In re Holmes (Ch. 11 Case No. 02-52793, Adv. No. 03-05280)
The debtor failed to make his lease payments on two aircraft. The lessor sold the aircraft to a third party. The debtor demanded a return of his security deposits and damages for breach of contract, tortious interference with contract, and fraud. The court held that the lessor had acted in good faith, had committed no fraud, and was entitled to the stipulated loss value of the aircraft. The court also held that the lessor was entitled to liquidated damages and 18% default interest under the terms of the aircraft lease. The court held that the lessor was entitled to retain the security deposits and that the debtor was liable under his personal guarantee for $2.5 million.