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CRAIG COAL MINING COMPANY v. FRANK ROMANI (05/01/86)

submitted: May 1, 1986.

CRAIG COAL MINING COMPANY, APPELLANT,
v.
FRANK ROMANI, A/K/A FRANCIS ROMANI, APPELLEE



Appeal from the Order of the Court of Common Pleas of Allegheny County, Civil, at No. GD 83-16762.

COUNSEL

Stephen Israel, Pittsburgh, for appellant.

Marvin Schreiber, Pittsburgh, for appellee.

Del Sole, Montemuro and Popovich, JJ.

Author: Montemuro

[ 355 Pa. Super. Page 297]

This appeal lies from an Order granting summary judgment.

Appellant, Craig Coal Mining Company, through its president, Robert Woods, contracted with appellee, Frank Romani, for the sale of a "4500 Manitowac Dragline", a piece of

[ 355 Pa. Super. Page 298]

    machinery used in strip mining. The agreement was based on a mailgram offer of sale to appellee wherein time was made of the essence in performance of both buyer's and seller's obligations. The acceptance contained a date certain for the closing, at which appellant was to transfer clear title to the machine. This required delivery of a release of lien from the bank holding paper on appellant's equipment.

Four days prior to the closing, appellant, unknown to appellee, filed a petition for bankruptcy. Woods appeared at settlement without the necessary documents, appellee refused to pay for the dragline, and also for some other equipment ancillary to the dragline received by him prior to the bankruptcy. Appellant then instituted suit for breach of contract against appellee who in turn moved, successfully, for summary judgment. The judgment order was thereafter vacated as to the dragline attachments, and reinstated as to the dragline itself.

The issue presented is whether

     bankruptcy provide[s] an automatic stay wherein performance of contractual obligations are forbidden until the court orders performance through the trustee or debtor-in-possession, at which time ...


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