Automatic Dialing Corp. v. Maritime Quality Hardware Co.

98 F. Supp. 650, 1951 U.S. Dist. LEXIS 2281
CourtDistrict Court, D. Maine
DecidedJuly 2, 1951
DocketNo. 736
StatusPublished

This text of 98 F. Supp. 650 (Automatic Dialing Corp. v. Maritime Quality Hardware Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Automatic Dialing Corp. v. Maritime Quality Hardware Co., 98 F. Supp. 650, 1951 U.S. Dist. LEXIS 2281 (D. Me. 1951).

Opinion

CLIFFORD, District Judge.

This case arose as the result of the breakdown of a contract relationship, originally between Automatic Dialing Corporation (Autodial), a Deleware Corporation, and Maritime Quality Hardware Company, Inc., (Maritime) a Maine Corporation, concerning the manufacture of twelve pilot, or production, units of a device known as the teledial.

The case came to this Court on Autodial’s complaint that Maritime had broken the contract. Autodial asked this Court, in the alternative, either to order specific performance of the contract, or to order Maritime to deliver to Autodial all the completed work done under the contract and to assess damages against Maritime for the breach. Maritime answered, denying any breach of contract on its part, and asserting instead that Autodial had made performance of the contract impossible and that the parties had entered into a new agreement, supplanting the original one which Autodial had broken. Maritime also filed a counterclaim based on the alleged new contract, asking for damages for Au-todial’s alleged breach, or, in the alternative, for specific performance of the new contract, and for an order enjoining Au-todial from using any of the work already completed by Maritime, pending decision of the case. This Court has heretofore entered its opinion and order denying Maritime’s request for an injunction, D.C., 78 F.Supp. SS8.

This Court, thereafter, granted the motion of Sandsea, Inc., a Rhode Island corporation, to intervene in the action. Sand-sea, Inc., filed claims for damages against both Autodial and Maritime, for work done by it, under contracts with the other two parties, in connection with the teledial project. It has been stipulated that the corporate name of Sandsea has been changed to Anchor Tool and Die Company, since the date when the petition to intervene was granted. The Intervenor’s name has been changed on the docket; but for convenience, however, the Intervenor will be referred to herein as Sandsea, Inc.

Maritime has admitted liability to Sand-sea, Inc., as alleged by the Intervenor. Au-todial filed an answer denying the claim of Sandsea, Inc., as to it.

Hearing on the merits was had before the Court without a jury. At the outset [652]*652of the hearing, Autodial took a voluntary-nonsuit in its case against Maritime. The hearing proceeded on Maritime’s counterclaim against Autodial, and on the claim of Sandsea, Inc., against Autodial. Exhaustive testimony was taken, numerous exhibits were filed with the Court, and extensive briefs have been submitted to the Court by all parties.

At the outset, counsel for Autodial raise a question as to the capacity of Maritime to prosecute its counterclaim, in view of the Real Party in Interest Rule, Rule 17 (a) of the Federal Rules of Civil Procedure, 28 U.S.C.A. Plaintiff’s Exhibit “A” is a certified copy of an assignment, dated April 11, 1947, from Maritime to the Reconstruction Finance Corporation, of all of Maritime’s interest in moneys due or to become due from Autodial, under the contract here in issue. The Reconstruction Finance Corporation (R.F.C.) was given the right to receive, collect, sue for and receipt for such money. Under the circumstances, Rule 17(a) applies, and the counterclaim should have been prosecuted in the name of the R.F.C., as the real party in interest.

Since the hearing, this Court has received from counsel for the R.F.C. a statement that that agency consents to submit to the jurisdiction of this Court, to be joined as a party to the counterclaim in the present action. This Court considers that the consent of the R.F.C. in this regard is a highly commendable step, in eliminating the possibility of a rehearing of the evidence in this somewhat complex case.

It is in the interest of justice to all parties that the R.F.C. be made a party to the present action, thus meeting the requirements of the Real Party in Interest Rule, and con-eluding the case for all the parties concerned. Therefore, by virtue of the authority vested in it by Rules 13(h) and 21 of the Federal Rules of Civil Procedure, this Court will order that the R.F.C. be joined as a defendant herein. For convenience in discussing the facts and issues of the case, this Court will not reiterate the interest of the R.F.C. in Maritime’s counterclaim against Autodial; but with respect to the counterclaim, it will be understood that the R.F.C. is included in all references to Maritime. It is to be noted that the R.F.C. is not concerned in the claim of Sandsea, Inc., against Maritime.

Findings of Fact and Conclusions of Law.

On the 31st day of March, 1947, Maritime entered into a contract with Autodial. This contract dealt with the manufacturing of twelve units to serve as production models for the subsequent mass production of the teledial device, a mechanical and electrical attachment for telephones, which would automatically dial fifteen pre-select-ed telephone numbers. The contract was negotiated and executed on behalf of Maritime by its President, Gunther K. E. Klee-berg, and on behalf of Autodial by its President, Ernest F. Mechlin.

Mr. Mechlin had been authorized by the Board of Directors of Autodial on February 3, 1947, to enter into a contract for the manufacture of twelve production models of the teledial, provided that the cost was not to exceed the sum of $10,000, and provided further, that the production of the models was to be completed within six months from the making of the contract. The pertinent provisions of the contract between Maritime and Autodial are quoted in the margin.1

[653]*653As Mr. Kleeberg subsequently explained in a letter to Mr. Mechlin, dated April 28, 1947, Maritime undertook to develop the teledial in complete readiness for mass production, for a price of nine thousand dollars anticipating that Maritime and Mr. Kleeberg, himself, would give “unstintingly of * * * time and ideas and act as a spark plug to push this program forward at the maximum possible speed and cope with all hurdles and interferences which may come up * * * ”. Maritime, in so agreeing, was looking forward to the promise of substantial remuneration resulting from the mass production of the. teledial since, as Mr. Kleeberg stated, “The only returns we could possibly attain would be through the eventual production in quantity of this unit.”

Maritime undertook performance of its contract with Autodial about April 1> 1950, and began work on the contract at its plant, in Belfast, Maine.

As a result of experiments and work by Maritime in the early stages of producing the teledial prototypes, Mr. Kleeberg developed certain ideas pertaining to the redesign of various parts of the teledial for the purposes of simplification and production economy. On various occasions in May, June, and July, these proposals for changes in the teledial were discussed generally and theoretically between Mr. Mech-lin and Mr. Kleeberg. It was understood that the suggestions would be embodied in drawings or plans and submitted to Auto-dial for further analysis.

The only request for any changes in the terms or conditions in the agreement between Maritime and Autodial for the production of twelve prototype teledial units made by Mr. Kleeberg, or by Maritime, prior to September 6, 1947, was a request by Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
98 F. Supp. 650, 1951 U.S. Dist. LEXIS 2281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/automatic-dialing-corp-v-maritime-quality-hardware-co-med-1951.