UNITED STATES DISTRICT COURT EASTERN DISTRICT OF PENNSYLVANIA
November 22, 1950
In re KELLETT AIRCRAFT CORP
The opinion of the court was delivered by: MCGRANERY
This case arises on debtor's exceptions to the report and supplemental report and recommendations of the special master on the amended reclamation petition of the Coldaire Corporation, in the reorganization proceedings of the Kellett Aircraft Corporation. Factual background of the proceedings appears in the opinion of this Court reported in 77 F.Supp. 959. The master has recommended the allowance of Coldaire's claims (a) in the amount of $ 40,260 paid by it to the debtor for certain tooling, (b) in the amount of $ 2,890 as the value of certain condensing units, and (c) in the amount of $ 5,000 as the value of certain drawings; and he has recommended the disallowance of a counterclaim by the debtor based on some allegedly outstanding and unpaid items on its books against Coldaire.
Findings of Fact
1. On April 2, 1946, a contract was entered into between the parties herein whereby the debtor was to manufacture a quantity of refrigerating cabinets for Coldaire in accordance with design and specification furnished by the latter, and the debtor was also to fabricate the tools necessary to such manufacture. The pertinent provisions of the contract were:
'Article I Statement of the Work'
'* * * Kellett shall also fabricate the tools * * * specified in Appendix 'B' * * * at the prices indicated therein, which tools have been determined by Kellett to be necessary and sufficient for the proper fabrication of said units in the quantities indicated * * *.'
'Article III Payments'
'(b) Tools- Coldaire shall make payment to Kellett for the tools as set forth in Appendix 'B' at the prices therein specified, upon completion thereof by Kellett and within thirty (30) days after receipt of invoices from Kellett.'
"Tools, Dies, Jigs and Fixtures
For 3 cubic foot
Frozen Food Storage
Cabinets $ 19,320.00
For 12 cubic foot
Frozen Food Display
Cabinets $ 20,940.00"
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