Opinion ID: 2353522
Heading Depth: 1
Heading Rank: 3

Heading: RSC's Appeal

Text: RSC contends that the justice erred in denying its motion for directed verdict or motion for judgment notwithstanding the verdict. The separate complaint against RSC alleged that by competing with PVI for the spare parts market, RSC breached the contract that existed between GW and PVI. While directing a verdict in favor of GW on Count II of the complaint, the court ruled that as a matter of law GW assigned the PVI contract to RSC. [7] We agree with the court's conclusion. GW sold its business as a going concern to RSC for $1.5 million. Under that contract, RSC assumed all dealer and franchisee agreements which were terminable upon thirty days notice. The PVI contract is such an agreement. As the assignee, RSC stepped into GW's position as the principal under the PVI contract. As we discussed earlier, the PVI contract did not prevent GW from selling spare parts. Consequently, the contract does not limit RSC, as the assignee of the PVI contract, from selling the ball valve spare parts. The only limitation that the contract places on RSC's rights under the contract is that RSC cannot appoint another dealer to be primarily responsible for selling spare parts so long as PVI performs satisfactorily. The record is void of any evidence indicating that RSC appointed another dealer. Rather, the complaint and all the evidence at trial indicate that PVI is seeking to recover damages resulting from RSC's sale of the spare parts subject to the contract and to prevent RSC from future sales of such spare parts. Because the contract does not create in PVI an exclusive right to sell, RSC as the assignee of the contract may sell spare parts. We reverse the judgment of the Superior Court which denied RSC a directed verdict and judgment notwithstanding the verdict. The entry is As to PVI's appeal, judgment affirmed. With regard to RSC's appeal, judgment reversed. All concurring.