Davison-Pick Fertilizers, Inc. v. Richardson

143 So. 544
CourtLouisiana Court of Appeal
DecidedOctober 5, 1932
DocketNo. 1042.
StatusPublished

This text of 143 So. 544 (Davison-Pick Fertilizers, Inc. v. Richardson) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davison-Pick Fertilizers, Inc. v. Richardson, 143 So. 544 (La. Ct. App. 1932).

Opinion

MOUTON, J.

The following ■ opinion was rendered by the district judge:

“The plaintiff sues to recover $1,544.25 on a note executed by defendant in favor of plaintiff given for credit shipments of fertilizer made by plaintiff to defendant. The defendant by way of re-convention and'offset claims that said note is paid and compensated by reason of a commission due him by the plaintiff company in accordance with an agreement by which he was to receive 10% -commission on all sales of fertilizers made by him for the company and as their distributor or agent. Defendant further claims by way of re-convention freight on the various cars of fertilizer shipped him aggregating $998.35, making his total re-conventional demand $1,008.39.
“The principal question to be decided in this case is whether or not defendant was to receive a commission of ten per cent on the fertilizers which he sold from the company shipments to him. This question resolves itself largely into whether the court is to accept the testimony of defendant or that of one, Morrice, representative of plaintiff who negotiated the original arrangements by which defendant handled fertilizers for plaintiff. Defen&ant states positively that he was to receive ten per cent of the money which he would be required to put out in handling the fertilizers, and he in turn sold, with the knowledge and consent of Mor-rice, the fertilizer to the local customers for the same price which it cost him. In other words if the defendant was not to get ten per cent commission, the only profit that he could have hoped to derive from the connection would be the accommodation of his gin customers who raised cotton in the vicinity and patronized his gin. In fact, he would not .only have received no profit for his time, incidental expense in handling the fertilizer, but would have taken the chance of collecting for the fertilizer sold to the various customers, as defendant had to pay cash for the fertilizer which he received.
“For a business man to make such a trade would seem to be very anomalous. The de-' fendant’s position is further substantiated by the admitted fact that the representative of plaintiff company visited the defendant every few days and went with him to see the farmers and helped advertise and sell the fertilizer to the local trade. There was a keen competition among the fertilizer dealers and some price cutting, indicating that there must have been a strong incentive on the part of the plaintiff to make a connection with defendant to handle the fertilizer for them in that territory. It is true that defendant was allowed the usual discount of 10% on the invoices for cash, but that seems to have been a regular discount to all customers paying cash. The main incentive for defendant to handle the fertilizers was the fact that he was to get the ten per cent commission on the amount of money which *545 he would be required to put out in order to procure the fertilizer, which would in turn put him in close touch with his gin customers, and at the same time allow him something for his time, expense, and risks incurred in re-selling- to the farmers.
“The testimony of Mr. Richardson, the defendant, is very positive and consistent, and his good faith and honesty in the matter is without question. He is a man of unimpeachable character and honesty, and the court is fully convinced that his version of the transaction is correct. On the contrary, the representative of plaintiff impresses the court as now making an effort to extricate himself from a situation which he entered into with a desire to secure business over his competitors and which probably was not fully revealed to his company.
“Morrice was clothed by the plaintiff company with apparent authority to sell fertilizer which implied the making of terms for sales. Moreover, it appears from the evidence that he talked with plaintiff’s office by telephone during the negotiations. If Morrice was restricted by any secret limitations on his authority, it would not bind the defendant who acted with him in good faith. Johnson v. Manget Bros. Co., 168 La. 317, 122 So. 51.
“It is not certain whether defendant sold the fertilizer for the cost exclusive of freight, or whether he sold it for the actual cost to him including freight. In any event the claim for reimbursement for freight is apparently abandoned by defendant by a statement filed in the record since the trial by his attorneys in which the freight item is eliminated.
“Therefore, the proper way to arrive at an adjustmfent between the parties is by taking the total sales and crediting the defendant with his commission thereon and adding this credit to the other payments made by him. This will bring us to the following method of adjustment:
“Taking the compilation of total sales as shown on plaintiff’s exhibit 16 as correct (and it is not questioned) we have: ,
Total sales paid by sight draft. .$10,279.90
Total sales made on credit. -3.356.63
Total net sales to defendant... .$13,636.53 Credits:
Paid by S. D. as shown above: .$10,279.90
Pour cash payments of $500.00 each from 10/26/30 to 5/13/31.. 2,000.00
10% commission of total net sales shown above .1,363.65
Total payments and credits.. .$13,643.55 Leaving over-payment of $7.02.
“Therefore, the suit of the plaintiff should be dismissed, and defendant should have judgment in reeonvention against the plaintiff for the amount stated above. Plaintiff to pay the cost.”

In the foregoing opinion of the court, we find a correct statement of the issues, and of the principal facts to be considered for a proper solution of the contest between the parties to this suit.

The main question to be decided, as the court said, is as to whether defendant was to receive a commission of 10 per cent, on the fertilizers which he sold from the company’s shipments to him.

It is shown that the sale of these fertilizers by defendant amounted to a total of $14,907.62, for which he had to pay cash. According to Morrice, representative of plaintiff, with whom defendant entered into the original arrangements for the handling of the fertilizers, he was not to receive any commission on these sales. As was said by the court, “For a business man to make such a trade would seem to be very anomalous.” It is evident that defendant in making these sales had to take the -risks of not being paid by some of the various customers with whom he might deal. It is indeed hard to believe that he would have entered into such an undertaking without the promise of some remuneration by plaintiff company which had a keen interest in selling these fertilizers.

The only incentive defendant could have had in entering into such an agreement was possibly the hope of the profit he might derive from the accommodation he might have given to the cotton growers who patronized his gin. What would have been the value of such increased patronage, if defendant would have obtained it, does not appear, and no attempt was made to show it.

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Related

Johnson v. Manget Bros. Co.
122 So. 51 (Supreme Court of Louisiana, 1929)
Gray v. Feazel
3 La. App. 142 (Louisiana Court of Appeal, 1925)

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143 So. 544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davison-pick-fertilizers-inc-v-richardson-lactapp-1932.