Inauen Packaging Equipment Corp. v. Integrated Industrial Services, Inc.

970 S.W.2d 360, 1998 Mo. App. LEXIS 949, 1998 WL 247534
CourtMissouri Court of Appeals
DecidedMay 19, 1998
DocketWD 53820, WD 53915
StatusPublished
Cited by15 cases

This text of 970 S.W.2d 360 (Inauen Packaging Equipment Corp. v. Integrated Industrial Services, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inauen Packaging Equipment Corp. v. Integrated Industrial Services, Inc., 970 S.W.2d 360, 1998 Mo. App. LEXIS 949, 1998 WL 247534 (Mo. Ct. App. 1998).

Opinion

ELLIS, Presiding Judge.

John and Beverly Cremer were the sole shareholders of all outstanding stock of Integrated Industrial Services, Inc., d/b/a I2S Packaging (“Integrated”). John Cremer was also Integrated’s president. Integrated was in the business of manufacturing, repairing, *363 and refurbishing rollstock packaging machines. 1 Inauen Packaging Equipment Corporation, d/b/a VC999 USA (“VC999”) was a Missouri corporation owned by Silvio Weder, a Missouri resident, and Bernhard Inauen, a resident of Switzerland. Mr. Inauen also owned Inauen Maschinen, AG, a Swiss company in the business of manufacturing and selling rollstock packaging machines. YC999 was in the business of marketing and selling machines for Inauen Maschinen.

In 1994, Integrated was in the process of developing and building a new rollstock packaging machine which would sell for a lower price than other similar machines on the market. Integrated also leased space in its building to VC999 for three years beginning March 1,1994 and ending February 28,1997. Since VC999 leased space in the Integrated building, Weder often talked to John and Beverly Cremer. Weder and Inauen discussed with the Cremers the possibility of buying a portion of Integrated so that VC999 could sell Integrated’s new machine. On July 5,1994, Inauen, Weder and the Cremers entered into an agreement whereby Inauen and Weder would purchase seventy percent of the stock of Integrated. The parties memorialized their agreement in a writing which provided the following:

This agreement drawn this 5th day of July, 1994 between Integrated Industrial Services, Inc. d/b/a I2S Packaging, John and Beverly Cremer and Inauen Maschinen, Bernard Inauen and an individual, Silvio Weder. We hereby agree the following percentages of ownership in the new company.
John Cremer, I2S Packaging 30%
Bernard Inauen, Inauen Maschinen 51%
Silvio Weder 19%
Selling price is agreed as $385,000. The $50,000 payment received today is good faith downpayment monies. Balance of monies will be paid at closing.

On July 5, 1994, VC999 tendered a check to the Cremers for $50,000.00. On September 30, 1994, VC999 ordered from Integrated one of the new machines it had developed, the IMAG Eagle 8000 (“Eagle 8000”) for $47,000.00. VC999 gave Integrated a down-payment cheek of $23,500.00, the balance to be paid upon delivery of the Eagle 8000 on October 15,1994. Then, on October 10,1994, VC999 tendered to Integrated another cheek for $100,000.00 toward its purchase of seventy percent of Integrated stock.

The Eagle was never delivered to VC999 on October 15,1994. On November 10,1994, Mr. Cremer told Silvio Weder that Weder no longer had any responsibilities on the manufacturing side of Integrated. Cremer also delivered to Weder and Bernard Inauen the following letter:

Dear Bernie:
It is with mixed emotions and deep regret that I must write this letter. I have given a great deal of thought to this entire transaction over these last four months that Silvio and I have been working together. Although Silvio and I have tried very hard to work together, it is clear to me now that it simply is not possible. Silvio and I cannot work together under the same roof, each managing portions of I2S. Our managerial styles are like oil and water and will never mix. There are many instances where there is a complete difference of opinion, managerial strategies and priorities. Whether one or both of us is totally correct or totally wrong is not the question, the point is, we are simply just totally incompatible in our approaches to the operation of I2S. There are times when hard facts must be faced and this is one of them. How we resolve the problem is another.
There are a number of options that are available to us:
1. The most obvious, but not necessarily the best, would be simply to decide not to do the transaction at all and each of us go our separate ways. That would require us to work out some details as a result of the things we have done in the past few months but it would not be too difficult.
2. The second option is to continue the transaction and simply separate out the *364 manufacturing and marketing into two separate entities, similar to what we have now, and allow me to totally manage and run the manufacturing facility, with Silvio to be in charge of marketing only. This would require me to be the chief executive officer of I2S and have the power to run I2S. Silvio would then be in charge of the marketing company. This option would require Beverly to stay on with I2S to assist in the accounting and personnel functions since Silvio would not be doing those.
3. The third option is to restructure the deal to provide that you and Silvio purchase I2S 100% as well as the building and I would work for I2S at a fixed salary with no interest in I2S.
Due to this change, I am not planning on coming to Chicago on Sunday. If you decide to go ahead and come to the United States next week, I will be happy to meet with you here in Kansas City at your convenience to discuss the resolution of this matter. I have advised Silvio of my decision and have given him a copy of ..this letter. I have also told Silvio he has no managerial nor decision-making authority with respect to I2S and its business at this time. It is our intention to continue the manufacture and sale of Eagle Packaging Machines and to make them available for sale to customers including your marketing company until this matter is resolved.
I am willing to discuss any or all of the above options to arrive at a solution to this situation. I have lost much sleep over the last four months trying to reconcile myself to how Silvio and I could work together and, unfortunately, have simply concluded that it is not possible. As a result, we need to arrive at a solution to this situation. I regret deeply that it has come to this, but there are times when hard choices must be made and this is one of those.

Thereafter, on November 15, 1994, Weder and Inauen requested that Integrated return the $150,000.00 VC999 had paid toward the stock purchase. Inauen and Weder also requested return of the $23,500.00 down payment they had given to Integrated toward the purchase of the Eagle 8000, which was never delivered. Integrated and the Crem-ers refused to return the money. VC999 gave notice that it had vacated the Integrated building and wanted to terminate the lease on March 31, 1995. This litigation ensued.

VC999, Bernard Inauen, Silvio Weder and Inauen Maschinen, AG filed suit in the Circuit Court of Jackson County against Integrated Industrial Services, Inc. d/b/a I2S Packaging, John Cremer and Beverly Cremer. Plaintiffs’ Fourth Amended Petition was in four counts, alleging in Count I breach of contract, in Count II unjust enrichment, in Count III fraud, and in Count IV breach of agreement. Counts I, II, and III sought judgment against the Cremers and Integrated, while Count IV prayed for judgment only against Integrated.

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Bluebook (online)
970 S.W.2d 360, 1998 Mo. App. LEXIS 949, 1998 WL 247534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inauen-packaging-equipment-corp-v-integrated-industrial-services-inc-moctapp-1998.