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Hunt Foods and Industries, Inc. v. Doliner

Supreme Court of New York, Appellate Division
26 A.D.2d 41 (1966)


Facts

Hunt Foods and Industries, Inc. (Hunt Foods) (plaintiff) and Eastern Can Company of which Doliner (defendant) was the majority shareholder, entered into negotiations for Hunt Foods to purchase Eastern Can. Only the price of the acquisition was agreed upon, and the parties took a break from negotiations due to disputes over the other terms. Hunt Foods was concerned that Doliner would use their offer to solicit a higher buying price from a third party and demanded an option to purchase Doliner’s stock. Hunt paid $1,000 for the option. Doliner claimed he understood that the option was unconditional only in the event that he solicited an outside offer, but Hunt denied such a condition existed. When negotiations resumed and the parties failed to reach an agreement, Hunt exercised the option, and Doliner refused to deliver the stock. Doliner appealed a grant of summary judgment ordering specific performance on the option.

Rule of Law

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Issue

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Holding and Reasoning (Steuer, J.)

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  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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