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FDIC v. AIR FLORIDA SYSTEM, INC.

Nos. 84-6280, 85-6327.

822 F.2d 833 (1987)

FEDERAL DEPOSIT INSURANCE CORPORATION, as a receiver of United States National Bank, Plaintiff-Appellant, v. AIR FLORIDA SYSTEM, INC., a Delaware Corporation, Defendant-Appellee. AIR FLORIDA SYSTEM, INC., Counter-Claimant, v. FEDERAL DEPOSIT INSURANCE CORP., Counter-Defendant. FEDERAL DEPOSIT INSURANCE CORPORATION, as a receiver of United States National Bank, Plaintiff-Appellant, v. AIR FLORIDA SYSTEM, INC., a Delaware Corporation, et al., Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided July 17, 1987.

As Amended on Denial of Rehearing and Rehearing September 22, 1987.

Attorney(s) appearing for the Case

Elliot L. Bien, San Francisco, Cal., and E. Whitney Drake, Washington, D.C., for plaintiffs-appellants.

Ralph Zarefsky, Los Angeles, Cal., and Patrick C. Shea, San Diego, Cal., for defendants-appellees.

Before GOODWIN, TANG and FLETCHER, Circuit Judges.

As Amended on Denial of Rehearing and Rehearing En Banc September 22, 1987.

FLETCHER, Circuit Judge.

The FDIC appeals a judgment refusing to rescind its contract with Air Florida and enforcing an arbitration award in Air Florida's favor. We reverse in part, vacate in part, and remand.

BACKGROUND

In its capacity as receiver of the United States National Bank, the FDIC became a major creditor of the Westgate-California Corporation ("Westgate...

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