Davies v. J. D. Wilson Co.

85 N.W.2d 459, 1 Wis. 2d 443, 1957 Wisc. LEXIS 397
Wisconsin Supreme Court·Decided October 8, 1957·Published·Cited by 24 cases

Opinion

*448 Steinle, J.

Specifically we are called upon to determine (a) whether the trial court erred in directing the verdict with respect to additional commissions earned by plaintiff on the Globe furnace job, the jury having determined that the plaintiff was entitled to the same in amount of $1,139.25, and the court holding that the plaintiff had waived his right thereto as a matter of law; (b) whether sec. 270.28, Stats., controls, neither party having requested submission to the jury of the question of waiver as a fact; (c) whether the statute of limitations, sec. 330.14 (Stats. 1951), barred the plaintiff from recovering commissions on two Globe invoices rendered before January 6, 1952; (d) whether there is sufficient evidence to support the jury’s verdict that plaintiff is entitled to a 10 per cent commission of gross receipts on the Bucyrus-Erie boiler-setting job; (e) whether the plaintiff waived his right to receive a straight 10 per cent commission on the Bucyrus-Erie job; (f) whether the trial court erred in not having granted judgment in favor of the defendant on its cause of action as asserted in the counterclaim relating to damages resulting by reason of plaintiffs possession of certain of the defendant’s documents and records; (g) whether the jury’s verdict is to be set aside as being impossible, contradictory, and perverse.

In determining whether the trial court erred in directing a verdict, this court must take that view of the evidence which is most favorable to the party against whom the verdict was directed. Mueller v. O’Leary (1935), 216 Wis. 585, 587, 257 N. W. 161.

From evidence not disputed it appears that the defendant J. D. Wilson Company is a corporation whose business consists of acting as a manufacturer’s representative and selling largely refractories or heat-resistant firebrick and plastics used in the lining of boilers and heat-treat and foundry furnaces. Besides others it represented the manufacturing firms of Babcock & Wilcox Company of New York and Laclede- *449 Christy Company of St. Louis. The defendant company also dealt in a line of industrial valves, pumps, and magnets. Altogether it engaged in the sale of about 90 products.

Robert S. Crichton was president and treasurer of the defendant company. His wife was the vice-president during the time in question. Crichton and his wife owned two thirds of the shares of stock of the company. Crichton was employed as a salesman for the company. Others who were stockholders and salesmen of the company were Messrs. Pfister, Webers, Knox, and McCotter. In April, 1948, the plaintiff, John J. Davies, was hired by Crichton as a salesman for the company at a salary of $300 per month. Davies did not become a stockholder of the company. In October, 1949, Crichton, on behalf of the company, changed Davies’ compensation arrangement from that of salary to a commission basis. The commission employment agreement was oral and at the trial of this action some of its terms were in dispute.

Credible evidence of record favorable to the plaintiff Davies with respect to his claims for commissions, is as follows: While Davies was still on a salary basis, there was no limitation as to accounts in the Milwaukee territory that he was entitled to solicit. When Crichton changed Davies’ arrangement to a commission basis, he defined Davies’ territory and told Davies that both Globe and Bucyrus-Erie would be Davies’ accounts, and that there would be no limitation as to what he could sell at either of said plants. Certain other of the plants in the Milwaukee territory were served by Webers or Crichton. The defendant’s bookkeeper had knowledge of the accounts that were assigned to particular salesmen. Before leaving the defendant’s employ in 1952, said bookkeeper made a book record which contained alphabetically a list of the plants in the territory and the initials of the defendant’s salesmen who served the same. Davies’ initials appeared in said book in connection with the Globe and Bucyrus-Erie accounts. The initials of no other salesmen *450 appeared in connection with the Bucyrus-Erie account, and said account as listed did not indicate two or more departments.

Crichton told Davies that the amount of his commission would depend upon the product sold unless there was a contract with the customer for not only the materials but the installation of the materials by the defendant as well, carrying one lump-sum contract price. Such material and installation agreement was called a turnkey contract, and the commission to Davies was to be 10 per cent of the entire contract price. When material alone was sold, Davies would be entitled to commission from 10 per cent to 16 per cent unless the same was shipped in carload lots, when the commission would be five per cent. With regard to a turnkey contract, the commission was to be 10 per cent notwithstanding that some of the materials were sold in carload lots. When the contract provided for the sale of material and the furnishing to the customer of labor at an hourly rate, the arrangement was not considered a turnkey contract but a time-and-material contract, and commissions would be paid only on the basis of the materials sold, but not on the price of the labor.

It was agreed that as to Davies’ accounts he would receive full commission regardless of whether he had done any work on the order. The only time that a commission would be split between two salesmen was when an order was sold in one salesman’s territory and was used in a plant in another salesman’s territory. In the event that a salesman assisted another with reference to an account, he would not be entitled to a portion of the commission notwithstanding that his assistance was requested by the salesman to whom the account had been allocated. There was no agreement that Davies’ commissions were in any way to be limited or affected by the amount of profit of the defendant on the job. In the event that Davies made a sale and the defendant *451 realized no profit, he would still be entitled to a full commission on the basis of the contract price.

Davies commenced selling items to Globe in the early part of 1949. Shortly after Davies’ first contact with Globe, Crichton told him that Globe was expecting to rebuild its reheat and rotary furnaces. Crichton urged Davies to endeavor to procure that business for the defendant. In 1951 Davies obtained an order from Globe for firebrick for the east rotary furnace which was to be completely rebuilt. Globe actually installed two furnaces, one designated as the east rotary furnace, and the other the reheat furnace, both of which functioned as one unit.

Babcock & Wilcox Company had built some furnaces in New York which the Globe chief engineer wished to copy. Globe engaged the same engineers to design its new east rotary and reheat furnace unit. Since Babcock & Wilcox Company materials were specified in the New York furnaces, the specifications for the Globe furnace also called for Bab-cock & Wilcox Company materials. A Milwaukee territory representative of Babcock & Wilcox Company, Robert Onan, was entitled to sell the materials directly to Globe and by-pass the defendant company. Onan and Davies together had called on Globe for several years previously. Onan decided to place the order through the defendant and permit it to make a profit on the transaction.

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Davies v. J. D. Wilson Co., 85 N.W.2d 459, 1 Wis. 2d 443, 1957 Wisc. LEXIS 397 (Wis. 1957).

85 N.W.2d 459 (Davies v. J. D. Wilson Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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