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COHAN v. MUNICIPAL LEASING SYSTEMS

July 29, 1974

WILLIAM B. COHAN, PLAINTIFF,
v.
MUNICIPAL LEASING SYSTEMS, INC., A CORPORATION, DEFENDANT.



The opinion of the court was delivered by: Bauer, District Judge.

MEMORANDUM OPINION AND ORDER

This is an action seeking to redress the alleged breach of a contract. The jurisdiction of this Court over this action is allegedly based on diversity of citizenship pursuant to 28 U.S.C. § 1332. The plaintiff, William B. Cohan, is a citizen and resident of the State of Illinois. The defendant, Municipal Leasing Systems, Inc. ("Municipal") is a corporation organized under the laws of the State of Pennsylvania and maintaining its principal place of business in the State of Pennsylvania. The amount in controversy allegedly exceeds $10,000, exclusive of interest and costs.

The plaintiff, in his complaint, alleges, inter alia, the following facts:

  1. The plaintiff is a licensed structural engineer in
     the State of Illinois and does practice that
     profession.
  2. The defendant entered into an oral agreement in
     September of 1972 wherein the defendant did retain
     the services of the plaintiff as a structural
     engineer and for the further purposes of the
     plaintiff obtaining, on the defendant's behalf,
     certain financing for the development of
     properties belonging to the defendant.
  3. At that meeting and subject to the agreement
     therein made, the defendant paid to the plaintiff
     the sum of $10,000.00 as a retainer for the
     plaintiff's services.
  4. The defendant did orally agree with the plaintiff
     that it would pay to the plaintiff as compensation
     for services rendered and would be rendered
     additional sums of money based on the plaintiff's
     normal and usual billing in such matters.
  5. The plaintiff did, in reliance on that retainer
     and oral agreement, lose other employment as he
     did not have adequate time for other jobs and was,
     therefore, damaged in the sum of $100,000.00.
  6. The check was presented for payment by the
     plaintiff but the bank upon which said check was
     drawn returned same to the plaintiff, advising
     that the endorsement had been cancelled.
  7. Plaintiff has made repeated requests and demands
     upon the defendant to pay that obligation, but the
     defendant has refused and still refuses to do so.

The plaintiff seeks damages in the amount of $110,000.00 plus his costs.

The defendant Municipal in support of its motion contends that:

  1. Municipal is a Pennsylvania corporation with its
     principal offices in Bethlehem, Pennsylvania and
     is not licensed or authorized to do business in
     ...

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