Airline Support, Inc. v. ASM Capital II, L.P.
Alaska Supreme Court
279 P.3d 599 (2012)
- Written by Sean Carroll, JD
Facts
Northwest Airlines applied for Chapter 11 bankruptcy. At the time, it owed Airline Support, Inc. (plaintiff) $62,071. ASM Capital II, L.P. (ASM) (defendant) sent a letter addressed to Airline Support’s “A/R Credit Manager” in Alaska seeking to buy Airline Support’s bankruptcy claim for $19,862.72. Airline Support forwarded the letter to Katie Land, an Airline Support accounting manager located in Georgia. On Airline Support letterhead, Land responded and accepted ASM’s offer. The United States Bankruptcy Court for the Southern District of New York transferred Airline Support’s claim to ASM. Airline Support filed a motion for reconsideration, which the bankruptcy court denied. Airline Support then sued ASM in superior court in Alaska, seeking an invalidation of the assignment agreement executed by Land. Airline Support argued that Land did not have the authority to transfer the claim. ASM argued that Land had apparent authority. The superior court granted ASM’s motion for summary judgment. Airline Support appealed.
Rule of Law
Issue
Holding and Reasoning (Carpenti, C.J.)
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