GENERAL45769

• Permit No: C1981015
• IBM Index Class Name: General Documents
• Doc Date: 12/13/1990
• Doc Name: FINDINGS OF FACT CONCLUSION OF LAW AND ORDER FOR JUDGMENT
• Permit Index Doc Type: GENERAL CORRESPONDENCE
• Media Type: D
• Archive: No

accounts in Dallas, Texas, and this was evidenced by documentary
evidence showing photocopies of the checks made payable to B.L.
Bobo Company and drawn on Defendant Arabian accounts. See Exhibit
5 for example. She further testified that after January 1, 1988 no
further checks were sent to B. L. Bobo.
On February 13, 1986, Defendant Arabian's attorney Stephen L.
Gagnon sent drafts of proposed agreements with B.L. Bobo Company
to Mr. Jack A. Crichton. See Exhibit 12. In fact, a draft copy
of a management agreement was admitted into evidence. See Exhibits
16 and A. It was uncontested during the trial that the agreement
was never executed by any of the parties; however, there was
substantial performance as evidenced by the payment of Defendant
Arabian to Plaintiff B.L. Bobo Company and B.L. Bobo Company's
for management of Defendant American. The terms of the unsigned
management agreement included the amount of $10,000.00 per month as
the management fee, a provision for reimbursement of expenses
incurred by Plaintiff B. L. Bobo Company, and a termination clause
for purposes of notice of termination of the agreement. The
termination clause required ninety (90) days' written notice. These
provisions were consistent with the intention of the parties and
their actions. See~~xhibit 16.
Mrs. Martha Bobo testified that a significant amount of money
was placed into Plaintiff B.L. Bobo Company, based upon reliance of
the management agreement of $10,000.00 per month, plus expenses, to
be paid by Defendant Arabian.
On January 27, 1988, Mr. Jack Crichton, Chairman of Defendant
Arabian, by means of a letter on American letterhead, attempted to
terminate Plaintiff B.L. Bobo Company as the manager of Defendant
American. The termination letter was not on Arabian letterhead.
See Exhibit 10. On August 9, 1988 Mr. Bobo committed suicide.
Mr. Crichton testified that certain minutes were created in
August or September of 1989 which were created from notes that
Crichton had made in his diary memorializing the Board of
Directors' meetings for the following dates: February 9, 1988;
February 5, 1988; December 11, 1987; and November 25, 1986. Said
minutes were created subsequent to the actual Board of Directors'
meetings and following the publication of the Annual report to the
Shareholders for the years 1986 and 1987 and are contrary to the
statements made in these Annual Reports, which indicate that
Plaintiff B.L. Bobo Company was to receive the management fee c=
$10,000.00 per month, plus expenses, for the years 1986 and 1987.
Mr. Crichton further testified that because the management
agreement was never executed, it was his opinion that the
management agreement was a month to month agreement, rather than an
agreement for a period of years.
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