Apple Valley Bldg. & Development Co., Inc. v. Bonanza Air Lines, Inc.

Apple Valley Building and Development Co. (Apple Valley) sued Bonanza Air Lines (Bonanza) in a diversity action to recover rent, ordinary landing fees, and excess weight landing fees all alleged to be due under the terms of a written lease of an airport. The rent and ordinary landing fees claimed were admittedly due. Excess weight fees were claimed from June 1, 1960. Liability for these was denied. The trial court entered a summary judgment in favor of Bonanza and Apple Valley appeals. We reverse.

Bonanza claims that clause 3(b) of the agreement between Apple Valley and Bonanza (the excess weight fees clause) does not appear correctly in the written contract, and that there was mutual mistake regarding the interpretation of this clause. Bonanza’s interpretation of the excess weight fees clause would result in markedly lower charges for excess weight.

As an affirmative defense, Bonanza claims that Apple Valley waived any excess weight fees. Bonanza claims that although Apple Valley knew in June of 1960 that Bonanza was using an aircraft which was of a size to incur excess weight fees, Apple Valley made no claim for such fees until January of 1965. Apple Valley claims that it…