Deering-Milliken & Co., Inc., a Corporation v. Modern-Aire of Hollywood, Inc., a Corporation

This is an action on alleged contract claimed to have been entered into between Modern-Aire of Hollywood, Inc., plaintiff, and Deering-Milliken & Co., Inc., defendant. The complaint alleges the formation and breach by Deering-Milliken of a contract with plaintiff for the purchase and sale of 126,000 yards of rayon goods. The supposed agreement concerned material to be used by Modern-Aire in filling another engagement entered into by that company with the United States. The cause was tried by a judge sitting without a jury. Judgment was for plaintiff Modern-Aire and appeal followed.

Modern-Aire has been manufacturing finished textile products for some years. Its representative in the instant transaction was its president and sole owner, Leonard Mills. Deering-Milliken is a national sales agency for certain textile mills.

In 1951, Mills was negotiating with the Army for the manufacture of a large quantity of inner assembly liners for cartridge cases. The Army specifications were detailed, as might be expected, and covered general specifications, requirements, sampling, inspection and test procedures. In pursuance of his plan to obtain a government contract, Mills inquired of…