In June 2002, Richmor Aviation leased a Gulfstream IV aircraft to Sportsflight Air, for the federal government's use. The parties' written agreement guaranteed 250 flight hours until November 2002, with the right to charter planes for 50 hours per month thereafter.
Richmor continued to provide a plane through 2005, and in 2006 submitted an invoice requesting payment for 1600 hours of flight time.
When Sportsflight rejected that invoice, Richmor sued claiming there had been an oral agreement to extend the 50 hours of guaranteed flight time per month. Sportsflight countered that flights had been sold on an "as needed" basis by way of an independent agreement.
After the Columbia County Supreme Court found that the parties' contract had been extended, and awarded Richmor over $1 million in damages, Sportsflight appealed.
Since the two companies continued to perform pursuant to their original agreement, the Appellate Division, Third Department, thought the trial judge correctly concluded that the original deal's terms still applied. (Richmor referred to the flights in the same manner, and used the same plane--unless it was out for maintenance, in use, or the government requested a different aircraft. Sportsflight never chartered the plane to other clients without the government's permission, and continued to maintain an on-call ground crew.)
Interestingly, the AD3 disagreed with the lower court's damage calculation and reduced the total guaranteed flight time down from 1600 to 1550 hours, and the total recovery from $1,119,650 to $874,650.
Looks like Sportsflight's arguments just never took off.
To view a copy of the Appellate Division's decision, please use this link: Richmor Aviation, Inc. v. Sportsflight Air, Inc.