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Levy v. Leavitt
Citation:
257 N.Y. 461, 178 N.E. 758 (1931)Facts
In June 1919, plaintiff Levy agreed to take a 20% interest in a joint venture to purchase and resell approximately 2,500,000 pounds of bacon from the U.S. government. Levy contributed $50,000 (later reduced to $40,000 when $10,000 was returned at his request) and received a letter acknowledging his 20% share in profits or losses. The parties made no formal contract, but agreed that Leavitt would manage the venture and Levy would not be required to make further capital contributions. The venture failed when the government seized the bacon under the “Lever Act,” claiming violations. By the time Leavitt won a judicial determination in his favor, the bacon had deteriorated and eventually was declared unfit for human consumption. Leavitt made extraordinary efforts to sell the bacon, including traveling throughout Europe, but was unsuccessful. After the bacon was destroyed, Leavitt pursued compensation from the U.S. government, convincing the President, Congress, and the Court of Claims to approve indemnification. In the subsequent accounting, Leavitt sought compensation for his services and interest on money he advanced to the venture beyond Levy’s capital contribution.
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