Industries, Investments & Agencies (Bahamas) Ltd., a Bahamian Corporation, Cross v. Panelfab International Corporation, a Florida Corporation, Defendant-Third Party Appellee-Cross v. Manfred Lehmann, Third Party

529 F.2d 1203
CourtCourt of Appeals for the Third Circuit
DecidedJune 17, 1976
Docket74--3747
StatusPublished

This text of 529 F.2d 1203 (Industries, Investments & Agencies (Bahamas) Ltd., a Bahamian Corporation, Cross v. Panelfab International Corporation, a Florida Corporation, Defendant-Third Party Appellee-Cross v. Manfred Lehmann, Third Party) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industries, Investments & Agencies (Bahamas) Ltd., a Bahamian Corporation, Cross v. Panelfab International Corporation, a Florida Corporation, Defendant-Third Party Appellee-Cross v. Manfred Lehmann, Third Party, 529 F.2d 1203 (3d Cir. 1976).

Opinion

529 F.2d 1203

INDUSTRIES, INVESTMENTS & AGENCIES (BAHAMAS) LTD., a
Bahamian Corporation, Plaintiff-Appellant Cross Appellee,
v.
PANELFAB INTERNATIONAL CORPORATION, a Florida Corporation,
Defendant-Third Party Plaintiff Appellee-Cross Appellant,
v.
Manfred LEHMANN, Third Party Defendant-Appellee.

No. 74--3747 Summary Calendar.*

United States Court of Appeals,
Fifth Circuit.

April 8, 1976.
Rehearing Denied June 17, 1976.

Michael J. Cappucio, Herbert L. Nadeau, Faunce, Fink & Forman, Miami, Fla., for Industries, Investments, etc., & M. Lehmann.

Pettigrew & Bailey, Eugene E. Stearns, Miami, Fla., for Panelfab Intern. Corp.

Appeals from the United States District Court for the Southern District of Florida.

Before BROWN, Chief Judge, CLARK and GEE, Circuit Judges.

JOHN R. BROWN, Chief Judge:

Plaintiff Industries, Investments & Agencies (Bahamas) Ltd. (IIA) brought this diversity action on a contract of agency seeking unpaid commissions from defendant Panelfab International Corporation (Panelfab), a Florida corporation. Panelfab counterclaimed to recover commissions it had already paid to IIA. A jury returned a special verdict consisting of answers to written interrogatories, F.R.Civ.P. 49(a), followed by what appears to be a general verdict1 finding for defendant Panelfab in the main action and for counterdefendant IIA on the counterclaim. Plaintiff IIA and counterplaintiff Panelfab both appeal. We affirm.

The Agency Arrangement

The pre-trial stipulation of facts provides an overview of the series of agreements and transactions which gave rise to this dispute. Panelfab builds and markets pre-manufactured housing, schools, hospitals and the like. In February 1971 Bernard Moskovits visited the officers of Panelfab in Miami on behalf of IIA, a Bahamian corporation, to discuss the possibility of IIA soliciting contracts for educational and health facilities for Panelfab in the Bahamas, where conventional building methods are costly and often unavailable. An agreement was reached, as expressed in a letter of March 9, 1971, which gave IIA authority for a period of six months to negotiate sales transactions for Panelfab in the Bahamas for educational facilities, and which provided that Panelfab would reserve for IIA a commission of 11 1/2% of the net sales price, payable upon receipt of payment from the customer.

During the ensuing months, Panelfab officials with the assistance of Moskovits conducted negotiations with the Bahamian government for a major school construction project, and Panelfab obtained a preliminary commitment from the Export-Import Bank of the United States (Eximbank) for a loan in excess of $8 million to finance the project. On October 27, 1971 Panelfab and IIA entered into a second letter agreement, which amended the manner of payment of commissions. It provided that 35% of the commission would be paid by Panelfab upon receipt of a down payment from the Bahamian government, after which the remainder of the commission would be paid at various intervals of the transaction. On November 12, 1971 Panelfab extended the March 9, 1971 agreement for 6 months until May 12, 1972.

Panelfab and IIA negotiated another letter agreement on January 3, 1972 to allow IIA to earn commissions on future school construction contracts.2 This agreement authorized IIA to solicit contracts for school buildings until December 31, 1973, on the conditions that (i) the initial school contract be concluded by March 9, 1972 and that (ii) Panelfab continue to maintain a resident agent in Nassau who would participate in the negotiation of the initial school contract and would facilitate its performance and completion.

On February 7, 1972 Panelfab and the Bahamian government signed an $11 million contract for the initial school project, contingent upon final approval of financing by Eximbank, and in early May, 1972 the Bahamian government sent Panelfab a downpayment of $1,266,123.00. As previously agreed, Panelfab then paid IIA $458,850.00 on May 10, 1972, the first installment on its commission. Relying on instructions from Moskovits and Zolten Weinmann, at that time president of IIA, Panelfab gave two checks to Moskovits, one payable to IIA for $220,248.00 and the other payable to Gemini Financial Corporation (Gemini) for $238,602.00.

In June, 1972, however, Eximbank declined to finance the project. About the same time a dispute developed between Moskovits and Manfred Lehmann of IIA over who actually controlled IIA, and Lehmann accused Moskovits of embezzling the commission moneys paid to Gemini. In August, 1972 Lehmann hired S. A. Morris, who was soon thereafter appointed to the Bahamian Senate, to replace Moskovits as IIA's resident agent for the school project.

Panelfab and the Bahamian government made another application to Eximbank for financing, and on May 3, 1973 Eximbank approved the project and loan agreement were signed.

A Bahamian Brouhaha

In its complaint, IIA alleged that in spite of the Bahamian government's downpayment, Panelfab paid it only $220,248.00 of the total initial installment due. The complaint asserted that this constituted a breach of the agency contract by anticipatory repudiation and entitled IIA to its full commission of 11 1/2% of the net sales price minus the $220,248.00 already paid, equaling $1,092,528.90. IIA's position was based on its view that in paying part of the first installment to Gemini, Panelfab disregarded instructions in a letter of December 20, 1971 from Weinmann, its then president, to pay all commissions to a Canadian bank in Nassau. IIA further prayed for a declaration that its agency contract with Panelfab continued to be valid and binding.

Panelfab answered that it received subsequent instructions from Weinmann and Moskovits in letters of May 8 and 9, 1972 to pay 48% of the commission then due to IIA and 52% to Gemini, and that it made the full initial commission payment in good faith pursuant to these instructions.

Panelfab also answered that the contract of agency with IIA was unenforceable and void, thus freeing it from making any further commission payments to IIA. Panelfab asserted that the various letter agreements were only partial expressions of a single agency agreement, which was composed of numerous written and oral agreements between IIA and Panelfab. Panelfab contended that the oral consideration for the October 27, 1971 agreement was the maintenance in the Bahamas of a full-time resident agent by IIA and that the January 3, 1972 letter agreement--with its written expression of the resident agent requirement--was intended by the parties to be a condition precedent to the payment of commissions for the initial school contract as well as all future school contracts. Panelfab claimed that from May, 1972, when the dispute arose between Moskovits and Lehmann, IIA failed to maintain a resident agent in the Bahamas and did not help facilitate the performance of the school contract, thus breaking its agency contract.3

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