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owners of the supermarkets that was needed to maintain access to
supermarket freezer space. Arnold believed that the small volume
of sales generated by each of the independent stores did not
justify the effort to acquire and service their accounts.
Arnold and Martin each blamed the other’s approach to
management of his own line of the business for MIC's not being
more profitable during the mid-1980's.
From 1985 through 1988, Arnold’s and Martin’s disagreements
intensified, especially in the aftermath of Arnold’s promotion of
MIC’s failed investment in a warehouse facility in central Newark
that would have substantially expanded MIC’s capability to
distribute ice cream to the supermarkets, just as H�agen-Dazs was
building its own large distribution facility in the Bronx. MIC’s
share of the total cost of the Newark facility would have been
about $2.5 million. In 1987 or early 1988, Arnold and Martin
ultimately abandoned the project after MIC had invested
approximately $100,000.
By 1988, Martin no longer wanted to work with Arnold, and
Arnold felt that Martin was pushing him to retire. They were
looking for a way to end their constant strife over the future
direction of petitioner. Their disagreement had made them both
receptive to the first overture from H�agen-Dazs in May 1986. At
that time, Arnold and Martin began consulting with their
attorney, Russell L. Hewit (Mr. Hewit), concerning the
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