Martin Ice Cream Company - Page 33

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            already found that petitioner never owned the rights under                                  
            Arnold’s oral agreement with Mr. Mattus, nor his personal                                   
            relationships with the supermarkets or his ice cream distribution                           
            expertise; petitioner merely had the benefits of the use of those                           
            assets during the years up to the split-off.  What petitioner did                           
            not own, petitioner could not transfer; these documents                                     
            transferred only that which belonged to MIC--the business records                           
            generated by the supermarket business that were subsequently                                
            transferred by petitioner to SIC in exchange for its stock.15                               
            Accordingly, we find that the sale to H�agen-Dazs of Arnold’s                               
            supermarket relationships and distribution rights cannot be                                 
            attributed to petitioner.  All that is at stake in this case is                             
            the value of Arnold’s remaining stock interest in petitioner,                               
            shorn of his supermarket relationships and distribution rights                              
            under his agreement with Mr. Mattus.                                                        


                  14(...continued)                                                                      
            supermarket business and whatever rights petitioner had in that                             
            business.                                                                                   
                  15 Petitioner may have had some residual rights to                                    
            distribute H�agen-Dazs ice cream, but they were independent of                              
            Arnold’s supermarket relationships and his value as a middleman.                            
            To the extent that they existed at all, they were in relationship                           
            to H�agen-Dazs’ ability to terminate petitioner as a distributor.                           
            H�agen-Dazs was certainly interested in acquiring those rights as                           
            it rationalized and consolidated its wholesale distribution                                 
            network as one of the assets it was buying from Arnold and SIC.                             
            However, in light of the summary judgment by the District Court,                            
            Northern District of California, in favor of H�agen-Dazs against                            
            a similarly situated distributor, the value of those rights in                              
            the event of termination by H�agen-Dazs was highly speculative at                           
            best.                                                                                       




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