Opinion ID: 701799
Heading Depth: 3
Heading Rank: 2

Heading: Paragraph 7B

Text: 30 Pneumo argues that the district court's admission of certain portions of testimony from Ronald Tuchschmidt and Jerome Tuchschmidt regarding the payment of extraterritorial commissions pursuant to paragraph 7B of the agreements violated the parol evidence rule. Paragraph 7B of the NWL and the CPC agreements is identical, and provides in relevant part that: 31 If [Aerotronics] can establish to the satisfaction of [NWL or CPC] that purchase orders received by [NWL or CPC] from sources located outside of [Aerotronics] Territory were in fact due to [Aerotronics'] efforts with a prime contractor that is located within [Aerotronics'] Territory, [Aerotronics] shall be entitled to 50% of the usual fee provided herein to be paid to it for orders it obtains for [NWL or CPC] within the territory as set forth in Exhibit B. 32 Consideration in this matter is due to the origination of most contracts in the prime contractor's engineering plant requiring detailed work and expense on the part of [Aerotronics] for [NWL or CPC] to have any opportunity of producing this product for the major subcontractor. 33 Appellant's App. at A86; A103. 34 The portion of Ronald Tuchschmidt's testimony to which Pneumo objects simply states that he believes that Aerotronics is entitled to be paid for extraterritorial, secondary market sales of spares to military bases around the country, based upon the language of paragraph 7B. Ronald Tuchschmidt's testimony does not contradict or vary the provisions of paragraph 7B. Accordingly, it does not violate the parol evidence rule. 35 The portion of Jerome Tuchschmidt's testimony that Pneumo objects to states that he believes paragraph 7B entitles Aerotronics to commission on the extraterritorial secondary sales of spares. Jerome Tuchschmidt further testifies that the secondary market of spares follows automatically from the initial winning of the initial development contract for an aircraft because the spares are for very, very complex major sub-systems of aircraft. III Trial Tr. at 82. Contrary to Pneumo's assertions, this testimony does not vary or contradict the terms of paragraph 7B and in fact is probative of whether the extraterritorial sales resulted from Aerotronics' efforts with a prime contractor within Aerotronics' territory. 36 Therefore, we believe the district court did not violate the parol evidence rule in admitting the testimony of Ronald and Jerome Tuchschmidt with respect to paragraph 7B.