Michael Famiglietta, et al. v. Ivie-Miller Enterprises, Inc.

Breach of contract relating to the sale of a tortilla chip distributorship with counterlaim for breach of contract, negligent misrepresentation, fraudulent inducement, and prima facie tort. The parties entered into a contract on January 29, 1993, for the same of MiRanchito Mexican Food Products distributorship for $50,000 plus interest. Buyer agreed to pay Sellers an initial payment of $10,000 and the remaining $40,000 plus interest in three subsequent installment payments. The contract also provided that the agreement was contingent upon Famiglietta's obligation to remain with the distributorship for a period of five years in the capacity of sales. About eighteen months after the parties entered into the contract, Famiglietta left the distributorship. Buyer's president, Bob Meek, testified that defendant would not have purchased the distributorship without Famiglietta's agreement to remain with the company. Famiglietta acknowledge that he had agreed to remain with the distributorship but decided to do something else for a living. Defendant claimed that Familgietta's departure was a breach of the contract and cause a substantial decrease in business. Defendant refused to pay any of the remaining installment payments due under the contract and promissory note.

Trial court ruled that Famiglietta's departure was a non-material breach of the agreement and that defendant was liable for the sums due under the agreement.

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Reversed and remanded by the Court of Appeals of New Mexico which held that Famiglietta's failure to remain with defendant for the five years agreed to relieved defendant of any further obligation to pay and that defendant was entitled it attorney fees and costs. 966 P.2d 777 (N.M.App. 1993). The date shown above is the date of the appellate court decision and not the trial date.