Moore v. Bonbright & Co.

202 A.D. 281, 195 N.Y.S. 854, 1922 N.Y. App. Div. LEXIS 4894
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 21, 1922
StatusPublished
Cited by10 cases

This text of 202 A.D. 281 (Moore v. Bonbright & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. Bonbright & Co., 202 A.D. 281, 195 N.Y.S. 854, 1922 N.Y. App. Div. LEXIS 4894 (N.Y. Ct. App. 1922).

Opinion

Kelly, J.:

The action was commenced February 28,1921, and the defendants demurred to the amended complaint on January 25, 1922, upon the grounds: (1) That it did not state facts sufficient to constitute a. cause of action; (2) that causes of action were improperly united.

The order granting the defendants’ motion for judgment upon the pleadings is dated April 10,1922. It does not recite the grounds upon which demurrer is sustained nor are we favored by any opinion or memorandum by the learned justice at Special Term. As the order and judgment dismiss the complaint upon the merits without leave to amend, I assume that the court was of opinion that the complaint did not state a cause of action, and this is the argument of the respondents on this appeal.

Upon a motion for judgment upon the pleadings upon the ground that the complaint does not state facts sufficient to constitute a cause of action we are not called upon to decide whether the plaintiff will ultimately succeed on the trial. We are to take the plaintiff’s story of his grievance as alleged in the complaint, and taking the facts pleaded as admitted and resolving every legitimate inference in favor of the pleading we are to ascertain whether he states a cause calling for an answer by the defendants.

The action is based upon an agreement annexed to the complaint, dated October 26,1915, between plaintiff and the defendant Factory Products Export Corporation, a New York corporation, by which plaintiff agrees to secure from an unnamed foreign government or [284]*284its authorized representatives an order running to plaintiff or such person or company as the Export Corporation shall name, for 5,000 automatic machine guns of a model which plaintiff has the right to make and sell, the contract price per gun to be approximately $600 and the cost of manufacture, not including amortization charge on cost of plant, not to exceed approximately $250. Specifications are to be such as can be readily complied with; deliveries are not to be required under seven months from the acceptance of the order and are to extend over at least twelve months thereafter, the contract to call for American inspection and full payment at or before acceptance and shipment. Plaintiff agrees to vest in a company to be organized in such manner as the counsel for the Export Corporation may advise, all rights under such contract and all patent rights necessary for carrying out the same, and he also agrees to turn over to said company from time time all other acceptable contracts for automatic machine guns or other munitions which he may secure or to the benefits of which he may be entitled. Plaintiff agrees to procure on behalf of the new company a contract with the Taft-Peirce Manufacturing Company of Woonsocket, R. I., for the manufacture of parts of the automatic machine guns on terms which will keep the total manufacturing costs within the limits mentioned and which shall be in other respects acceptable to the Export Corporation.

Upon compliance with these conditions to the reasonable satisfaction of the Export Corporation, and provided it shall be satisfied as to the facilities, organization and personnel for the manufacture of said guns, the Export Corporation agrees that it will forthwith organize at its own expense the American Arms and Ammunition Company or a corporation of similar name, with a capital stock of $1,000,000 preferred and $2,000,000 common stock, with a board of directors and executive committee to be selected by the Export Corporation. The plaintiff is to be vice-president and. general manager of the arms company, which agrees to employ him in that capacity for the first year of the company’s existence, at an annual salary of $18,000, beginning on the organization of the company and payable monthly, and for such longer period and at such salary as the parties may agree upon, and plaintiff agrees to serve the company and to give his undivided time and attention to securing of contracts and in general to carrying on and developing the business of the arms company under the direction of the board. He is to associate himself with such experts as he may select, subject to approval by the company which agrees to pay them. The defendant Export Company agrees to underwrite the sale of the preferred stock, 10,000 shares, and of 10,000 shares of [285]*285the common stock for $1,000,000, on such terms as will provide the arms company with funds as they may be required, the proceeds of the sale of such stock to be paid to the arms company to be used for the corporate purposes of said company. The remaining common stock, 10,000 shares, to be issued as full-paid and non-assessable, will be divided 4,000 shares to plaintiff and 6,000 shares to defendant Export Corporation.

This agreement is signed by the plaintiff and by the defendant Export Corporation, by defendant Louis E. Stoddard as president.

The complaint alleges that the defendant Export Corporation and the defendant Bonbright & Co., Inc., were closely affiliated, and that the acts of the Export Corporation were controlled by the Bonbright Company, that the directorates of the two corporations were interlocking, the same men holding office in both corporations. It is alleged that the Export Corporation was organized for the purpose of and was at the time mentioned engaged in handling the export and commission business of the Bonbright Company. It is alleged that defendants Stoddard and Woolsey were directors and officers of the Export Corporation, and defendants Bonbright — William P. and Irving —, Walcott, Willcox and Walbridge were directors of the Bonbright Company.

The plaintiff then alleges that during the autumn of 1915 Great Britain in alliance with other nations was at war with Germany and its allies, and was endeavoring to obtain in this country large quantities of ammunitions including automatic machine guns. It is alleged that Great Britain was represented in this country by General Pease as its agent, and that J. P. Morgan & Co. of New York city was also acting for the British government and its allies in the purchase of munitions. The sources of supply of machine guns were inadequate and the demands of the British government and its allies were greater than could be supplied from the factories then conducted and in operation.

The plaintiff alleges that at this time he had been engaged for more than twenty-five years in the business of manufacturing and selling firearms, that he had expert knowledge and by reason of his experience he was peculiarly and exceptionally qualified to formulate and carry through to completion a plan to supply the automatic machine guns needed by the British government, at a great profit to himself and to those who might join him in such enterprise. He alleges that he formed a plan for manufacturing and selling machine guns of a type known as the Colt type to the British government, and carried such plan so far towards completion as to be ready with the help of skilled assistants, for whose services he had arranged, to make arrangements to manufacture [286]*286Colt type machine guns provided he could procure the funds necessary to pay the cost of manufacture. He alleges that the Colt type of gun had up to that time been manufactured by the Colt Firearms Company, but in small quantities, and that the Colt Company had not facilities, for extensive manufacture sufficient to meet the existing demand. He alleges that the Colt type guns had been theretofore manufactured under a patent which had recently expired and that plaintiff knew of the expiration of the patent.

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Bluebook (online)
202 A.D. 281, 195 N.Y.S. 854, 1922 N.Y. App. Div. LEXIS 4894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-bonbright-co-nyappdiv-1922.