Friday, December 27, 2013

Itek Corp. v. Chicago Aerial Indus., Inc. case brief

Itek Corp. v. Chicago Aerial Indus., Inc. case brief summary
248 A.2d 625 (1968)

CASE SYNOPSIS
The Supreme Court of Delaware affirmed summary judgment in favor of appellee principal stockholders in a breach of contract action brought by appellant, the corporation attempting to purchase the principal stockholders' shares. The corporation petitioned for reargument of the court's holding that no view of the evidence would warrant a finding that there was an enforceable contract between the corporation and the principal stockholders.

CASE FACTS
The corporation attempting to purchase the principal stockholders' shares contended that the principal stockholders promised that they would support and vote for the proposition made by the corporation to the principal stockholders' corporation, and would do nothing in derogation of it. The corporation argued that the subsequent sale of the principal stockholders' stock to a third party at a higher price was a breach of promise.

DISCUSSION

  • The court found that the record contained no support for the contention that the principal stockholders made a promise directly to the corporation. 
  • The court found evidence of a telephone conversation between one of the principal stockholders and the president of the corporation to the effect that the principal stockholders accepted the offer and that the board would recommend acceptance to the other stockholders. 
  • The court found that the principal stockholder then obtained written ratification from the principal stockholders. 
  • The court concluded that a fair reading of the ratifications demonstrated that if they constituted a promise to anyone, that promise ran solely to the principal stockholders' corporation.
CONCLUSION
The court affirmed its previous order affirming the grant of summary judgment in favor of the principal stockholders.

Suggested law school study materials

Shop Amazon for the best prices on Law School Course Materials.

No comments:

Post a Comment

Search Thousands of Case Briefs and Articles.