Aluminum Products Co. v. Anderson

164 N.W. 663, 138 Minn. 142, 1917 Minn. LEXIS 868
Supreme Court of Minnesota·Decided October 19, 1917·No. No. 20,253·Published

Opinion

Bunn, J.

At the close of the testimony the trial court directed a verdict for plaintiff in the sum of $326.10 with interest. The jury returned its verdict as instructed, and defendant appeals from an order denying a new trial.

Plaintiff is an Illinois corporation engaged in the manufacture and sale of aluminum ware. Defendant lives in Minneapolis, and, in the years 1914 and 1915, was plaintiff’s agent for the sale of its goods to the trade in Minnesota and Iowa, under a contract the material parts of which are as follows:

“We hereby appoint you exclusive representative for the sale of our product in the states of Minnesota and Iowa on the following basis; We allowing you a 25 per cent commission on all accepted orders'where sold at list ‘B’ prices to the Hardware, Department Store, Crockery and [144] Hardware Jobbing Trade. * * *
“Commissions on all accepted orders to be paid on the 1st and 15th of each month following date of shipment.
“Shipments to you direct, terms; * * *
"In view of war giving you the exclusive control of our goods in the above mentioned- territory, it is understood that you will give its sale your undivided attention.
“It is understood that all accepted orders will have our immediate attention/ shipments being made as soon as possible after receipt.”

We have italicized words in the above instrument that are important on this appeal.

Defendant employed agents and made sales through them and personally during 1914 and part of 1915. A disagreement arose between him and plaintiff over the account between them and defendant severed his connection with the business. Plaintiff then brought this action to recover a balance of $485.29 alleged to be due for goods sold and.delivered to defendant. On the trial it was stipulated that the sum of $412.88 was due from defendant on this cause .of action. Defendant had interposed counterclaims amounting to $447.31, mainly claims for commissions on sales claimed to have been made by him. The trial court allowed defendant $99.02 on these counterclaims, and directed the verdict for the difference between that sum and the $412.88 admitted to be due plaintiff for goods sold to defendant. Defendant claims on this appeal that this was error, that, he was entitled to various commission credits beyond those allowed by the trial court, or at least that there were questions for the jury on the disputed items.

1. The largest of those items presents the main question, and one that is not free from doubt. Defendant had tried without success to obtain an order from Hartman Furniture & Carpet Company in Minneapolis. Thereafter a representative of that house was in Chicago attending a furniture convention where he met a Mr. Hooven of Pittsburg, an eastern sales agent of plaintiff. Through his efforts a sale aggregating $705 was made to the Hartman Company, and the goods were afterwards shipped to that company at Minneapolis. Defendant, on discovering this sale, asked a commission thereon, and was allowed 2 per cent and no more. He claims that under his contract with plaintiff he was entitled [145] to 25 per cent on this sale. It will be noted that the sale was not made in defendant’s territory, bnt was made to a house located in that territory, and the goods shipped there. Counsel relies upon language of the contract which we have above italicized and here repeat:

“We hereby appoint you exclusive representative for the sale of our product.” “In view of our giving you the exclusive control of our goods in the above mentioned territory.”

There is nothing controlling in the Minnesota cases. It is well settled in this state, though the authorities elsewhere are not wholly in accord (see Bluthenthal v. Bridges, 91 Ark. 212, 120 S. W. 974, 24 L.R.A.[N.S.] 279) that a broker who is given the exclusive Tight to sell a particular piece of real estate, or to procure a loan, is not entitled to a commission when the principal himself makes a sale or procures the loan, unless the agent was the procuring cause. This is true although the broker in fact finds a purchaser or lender after the principal does but before the broke?: has notice of this. Dole v. Sherwood, 41 Minn. 535, 43 N. W. 569, 5 L.R.A. 720, 16 Am. St. 731; 3 Notes on Minn. Reports, 171; Baars v. Hyland, 65 Minn. 150, 67 N. W. 1148; Mott v. Ferguson, 92 Minn. 201, 99 N. W. 804. The principal cannot employ another agent to sell the property or procure the loan, but he is not prevented from doing so himself merely because he has given the broker an exclusive agency. Doubtless the same rule applies to an exclusive agency to sell a particular article of personal property, and probably to a case like that at bar, where the exclusive agency is to sell goods of the principal within a certain territory. Plainly the principal cannot employ other agents to sell in the same territory without being liable to the first agent, but a sale by himself would not entitle the agent to a commission, unless the latter had done something towards making the sale. In Turnbull v. Northwestern Terra Cotta Co. 46 Minn. 513, 49 N. W. 229, it seems to have been conceded, or at least assumed, that an exclusive agency to plaintiff to sell defendant’s wares at a specified commission within certain territory would entitle plaintiff to the commission on sales made within the territory by defendant himself. That was not decided, however, the only question on the appeal being as to whether the evidence sustained the finding of the jury that the agency was exclusive. The other Minnesota cases cited, Norris v. Clark, 33 Minn. 476, 24 N. W. 128, and Sutton [146] v. Baker, 91 Minn. 12, 97 N. W. 420, have no bearing on the question.

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Aluminum Products Co. v. Anderson, 164 N.W. 663, 138 Minn. 142, 1917 Minn. LEXIS 868 (Mich. 1917).

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