Third Circuit Affirms Graham’s and Lyons’ Summary Judgment

for Agere Systems, Inc.

 

Roseland, NJ, June 22, 2009 – Connell Foley’s William H. Graham and  

M. Trevor Lyons, obtained summary judgment for Agere Systems, Inc. (“Agere”) on a breach-of-contract and several implied and quasi-contractual claims brought against Agere by American Electronic Components, Inc. (“AECI”). AECI had essentially sought a finders’ fee or contractual commission amount in excess of $3 million, plus punitive damages, in connection with the sale of certain of Agere’s industrial equipment. Graham pointed out, however, that Agere and AECI had signed a detailed and lengthy contract that specifically and expressly spelled out several steps necessary before AECI would receive any commission amount, including, most importantly, AECI’s consummation of a sale to a third party.  Because AECI had admittedly not performed the vast majority of these activities and had not consummated the sale with the ultimate buyer of the equipment, the Honorable Susan D. Wigenton found that no commission was due under the parties’ contract.  As a result, she granted summary judgment to Agere, and dismissed AECI’s claims in their entirety.

 

AECI had appealed to the Third Circuit asserting that the District Court had overlooked issues of material fact that necessitated a trial. On June 15, 2009, the Third Circuit affirmed the lower court’s grant of summary judgment to Agere, essentially holding that while AECI had identified disputed facts, none of those facts were material to the question of whether AECI was owed a commission. Essentially, Justice Smith found the contract was clear as to the performance necessary to earn a commission, and AECI could not genuinely assert that it had performed those steps or consummated a sale to a third party. 

 

Mr. Graham is a member of the Business Litigation, Product Liability and Tort Law, Environmental Law and Mass Tort and Toxic Tort Litigation practice groups. 

 

Mr. Lyons is a member of the Labor and Employment Law practice group.

 

For more information, please contact 973-535-0500 or email wgraham@connellfoley.com and/or mlyons@connellfoley.com.