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Contracts Keyed to Fuller
Gruen Industries, Inc. v. Biller
Citation:
608 F.2d 274 (7th Cir. 1979)Facts
In early 1975, Gruen Industries and its subsidiary approached Biller and Hersch, who each owned 170,000 shares of The Windsor Group, to discuss acquisition. Plaintiffs allege that in May 1975, an oral agreement was reached for the sale of Windsor’s assets, which was later restructured as a sale of shares. Plaintiffs claim they were assured they had a firm commitment before incurring expenses for preparation of written documents. The drafting process continued through early July, with the signing date set for mid-July and the closing date for November 1, 1975. However, on July 17, PCA made a higher offer for the shares, which Biller and Hersch accepted. The plaintiffs sued for breach of contract, promissory estoppel to recover preparation expenses, and tortious interference against PCA. The district court granted summary judgment to defendants on all counts, finding the alleged oral agreement unenforceable under the statute of frauds, the plaintiffs’ reliance unreasonable for promissory estoppel purposes, and no valid contract for PCA to interfere with.
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