Continental Supply Co. v. Sinclair Oil & Gas Co.

1924 OK 1166, 235 P. 471, 109 Okla. 178, 1924 Okla. LEXIS 766
CourtSupreme Court of Oklahoma
DecidedDecember 30, 1924
Docket15035
StatusPublished
Cited by22 cases

This text of 1924 OK 1166 (Continental Supply Co. v. Sinclair Oil & Gas Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Supply Co. v. Sinclair Oil & Gas Co., 1924 OK 1166, 235 P. 471, 109 Okla. 178, 1924 Okla. LEXIS 766 (Okla. 1924).

Opinion

Opinion by

PINKHAM, C.

This action was instituted by the Sinclair Oil & Gas Company, a corporation, as plaintiff, against the Continental Supply Company, a corporation, as defendant, to recover the sum of $31,616.21, with interest thereon at the rate of 6 per cent, per annum from the 25th day of June, 1920, for oil well material sold by plaintiff to defendant.

The petition alleged in substance that on or about the 25th day of June, 1920, the plaintiff, through its agent, N. A. Spencer, sold and delivered to the defendant certain goods, wares, and merchandise; that the goods, wares and merchandise so sold and -delivered by plaintiff have not been paid for and that the plaintiff is entitled to recover the amount sued for; that the sale and delivery of the pipe in controversy was made at the special instance and request of the defendant, “acting by and through John Sexton, who was the duly authorized agent of said defendant and fully authorized by said defendant so to do.”

The Continental Supply Company denied under oath that it purchased the pipe and merchandise or any part thereof from the Sinclair Oil & Gas Company, and specifically denied that “John Sexton had any authority as agent of otherwise to purchase any goods, wares, and merchandise from the plaintiff, and denied that he had any authority as agent or otherwise to contract with plaintiff for the purchase of any goods, wares, and merchandise.”

The case was tried to a jury and resulted in a verdict and judgment for the plaintiff. Motion for new trial was overruled. From the judgment defendant, Continental Supply Company, as plaintiff in error, prosecutes this appeal.

The Continental Supply Co. contends that the court erred: (1) In refusing to submit to the jury the extent of the authority of John Sexton, the agent, and whether the specific acts of John Sexton were within the scope of bis authority; (2) the court erred in placing the burden of proof upon the principal, denying the acts of the agent were within the scope of the agent’s authority; and (3) that the court erred-in refusing to give defendant’s requested instruction.

It is argued by counsel for the Continental Supply Company, in .their brief, that the court below submitted the case to the jury on instructions which held that the purchase of this large amount of material and the opening of the account was within the scope of the authority of John Sexton, in spite of the fact that there were facts in evidence questioning and tending to disprove his authority to enter into such a contract or to open such an account, and in spite of the fact that the extent of his authority had been put in issue by the pleadings and evidence.

The evidence conclusively shows that the nature of the business which the Continental Supply Company was authorized to do was that of producing and dealing in well supplies and furnishing of various kinds and other articles of merchandise. Its headquarters and home office, where its books and records were kept and its general office maintained, was at St. Louis, Mo. In its application for a permit to transact business in the state of Texas, it stated that “the permit it desires is for the business of the purchase and sale of goods, wares, and merchandise.” It carried on its business of purchase and sale of oil well supplies at Ft. Worth, Ranger, Eastland, Cisco, and Breakenridge, with headquarters at Ft. Worth, which, were known as the North Texas district.

It appears that John Sexton had been in the service of the Continental Supply Company for some nine years, and that he was placed in charge of the North Texas district as district manager, with headquarters at Ft. Worth, and it clearly appears from the undisputed evidence that Sexton was the only official of the defendant company in the North Texas District, or in the state *180 of Texas at the time of the transactions involved.

It further appears that in the latter part of 1920, there was a shortage of oil well supplies in north Texas, and that the Continental Supply Company had a number of customers in that district who desired easing. and that John Sexton, as district manager of the defendant company, purchased from N. A. Spencer, who was the superintendent of stocks and materials owned by the plaintiff company, the supplies involved for the use of the customers of the Continental Supply Company.

It further appears that the Sinclair Oil & Gas Company had a large amount of oil well supplies stored in its warehouses at Ranger and Gorman, and desired to dispose, of some of this) material for the reason that it had curtailed its drilling operations in the Ranger district, and that it authorized Mr. Spencer, its superintendent, to sell some of the same..

The evidence shows that Sexton, the defendant company’s district manager in, north Texas, purchased, from time to time, from the authorized agent of the plaintiff company. during a period of several months, a large quantity of pipe and caused the same to be shipped to its customers in the district over which he had been made manager of the Continental Supply Company.

It appears that orders for casing were given by Sexton to Spencer as the supplies were desired and the same were shipped in accordance with Mr. Sexton’s directions. Invoices were made out by Mr. Spencer, the agent of the Sinclair Company, for each shipment, showing the material to be charged to the Continental Supply Company, and the original invoice was mailed to the Continental Supply Co. at Ft. Worth, where the headquarters of the defendant company for the North Texas District was located, and where a record was kept of the purchases and sales in that district.

It further appears that copies of these invoices or bills in each case were sent to the office of the Sinclair Oil & Gas Company at Ft. Worth, and a material transfer was made out at the Ranger office of the Sinclair Oil & Gas Company, showing the disposition of the material and this was also sent to the Ft. Worth office of the plaintiff company.

Mr. Sexton, as district manager of the defendant company, would send to Mr. Spencer, superintendent of materials of the plaintiff company, at Ranger, a cashier’s check for the amount of the bill, which was made payable to the Sinclair Oil & Gas Company. Mr. Spencer would then forward the check, with a letter of remittance and explanation to the Ft. Worth office of the Sinclair Oil & Gas Company, where proper credit would be entered. It appears that this method of handling the transactions, and of making remittances by cashier’s check was at Mr. Sexton’s request.

It is conceded that John Sexton was district manager in charge of the business of the Continental Supply Company in north Texas, and there appears to be no conflict in the testimony as to the character of business carried on by the Continental Supply Company, which was the buying and selling of oil well supplies.

It further appears that the gross value of all the pipe delivered by the Sinclair Company to John Sexton and charged to the account of the Continental Supply Co. was $154,251.33, upon which account there has been credited the sum of $123,205.12, on account of payments forwarded by N. A.

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Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 1166, 235 P. 471, 109 Okla. 178, 1924 Okla. LEXIS 766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-supply-co-v-sinclair-oil-gas-co-okla-1924.