Schwanbeck v. Federal-Mogul Corp.

Even by the exuberant standards of the 1980’s, the final judgment of $32,516,368.60 (entered on July 10, 1989) from which the defendants appeal was sizeable. What spawned the controversy was a failed effort by the plaintiff Schwanbeck to buy the assets of a division of the codefendant Federal-Mogul Corporation (F-M), and the ultimate sale of those assets by F-M to other buyers, who organized a new corporation, Vellumoid, Inc. 2 Disappointed and aggrieved, Schwanbeck brought an action which was tried before a judge of the Superior Court sitting without a jury and obtained a judgment based,…