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Contracts Keyed to Burton
Garwood Packaging Co. v. Allen & Co., Inc.
Citation:
378 F.3d 698Facts
Garwood Packaging, Inc. (hereinafter “Garwood”) (plaintiff) was $3 million in debt. They enlisted the help of Allen & Company (defendant) to find investors. The vice-president of Allen & Company told Garwood that he would consider investing $2 million of the company’s own money if another investor could be found who would make a comparable investment. Another comparable investor, Hobart Corporation, was eventually found who would provide $2 million in exchange for equity in the company. The vice-president of Allen & Company promised Garwood that he would see that the deal went through “come hell or high water.” Allen & Company, however, decided not to invest. The deal collapsed, and Garwood was forced to declare bankruptcy. Garwood sued Allen & Company for damages.
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