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Rosenfeld v. Lion Manufacturing Corp.

March 3, 1958

JACK ROSENFELD, DOING BUSINESS AS J. ROSENFELD COMPANY
v.
LION MANUFACTURING CORPORATION, ET AL. *FN1



Author: Schnackenberg

Before DUFFY, Chief Judge, SCHNACKENBERG and HASTINGS, Circuit Judges.

SCHNACKENBERG, Circuit Judge.: Plaintiff's complaint, as amended, hereinafter referred to as the complaint (filed on April 12, 1954 and amended on April 15, 1954), consists of three counts.

Count I is based upon an alleged agreement entered into between plaintiff and defendant Bally Manufacturing Company, an Illinois corporation (hereinafter referred to as Bally), a copy of which is attached to the complaint and designated "Exhibit A". It is referred to in count I as an "agreement whereby plaintiff became exclusive regional distributor of the coin-operated amusement machines manufactured and sold by defendants Lion and Bally in the 'St. Louis-Southern Illinois territory'."

It is further alleged that defendant Lion Manufacturing Corporation (herein referred to as Lion) is engaged in the business of manufacturing and selling coin-operated amusement machines, that Bally is the alter ego of Lion, that Raymond T. Moloney is president of Lion and Bally, defendant Andrew J. Renn is executive vice-president and treasurer thereof, while defendant George W. Jenkins is vice-president of Bally. It is further alleged that defendant Jack Nelson*fn2 was general sales manager of Bally, defendant William O'Donnell is assistant sales manager of Bally and defendant Phil Weinberg is district sales manager of Bally.

Exhibit A we set forth below:

"July 20, 1945.

"Jack Rosenfeld,

Rogers Park Hotel

6807 N. Sheridan Road,

Chicago, Ill.

Dear Jack:

"Due to circumstances I am happy to depart from our established custom and give you this letter confirmation of our personal discussion and my verbal reassurance - that we are ready to appoint you our BALLY Regional Sales Distributor for the 'St. Louis-Southern Illinois territory.'

"You, personally, know that it has never been our practice to execute formal written agreements or 'franchises' and be entirely satisfied with the same man-to-man understanding that we have with all our other key men who, thanks to their own qualifications and the BALLY hook-up, are leaders in the industry.

"At the same time I appreciate that your Uncle, whom you expect to be associated with you, is not familiar with the background and it's no more than fair to give you this tangible support of ...


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