Des Moines Blue Ribbon Distributors, Inc. v. Drewrys Ltd. U. S. A.

129 N.W.2d 731, 256 Iowa 899, 1964 Iowa Sup. LEXIS 655
CourtSupreme Court of Iowa
DecidedJuly 16, 1964
Docket51321
StatusPublished
Cited by37 cases

This text of 129 N.W.2d 731 (Des Moines Blue Ribbon Distributors, Inc. v. Drewrys Ltd. U. S. A.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Des Moines Blue Ribbon Distributors, Inc. v. Drewrys Ltd. U. S. A., 129 N.W.2d 731, 256 Iowa 899, 1964 Iowa Sup. LEXIS 655 (iowa 1964).

Opinion

Garfield, C. J.

— This is a law action by Des Moines Blue Ribbon Distributors, Inc., against Drewrys Ltd. U. S. A., Inc., for damages from cancellation by defendant of an agreement, alleged to be partly written and partly oral, under which plaintiff says it Avas a distributor of defendant’s beer. Trial resulted in jury verdict and judgment for plaintiff for $6429.17 from which defendant has appealed.

Plaintiff’s petition alleges that about February 18, 1955, plaintiff’s assignor, Des Moines Blue Ribbon Distributor, a co-partnership, and defendant entered into the agreement whereby in consideration of establishing and maintaining a wholesale distributorship for the sale of defendant’s beer, it granted Blue Ribbon exclusive right to sell its products in all of Polk County (including Des Moines), two adjoining counties and parts of two others and agreed said arrangement was to continue so long as there would be a demand for the product and Blue Ribbon desired to continue with the sale of the same. The written portion of the contract was attached to, and made part of, the petition.

The petition further alleges future profits from said business were contemplated by the parties at the time the agreement was made and induced Blue Ribbon to enter into it; pursuant to the agreement Blue Ribbon spent great sums and efforts to establish and maintain a distributorship in the designated territory and continued to act as such distributor until July 1, 1960, when it assigned to plaintiff-corporation all rights under the *903 agreement; plaintiff continued to perform the agreement until June 14, 1961, when, without reasonable notice or cause, defendant forthwith terminated the distributorship and engaged a new distributor in violation of its agreement with Blue Ribbon; because of defendant’s breach of the agreement plaintiff has been damaged $9950.

Defendant’s answer was a denial of the petition.

I. The written portion of the agreement in question is a typewritten letter (exhibit A), dated February 18, 1955, from defendant, signed by its president, to Bennett Gordon, Des Moines Blue Ribbon Distributors. It consists of two sheets of stationery, the first of which is defendant’s printed letterhead, bearing defendant’s name and address at the top and the words “Brewers of World’s finest ale and beer” in red print. At the bottom of this sheet, also in red, and in small type, is the printed statement, “Every shipment of beer or ale is an individual transaction. No contracts, agencies or franchises awarded.” The second sheet of the exhibit is entirely plain except for the typewriting and the president’s signature with pen and ink.

Bennett Gordon was the principal active partner of Blue Ribbon, plaintiff’s assignor, and is the managing officer of plaintiff-corporation. All defendant’s dealings were with him.

Basis of the first group of assigned errors is the printed statement at the bottom of the letterhead. Defendant argues it is unmistakably part of the written portion of the agreement declared upon; defendant was therefore entitled to a directed verdict; the court should have instructed the jury to disregard any evidence of oral statements in conflict with the printed statement, and receipt of evidence of the alleged oral portion of the agreement with Blue Ribbon violated the parol-evidence rule.

Exhibit A is too long to set out in full. It first confirms stated prices quoted Blue Ribbon by Mr. O’Brien, then defendant’s general sales manager, who with Edwards, defendant’s Iowa-Illinois sales manager, arranged with Bennett Gordon for Blue Ribbon to become defendant’s distributor. The exhibit clearly refers to Blue Ribbon as defendant’s distributor in the designated territory, stresses the importance of Blue Ribbon’s *904 use of advertising material supplied by defendant, states it is sending “the outlets in your territory * * * an announcement of your appointment as the DREWRYS distributor * * * Also — we have an attractive drivers’ uniform offer * * * explained in the enclosed brochure. * * * We are confident you will do an outstanding job Avith DREWRYS — both for yourself and for us.”

The typewritten portion of the exhibit makes no reference to the printed statement at the bottom of the letterhead. There is no evidence Bennett Gordon’s attention Avas called to it. O’Brien and Edwards were two of the three Avitnesses for defendant. The former frankly testified, “I had authority to establish this distributorship Avith Des Moines Blue Ribbon and did so.” Edwards said, “On February 18, 1955, Des Moines Blue Ribbon Distributors did take on the distributorship of Drewrys beer.”

We are not persuaded any of the first group of errors should be sustained. The printed statement at the bottom of the letterhead was not unmistakably part of the Avritten portion of the agreement, did not entitle defendant to a directed verdict, nor was the parol-evidence rule violated by receipt of evidence of the alleged oral part of the agreement. The court’s instructions left to the jury the question AA'hether the printed statement was part of the agreement. Although the instructions might well have been more explicit on this point we do not find they were erroneous on the ground objected to and argued by defendant.

We are not aware of an IoAva decision on the question Avhether a printed statement on a Jettei’head, not referred to in the Avritten portion of the letter or brought to the other party’s attention, is part of the contract embodied therein. The result reached in a particular case depends largely upon the facts.

1 Williston on Contracts, Third Ed. (1957), section 90D, cites precedents in which such a printed statement is held to be part, or not part, of the agreement and then states: “The principal question in deciding cases of this kind is whether the facts present a case where the person receiving the paper should as a reasonable man understand that it contained terms of the *905 contract which he must read at his peril, and regard as part of the proposed agreement. The precise facts of each case are important in reaching a conclusion.”

We think these decisions support the conclusion reached here: Sturm v. Boker, 150 U. S. 312, 326, 327, 14 S. Ct. 99, 103, 37 L. Ed. 1093, 1099; Maynard v. James, 109 Conn. 365, 146 A. 614, 65 A. L. R. 427, 429, 430; Summers v. Hibbard, Spencer, Bartlett & Co., 153 Ill. 102, 38 N.E. 899, 901, 46 Am. St. Rep. 872; B. F. Sturtevant Co. v. Fireproof Film Co., 216 N. Y. 199, 110 N.E. 440, 442, L. R. A. 1916D 1069; Clem Lbr. Co. v. Marty, Tex. Civ. App., 26 S.W.2d 319, 320; R. J. Menz Lbr. Co. v. E. J. McNeeley & Co., 58 Wash. 223, 108 P. 621, 28 L. R. A., N. S., 1007, 1011; Weeks v. Robert A. Johnston Co., 116 Wis. 105, 92 N.W. 794, 796. See also 17A C. J. S., Contracts, section 310, page 171; 12 Am. Jur., Contracts, section 245.

The Clem Lumber Company ease, supra, holds that where the party who prepared the writing did not intend printed words at the top of the pages to be part of the writing they will not be so considered.

There can be no question defendant made Blue Ribbon its distributor in the designated territory.

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129 N.W.2d 731, 256 Iowa 899, 1964 Iowa Sup. LEXIS 655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/des-moines-blue-ribbon-distributors-inc-v-drewrys-ltd-u-s-a-iowa-1964.