Buckhannon Sales Co. v. Appalantic Corp.

338 S.E.2d 222, 175 W. Va. 742, 1985 W. Va. LEXIS 675
CourtWest Virginia Supreme Court
DecidedDecember 17, 1985
Docket16596
StatusPublished
Cited by17 cases

This text of 338 S.E.2d 222 (Buckhannon Sales Co. v. Appalantic Corp.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckhannon Sales Co. v. Appalantic Corp., 338 S.E.2d 222, 175 W. Va. 742, 1985 W. Va. LEXIS 675 (W. Va. 1985).

Opinion

NEELY, Justice.

On 1 January 1979 Buckhannon Sales Company, Appalantic Corporation and Monongahela Power Company entered into a contract in which Monongahela Power Company agreed to purchase coal from Ap-palantic with Buckhannon acting as sales agent. By agreement dated 28 August 1980, Appalantic, now under new owners, and Buckhannon established a commission scheme under which Buckhannon would re-cieve compensation for its efforts as sales agent. Buckhannon was to calculate a six percent sales commission from the net sale price of the coal reduced by both the cost of trucking the coal “from the tipple to Harrison Station ...” and the cost of cleaning that coal. 1 In a 24 September 1980 *744 “Letter of Instruction” Appalantic recapitulated the method of computation Buck-hannon was to use for its commission from the sale of coal to the Monongahela Power Company. 2 At the time of that letter, Ap-palantic had mines located only on “R.N. White leasehold,” and the coal those mines produced was washed exclusively at the “Mikela” washing plant. However, under the agreements, Appalantic had the first right to furnish coal under the Monongahela agreement whether that coal came from Appalantic’s mines or whether Appalantic acquired the coal from a third party.

Between August 1980 and November 1982 Buckhannon received the proceeds from the sale of coal to Monongahela Power Company and made distribution of those proceeds. All the coal shipments from the Appalantic mine on the “R.N. White leasehold” were washed at the “Mikela” plant and then trucked to Harrison Station. On these shipments, Buckhannon deducted trucking and washing costs before taking commission. On all other coal sold under the Monongahela Power Company contract, and provided by Appalantic, Buckhannon deducted its commission from the gross sales price with no allowance made for trucking or washing. In October, 1982 Buckhannon received a letter from Appa-lantic disputing Buckhannon’s method of calculating and claiming that Buckhannon should make its deductions for trucking and washing from the gross sales price before computing its commission on all coal delivered to Monongahela Power Company and provided by Appalantic.

On 9 January 1984, Buckhannon sued Appalantic and Lang Brothers, Inc., 3 under the Uniform Declaratory Judgement Act, W.Va.Code 55-13-1 to 55-13-16 [1941], seeking interpretations of the various agreements between Buckhannon and Ap-palantic. Before any hearings on the matter, Lang filed a motion in limine to prevent the introduction of parol testimony concerning the various documents, contending that the court should not admit parol evidence and that the terms of the various contracts were unambiguous.

On 24 August, 1984, on the basis of several memoranda and hearings the court sustained Lang’s motion. On 24 August 1984, Buckhannon moved that it be permitted to vouch the record with the testimony which it would have adduced. The court permitted the record to be vouched accordingly and Buckhannon presented Carl J. Martin, its president, who testified regarding various documents filed with the complaint and the construction given to the contract by the parties. At the conclusion of that hearing, the court requested and parties supplied proposed findings of fact and conclusions of law. On 5 October 1984, on the basis of the pleadings and record the court adopted the findings of fact and conclusions of law submitted by Lang, decided that the contracts were not ambiguous, and held that Buckhannon must deduct $4.00 per ton for trucking and $4.40 per ton for cleaning regardless of whether the coal came from Appalantic’s mine on the “R.N. White leasehold” or from a different source.

