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Business Assoctiations Keyed to Gabalson, 3rd Ed.
British American & Eastern Co. v. Wirth, Ltd.
Citation:
592 F.2d 75 (1979)Facts
Frederick Sunley served as the United States representative for an Austrian steel mill (VMW) for twenty years. In 1974, when Sunley was 74 years old, VMW sought a younger successor and selected Manfred Wirth based partly on Sunley’s recommendation. On February 22, 1974, Sunley and Wirth entered into a written agreement whereby Sunley would “actively support” Wirth’s sales efforts and help obtain materials from VMW in exchange for commissions on sales. The relationship deteriorated when Sunley became concerned that Wirth was mishandling VMW’s business, which affected Sunley’s commissions. Sunley began writing letters to VMW management criticizing Wirth’s performance. Additionally, Wirth alleged that Sunley accepted bribes from a customer called Non-Ferrous in exchange for increasing their allocation of scarce aluminum, while Sunley claimed these were legitimate payments for past services. In January 1976, Wirth ceased making payments to Sunley under their agreement, leading to this lawsuit.
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