Busch v. Globe Industries

200 Cal. App. 2d 315, 19 Cal. Rptr. 441, 1962 Cal. App. LEXIS 2712
CourtCalifornia Court of Appeal
DecidedFebruary 15, 1962
DocketCiv. 25211
StatusPublished
Cited by11 cases

This text of 200 Cal. App. 2d 315 (Busch v. Globe Industries) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Busch v. Globe Industries, 200 Cal. App. 2d 315, 19 Cal. Rptr. 441, 1962 Cal. App. LEXIS 2712 (Cal. Ct. App. 1962).

Opinion

JEFFERSON, J.

This is an appeal from a judgment for defendants in an action for breach of contract. The case was tried by the court, sitting without a jury.

Viewing the evidence favorably to defendants it appears that on or about December 11, 1955, plaintiff Robert H. Busch and defendant Globe Industries, a copartnership consisting of Robert Friedland and Nathan Reis, also known as Nathan Reese, entered into a contract. Under the terms of the agreement plaintiff obtained an exclusive agency distributorship for Globeware (cooking utensils sold by defendant Globe Industries) in 16 eastern states, and the District of Columbia for a period of two years from the date of the contract.

The contract provided in part: “Globe agrees that it will not enter into any contract contemplating the shipment of Globeware into any of the states hereinabove listed as comprising the territory of Busch, without first communicating with Busch and obtaining his agreement thereto.”

Plaintiff went to New York in early January 1956 to form his sales organization and began selling Globeware in February.

*317 In May 1956, in response to plaintiff’s complaints concerning defective merchandise, defendant Friedland and his employee Milton Kanter flew to New York. While there Fried-land and plaintiff negotiated with Colgate-Palmolive Peet Company in reference to a possible promotional program for Globeware. Plaintiff consented to this and in reference to compensation defendant Friedland promised plaintiff he would do “the fair thing.” Plaintiff was left in charge of the Colgate matter which later proved unsuccessful.

Throughout the period of the exclusive agency contract defendants made other attempts to enter into promotional campaigns for Globeware with various national companies. Plaintiff was told about these promotions, and he understood that in the event they were consummated they would result in sales within his exclusive territory.

During the summer of 1956 plaintiff participated in promotional negotiations with Armour and Company in Chicago, Illinois. He was subsequently told that defendants were continuing to negotiate with Armour, and he did not object. In fact he welcomed the possibility of additional sales in his territory because of the Armour promotion. These supplementary negotiations, conducted by defendants after plaintiff returned to New York, resulted in a contract on November 8, 1956, between Armour and Company and defendant Globe Metal Products Company, a copartnership also consisting of Robert Friedland and Nathan Reis. By the terms of this agreement (herein referred to as the “Armour contract” or the “Armour deal”) a nationwide program for the promotion and sale of Globeware during the following year was arranged through the device of a premium coupon to be placed in a package of Armour and Company products. When mailed to the defendants with the sum of $3.00 these coupons entitled the sender to receive a Globeware skillet.

On the 15th or 16th of November, 1956, defendant Nathan Reis called New York and talked to plaintiff in an attempt to collect a debt of approximately $3,000 which had been owing over six months. He told plaintiff that he needed the money for operation of the business. Plaintiff asked, “Well, what about the Armour deal ? Aren’t you getting money from that?” Reis told defendant that the Armour deal was not due to “kick off” until the beginning of 1957. Plaintiff then stated he did not have the money. Defendant suggested that plaintiff return part of the merchandise equivalent to the amount of the debt. Plaintiff stated; “Well, I don’t want to *318 ship hack the merchandise just that I didn’t pay for, I would rather ship it all back and get out of this business anyway because I have something else I would rather do, I think I can make a better living at.” Reis told plaintiff that he would have to discuss this with his partner Friedland. The following day, after reviewing this conversation with his partner, defendant Reis telephoned plaintiff and told him they would not object if he wanted to ship all the merchandise back. After taking plaintiff’s inventory over the phone Reis told him that he would send a check. A check was not sent because defendants decided to send an employee, Kanter, to New York to verify plaintiff’s inventory. Before Kanter arrived in New York defendants received a telegram from plaintiff in which plaintiff threatened to dispose of the merchandise at 75 cents per utensil and charge defendants for the difference because he had not received the check for his inventory, but this sale was never made.

After Kanter arrived he and plaintiff were unable to work out any arrangement whereby plaintiff would continue in business. Plaintiff told Kanter he had had one job interview and was waiting to have another. He also said he was selling his furniture, was going to close his business, and wanted to get his merchandise out before the lease on the warehouse expired. At plaintiff’s suggestion Kanter repurchased all of plaintiff’s inventory, advertising materials and sales kits. After arranging for payment of the money plaintiff assisted Kanter in preparing the inventory for shipment back to Los Angeles. These negotiations were consummated on November 29, 1956.

The promotional program under the Armour contract during the following year was moderately successful. Between February and December 11, 1957, defendants had gross sales of $34,257 in the territory specified in the original contract with plaintiff.

Plaintiff then sued for damages and an accounting alleging in his complaint that he sustained damages as a result of two breaches of the exclusive agency contract. The first breach concerned shipments of defective merchandise which plaintiff was unable to sell, and which allegedly destroyed his business. The trial court found that the Globeware which plaintiff received was saleable and marketable, and plaintiff makes no contentions against these findings on this appeal. The second breach related to the promotional campaign which occurred pursuant to the Armour contract and resulted in sales of Globeware in plaintiff’s exclusive territory.

*319 The trial court found that the parties executed the original written contract as previously recited. The court also found:

“16. That after March 30, 1956 plaintiff and defendants orally modified the written contract ... in that plaintiff and defendants did jointly seek national promotional programs for the distribution of defendants’ Globeware; that at all times plaintiff had knowledge of the various promotional plans and had knowledge of the Armour contract. The compensation to be received by plaintiff under any promotional plan was not agreed upon and was something that remained to be determined at a future date. Plaintiff at all times consented to and had knowledge of the various promotions including but not limited to the Armour transaction.
< Í “18. That plaintiff was at all times advised of and consented to the negotiations and the execution of the Armour contract.
“19.

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Bluebook (online)
200 Cal. App. 2d 315, 19 Cal. Rptr. 441, 1962 Cal. App. LEXIS 2712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/busch-v-globe-industries-calctapp-1962.