Caribbean Sun Airlines Inc. v. Halevi Enterprises LLC

Summary

The Court reversed and vacated the confessed judgment against Caribbean Sun Airlines and Miami Air because the lender failed to establish that the borrower had apparent authority to bind either corporation. The Court held that apparent authority must be traceable to manifestations by the principal, and the lender's evidence instead consisted largely of the borrower's own representations, unauthenticated documents, and ordinary access to corporate facilities and records. The Court also concluded that the corporations could not have knowingly, voluntarily, and intelligently waived due process rights of which their officers were unaware.