Trulock v. Kings County Iron Foundry, Inc.

216 A.D. 439, 215 N.Y.S. 587, 1926 N.Y. App. Div. LEXIS 9246
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 30, 1926
StatusPublished
Cited by11 cases

This text of 216 A.D. 439 (Trulock v. Kings County Iron Foundry, Inc.) 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
Trulock v. Kings County Iron Foundry, Inc., 216 A.D. 439, 215 N.Y.S. 587, 1926 N.Y. App. Div. LEXIS 9246 (N.Y. Ct. App. 1926).

Opinion

Merrell, J.

The action Was brought by the plaintiff to recover the sum of SI 1,500 alleged by the plaintiff to be his due as brokerage [441]*441commissions for procuring a customer for all the corporate assets of the defendant for the sum of $230,000, on an employment by the defendant. The plaintiff, at the time he alleges he was employed to procure a customer for the purchase of the property and assets of the defendant corporation, was himself connected with a corporation known as the Sanborn Sectional Weight Company located at Larchmont, N. Y., and engaged as a jobber in buying and selling sash weights. The defendant corporation owned and operated a foundry for the manufacture of sash weights. The plaintiff testified that on an occasion in the month of February, 1922, he was at the foundry of the defendant corporation and sought to purchase a quantity of sash weights for future delivery. At that time the defendant corporation Was under the management of another corporation, known as the J. G. White Corporation. One Ralph L. Perkins, an officer of the J. G. White Corporation, was serving temporarily as assistant secretary and general manager of the defendant corporation. Perkins was acting under the employment of the J. G. White Corporation, and, although nominally, for the time being, assistant secretary of the defendant corporation, represented the J. G. White Corporation, which was at the time managing the business of the defendant corporation. One Walter Rautenstrauch, also connected with the J. G. White Corporation, was at that time acting as president of the defendant corporation in connection with the management of the defendant’s business by the J. G. White Corporation. Both Perkins and Rautenstrauch received their compensation from the J. G. White Corporation. Neither of them received compensation from the defendant, and neither of them Was a stockholder or director of the defendant corporation. The plaintiff testified that on the occasion of his visit to the defendant’s foundry for the purpose of purchasing a supply of sash weights for future delivery, he spoke to Perkins about such purchase and that Perkins told him he did not know whether he could bind the company for future delivery as the business might be sold. Plaintiff testified that he then told Perkins that he knew some parties who were interested in getting into the foundry business, and if it was true that the business was going to be sold, would he, Perkins, care to have him submit or offer it to them; that Perkins stated that he would let him know, and that a day or two later Perkins advised the plaintiff by telephone that they would be glad to have me offer the property to responsible parties.” Plaintiff further testified that he then told Perkins that the first thing they would want to know would be the price and that the plaintiff Would want to know the commission, and that Perkins named a price of $230,000 in round numbers, and that [442]*442it was agreed that said sum should include the commission of five per cent to the plaintiff. Plaintiff further testified that he submitted the matter to his clients, and that they were interested, and that he so advised Perkins, and that an appointment was made to visit the property and plant; that an engineer and an accountant representing the prospective purchasers visited the plant and looked over the property; that the accountant was shown the figures and balance sheets of the defendant corporation, and that the plaintiff and the accountant and engineer were told that the annual balance sheet for the previous year Was then in the hands of an accountant being prepared in its final form; that later on a meeting was held at the office of the J. G. White Corporation, which was attended by Perkins, Mr. Loughran, a stockholder, Mr. Pope, identified with the defendant corporation, Mr. Rautenstrauch, and Mr. Winters, the accountant who had examined the books of the defendant corporation in behalf of the prospective purchasers; that Mr. Stickney, the engineer who was associated with the purchasers, was also present at this time. Plaintiff testified that at .that meeting Rautenstrauch informed Loughran that the prospective purchasers were ready to do business, and that they Wanted to see the final completed balance sheet signed so as to know that the business was as it had been represented; that Loughran Wanted to know what they were prepared to pay, to which Winters answered that they were prepared to pay the quoted price of $230,000; that Rautenstrauch then told Loughran that, of course, the prospective purchasers were entitled to see the signed balance sheet so that they would know the business was as it was represented; that Loughran suggested that they then call on a Mr. Walter Kuhn. At the time of these negotiations, to which the plaintiff testified, the capital stock of the defendant corporation was owned by the following named persons: Loughran, already mentioned, owned twelve and one-half per cent of the stock; two sisters of Loughran owned, respectively, twelve and one-half per cent and fifteen per cent of the stock. The balance of the capital stock, sixty per cent, was held in trust for the estate of Daniel S. Loughran, deceased. On the day following the meeting at the office of the J. G. White Corporation a meeting was arranged at the office of Mr. Kuhn, who Was one of the trustees of the Loughran estate. At this meeting there were present the plaintiff, a Mr. McCoy, and Mr. Winters, the prospective purchasers, and the engineer, Stickney. Loughran introduced the plaintiff and the wouldrbe purchasers to Kuhn, and then left the conference. At this meeting the plaintiff testified that he told Kuhn that they, had been quoted a price of $230,000 and that they had had several meetings and had gone over the [443]*443plant and property and some of the books, and that they were prepared to close the transaction at that price; that Kuhn Wanted to know where they received that figure from, and the plaintiff told him that it had been quoted to him by Perkins and confirmed by Rautenstrauch; that Kuhn stated there must be some mistake, and that while the business could be sold at a proper price, the company was asking $340,000; that Mr. McCoy, one of the prospective purchasers, then started to leave, stating that he was not interested in any price of $340,000 but was interested in the property at $230,000. The plaintiff further testified that after Winters and the engineer had examined the plant and books of the defendant, he had a meeting with Rautenstrauch and Perkins at the office of the J. G. White Corporation, and that Perkins there informed Rautenstrauch that the negotiations were proceeding satisfactorily, and that a meeting with the purchasers had been arranged at lunch that day, and that the purchasers wanted to see some balance sheet and wanted to get that from the accountants. The plaintiff testified that under the offer made to him, and which he transmitted to the prospective purchasers, they were to receive the entire assets of the corporation, its foundry and real estate, its good will, bills receivable, and all other assets of every nature and description; in short, that the purchase Was to be of the going business of the defendant; that the purchasers were to assume the defendant’s liabilities, and were to purchase and take over all of the assets of the defendant corporation. The plaintiff further testified that representations had been made to the purchaser as to what property they were to take .over, but that, while the books of the defendant corporation had been examined by Mr.

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Bluebook (online)
216 A.D. 439, 215 N.Y.S. 587, 1926 N.Y. App. Div. LEXIS 9246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trulock-v-kings-county-iron-foundry-inc-nyappdiv-1926.