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TOWERS WORLD AIRWAYS v. PHH AVIATION SYSTEMS

No. 1041, Docket 90-7909.

933 F.2d 174 (1991)

TOWERS WORLD AIRWAYS INC., The Towers Organization Inc., and Towers Financial Corporation, Plaintiffs-Appellants, v. PHH AVIATION SYSTEMS INC. and PHH Group Inc., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided May 17, 1991.

Attorney(s) appearing for the Case

Jay D. Fischer, New York City (Jeffrey D. Marks, Alexander H. Schmidt, Proskauer Rose Goetz & Mendelsohn, New York City, on the brief), for plaintiffs-appellants.

James P. O'Neill, New York City (Stephenie J. Lannigan, Victor Rivera, Townley & Updike, New York City, on the brief), for defendants-appellees.

Before LUMBARD, NEWMAN and ALTIMARI, Circuit Judges.

JON O. NEWMAN, Circuit Judge:

The Truth-in-Lending Act, 15 U.S.C. § 1643(a) (1988), places a limit of $50 on the liability of a credit cardholder for charges incurred by an "unauthorized" user. This appeal concerns the applicability of this provision to a card bearer who was given permission by the cardholder to make a limited range of purchases but who subsequently made substantial additional charges on the card. The appeal is brought by Towers World Airways...

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