ADBE Distributing Co. v. Hundred East Credit Corp.

275 S.E.2d 347, 156 Ga. App. 787, 1980 Ga. App. LEXIS 3140
CourtCourt of Appeals of Georgia
DecidedOctober 31, 1980
Docket59922
StatusPublished
Cited by3 cases

This text of 275 S.E.2d 347 (ADBE Distributing Co. v. Hundred East Credit Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ADBE Distributing Co. v. Hundred East Credit Corp., 275 S.E.2d 347, 156 Ga. App. 787, 1980 Ga. App. LEXIS 3140 (Ga. Ct. App. 1980).

Opinion

Smith, Judge.

Plaintiff-appellee brought this action against ADBE Distributing Co. for breach of contract. ADBE appeals from an adverse jury verdict and cites as error several of the trial court’s rulings on the issues of agency and fraud. ADBE also enumerates as [788]*788error the trial court’s refusal to add Philips Business Systems, Inc. (Philips) as a third party defendant. We affirm.

1. Appellee’s witness testified that her company leases various types of equipment after purchasing this equipment from a number of vendors throughout the country. Philips, a sister corporation to appellee, is a manufacturer-vendor of computers. In the event a Philips customer desires to lease a computer rather than purchase it outright, a Philips salesperson has the customer execute a lease agreement which is then forwarded to appellee along with the customer’s credit application. The solicitation, negotiation and execution of the lease are all handled by the Phillips salesperson utilizing lease forms provided by appellee and quoting rates set by appellee. The blank printed lease forms have the Hundred East Credit Corporation printed thereon as lessor. If credit is approved, appellee accepts the lease but does not actually purchase the equipment until a “Certificate of Acceptance” is received from the customer stating that the equipment is in proper working order and that the customer has inspected the equipment and is satisfied with it. A finder’s fee is paid to any vendor using appellee as the financing vehicle in a leasing arrangement.

The foregoing procedure was followed in this case, i.e., Philips sold the computer to appellee who in turn leased it to ADBE. After several attempts to get ADBE to abide by the terms of the lease, appellee repossessed the computer and filed suit for the balance due. ADBE denied any liability and counterclaimed alleging fraud and misrepresentation.

At trial the court refused to admit the testimony of one of ADBE’s employees relating to certain representations made to him by a Philips salesperson regarding the subject computer. The trial court reasoned that, in light of express denials of any agency relationship by witnesses from both Philips and appellee, such testimony was hearsay. ADBE contends that this testimony was essential in order to establish the allegedly fraudulent representations and promises made by the Philips salesperson, and attributable to appellee, prior to execution of the lease.

“ ‘The admission or declaration of an agent, when acting within the scope of his authority, is to be considered as the admission or declaration of his principal. [Cits.]’ But before the declarations are admissible some proof of the agency should be submitted. Agency may be established by circumstances, apparent relations, and the conduct of the parties; and where the extraneous circumstances, independently of and without regard to the declarations of the alleged agent himself, clearly tend to establish the fact of his agency, his declarations may then be admitted and considered as a part of the [789]*789res gestae of the transaction...” Colt Co. v. Wheeler, 31 Ga. App. 427 (5) (120 SE 792) (1923); Garrett v. Booth, 140 Ga. App. 176 (230 SE2d 341) (1976).

In light of the foregoing testimony given by appellee’s own witness, we conclude that the evidence of agency was at least sufficient to have allowed the excluded testimony to be admitted notwithstanding the denials of such a relationship by both the purported principal and agent. See Lewis v. C&S Nat. Bank, 139 Ga. App. 855 (1b) (229 SE2d 765) (1976); Nat. Life Assur. Co. v. Massey-Ferguson Credit Corp., 136 Ga. App. 311 (2) (220 SE2d 793) (1975); Webb v. Orme, 35 Ga. App. 784 (4) (134 SE 841) (1926). See also, Builders Homes of Ga. v. Wallace Pump & Supply Co., 128 Ga. App. 779 (2) (197 SE2d 839) (1973). However, “[e]ven if the evidence was necessary to [its] claim of fraud, as contended by [ADBE], its exclusion was harmless in that [essentially] the same testimony was admitted elsewhere in the transcript. . . and its exclusion here we believe did not mislead the jury.” Gilreath v. Argo, 135 Ga. App. 849, 851 (3) (219 SE2d 461) (1975); see Foster v. National Ideal Co., 119 Ga. App. 773 (1) (168 SE2d 872) (1969). Enumerations Nos. 1 and 9 are without merit.

2. ADBE contends that the trial court erred in admitting the document entitled “Payment History for ADBE Distributing Company” since appellee had failed to establish that the document was made in the regular course of business. Code § 38-711. However, the fact sought to be proved by the “Payment History” (the balance due appellee under the lease) was merely cumulative of other documents admitted into evidence without objection, including the lease itself. Ball v. State, 137 Ga, App. 333 (2) (223 SE2d 743) (1976). Therefore, Enumeration No. 2 is meritless.

3. ADBE complains that the trial court improperly excluded testimony by its president as to a conversation he had had with the ADBE sales manager, which testimony would have explained why the president had signed the “Certificate of Acceptance” for the computer. Even though such testimony was admissible to explain conduct (Code § 38-302), its exclusion was harmless since the evidence sought to be introduced would have been cumulative of other testimony given by the president to explain the circumstances surrounding his execution of the certificate. Hence, the excluded evidence was not essential to ADBE’s case and could not have materially affected the verdict or contributed to the judgment. See Henry v. State, 154 Ga. App. 120 (3) (267 SE2d 653) (1980). ADBE’s third enumeration of error is without merit.

4. ADBE’s fourth enumeration asserting that the trial court “completely neglected the principle of ratification” in its instructions [790]*790on agency is not meritorious since such an instruction was given later in the charge. Dunn v. State, 145 Ga. App. 612 (2) (244 SE2d 127) (1978); Edwards v. Delvero, 139 Ga. App. 880 (2) (229 SE2d 763) (1976).

5. The court gave the following instruction to the jury: “I charge you that where both the alleged principal and alleged agent deny agency, inferences from circumstantial evidence contrary to the denial cannot stand against uncontradicted evidence that no such fact exists, and consequently, if you find there is no agency relationship, then you must find the defendant is unconditionally obligated to pay the plaintiff the remaining balance under the lease agreement.” ADBE argues that this charge was prejudicially repetitive of the charge immediately preceding and also was “simply not the law.”

Since the charge above embodies a correct principle of law adjusted to the factual situation in this case, ADBE’s fifth enumeration of error is without merit. See Withrow Timber Co. v. Blackburn, 244 Ga. 549 (261 SE2d 361) (1979); Brewer v. Southeastern Fidelity Ins. Co., 147 Ga. App. 562 (249 SE2d 668) (1978). Moreover, while its language and phraseology are similar, the charge immediately preceding the instant one was not repetitive in that it dealt with amounts recoverable under the terms of the lease, not circumstantial evidence.

6. The trial court instructed the jury that if they found in the lease a valid disclaimer of all warranties and representations made by Philips, then ADBE would be obligated to pay the balance owed plus attorney fees. ADBE contends that where fraud voids a contract, a disclaimer provision therein is also voided. Williams v.

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275 S.E.2d 347, 156 Ga. App. 787, 1980 Ga. App. LEXIS 3140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adbe-distributing-co-v-hundred-east-credit-corp-gactapp-1980.