Bacon & Associates, Inc. v. Rolly Tasker Sails (Thailand) Co.

841 A.2d 53, 154 Md. App. 617, 2004 Md. App. LEXIS 6
CourtCourt of Special Appeals of Maryland
DecidedJanuary 29, 2004
Docket0067, Sept. Term, 2003
StatusPublished
Cited by9 cases

This text of 841 A.2d 53 (Bacon & Associates, Inc. v. Rolly Tasker Sails (Thailand) Co.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bacon & Associates, Inc. v. Rolly Tasker Sails (Thailand) Co., 841 A.2d 53, 154 Md. App. 617, 2004 Md. App. LEXIS 6 (Md. Ct. App. 2004).

Opinion

RODOWSKY, J.

The appellants, Bacon & Associates, Inc. (Bacon), an Annapolis, Maryland-based sail retailer, and Merilyn “Dixie” Bacon (Mrs. Bacon), Bacon’s sole owner and president, seek reversal of a judgment of the Circuit Court for Anne Arundel County rendered on a jury verdict in favor of the appellee, Roily Tasker Sails (Thailand) Co., Ltd. (RTS Thailand), a Thailand-based sail manufacturer and distributor.

Appellants present the following issues concerning the jury verdict:

“I. Whether the jury verdict should be reversed because of confusion created by verdict sheets with inconsistencies, contradictions and clerical errors.
“II. Whether the jury verdict should be reversed because the jury improperly awarded $54,000.00 in administrative damages that were not permitted by law or supported by any evidence.
“HI. Whether the jury verdict should be reversed based on the lower court’s erroneous jury instructions regarding the statute of limitations in breach of contract actions.
“IV. Whether the jury verdict should be reversed based upon the lower court’s error in permitting appellee to present evidence regarding claims of [companies related to the plaintiff by common ownership that] were not parties to the case.”

Preliminarily, however, the appellee asserts that the appeal was noted too late.

For the reasons explained below, we shall address the merits and affirm the judgment.

*622 Facts and Legal Proceedings

Rolland Tasker (Mr. Tasker), 1 an Australian national, formed Roily Tasker Sails Pty. Ltd. (RTS Australia) in 1956 to produce sails. Initially working out of a rented shed, he used the money earned from selling sails to fund his trips to sailing competitions. Because of the high cost of importing American sail cloth into Australia, Mr. Tasker formed Roily Tasker Hong Kong, Limited (RTS Hong Kong) in 1963, and had moved his operation to Hong Kong by 1971. Mr. Tasker was the sole owner of RTS Hong Kong and RTS Australia.

The business relationship with appellants commenced in 1971, when RTS Hong Kong began shipping sails on consignment to Bacon in Annapolis. The terms of this consignment agreement, which was oral, will be discussed, infra. Bacon received three shipments of sails from the Hong Kong facility before Mr. Tasker moved his operation back to Australia in 1973. 2 According to Mr. Tasker, “[t]he [Bacon] account was transferred to Australia ... [a]nd all the ledger cards at that time.”

From 1973 to 1990, Mr. Tasker did business through RTS Australia. During this period, RTS Australia forwarded seven shipments of sails to Bacon on consignment. According to Mr. Tasker, all payments by Bacon made during this period were made to RTS Australia, even for sails that had been part of the three shipments from Hong Kong. Bacon never objected to this arrangement.

In 1990, Mr. Tasker formed the appellee, RTS Thailand, and moved his operation to Phuket, Thailand. At the time of trial, Mr. Tasker owned a sixty percent share of the Thai entity, his wife owned thirty-nine percent, and the remaining shares were *623 split among Mr. Tasker’s son, Michael, and several Thai employees. Between 1990 and 1998, seven sail shipments, and several non-sail shipments, were forwarded to Bacon from the Thailand facility. 3 From 1995 to 1998, all payments made by Bacon for Tasker entity sails were to be deposited into an account in Annapolis (the Alex Brown Account). 4

According to Mr. Tasker, all the accounts of Tasker entities, including their accounts with Bacon, had traveled with him to his present entity, RTS Thailand. Regarding the Hong Kong shipments, Mr. Tasker stated that “[t]he shipment [account] was transferred to [RTS] Australia. And in 1994, the authority was transferred to [RTS] Thailand.” He admitted, however, that RTS Hong Kong received no monetary consideration for its transfer of the account documents and paperwork to RTS Australia, and RTS Australia received no compensation for its transfer of account documents to RTS Thailand. 5

Under the consignment arrangement between the parties, Tasker entities would ship sails to Bacon, with a bill of lading and an invoice stating the net price for each sail. Once it received a shipment, Bacon would inspect and measure the sails, assign a catalog number, and fix a “retail fair market *624 value price” for each sail. A “sail card” then was prepared for each catalog number. Sails were stored in Bacon’s Annapolis warehouse until sold. 6

Bacon would acknowledge receipt of each sail consigned to it, stating its catalog number and its retail price. Bacon advertised Tasker entity sails in its catalog and on its website. If a customer purchased a consigned sail from Bacon, Bacon would mark “sold” on the sail card. Once the purchasing customer’s ten-day window to inspect and return the sail expired, Bacon was to issue a check for the net invoice price. In the early years of the relationship, this check was sent directly to the facility at which Mr. Tasker was based. In later years, Bacon deposited its check into the Alex Brown Account and sent an itemized check stub to notify the consign- or. The sail then would be deleted from Bacon’s inventory list. The difference between the net invoice price assigned to the sail by the consignor and the retail sale price set by Bacon constituted Bacon’s gross profit.

After a March 1998 shipment from RTS Thailand, the relationship began to unravel, as evidenced by correspondence between the parties. RTS Thailand, as sole plaintiff, filed the complaint in this action on June 29, 2001. 7 The complaint sounded in breach of contract (Count I), quantum meruit (Count II), unjust enrichment (Count III), breach of bailment agreement (Count IV), trover and conversion (Count V), and constructive fraud (Count VI). RTS Thailand alleged that, *625 since July 1998, Bacon had not made any payments arising from sales of consigned merchandise. In their answer, appellants denied that they had failed to pay any amounts due. Additionally, they asserted a number of specific defenses, including limitations.

During the early stages of the litigation, Bacon returned two shipments to RTS Thailand for credit. The returned sails had been consigned by RTS Hong Kong, by RTS Australia, and by RTS Thailand. The first shipment was valued at $72,269.75, while the second shipment was valued at $1,000.

As a result of amendments and rulings on motions, only the following theories of the case were submitted to the jury: as to Bacon, breach of contract, breach of bailment agreement, trover/conversion, and fraud; and, as to Mrs. Bacon, tro-ver/eonversion and fraud.

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Bluebook (online)
841 A.2d 53, 154 Md. App. 617, 2004 Md. App. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bacon-associates-inc-v-rolly-tasker-sails-thailand-co-mdctspecapp-2004.