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Civil Procedure Keyed to Babcock
Kupferman v. Consolidated Research & Mfg. Co.
Citation:
459 F.2d 1072 (2d Cir. 1972)Facts
In 1961 Vickers, Christy, an underwriter, becomes insolvent and Plaintiff Kupferman takes over during the company’s insolvency. Amongst Vickers, Christy’s assets were 12,500 shares in Defendant Consolidated that Vickers, Christy acquired pursuant to an underwriting agreement with Consolidated in 1960. But by 1962 the shares had lost much of their value. Plaintiff Kupferman filed suit alleging Defendant Consolidated did not comply with SEC filing requirements. In preparing for litigation Plaintiff Kupferman’s attorney Ross found an agreement between Vickers, Christy and Consolidated that released Consolidated from liability for breach based on lost value of shares. Ross concealed the document and Plaintiff Kupferman won a judgement against Consolidated. The company did not have enough to cover the judgement, so Plaintiff Kupferman went after the directors of the company to satisfy the judgement. In 1971, during the course of the litigation against the directors of Consolidated, one of Consolidated’s directors, Jacobsen, found the statement that released Consolidated from liability, the same document Kupferman’s attorney Ross found earlier but did not disclose. Jacobsen attempted to use the release from liability document to vacate the judgement, but the court denied it and Jacobsen appealed.
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