Matarese v. Moore-McCormack Lines, Inc,

158 F.2d 631 (1946)

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Matarese v. Moore-McCormack Lines, Inc,

United States Court of Appeals for the Second Circuit.
158 F.2d 631 (1946)

  • Written by Jack Newell, JD

Facts

Lawrence Matarese (plaintiff) was a dockworker employed by Moore-McCormack Lines, Incorporated (MML) (defendant). Matarese had invented a machine that was able to unload cargo from boats more efficiently. Furey, an employee of MML, made an oral offer to Matarese to go into business with him regarding the machine. Furey visited Matarese, who gave him a demonstration of how the machine worked. Furey promised to offer Matarese one-third of the profit if the machine could be put into use at the docks. Matarese later claimed Furey represented himself as MML’s agent, but Furey denied this. Matarese agreed to Furey’s offer. Many of the machines were built, and they were used on the docks. Matarese asked Furey about the compensation for the use of his ideas on several occasions. Furey promised Matarese the money but never followed through. Matarese was later terminated from his job. Matarese sued in federal district court for breach of contract, but MML countered that Furey was not acting as an agent, so it was not bound. Matarese amended his complaint to sue on a theory of unjust enrichment or quantum meruit, because MML had profited from his ideas without compensating him. The district court ruled in Matarese’s favor, granting him damages. MML appealed to the Second Circuit.

Rule of Law

Issue

Holding and Reasoning (Clark, J.)

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