Bryant, Griffith & Brunson, Inc. v. General Newspapers, Inc.

178 A. 645, 36 Del. 468, 6 W.W. Harr. 468, 1935 Del. LEXIS 10
CourtSuperior Court of Delaware
DecidedMarch 5, 1935
DocketNo. 157
StatusPublished
Cited by9 cases

This text of 178 A. 645 (Bryant, Griffith & Brunson, Inc. v. General Newspapers, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryant, Griffith & Brunson, Inc. v. General Newspapers, Inc., 178 A. 645, 36 Del. 468, 6 W.W. Harr. 468, 1935 Del. LEXIS 10 (Del. Ct. App. 1935).

Opinion

Layton, C. J.,

delivering the opinion of the Court:

The demurrer raises the question of the right of a third person, supposed to occupy the position of a creditor beneficiary, to sue upon a contract between the defendant and a debtor of such third party by virtue of which the defendant acquired all of the assets and property of the debtor, either without or with an express promise on the part of the defendant to pay the third party’s debt.

The first count asserts the liability of the defendant to the plaintiff by reason of the acquisition of the assets and property of the debtor.

The second count is based upon an express agreement of assumption of indebtedness by the defendant, and this count and the demurrer thereto will be considered first.

Briefly the facts disclosed by the declaration are these: On April 1, 1930, Reporter Star Publishing Company, a Florida corporation owning and publishing a newspaper known as Orlando Evening Reporter Star, entered into a contract in writing with the plaintiff, an advertising agency, whereby the plaintiff was to act as its sole foreign advertising' representative in the United States, outside of Florida, upon a commission of 15%, payable monthly on the net amount of advertising inserted in said newspaper, originating or placed from the designated territory, whether through the offices of the plaintiff or direct, the plaintiff guaranteeing the advertising accounts. The term of the contract was until a promissory note of the publishing company to the plaintiff for $13,600.00 was paid, and for two years from the date of the final payment thereon. Final payment was made on February 18, 1933.

On January 16, 1931, an agreement of sale and purchase was concluded between one Brossier, who owned or controlled all of the capital stock of the publishing company, [470]*470and the defendant, by the terms of which the defendant agreed to purchase all of the assets, tangible and intangible, of the publishing company, the consideration being cash, bonds of an. existing corporation or of one to be formed, and “the balance of $93,000.00 by the assumption and agreement of General Newspaper, Inc., to pay $93,000.00 of indebtedness now due and owing by the Reporter-Star Publishing Company.”

This agreement is attached to the declaration, and is made a part of the second count by reference.

Pursuant to this agreement the publishing company, on April 3, 1931, delivered a bill of sale to the defendant. This bill of sale is not attached to the declaration, but the count proceeds to aver as follows:

“That by the terms of the said bill of sale the said Reporter-Star Publishing Company * * * sold * * * and delivered to General Newspapers, Inc., all of its goods, property, chattels and effects, including ‘all advertising contracts’ including therein the aforesaid agreement then in force and effect between the said Reporter-Star Publishing Company and the plaintiff herein, the said Reporter-Star Publishing Company agreeing and convenanting with General Newspapers, Inc., that it was the lawful owner of said property, goods and chattels, that the same were free of all incumbrances except certain current accounts therein particularly set out, all of which the said General Newspapers, Inc., assumed and agreed to pay as part consideration for the sale to it of the said property, goods and chattels of Reporter-Star Publishing Company; that in said bill of sale there was set out therein among the debts which said General Newspapers, Inc., * * * assumed and agreed to pay, the obligation of the said plaintiff against the said Reporter-Star Publishing Company.”

Then the count alleges that the property and assets thus acquired were merged with the property and assets of Orlando-Morning Sentinel which was published by a corporation owned or controlled by the defendant, and proceeds,

“that subsequent to the * '* * delivery of the * * * bill of sale * * * and to the time when said defendant undertook to publish * * * said Orlando Evening Reporter-Star, said defendant [471]*471recognized and admitted its liability to the plaintiff growing out of the agreement between the plaintiff and the said Reporter-Star Publishing Company,”

notwithstanding which the defendant failed and refused to accept the services of the plaintiff under the contract and to pay the commissions as therein stipulated, .

“although the said defendant recognizing and admitting its liability to the plaintiff as aforesaid paid to the plaintiff the amount due and owing evidenced by the promissory note.”

An analysis of this count shows first, an express assumption by the agreement of January 16, 1931, of $93,000.00 of indebtedness now due and owing; second, an assumption of current accounts particularly set out in the bill of sale, and the “obligation” of the plaintiff against the publishing company; third, a recognition and admission of liability growing out of the agreement of the plaintiff with the Publishing Company by the defendant to the plaintiff.

There is no averment of any account for monthly commissions due and unpaid when the defendant took over the publication of Orlando Evening Reporter-Star.

In the plaintiff’s brief of argument it is asserted that the theory of the second count is an express agreement of assumption by the defendant of the debts and obligations of the publishing company, and attention is directed to the averment that the defendant continued to make payments on the note of $13,600.00 as evidencing a recognition by the defendant of its liability under the advertising contract of the plaintiff. That is to say, because the defendant recognized its liability to pay the note which was set out as an' item of indebtedness in the bill of sale, it thereby recognized its liability generally under the advertising contract, and an express assumption of definite, ascertained indebtedness of $93,000.00 became a general assumption of liability under the advertising contract.

[472]*472This, we think, is mere argument, and amounts only to the pleader’s conclusion.

The averment that in the bill of sale there was set out among the debts assumed by the defendant “the obligation” of the plaintiff against the publishing company, refers to the note of $13,600.00. The construction of pleadings is most strongly against the pleader. If the plaintiff intended to rely upon an assuption by the defendant of general liability under the advertising contract, it should have made its averment with clearness and certainty. Indirect allegations and conclusions are not sufficient. There is nothing in the agreement of January 16, 1931, pointing to an assumption of general liability arising from the advertising contract. The language of the assumption is definite, “to pay $93,000.00 of indebtedness now due and owing,” a part of which was the note of $13,600.00.

The averment that after the delivery of the bill of sale and to the time when the defendant took over the publication of Orlando Evening Reporter-Star, the defendant “recognized and admitted its liability to the plaintiff growing out of the agreement,” that is, the advertising contract, points to some understanding or agreement between the plaintiff and the defendant, a foundation upon which admittedly, this action does not rest.

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Bluebook (online)
178 A. 645, 36 Del. 468, 6 W.W. Harr. 468, 1935 Del. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryant-griffith-brunson-inc-v-general-newspapers-inc-delsuperct-1935.