Jannusch v. Naffziger

Facts

The plaintiffs operated a concession business, Festival Foods, that served food at festivals and events around Illinois and Indiana. The business’ assets included a truck, trailer, and a variety of food storage, cooking, and serving equipment. Defendants became interested in purchasing the business. Plaintiff Gene testified that the parties reached an oral agreement on August 13, 2005 to sell Festival Foods to defendants for $150,000. Defendants paid $10,000, took immediate possession of the assets, and worked the business the remainder of the 2005 season. Defendant Louann, however, testified that she could not recall making an agreement on any particular date and Defendant Lindsey testified that the defendants paid plaintiffs $10,000 on August 13, 2005 for the right to continue to purchase the business because there was another interested buyer. The defendants were ultimately approved for a loan, but did not pay plaintiffs the remainder of the purchase price. The defendants further admitted to taking possession of Festival Foods, replacing equipment, purchasing inventory, receiving income, paying taxes, and paying employees. Defendants operated six events in 2005, and Plaintiff Gene attended the first two events to assist (he was paid $10 an hour plus lodging from the defendants). At the end of the 2005 season, defendants returned Festival Foods to a storage facility because income from the events was lower than expected. However, Plaintiff Gene had already canceled the lease on the storage facility advising the owner he had sold the business.