Breach Of Contract Claims For Monetary Compensation Disputes
The company, Yothaya Co., Ltd., was to return the aircraft by September 1, 2001, and December 1, 2001. Upon these dates, Yothaya Co., Ltd. failed to return the aircraft and continued to hold and use it. Thai Airways Corporation was then forced to lease aircraft from International Aviation Co., Ltd. for a monthly fee of 200,000 baht. Subsequently, on November 15, 2006, Yothaya Co., Ltd. demanded that Thai Airways Corporation return the aircraft, and Thai Airways Corporation paid the aforementioned sum of 1,000,000 baht. Thai Airways Corporation was then sued, and they subsequently paid all rental fees to Yothaya Co., Ltd. Yothaya Co., Ltd. argued that the rental fees already paid were unenforceable due to the statute of limitations having expired, and demanded 1,000,000 baht from Thai Airways Corporation. Thai Airways Corporation countered that this demand was unfounded. The lease agreement stipulated a definite date for the return of the aircraft. Therefore, upon the expiration of that date, the lease agreement automatically terminated, according to the Civil and Commercial Code, Section 293. Thai Airways Corporation, as the owner of the leased aircraft, had no right to claim based on the law, and there was no evidence that they continued to pay rental fees after the lease agreement terminated. The Civil and Commercial Code, Section 570, was also relevant. However, Thai Airways Corporation could claim breach of contract from the date of non-delivery of the aircraft, according to the Civil and Commercial Code, Section 420. The rental fees paid by Thai Airways Corporation for leasing replacement aircraft constituted damages for breach of contract. Therefore, Thai Airways Corporation was entitled to claim against Yothaya Co., Ltd. within one year of becoming aware of the breach, namely by December 1, 2007, the date of the demand by Yothaya Co., Ltd. to pay the rental fees. This claim was based on a breach of contract occurring on November 15, 2006, which was beyond the one-year statute of limitations. The provisions regarding the lease of real property specify a two-year statute of limitations for rental fees, according to the Civil and Commercial Code, Section 193/34 (6). However, having paid a debt that had expired, the right to recover the payment was extinguished, according to the Civil and Commercial Code, Section 408. The claim for the return of the aircraft to Thai Airways Corporation, as the owner of the leased property, was always enforceable. Therefore, the claim was not subject to the one-year statute of limitations. Regarding the claim for lost profits of 5,000,000 baht, this was not damages for breach of contract, as it had expired. Thai Airways Corporation had no right to claim this amount from Yothaya Co., Ltd.