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A.D.M. CORP. v. THOMSON

Nos. 82-1618, 82-1619, 82-1705.

707 F.2d 25 (1983)

A.D.M. CORP., Plaintiff, Appellant, v. Arthur J. THOMSON, Frost Controls, Inc., Defendants, Appellees, v. GENERAL ELECTRONICS, INC., et al., Third-Party Defendants, Appellees. UNITED ELECTRONICS COMPANY, Plaintiff, Appellant, v. Arthur J. THOMSON, Frost Controls, Inc., Defendants, Appellees, v. GENERAL ELECTRONICS, INC., et al., Third-Party Defendants, Appellees. A.D.M. CORP., et al., Plaintiffs, Appellees, v. Arthur J. THOMSON, Frost Controls, Inc., Defendants, Third-Party Plaintiffs, Appellants, v. GENERAL ELECTRONICS, INC., et al., Third-Party Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided May 24, 1983.

Attorney(s) appearing for the Case

Angelo M. Torrisi, New York City, for A.D.M. Corp., United Electronics Co., and General Electronics, Inc.

Michael S. Gardener, Boston, Mass., with whom Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Boston, Mass., was on brief, for Arthur J. Thomson and Frost Controls, Inc.

Before COFFIN, Chief Judge, BREYER, Circuit Judge, and MALETZ, Senior Judge.

BREYER, Circuit Judge.

The plaintiffs in this case include a firm known as United Electronics Co. of Delaware (UED), which owned the stock of a company originally called Frost Controls Corp. (Frost). UED pledged its Frost stock to a lender called Factors and Note Buyers (Factors). When the loan went into default, Factors foreclosed on the collateral, offering it for sale publicly and then buying it itself. Thomson, Frost's president, then formed a new company and...

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