Manufacturers and Traders Trust Company v. Murphy

OPINION

KNOX, District Judge.

This diversity action arose out of a contract between the defendant C. E. Murphy (hereinafter Murphy), a Pennsylvania resident, and the third-party defendant, David Brownsworth (hereinafter Brownsworth). On September 27, 1972, a personal check for $15,000 was given by Murphy at Meadville, Pennsylvania, to Brownsworth in consideration of monies (including a $5,000 profit on Murphy’s investment) expected to be derived within a short time from the purchase and resale of carpet fabric by Brownsworth. On September 28, 1972, in the afternoon, Murphy became suspicious of…