Opinion ID: 815021
Heading Depth: 2
Heading Rank: 3

Heading: Delta Discovers Breach of VSA 11F

Text: In July 2008, Delta notified International that it had become aware that the vessels had been chartered without Delta’s knowledge in violation of the VSA. International responded in late November 2008 by remitting a check for $53,293.33, which it claimed was the extent of the “owed commissions.” Delta refused to accept the check as the full amount owed and requested material backing up International’s figure. In early 2009, while conducting an audit with one of Delta’s employees, International discovered that it owed Delta an additional $37,657, which it remitted in another check. Delta refused to negotiate this check as well, and later sent a demand letter for the liquidated damages amount multiplied by the alleged thirty-six charters that breached the 4 Case: 12-30280 Document: 00512105709 Page: 5 Date Filed: 01/08/2013 No. 12-30280 VSA, which totaled $9 million. International has conceded it breached the contract by operating twenty-seven charters.