Alexander v. Williams-Echols Dry Goods Co.

256 S.W. 55, 161 Ark. 363, 1923 Ark. LEXIS 527
CourtSupreme Court of Arkansas
DecidedDecember 10, 1923
StatusPublished
Cited by5 cases

This text of 256 S.W. 55 (Alexander v. Williams-Echols Dry Goods Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. Williams-Echols Dry Goods Co., 256 S.W. 55, 161 Ark. 363, 1923 Ark. LEXIS 527 (Ark. 1923).

Opinion

Smith, J.

Appellant was employed as a traveling salesman by appellee, Williams-Echols Dry Goods Company, under a written contract covering the year beginning October 15, 1920, and ending October 15, 1921. This contract reads as follows: “This agreement entered into this 15th day of October, 1920, at Fort Smith, Arkansas, by the Williams-Echols Dry Goods Company, of Fort Smith, Arkansas, and O. A. Alexander, of Fort Smith, Arkansas, as follows: For the compensation of 3 per cent, commission on the total amount of goods sold by 0. A. Alexander, as traveling representative for the Williams-Echols Dry Goods Company and shipped by said company, 0. A. Alexander does hereby agree to give his undivided service to said company for a period of one year, beginning October 15, 1920', and ending October 15, 1921. It is further agreed that this 3 per cent, commission shall not be paid by the WilliamsEchols Dry Goods Company on goods they ship other than those shipped from the stocks of said company. It is also agreed that the amount of all goods returned to the Williams-Echols Dry Goods Company having been sold by 0. A. Alexander shall be deducted from the sales of 0. A. Alexander as they are returned, and no commission shall be allowed thereon. It is also agreed that goods sold by 0. A. Alexander, such as samples and defective merchandise, shall not be included in sales on which a commission shall be paid. The Williams-Echols Dry Goods Company agrees to pay all traveling expenses of 0. A. Alexander in performance of his duties as their traveling representative, and agree to pay 0. A. Alexander $300 per month for twelve months beginning October 15, 1920. The total of these payments shall constitute a part payment óf the 3 per cent, commission to be paid on the total amount of sales made by 0. A. Alexander as above described, and shall be deducted from the total amount of commissions earned when full settlement of commissions shall be made on October 15, 1921. Any sum paid to 0. A. Alexander during the above stated twelve months in excess of commissions actually earned shall be returned by him to the Williams-Echols Dry Goods 'Company.

“Williams-Echols Drv Goods Company,
“J. B. Williams, president.
“0. A. Alexander.”

Prior to the execution of this contract, appellant had been employed by appellee under a verbal contract for a guaranteed salary and a contingent commission. At the expiration of the year covered by the written contract the parties thereto differed as to the sum which appellant had earned under it, the difference arising chiefly out of the different interpretations placed upon the written contract, and for that reason we have copied it at length.

It was contended by the company that appellant had sold during the year goods amounting to $73,844.95, and that his commissions thereon amounted to $2,215.35, and no more, and, as the company had paid appellant during the year covered by the contract, $300 each month, it claimed to' have overpaid appellant the difference, amounting to $1,384.65, on which there was a credit for services rendered after the expiration of the contract, leaving the net amount due it of $1,224.65, and this suit was brought to recover that sum.-

Appellant answered and denied owing the company anything. He alleged in his answer that he had been employed as a salesman, and that it was his duty, under the contract, to devote his entire time to the sale of goods, but the company wrongfully required him to devote a large part of his time to making collections, thus interfering with sales which he would • otherwise have made and on which he would have earned commissions, and that the company breached the contract by failing to carry a full line of goods such as he had been employed to sell.

Hiere was a trial upon these issues, and a verdict and judgment in favor of the company, from which is this appeal.

Appellant contends that the contract is an unambiguous instrument, and should have been construed by the court, and that a proper construction of the instrument is that he was required only to sell goods, and that any other duty imposed upon him was in violation of the contract, and that he was entitled to compensation for such services, and was entitled also to the commission which he would otherwise have earned, including the amount which he failed to earn because of the company’s failure to carry a proper-line of goods.

The court took the view that the contract did not define the duties of a traveling representative, and permitted testimony to be introduced showing what these duties were. This testimony was to the effect that it had long been the custom for traveling representatives to make collections in the territory .covered by them, and it was shown also that appellant had previously made these collections. This last testimony was objected to specifically upon the ground that appellant had been previously employed under a different contract, and that, whatever the custom may have been, it could not control the express terms of the written contract.

We think no error was committed in the admission of this testimony. The contract does not expressly define appellant’s duties. It does employ him for one year as the company’s traveling representative, and did require him to give his undivided services to the company for the'period of one year, and it required the company to pay all expenses incurred by appellant in the discharge of his duties. It will be observed that the commission was not to be paid upon all orders taken by appellant, but only on those orders which were filled by shipping the goods, and it is therefore obvious that it was to the interest of both parties that the bills should be paid, thus insuring, so far as the appellant was concerned, the . filling of future orders. The testimony also shows that appellant was only required to collect in the territory which he covered as a salesman and from the customers to whom he sold, and that he was given credit for all goods sold in his territory, whether the orders were received by the company through him directly or not.

Inasmuch as the contract did not specify what appellant’s duties as traveling representative were, it was not improper to prove the general custom in relation thereto as a means of interpreting the terms of the contract, and the court did not err in submitting to the jury the questions of fact relating thereto.

In the case, of Robinson v. United States, 13 Wall. 363, 20 L. ed. 653, it was said by the Supreme Court of the United States that: “If a person of a particular occupation, in a certain place, makes an agree: ment by virtue of which something is to be done in that' place, and this is uniformly done in a certain way, by persons of the same occupation, in the same place, it is but reasonable to assume that the parties contracting about it, and specifying no manner of doing it different from the ordinary one, meant that the ordinary one and no other should be followed. Parties who contract on a subject-matter concerning which known usages prevail, by implication incorporate them into their agreements, if nothing is said to the contrary.” Numerous other cases are cited in the brief of counsel for appellee, including our own cases of Walsh v. Frank, 19 Ark. 270: McCarthy v. McArthur, 69 Ark. 313; Meyer v. Stone, 46 Ark. 210.

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Cite This Page — Counsel Stack

Bluebook (online)
256 S.W. 55, 161 Ark. 363, 1923 Ark. LEXIS 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-williams-echols-dry-goods-co-ark-1923.