Sharlitt v. Gorinstein, 75-4354

• Decision Date: 30 June 1976
• Docket Number: No. 75-4354,75-4354
• Citation: 535 F.2d 282
• Parties: Joseph H. SHARLITT and Neal E. Krucoff, Plaintiffs-Appellants, v. Joseph B. GORINSTEIN and William F. Mahoney, Defendants-Appellees. Summary Calendar. *
• Court: U.S. Court of Appeals — Fifth Circuit

Page 282

535 F.2d 282

Joseph H. SHARLITT and Neal E. Krucoff, Plaintiffs-Appellants, v. Joseph B. GORINSTEIN and William F. Mahoney, Defendants-Appellees.

No. 75-4354

Summary Calendar. ^*

United States Court of Appeals Fifth Circuit.

June 30, 1976.

Howard R. Hirsch, Miami Beach, Fla., for plaintiffs-appellants.

Alexander S. Gordon, Richard P. Kenney, Miami, Fla., for defendants-appellees.

Appeals from the United States District Court for the Southern District of Florida.

Before AINSWORTH, CLARK and RONEY, Circuit Judges.

PER CURIAM:

In this Florida diversity case, the district court granted summary judgment for defendants both on plaintiffs' original claim and on defendants' counterclaim. We vacate the summary judgment on the counterclaim because it was rendered in violation of the procedural requisites of Fed.R.Civ.P. 56, and pretermit any decision on the propriety of the partial judgment on the primary claim.

The facts as developed to this point in the litigation disclose that in the fall of 1973 Sharlitt negotiated with Gorinstein to invest in a business organized and promoted by defendants. The new corporation (IPP) was to establish stations in Puerto Rico for receiving blood from donors and was to maintain facilitates for isolating plasma and other valuable medical components (e g., gamma globulin, albumin). On February 11, 1974, Sharlitt entered into an agreement with defendants to buy 1% of IPP on or before March 11, 1974 for $38,333.00 and to purchase two additional stock increments of 1% each for $38,333.00 apiece on or before April 24 and on or before December 31 of that year. Sharlitt paid the price of the first purchase increment in March and with defendants' consent assigned a portion of the shares to his law partner, Krucoff. However, when notified on May 10, 1974 that the business had collapsed, Sharlitt did not pay the amount specified for either of the other two purchases provided for by the stock purchase agreement.

The complaint alleged that plaintiffs were entitled to a refund of their $38,333.00 investment on the basis that defendants had failed to perform certain oral promises and commitments made contemporaneously with the purchase agreement. In addition to denying that any such oral commitments had been made, defendants counterclaimed for $76,666.00, the total sum due for the two remaining 1% stock purchases under the terms of the agreement. In its reply to the counterclaim, plaintiff alleged, inter alia, that it had no continuing obligation to make further investments in IPP since "there was no further project in which to invest."

On October 15, 1975, after depositions of the principal parties had been taken and a pre-trial conference held, defendants filed their motion for summary judgment as to plaintiffs' claim. The motion did not purport to cover defendants' counterclaim. In support of its motion, defendants contended that any evidence of the alleged oral commitments were inadmissible under the parol evidence rule and alternatively, that any oral promises made were unenforceable under the Statute of Frauds. Without assigning any reasons for its decision, on November 7, 1975 the court rendered summary judgment for defendants on the plaintiffs' claim.

No action was taken on the counterclaim until December 6, 1975, when in reviewing the file in preparation for trial of the counterclaim, the district court decided that the "very issues raised by the Counterdefendants' Reply to...