In the Matter of Seawinds Limited, Debtor. Xtra, Inc. v. Seawinds Limited, a Corporation
Opinion
Opinion
Hall, J.
XTRA, Inc. (“XTRA”) appeals from a summary judgment in favor of Seawinds Limited (“Seawinds”) entered by the district court, reversing in part and affirming in part the bankruptcy court’s order of summary judgment. We review the grant of summary judgment de novo. In re Bishop, Baldwin, Rewald, Dillingham & Wong, Inc., 819 F.2d 214, 215 (9th Cir.1987). For the reasons stated in Judge Peckham’s excellent opinion in this case, In re Seawinds, Ltd., 91 B.R. 88 (N.D.Cal.1988), we affirm.
Debtor Seawinds, in the business of transporting goods by sea, entered into several contracts to lease cargo containers and other equipment from supplier XTRA in early 1983. Dissatisfied with Seawinds’ late payments, XTRA sent Seawinds a telex on April 18, 1984, advising that further delays in payments would not be tolerated. On May 8, 1984, XTRA terminated its leases with Seawinds due to continued default of the payment terms. This termination notification also demanded immediate payment of all outstanding charges and return of all equipment. On August 2, 1984, XTRA raised the rent on the remaining equipment (effective September 1) until it could be collected from Seawinds.