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GROUND AIR TRANSFER, INC. v. WESTATES AIRLINES, INC.

No. 89-2082.

899 F.2d 1269 (1990)

GROUND AIR TRANSFER, INC. d/b/a Charter One, Plaintiff, Appellee, v. WESTATES AIRLINES, INC. and Jesse Yohanan, Defendants, Appellants.

United States Court of Appeals, First Circuit.

Decided March 30, 1990.

Attorney(s) appearing for the Case

David M. Jones with whom McDermott & Rizzo, Boston, Mass., Marianne C. Rossi, Los Banos, Cal., and George P. Eshoo and Assoc., Redwood City, Cal., were on brief, for defendants, appellants.

Mark S. Kahan with whom Mark T. Priesing, Galland, Kharasch, Morse & Garfinkle, P.C., Washington, D.C., Kevin McGee and Seder & Chandler, Worcester, Mass., were on brief, for plaintiff, appellee.

Before BREYER, ALDRICH and TORRUELLA, Circuit Judges.

BREYER, Circuit Judge.

The two parties before us — Westates and Charter One — signed a "charter air service" contract. As the contract required, Charter One arranged for a bank to issue a $50,000 "standby" letter of credit in Westates' favor, a letter designed, in part, to make certain Westates would not suffer harm should Charter One fail to carry out its contractual obligations. See generally Itek Corp. v. First National Bank of Boston,

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