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Meinrath v. Singer Co.

United States District Court for the Southern District of New York
87 F.R.D. 422 (1980)


Leopold Meinrath (plaintiff) entered into an Agreement of Purchase and Sale with The Singer Company (Singer) (defendant) and four Unicard companies that Meinrath controlled. Under the agreement, Meinrath was entitled to bonus compensation. Meinrath informed Singer at the time of entering into this contract that the Unicard companies were in need of additional funding and that Singer needed to promptly pay Meinrath all compensation due under the contract in order to fund the Unicard companies. Meinrath sued Singer for breach of the contract, claiming that Meinrath was entitled to $300,000 of additional bonus compensation. Meinrath also claimed consequential damages of $770,000 because the Unicard companies suffered substantial losses as a result of the bonus compensation not being paid. Singer filed a motion for summary judgment on the claim for consequential damages.

Rule of Law


Holding and Reasoning (Weinfeld, J.)

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