- 17 - money.” Apparently, Mr. Manley had become disenchanted with the project even before it began, when the fabricator of the TTS equipment, Miles Fabricating & Machine Co., Inc., would not become “a participant” in the agreement between RTA and EDS. Mr. Manley testified that he proceeded with his investment because he had given his word that he would do so to his close friends Richard T. Wagner and Robert L. Wagner (husband of shareholder Ruth R. Wagner). Richard T. Wagner testified that the decision not to post the $50,000 bond was not recommended by all those with an interest in the matter. He testified that, although he did not agree, his father, Robert L. Wagner, was hopeful that the TTS technology could be proven or that EDS could be successful at some point. Mr. Manley testified: “[Robert L. Wagner] had a different risk profile then I did.” Apparently, the shareholders had different beliefs on the probable success of RTA’s investment in the TTS. However, Mr. Manley, the man with the money, was in control. He decided not “to put good money after bad money”. That was a business judgment, which was different not only from the business judgment of Robert L. Wagner, but also from the business judgment of Charles White, who, in 1991, agreed to pay $3 million for a TTS, $750,000 to be paid before delivery. We have considered the testimony of Messrs. Manley and Richard T. Wagner, and we conclude that it does not establish that there was no reasonable prospect for recovery on the lawsuitPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011