Brandenburg v. Buda Co.

218 Ill. App. 542, 1920 Ill. App. LEXIS 319
CourtAppellate Court of Illinois
DecidedJuly 14, 1920
DocketGen. No. 25,156
StatusPublished

This text of 218 Ill. App. 542 (Brandenburg v. Buda Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandenburg v. Buda Co., 218 Ill. App. 542, 1920 Ill. App. LEXIS 319 (Ill. Ct. App. 1920).

Opinions

Mr. Justice Matchett

delivered the opinion of the court.

The appellees are members of the partnership of Brandenburg & Company. They filed their bill in equity against appellant, The Buda Company, a corporation, for discovery of certain matters in aid of their suit at law theretofore brought by them against this corporation.

The bill alleges the execution by the parties of a written contract on October 19, 1911, which it sets out in liceo verba, and by which appellees were made exclusive selling agents of appellant’s motor vehicle products in the United States for a compensation-expressed in the contract.

The 13th paragraph provides:

“It is further covenanted and agreed that at the end of a period of every three months, dating from the date of this contract, the parties of the second part shall have the right to examine the books of the party of the first part for the purpose only of ascertaining the amount of shipments made by the party of the first part, and for the purpose only of checking up and verifying statements rendered by the party of the first part to the parties of the second, part hereto.”

The 15th paragraph provides:

“It is further covenanted and agreed by and between the parties hereto, that this contract shall take effect from its date, and shall continue to July 1st, 1916, and from year to year thereafter, unless either party may wish to terminate this contract, which may be done on any year thereafter, by giving the other party a notice in writing of their intention to so terminate this agreement sixty days prior to July 1st of any year thereafter. Said cancellation to take effect provided all payments are made sixty days after date of cancellation.”

By other paragraphs it was provided that if members of the partnership should for any reason cease to be actually engaged in the sale of motor vehicle products, the corporation should have the right to cancel the agreement, after giving 90 days’ notice in advance of the date of such cancellation, and that if either of the parties became insolvent, the contract might be terminated as soon as all payments thereunder should have been made. The bill alleges full performance by the partnership of the terms of the contract, but charg-es that on April 21, 1916, the following notice was served on them:

“Chicago, April 21, 1916.

“To George G. Brandenburg and Joseph I. Brandenburg, copartners, doing business as Brandenburg & Company.

Chicago, Ill.

NOTICE.

“You are hereby notified that the contract of date October 19,1911, by and between yourselves as parties of the second part and The Buda Company, an Illinois corporation of the City of Harvey, Illinois, as party of the first part, having to do with commissions to you on shipments by us of parts for motor vehicles, is hereby terminated by us, said termination to take effect on the expiration of the five year period of said contract on July 1, 1916.

The Buda Company,

By James Viles, President.”

The bill also says that after July 1, 1916, defendant refused to carry out its contract, and that, by reason thereof, complainants, on January 2, 1917, instituted in the circuit court of Cook county, Illinois, a certain action in assumpsit, to recover from the defendant the amount of their damages, $250,000, suffered by reason of the failure and refusal of the defendant to carry out and perform said contract on its part; that said action of assumpsit is still pending and undetermined.

The bill further alleges that material facts necessary to the maintenance of this suit can be obtained only from examination of defendant’s books of account, etc. It prays discovery may be made and propounds certain interrogatories which it prays may be answered by complainants’ solicitor. The bill is sworn to and duly signed by complainants’ solicitor.

To this bill defendant-appellant filed a general demurrer and afterwards a special demurrer, both of which were by the court overruled, and a decree entered, directing defendant to answer the interrogatories within 10 days. From that decree this appeal is prosecuted.

It is to be noticed that the bill is one for discovery only. It does not seek to have the merits of the suit at law passed on by the chancery court. It does not ask the court of chancery to give any relief, other than the defendant “The Buda Company, may make full, true and complete discovery of the several matters aforesaid, to the end that your orators may be better enabled to maintain their said action in assumpsit, so instituted by them in the Circuit Court of Cook County, Illinois, against said The Buda Company. ’ ’

It is the contention of appellant that the bill cannot be maintained for the reason that complainants have a full, adequate and complete remedy at law, to obtain all the. information to which they are en- • titled, and it is specifically pointed out that the information asked for, if proper, is obtainable under section 9 of the Evidence Act (Hurd’s Bev. St. ch. 51, p. 1306 (J.- & A. U 5526), which provides:

“The several courts shall have power, in any action pending before them, upon motion, and good and sufficient cause shown, and reasonable notice thereof given, to require the parties, or either of them, to produce books or writings in their possession or power which contain evidence pertinent to the issue.”

In this connection we are cited to numerous cases construing this section in a liberal manner, and which seem to express the opinion that bills of discovery have been made unnecessary by its enactment. We are cited to Hartford Fire Ins. Co. v. Ledford, 151 Ill. App. 413, where the opinion says: “Where the evidence desired can be had on notice, there is no need of a bill of discovery, and this bill in equity will not lie for discovery”; to Swedish-American Tel. Co. v. Fidelity & Casualty Co. of New York, 208 Ill. 562, where considering an appeal from an order entered under said section 9 compelling the production of books by a party to a suit at law, the court said: “Nor do we think that it was necessary to file a bill of discovery in order to secure an examination of the books”; to Denison Cotton Mill Co. v. Schermerhorn, 257 Ill. 128, where an order was sustained, requiring a party to permit an examination of evidence in his possession by his adversary, to prepare for trial.

In connection with these authorities appellant invokes the rule laid down in 3 Story’s Equity Jurisprudence, sec. 1943, to the effect that “courts of equity will not entertain a bill for discovery to assist a suit in another court, if the latter is, of itself, competent to grant the same relief; for in such a case the proper exercise of the jurisdiction should be left to the functionaries of the court where the suit is depending.”

The leading authority for this last statement of law is Gelston v. Hoyt, 1 Johns. Ch. (N. Y.) 543, in which the opinion was delivered by Chancellor Kent in 1815. This case was followed in the later case of. Leggett v. Postley, 2 Paige (N. Y.) 599, in 1831, but in the later case of Marsh v. Davison, 9 Paige (N. Y.) 580, decided by Chancellor Walworth in 1842, the limitations of the doctrine were stated:

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Bluebook (online)
218 Ill. App. 542, 1920 Ill. App. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandenburg-v-buda-co-illappct-1920.