Anderson v. General Motors Corp.

154 F. Supp. 927, 1957 U.S. Dist. LEXIS 3190
CourtDistrict Court, W.D. Washington
DecidedAugust 28, 1957
DocketNo. 3966
StatusPublished
Cited by1 cases

This text of 154 F. Supp. 927 (Anderson v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. General Motors Corp., 154 F. Supp. 927, 1957 U.S. Dist. LEXIS 3190 (W.D. Wash. 1957).

Opinion

RYAN, District Judge.

The defendant at the close of plaintiffs’ case, and again at the close of the entire case, moved to dismiss and for a directed verdict upon the grounds then set forth in detail. The Court reserved decision on the motions and now decides them.

The Court, in its consideration, of the motion, must be mindful of the factual contentions of plaintiff, and of the legal principles which would support a judgment in its favor.

We are required to, and without reservation we do, give to the evidence the interpretation most favorable to the plaintiff.

Plaintiffs’ claim sounds in tort. It urges a claim arising from a fraud alleged to have been perpetrated upon it by the defendant. Plaintiff has neither alleged nor proved a claim based upon the alleged breach of an enforceable contract.

The fraud which plaintiff alleges is two-pronged. Thus, plaintiff alleges that it was defrauded by defendant by means of affirmative false representations, and that it was also deceived and defrauded by defendant because of defendant’s failure to disclose its business policy.

The Court assumes, for purposes of this decision, that such a policy did, in fact, exist.

The misrepresentations, by which plaintiff claims it was defrauded, are alleged to have been made in July, 1947, and on November 9, 1951.

The Court also assumes for purposes of this decision that these statements or representations alleged were, in fact, made as alleged.

The Court has ruled that recovery may be had only on the representation alleged [929]*929to have been made on November 9, 1951. The plaintiff has, by absence of proof of damage submitted, limited its recovery by reason of nondisclosure to the period subsequent to January 1, 1947.

It is undisputed that on July 10, 1952, the plaintiff was notified that after June 30, 1953, plaintiffs’ distributorship would not be continued. The Court has ruled that after this notification of July 10, 1952, plaintiff may not claim to have continued to have acted in reliance upon the alleged misrepresentation of November 9, 1951, and that it may not claim to have acted after that date because of ignorance of a policy of the defendant, which defendant was required in law to disclose to it.

The Court has ruled that recovery, if any, on the claim, insofar as it is predicated upon non-disclosure is limited to damages which flowed from acts of plaintiff done because of such non-disclosure from January 1, 1947, to July 10, 1952; and the Court has also ruled that recovery, if any, on the claim in so far as it is predicated upon a misrepresentation alleged is limited to damages which flowed from acts of plaintiff done between November 9, 1951, and July 10, 1952.

It is undisputed that between January 1, 1947, and July 10, 1952, five distributors’ selling agreements were signed by plaintiff and defendant, and that these agreements were under date of November 1, 1947; November 1, 1948; November 1, 1949; November 1, 1950; and November 1, 1951.

It is also undisputed that following July 10,1952 — the date of the notification of the ending of the distributorship — a last and the final distributors’ selling agreement was signed by plaintiff and defendant under date of November 1, 1952.

It also appears undisputed that from 1936 to 1947, a series of twelve distributor selling agreements were signed by the parties.

The first question presented by the motions we are considering, is, what was the legal effect of these several distributor selling agreements upon the claim for which plaintiff seeks recovery.

We observe that this question is to be-further narrowed to a consideration of all the agreements, only insofar as plaintiff’s claim is predicated upon- nondisclosure ; and of one agreement, that under date of November 1, 1952, in so far as plaintiff’s claim is predicated upon the alleged misrepresentation (for that is the only agreement which was signed after November 9,1951).

It is desirable that we, at this point, examine these distributor selling agreements to see what they provide and to determine later their effect in law upon the plaintiffs’ claim.

Each of these agreements provides that there are “no other agreements or understandings, either oral or in writing, between the parties;” that the agreement “cancels and supersedes all previous agreements between the parties;” that the agreement, may not be changed, added to or altered unless “in writing by the General Manager or General Sales Manager” of the Buiek Division.

The term provided for in each of these several agreements was one year, but they each also contained a provision that “distributor may terminate this agreement by written notice of termination delivered to seller (Buick Division), such termination to be effective one month after receipt by seller of such notice”; and they each also contained a provision that the seller might, under certain specified conditions, terminate the agreement.

Let us consider the plaintiff’s claim insofar as it is based upon the contention that it was defrauded because of the failure of the defendant to disclose its policy as it applied to the continuance of plaintiff’s distributorship.

We have assumed that such a policy did, in fact, exist. That leaves for decision whether, under the evidence, it may be held as a matter of law that no duty to disclose it lay with the defendant.

[930]*930Continuously, from 1936 through June, 1953, plaintiff and defendant operated under this series of 18 separate written agreements.

Each one of these specified a definite and certain period during which the agreement was to be effective; not one of them provided for a further extension or right of renewal; nor is there any writing so providing.

The agreements provided at great length the obligations, duties and rights of each of the parties; the agreements did not create a fiduciary relationship; they did not constitute or appoint either one the agent of the other; they were agreements under which plaintiff was granted an option to buy automobiles and parts on stipulated terms and conditions, and the defendant undertook to sell on stipulated terms.

■ Plaintiff was given the absolute right to terminate the agreement on the giving of a required notice, and the defendant was given a right to terminate, dependent, however, entirely upon the happening of certain events, or the failure of plaintiff to meet and comply with certain of the provisions of the agreement.

The agreements contemplated the operation of the distributorship as a business enterprise, separate and apart from the operation of the defendant’s business to the extent that defendant received no share of the plaintiff’s profits, undertook to assume or satisfy no losses in plaintiff’s business, had no vote in its corporate meetings, had no stock in the plaintiff corporation, and had no representative either as a member of plaintiff’s board of directors or as a corporate officer.

There is no evidence that the defendant at any time directed or controlled the means which plaintiff should or did take to comply with the capital requirements of the agreement. The defendant, as the agreement provided it might, did point out to plaintiff wherein plaintiff may have failed, in the defendant’s view and opinion, to meet the capital and other requirements and at times insisted upon compliance.

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Cite This Page — Counsel Stack

Bluebook (online)
154 F. Supp. 927, 1957 U.S. Dist. LEXIS 3190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-general-motors-corp-wawd-1957.