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Ginsberg Machine Co. v. J. & H. Label Processing Corp.

February 15, 1965

GINSBERG MACHINE CO., INC., PLAINTIFF-APPELLANT,
v.
J. & H. LABEL PROCESSING CORP., DEFENDANT-APPELLEE



Lumbard, Chief Judge, and Medina and Marshall, Circuit Judges.

Author: Marshall

MARSHALL, Circuit Judge

Plaintiff commenced an action for breach of contract in a New York state court, and it was removed, pursuant to 28 U.S.C. 1441(b), to the District Court for the Southern District of New York. Trial commenced before Judge Levet and a jury, and at the conclusion of plaintiff's case, defendant moved for a directed verdict and for dismissal of the complaint. The motion was granted and we affirm.

Jack Ginsberg, plaintiff's president, testified that he and Cliff Jordan, defendant's president, created an oral contract at a business convention in Atlantic City in 1953. Jordan is claimed to have said:

"Jack, you cannot sell labels; labels is our business. Machinery is your business, and I want to get out of the machine business. You can build a machine and as long as you build a machine you can have the exclusive agency, and as long as I am in the Electric Sealing label business I'll see to it that you have an exclusive on the selling of the label machines."

Ginsberg claimed he replied, "I'll be very happy to have it on that basis," and the parties shook hands. Several months later Ginsberg sent Jordan the following letter:

"Ginsberg Machine Co., Inc.

224 Fifth Avenue,

New York 1, N.Y.

September 2, 1953

Mr. Cliff Jordan

J. & H. Label Processing Corp.

230 W. Passaic ...


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