Babb v. Herring Motor Co.

193 Iowa 794
CourtSupreme Court of Iowa
DecidedFebruary 7, 1922
StatusPublished
Cited by5 cases

This text of 193 Iowa 794 (Babb v. Herring Motor Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Babb v. Herring Motor Co., 193 Iowa 794 (iowa 1922).

Opinion

Preston, J.

1 evidence • parol as affecting writ-different instruments constitute one contract. — 1. Plaintiff was employed by the Ford Motor Company, of Michigan, to sell Ford automobiles in cerdescribed territory in and around Osceola, Xowa, and Murray, Iowa. He was a limited .,o'eilx for the Ford Company; and defendant, ^ 1 v y y Herring Company, had partial control of [796]*796plaintiff, and part of the commissions due plaintiff for services plaintiff performed for the Ford Company. Such services and commissions were paid through the defendant herein. Plaintiff was required to make a separate written contract for each sales year, which was from August 1st to and including July 31st of the next year. Defendant was a party to each of said contracts.

The petition is in three counts. In the first count, plaintiff claims commissions under employment of October 29, 1914, for the period to and including July 31, 1915, in territory in and around Osceola. The second count claims for the same period, but under a contract made with the Babb-Murray Auto Company, which plaintiff used as a trade name. The third count is for the year ending July 31, 1916. Each count alleges that the added commissions could only be determined, if they were earned, at the end of the year, and that the same were forwarded by the Ford Motor Company to the defendant, to be paid to the plaintiff; that defendant has retained and ajípropriated the same.

The contracts are between the Ford Motor Company, as party of the first part; defendant, Herring Motor Company, as party of the second part, and known as the limited agent of first party; and plaintiff, as party of the third part, who is the sublimited agent of the first and second parties.

In due time, defendant filed its motion to transfer the case to Polk County for trial, which was overruled. This will be referred to later in the opinion.

The defendant answered in general denial, but admitted that the parties signed the written contract before referred to, but alleged that said instrument did not contain the full and complete agreement, but that, at the time of the signing thereof, and as a part of it, and for the same consideration, as an amendment and addition thereto, the parties entered into a further and additional agreement, as shown by Exhibits 1 and 2, as follows:

“Exhibit 1.
“I hereby specifically agree to release the Ford Motor Co., from any and all obligations to pay me rebate money which may [797]*797be earned under this contract in accordance with lines 159 to 172 inclusive, and that said contract may be, and is so amended, and that I will make no claim for payment of any such rebate earned by me exclusively from the limited agent, Herring Motor Co., Des Moines, Iowa. This agreement is, attached to and made a'part of contract dated October 29th, 1914.
“Babb-Murray Auto Co.,
“A. M. Babb, Sublimited Agent.”
“Exhibit 2.
“I hereby specifically agree to release, and do release the Herring Motor Co., from any and all obligations to pay me rebate money which may be earned under my contract with themselves and the Ford Motor Co., of date October 29th, 1914, and said contract is hereby amended in this respect as between myself and the Herring Motor Co. I further authorize the said Herring Motor Co., to collect and receipt for any bonus earned under said contract and to indorse any drafts issued in payment of same.”

This is signed the same as Exhibit 1. A like plea was made by defendant as to the other two counts of the petition, and two other sets of releases like the foregoing were set out. Division 4 of the answer claimed that the contract sued on was not all of the agreement between the parties; that the exhibits before quoted wrere a part of it. Division 5 of the answer asked a reformation of the contract, so as to add thereto a provision that defendant was to have the added commissions sued for in this case. Defendant moved to transfer to the equity docket the issues raised in Divisions 1, 2, 3, and 5 of the answer. This was done, and reformation was denied, and the trial on issues raised by Division 4 of the answer was continued for trial as a part of the law action. An appeal was taken, and the decision affirmed. Babb v. Herring Motor Co., 190 Iowa 814.

In this connection, it may be proper to say that it appears that, for the year prior to the two years now in controversy, plaintiff had been selling cars under the same arrangement, and had signed releases like the foregoing; but notwithstanding this, defendant had paid plaintiff the extra commissions for such [798]*798prior period. Plaintiff claims that tlie same arrangement was renewed, and covered the two years now in controversy. In relation to the releases for the year before, defendant wrote plaintiff, January 10, 1914, and again on January 21, 1914, as follows:

“We enclose herewith a form of release of rebate which we ask you to please sign and return to us at once. You will please understand that the execution of this release does not in any way release us from paying you the rebate which you will earn according to your contract, but does permit the Ford Motor Company to pay to us as fast as earned upon our volume of business the earned rebate. This in turn will permit us to settle with you direct, promptly as fast as you have earned any rebate. This will avoid the long delays which we have heretofore had in securing for our dealers the rebate which their volume of business has earned them. We know you will not hesitate to accept us for this rebate and we promise to let you have our check just as fast as your volume of business entitles you to such bonus. We repeat that we would like you to sign and return this release to us at once so that we may get this plan in operation and we also repeat that you are in no way releasing us from our obligation of paying to you the amount of bonus which your volume of business earns you under your contract and we further agree to pay such bonus as fast as earned.

“Yours very truly,
“Herring Motor Car Company
“[Signed] C. L. Herring.”
“P. S. We are enclosing six of these agreements and you will please sign 2 for each territory. Osceola, Woodburn and Murray. ’ ’

It appears that the word “rebate,” as used in the letters, refers to what has been called added or extra commissions. The defendant further alleged that the only consideration received by defendant in connection with the transaction, and for the services rendered by it, was the amovmt to be paid to it as additional commissions or relíate, mentioned in Paragraph 30 [799]*799of the contract before referred to. Paragraph 30 is quite lengthy. The substance of it is that the Ford Motor Company agrees to allow and pay to third party additional commissions on the net amount of business he shall do under the contract on Ford automobiles, but not on Ford parts, repairs, or accessories. It then states in detail the percentage that will be paid on a certain amount of sales, and a larger percentage on larger sales; and that payments made during the year shall be credited on the final amount found owing him, and deducted when he becomes entitled to and shall receive the higher percentages, and so on.

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193 Iowa 794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/babb-v-herring-motor-co-iowa-1922.