigoryan1993@gmail.com Richie Rich richie.2022@gmail.com siya sharma siyasharma201110@gmail.com Steven Mawoko rajahh07@gmail.com vonche de la cruz vonchedelacruz@yahoo.com

  2. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  3. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  4. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  5. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

ADVERTISEMENT