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ARTICLE ID 31490
$________ - BREACH OF CONTRACT - SALE OF BUSINESS - INTENTIONAL INTERFERENCE WITH ADVANTAGEOUS BUSINESS RELATIONSHIP - CONSUMER PROTECTION ACT VIOLATIONS ALLEGED ENTITLING PLAINTIFF TO AWARD OF MULTIPLE DAMAGES.
Suffolk
This breach of contract action was brought by the plaintiffs
former owners of a small computer software business, who sold the
business to the defendant Compuserve, the plaintiffs largest
customer. The plaintiffs contended that the defendant breached
the agreed upon contract of sale by failing to perform an
accounting four months after the purchase and sale, and by
failing to pay the plaintiffs profits to which they were entitled
as would have been reflected by an accounting had one been
performed. The plaintiffs additionally contended that the
defendant intentionally interfered with their advantageous
business relationship with another company, McDonnell Douglas, by
luring McDonnell Douglas into doing business with Compuserve
instead of the plaintiffs.
The plaintiffs cause of action included a Consumer Protection
93A claim based upon the evidence allegedly demonstrating a
blatant disrMcDonnell Douglas was to pay the
plaintiffs for the same license.
The plaintiff presented testimony from two fact witnesses, sales
people who did work for Compuserve, who related that they were
told by the defendants representatives that the defendant had no
intention of doing an accounting on behalf of the plaintiffs and
that Compuserve intended to make every effort to collect the
accounts receivable owed on the pre-purchase accounts originally
obtained by the plaintiffs. The plaintiff contended that the p 7 3
defendants failure to do an accounting as required by the
contract, constituted a breach of the contract.
The plaintiff additionally contended that the defendant further
breached the contract by contacting McDonnel Douglas, the
plaintiffs largest remaining client following the purchase and
sale of the business and offering to sell McDonnel Douglas the
license which the plaintiffs were offering to sell to McDonnel
Douglas. The plaintiff alleged that this was done in specific
violation of the terms of the contract which stated that the
defendant agreed to allow the plaintiffs to retain their rights
to deal with McDonnel Douglas.
The plaintiffs contended that the manner in which the defendant
dealt with the plaintiffs following the sale of the business, and
the blatant nature of the defonomist: Richard Weckstein from Brandeis University.
Defendants expert mechanical engineer: Edward M. Caulfield,
Chief Operating Officer of Packer Engineering, Inc. in
Naperville, Ill.
Jennifer Chapman, Administratrix of the Estate of Russell M.
Chapman, Jr. vs. Baker Material Handling Corporation. Case no.
91-________-RGS; Judge Richard G. Stearns.
Attorneys for defendant: David A. Barry and William L. Boesch of
Sugarman, Rogers, Barshak & Cohen in Boston, Ma.
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