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Business Associations Keyed to Diamond, 6th Ed.
Energy Resources Corporation, Inc. v. Porter
Citation:
14 Mass. App. Ct. 296, 438 N.E.2d 391 (1982)Facts
From 1976 to 1979, James H. Porter served as vice-president and chief scientist of Energy Resources Corporation, Inc. (ERCO), a science and engineering company specializing in energy and environmental fields. Porter, who held a doctoral degree from MIT and had previously been an associate professor there, directed ERCO’s research on fluidized bed combustion technology. In December 1977, Porter met with colleagues from Howard University while attending a conference in Washington, D.C., which led to a joint proposal to the Department of Energy (DOE) for a development grant involving staged fluidized bed combustion of coal. Howard University was to be the primary applicant with ERCO as the subcontractor. In May 1979, Howard representatives expressed concerns about working with ERCO, preferring instead to work with a minority-owned business. Porter subsequently agreed to form his own company, Energy & Environmental Engineering, Inc. (EEE), which was substituted for ERCO in the proposal. When asked about the Howard proposal by ERCO’s president, Porter merely stated, “We’re not going to get that,” without elaborating. In October 1979, after DOE awarded the grant to Howard, Porter resigned from ERCO, falsely claiming he was leaving to work on computerized cars.
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