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Abbington v. Dayton Malleable
United States District Court for the Southern District of Ohio
561 F. Supp. 1290 (1983)
In June 1979, the president of Dayton Malleable, Inc. (DMI) (codefendant) informed the United Steelworkers of America (union) (defendant) that DMI would close its money-losing foundry unless the union agreed to four contract changes that might convince DMI’s board of directors to invest $8 million to $10 million in new equipment. The president outlined the changes, one of which was an extension of the existing collective-bargaining agreement through December 1980. The president told the foundry’s employees, including Abbington (plaintiffs), that with the contract changes and new equipment, DMI would “have at least a chance to make this plant successful once again.” The employees voted to accept the contract changes, which were memorialized in a memorandum of agreement. DMI invested $5 million in new equipment, but continuing heavy losses forced DMI to close the foundry in May 1980. Abbington and the other employees sued DMI and the union on several counts, including breach of DMI’s oral and written promises to invest $8 million to $10 million in modernizing the foundry and to keep the foundry open through December 1980.
Rule of Law
Holding and Reasoning (Duncan, J.)
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