- 73 -
Of singular importance, we disagree with respondent’s
contention that the funds in the ANB accounts were used to
satisfy petitioner’s personal liability to Northwest. We do not
believe that respondent, who has the burden of proof, has shown
by a preponderance of the evidence that the ANB funds were used
to satisfy petitioner’s, as opposed to his corporations’,
liabilities to the airline. Northwest’s complaint was filed, and
the TRO obtained, against petitioner and his corporations.
Northwest at all times pursued its complaint against the
foregoing defendants44 and likewise entered the settlement
agreement with both petitioner and his corporations. The
corporations, not petitioner, had operated as consolidators for
Northwest; i.e., Northwest’s ticket stock had been provided to
and sold by the corporations. Thus, petitioner’s corporations
were primarily liable to Northwest for the ticket stock or the
proceeds from its sale. In our view, this is why Northwest, in
addition to filing suit against both petitioner and his
corporations, also had sought petitioner’s personal guaranty of
his corporations’ indebtedness to Northwest, refused to surrender
the Guaranty, and based one count of the complaint on it.
44 Default judgments were entered against NY NA Tours, CA NA
Tours, and SF NA Tours, but petitioner’s other corporations
remained defendants until settlement.
Page: Previous 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 NextLast modified: May 25, 2011