*745 The question before us is whether the parol evidence rule bars the introduction of testimony concerning the agreements that detail the allocation of costs between Appa-lantie and Buekhannon. We hold that the motion in limine was erroneously sustained and that the parties should have the opportunity to explain the agreements. Therefore, we reverse the summary judgment.

The underlying issue in this case is whether Buekhannon must make deductions for trucking and washing coal before computing its sales commission on all coal delivered under the Monongahela Power Company agreement, and provided by Ap-palantic, regardless of the actual shipping and trucking costs. Buekhannon maintains that to interpret and apply the various contracts and memoranda governing these matters, it is necessary to adduce testimony concerning the agreements and the performance under these agreements.

Under the parol evidence rule, a written contract is considered “to merge all of the negotiations and representations made prior to execution, and extrinsic evidence is not available to alter or interpret language which is otherwise plain and unambiguous on its face.” Warner v. Haught, Inc., 174 W.Va. 722, 329 S.E.2d 88, 94 (1985). However, parol evidence rule will not bar the introduction of testimony when writings are ambiguous. This court crystallized this rule as follows:

While the general rule is that the construction of a writing is for the court; yet where the meaning is uncertain and ambiguous, parol evidence is admissible to show the situation of the parties, the surrounding circumstances when the writing was made, and the practical construction given to the contract by the parties themselves either contemporaneously or subsequently. If the parol evidence be not in conflict, the court must construe the writing; but if it be conflicting on a material point necessary to interpretation of the writing, then the question of its meaning should be left to the jury under proper hypothetical instructions.

Syllabus Point 4, Watson v. Buekhannon River Coal Co., 95 W.Va. 164, 120 S.E. 390 (1923). Furthermore, we have consistently applied this rule to ambiguous contracts. Lee Enterprises Inc. v. Twentieth Century-Fox Film Corp., 172 W.Va. 63, 303 S.E.2d 702 (1983) (conflict between paragraphs of contract demonstrate terms of contract were mutable and therefore contract was ambiguous). Leasetronics v. Charleston Area Medical Center Inc., 165 W.Va. 773, 271 S.E.2d 608 (1980) (agreement was ambiguous as to whether the agreement was a contract for sale or a release). McShane v. Imperial Towers, Inc., 165 W.Va. 94, 267 S.E.2d 196 (1980) (lease provisions regarding landlord’s liability to deliver occupancy was sufficiently ambiguous to permit parties to introduce extrinsic evidence to show circumstances surrounding lease). 4 All of these cases deal with situations in which the contract, when viewed without reference to extrinsic evidence, is susceptible to different interpretations.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re: J.C.
West Virginia Supreme Court, 2017
Frederick Management Co. v. City National Bank
723 S.E.2d 277 (West Virginia Supreme Court, 2010)
Jochum v. Waste Management of West Virginia, Inc.
680 S.E.2d 59 (West Virginia Supreme Court, 2009)
Marshall v. Elmo Greer & Sons, Inc.
456 S.E.2d 554 (West Virginia Supreme Court, 1995)
Jolynne Corp. v. Michels
446 S.E.2d 494 (West Virginia Supreme Court, 1994)
John D. Stump & Associates, Inc. v. Cunningham Memorial Park, Inc.
419 S.E.2d 699 (West Virginia Supreme Court, 1992)
Yoho v. Borg-Warner Chemicals
406 S.E.2d 696 (West Virginia Supreme Court, 1991)
Keller v. First National Bank
403 S.E.2d 424 (West Virginia Supreme Court, 1991)
Ohio Valley Contractors, Inc. v. Board of Education
391 S.E.2d 891 (West Virginia Supreme Court, 1990)
Glenmark Associates, Inc. v. Americare of West Virginia, Inc.
371 S.E.2d 353 (West Virginia Supreme Court, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
338 S.E.2d 222, 175 W. Va. 742, 1985 W. Va. LEXIS 675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckhannon-sales-co-v-appalantic-corp-wva-1985.