Wilson v. Du Pont
Wilson v. Du Pont
Opinion of the Court
This case is now before the court on defendant duPont’s Motion For Summary Judgment (Document No. 40) and plaintiff’s Motion For Leave To Amend the Complaint (Document No. 41).
The Complaint is based on a promissory judgment note dated April 9, 1959-(exhibit to Document No. 1), payable to the Farmers Bank of the State of Delaware, which was executed by C. D. Davis, the original plaintiff, and the defendants, duPont and Roszel.
Defendant’s Motion For Summary Judgment (Document No. 40) and plaintiff’s Motion For Leave To Amend The Complaint (Document No. 41) are presently before the court.
Motion For Summary Judgment
The motion of defendant duPont for summary judgment will not be granted. The record in this case shows that there are genuine issues present as to facts material to the disposition of this case. Although plaintiff’s argument that duPont’s depositions cannot be used in support of his motion because of the death of Davis, which occurred after they were taken,
The Complaint alleges that Davis, duPont and Roszel signed the note as joint obligors. The note itself shows that the parties mentioned were jointly and severally liable on that instrument. The deposition of Davis (Document No. 32) and that of duPont (Document No. 36) contain contradictory evidence concerning the circumstances of the transactions between the parties, the knowledge of each as to the other’s interest in the companies involved, the reliance by the bank on Davis’ financial statement before the loan was granted, as well as other important matters. Defendant duPont has not shown that the record is devoid of genuine issues as to material facts and that he is entitled to judgment as a matter of law.
A motion for summary judgment may not be granted if there are any disputed issues of fact involved. See, e. g., Kress, Dunlap & Lane, Ltd. v. Downing, 286 F.2d 212 (3rd Cir. 1960); Krieger v. Ownership Corporation, 270 F.2d 265 (3rd Cir. 1959).
Motion For Leave To Amend The Complaint
The proposed amendment of the Complaint concerns matters arising from the
F.R.Civ.P. 15(a), 28 U.S.C. states that leave to amend shall be freely given when justice so requires. It is defendant duPont’s position that this amendment will avail the plaintiff nothing because of the consideration given for the contract on which it is based and that, therefore, the court should not allow it.
In this case, the Motion For Leave to Amend should be granted. The contentions of defendant that the letter contract was against public policy and federal law and is, therefore, void, are not sufficient to prevent this motion’s being granted. The defendant maintains that the consideration for the letter contract was Davis’ agreement not to oppose a motion to dismiss bankruptcy proceedings against Mid-Tex, ignoring the other consideration stated in the contract— namely, the assignment of subrogation rights on the mechanic’s lien from Davis to duPont and Roszel. Also, the allegations that certain statements made by counsel for the creditors in the bankruptcy proceeding, who was also counsel for Davis, were improper and were misleading to the bankruptcy court are directly refuted by the affidavits of the referee in bankruptcy, counsel for Mid-Tex Gas Co. in that bankruptcy action, and counsel for the petitioning creditors in that action (see Exhibits K, L and M attached to Document No. 47). It is also not clear that, even if the allegations contained in the Reply to the Motion For Leave To Amend (Document No. 42) were completely accurate, the amendment would present a claim which cannot be enforced because it is void as being against public policy and in violation of the Federal Bankruptcy Act.
The briefs, memoranda and letters of counsel, most of which have been filed between the hearing on the above Motions held last October and December 12, 1961, have been placed in the Clerk’s file as Documents Nos. 47 to 55.
. Davis died in April 1961 and the executor of his estate has been substituted as party plaintiff. Roszel, a citizen of Kentucky, has not been served in this action.
. The counterclaim states that Davis represented that he was about to purchase a controlling interest in Wichita River Oil Oo. and then merge that company with Mid-Tex Gas Oo., of which duPont was a substantial stockholder, and that he needed the money to make the down-payment to bind the purchase of the Wichita stock. Defendant duPont was to put up the collateral to secure the loan, then Davis was to repay the loan, release the collateral and substitute a new note of Mid-Tex secured by a deed of trust. After the merger, the defendants were to be able to exchange stock for an equal interest in the merged company. He also states that he agreed to put up the collateral and endorse the note which was signed by Davis on the express condition that Davis, the alleged maker, would be the sole obligor. Davis allegedly defaulted under the stock purchase agreement and forfeited the $100,000. After stating again that his only obligation on the note was as an accommodation endorser and that Davis was the sole obligor, duPont claims that he is entitled to the return of his $125,000. collateral.
. See Document No. 53.
. For a comparison of the depositions of duPont and Davis as to certain facts concerning this transaction, see pp. 2-4 of plaintiff’s Supplemental Brief Contra Defendant’s Motion for Summary Judgment (Document No. 54). See, also, pp. 87, 104, 109, 123, 139-141, 144-5, 150-1, 154-5 and 162-5 of duPont deposition (Document No. 36).
. There are instances where, even if the factual situation is admitted, a motion for summary judgment cannot be granted. In Bragen v. Hudson County News Company, 278 F.2d 615 (3rd Cir. 1960), the court stated at page 618:
“The impact of particular circumstances upon an inference arising from an admittedly existing factual situation calls for a factual determination which is the function of the trier of the facts and not that of the court in disposing of a motion for summary judgment.”
. Leave to amend can be denied where the amendment is subject to a valid motion to dismiss. 3 Moore, Federal Practice, § 15.08, p. 834 (2nd Ed. 1948); Eisenmann v. Gould-National Batteries, Inc., 169 F.Supp. 862 (E.D.Pa. 1958). In Stephens v. Reed, 121 F.2d 696, 699 3rd Cir. 1941), the court stated that it was not an abuse of discretion to refuse to amend when what was refused would avail the offeror nothing if allowed.
. In the Gabaree ease, the amendment proposed was to include a claim under the theory of unseaworthincss; the defendant argued that under the facts alleged, plaintiff, as a matter of law, was not entitled to maintain an action under the unseaworthy theory regardless of the timeliness of the plea.
. See the persuasive arguments and authority set forth at pp. 7-15 of Document No. 47.
Reference
- Full Case Name
- Alvin WILSON, of the Estate of C. D. Davis v. R. Jacques T. DU PONT and James P. Roszel
- Cited By
- 1 case
- Status
- Published