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AIRFIX CORP. OF AMERICA v. AURORA PLASTICS CORP.

October 24, 1963

AIRFIX CORPORATION OF AMERICA, B. Paul Model Distributors, Inc., Niagara Hobby Distributors, Inc., Mayflower Distributors, Inc., Holiday Hobby Distributors, Inc., and Gateway Hobby Distributors, Inc.
v.
AURORA PLASTICS CORP., K & B Manufacturing Corp., Tru-Scale Products, Inc., Abe Shikes, and John Cuomo



The opinion of the court was delivered by: WOOD

This is a motion for a preliminary injunction sought by the plaintiffs who have commenced a private anti-trust action against the various defendants.

FINDINGS OF FACT

 1. The plaintiff Airfix Corporation of America (hereinafter referred to as 'plaintiff Airfix') is a corporation engaged in the business of manufacturing and selling hobby kits.

 2. The plaintiffs B. Paul Model Distributors, Inc., Niagara Hobby Distributors, Inc., Mayflower Distributors, Inc., Holiday Hobby Distributors, Inc., and Gateway Hobby Distributors, Inc. (hereinafter referred to as 'plaintiff wholesalers') are corporations engaged in the business of distributing hobby kits and other items to retail stores, chain stores and department stores.

 3. The defendant Aurora Plastics Corp. (hereinafter referred to as 'defendant Aurora') is a corporation engaged in the business of manufacturing and selling hobby kits, Model Motoring and other items.

 4. The defendants Abe Shikes and John Cuomo are respectively the president and vice-president of the defendant Aurora.

 5. The defendant K & B Manufacturing Corp. is a corporation engaged in the business of manufacturing and selling model airplanes powered by motors.

 6. The defendant Tru-Scale Products, Inc. is a corporation engaged in the business of manufacturing and selling HO model railroad tracks and accessories.

 7. The defendant K & B Manufacturing Corp. is a wholly owned subsidiary of the defendant Aurora.

 8. The defendant Tru-Scale Products, Inc. is an 80% Owned subsidiary of the defendant Aurora.

 9. Bernard Paul, who is an executive officer, director and principal stockholder in control of the plaintiff wholesalers, recently acquired an equity interest in the plaintiff manufacturer Airfix Corporation, and became its president and a director.

 10. Defendants and plaintiffs sell and promote their respective products in interstate and foreign commerce, either directly or though wholesalers and jobbers to chain stores, department stores, and other retail dealers, in various parts of the United States.

 11. Defendant, Aurora Plastics Corp., is the largest domestic manufacturer of hobby kits in the United States, and is the primary force in the expanding field of model motoring.

 12. Its products are essential to complete line wholesale distributors, such as plaintiff wholesalers here, and include plastic hobby kits, coppercraft tooling sets, electronic model kits, plastic toys and related items.

 13. Other manufacturers whose products are distributed by the plaintiff wholesalers are: Hawk, Revell, Monogram, Testor, and A.M.T., among others.

 14. The success or failure of the plaintiff wholesalers' business depends upon their ability to supply new merchandise to the chain stores as it becomes available which may occur in the industry as frequently as every two days.

 15. It is essential that only the best selling merchandise be supplied without any consideration as to the name of the manufacturer.

 16. The plaintiff wholesalers purchase $ 600,000 yearly from the defendant Aurora and have been a large customer of Aurora for 12 years.

 17. No serious credit difficulties or friction had existed between the plaintiff wholesalers and Aurora during ...


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