Schwab U.S.A., Inc. v. Perpetual Machine Co.

Miller, Judge.

Perpetual Machine Company manufactured, assembled, and shipped carpet equipment for customers of Schwab U.S.A., Inc. (“Schwab-USA”). Because Perpetual Machine was not receiving payments, it met with representatives of Schwab Maschinenbau GmbH & Company (“Schwab-Germany”) and Schwab-USA and reached an oral settlement agreement, which provided that Perpetual Machine would reduce the indebtedness to $450,000 and forfeit all accrued and future interest. Perpetual Machine received only $22,000, paid from an account naming Schwab-USA as the account holder. Schwab-Germany refused to…