Kreager v. Schiffer
Kreager v. Schiffer
Opinion of the Court
This action is one to recover damages for breach of a written contract pertaining to the transfer of shares of stock of Mercu-Ray, the corporate plaintiff. The contract, which is attached to the Complaint as Exhibit A, is dated September 8, 1960, and was signed by plaintiff Kreager and one Joan Di Nocola, who signed on behalf of her “principals” stating that she was fully authorized to do so. The Complaint alleges that the individual defendants were the real parties to the agreement, that they were the “principals” referred to therein, and that they acted on their own behalf or, in the alternative, on behalf of and with the authorization of defendants Magna-Bond and Progress. It further alleges that the “principals and/or defendants Progress and Magna-Bond have not kept their agreements.” Defendant Progress has moved for summary judgment, which motion is now before the court. The basic facts incident to the adjudication thereof are as follows:
In August and September 1960, plaintiff Kreager was the president of plaintiff corporation, Mercu-Ray, and owner of all outstanding shares of stock in the corporation. Mercu-Ray owns a certain patent pertaining to an electronic sign device suitable for use as a “point-of-purchase” display; said patent and several production models of the sign are the sole assets of Mercu-Ray. In 1960, Kreager, individually and on behalf of the corporation, obtained the services of one Alfred Morgan to act as a “finder” for the financing, marketing and production of the-sign.
In August 1960, after an initial contact had been made with defendant Proggress Manufacturing Company, Kreager met with one Harold Yoskin, Executive Vice-President of the Lighting and Building Products Division of Progress. Kreager demonstrated the sign to Yoskin and presented him with a copy of the pertinent patent, as well as with the manufacturing quotations outlining the cost of production of the sign. Defendant Freed, the Director of Purchases at Progress, was also present at this meeting. Yoskin stated that Progress did not have the means of marketing the sign, suggested that defendant Magna-Bond might be interested in that phase of the proposal, and asked Freed to contact MagnaBond.
After the agreement was signed, Freed was active in other matters concerning this matter. He made telephone calls, sent Mr. Zegel, the Vice-President of Progress Webster Electronics Corporation, an affiliate of defendant Progress, to New York to confer with Kreager and examine the sign and advise about the manufacturing. He discussed the meeting with Mr. Zegel after he returned to Philadelphia and then he, Zegel, Tuchinsky, and Schiffer met and discussed the situation at Magna-Bond’s offices. He made other telephone calls and also went to New York with Mr. Tuchinsky to meet an employee of Plymouth Securities to discuss financing of the situation. Kreager states that he was acting all the time as a representative of Progress, with authority,- or apparent authority, to bind them. It is Progress’ position that his activities were not known to Progress, that Progress was also unaware of Zegel’s activities as to the matter, and that he had neither authority nor apparent authority to bind Progress.
The record contains sufficient genuine disputes as to material fact that a motion under F.R.Civ.P. 56 may not be granted. Bragen v. Hudson County News Company, 278 F.2d 615 (3rd Cir., 1960). As the United States Supreme Court stated in Sartor v. Arkansas Natural Gas Corp., 321 U.S. 620, at page 627, 64 S.Ct. 724, at page 728, 88 L.Ed. 967 (1944):
“ * * * Rule gg authorizes summary judgment only where the moving party is entitled to judgment as a matter of law, where it is quite clear what the truth is, that no genuine issue remains for trial, and that the purpose of the rule is not to cut litigants off from their right of trial by jury if they really have issues to try.”
The statement of facts as presented supra is not all inclusive as to the disputed facts, but it states many of them. As can be seen from said statement, it is not only the averments in paragraph 9 of the Kreager affidavit (Document No. 38) which are disputed but there are also many others which must be resolved. It is not the function of the judge who is considering a Motion For Summary Judgment to decide factual issues. The argument of Progress that there is no way in which Progress can be held liable because of the letter from Kreager to Yoskin, which is attached to Mr. Yoskin’s
ORDER
AND NOW, October 15, 1962, after consideration of the foregoing Motion, the attached briefs of counsel, oral argument, and the record, IT IS ORDERED that Progress Manufacturing Company’s motion for summary judgment is denied.
. Plaintiff Kreager states in Ms affidavit (Document No. 38) that Yoskin stated that Progress would be interested in manufacturing and financing the sign.
. This statement is vehemently denied by Mr. Yoskin, who states that it was put into the affidavit merely to raise an issue of fact for the purpose of defeating the
. Compare Documents Nos. 38, 43, 44 and 45 .on this point. Mr. Kreager states in his affidavit that Mr. Pincus was ill and could not be deposed prior to August 1962. His deposition, which might be very valuable in this case, was never taken.
. Another important question is the meaning of the agreement, since some defendants say that it was just meant as an option. Mr. Kreager states that there was a contemporaneous, oral agreement fixing the amount of capital to be gotten.
. Compare this ease with Pittsburgh Railways Co. v. Equitable Life Assur. Soe., 288 F.2d 640 (3rd Cir., 1961). Having found the presence of a genuine dispute as to material facts, it is unnecessary to consider the further question of whether defendant Progress would be entitled to judgment on the facts as presented by plaintiffs if no disputed facts were on record.
Reference
- Full Case Name
- James S. KREAGER and Mercu-Ray Industries, Inc. v. Ralph L. SCHIFFER, Arthur Tuchinsky, Morrie Freed, Magna-Bond, Inc., and Progress Manufacturing Company
- Status
- Published