Schwanbeck v. Federal-Mogul Corp.

This action arises out of failed negotiations between the plaintiff and the defendant, Federal-Mogul Corp., for the purchase and sale of Federal-Mogul’s Vellumoid Division (division), which Federal-Mogul eventually sold to another party (buyer), who organized a new corporation, the defendant Vellumoid, Inc. The plaintiff alleged in his complaint that Federal-Mogul breached an agreement to negotiate in good faith with the plaintiff and to honor the plaintiff’s right of first refusal; defrauded the plaintiff; and violated G. L. c. 93A, § 11 (1990 ed.). The plaintiff alleged that the buyer…