Opinion ID: 454614
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 6 The basic facts of this case are undisputed. 7 The plaintiff is a Missouri corporation formerly engaged in the business of distributing cleaning products in the St. Louis area. At all relevant times, plaintiff's sole shareholders were Janet Nick and her brothers Jerry and Donald Holmes. Nick and Jerry Holmes were plaintiff's sole officers and directors, and they managed the plaintiff's business prior to the events that gave rise to this lawsuit. 8 Defendant is a New Jersey corporation engaged in the business of producing cleaning products. Defendant was plaintiff's primary supplier. 9 In 1982 plaintiff was in financial difficulty. In order to secure continued supplies of its products, plaintiff entered into an agreement with the defendant whereby defendant was to manage plaintiff's business and receive a security interest in plaintiff's inventory and accounts receivable. In return, defendant agreed to continue selling to plaintiff on open account. The agreement provided that Nick and Jerry Holmes would remain employees of plaintiff. The security interest provided in the agreement was properly perfected. 10 The course of dealing between the parties under this agreement is disputed, but it is clear that the relationship was not a happy one. In June of 1982 Jerry Holmes resigned as an employee of plaintiff. The next month, Nick and all the other remaining full-time employees resigned. After these resignations defendant terminated plaintiff's business and sold its assets. 11 After their resignations, either Nick nor Jerry Holmes made any personal contact with defendant. Nick testified that she directed plaintiff's former attorney to contact defendant. However, defendant's president testified that this attorney only demanded what was owed to him by plaintiff. Later, plaintiff's current attorney demanded an accounting from defendant. Apparently defendant made no response to this demand.