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Contracts Keyed to Ayres
Industrial America, Inc. v. Fulton Industries, Inc.
Citation:285 A.2d 412.
The Plaintiff (Industrial America, but specifically the president Deutsch) was representing Bush Hog (B-H) in their search for a merger. While having lunch with a friend, the Plaintiff learned that the Defendant was a company looking to buy a product line that B-H could furnish. After the lunch, the Plaintiff found from his own files a copy of the Defendant’s advertisement in the newspaper, stating that the Defendant was looking to buy a product line that satisfied certain conditions, and providing an offer of guaranty that brokers would be fully protected. The Plaintiff and the Defendant then entered into preliminary communications where interest by Defendant in acquiring B-H was established. On October 26, the Plaintiff advised B-H of the Defendant’s interest and suggestion for a visit. After that communication, the Defendant then called B-H and entered into negotiations directly, thus freezing the Plaintiff out of the transaction. A merger was completed between the Defendant and B-H but neither company paid the Plaintiff the broker’s commission.
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