Diesel Service, Inc. v. Accessory Sales, Inc.

317 N.W.2d 719, 210 Neb. 797, 1982 Neb. LEXIS 992
CourtNebraska Supreme Court
DecidedMarch 12, 1982
Docket44237
StatusPublished
Cited by36 cases

This text of 317 N.W.2d 719 (Diesel Service, Inc. v. Accessory Sales, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diesel Service, Inc. v. Accessory Sales, Inc., 317 N.W.2d 719, 210 Neb. 797, 1982 Neb. LEXIS 992 (Neb. 1982).

Opinions

Boslaugh, J.

This is a second appeal in this case which arose out of a controversy concerning the termination of a distributorship agreement between the parties. The distributorship agreement granted the plaintiff an exclusive territory for the distribution of the R-W precleaner, an air filter or cleaner device manufactured by the defendant and used on diesel engines. During the time that the plaintiff was a distributor for the defendant, it developed a large market for the R-W precleaner.

The amended petition alleged the defendant and Thomas W. Wilson, the president of the defendant, conspired with Lenvil P. Cranston, a salesman employed by the plaintiff, to injure the plaintiffs business, restrain trade, create a monopoly, and acquire the plaintiffs business by unfair business practices and terminate the distributorship agreement.

At the first trial the case was submitted to the jury by a form of special verdict which contained eight questions. The jury found the defendant had not conspired with Cranston to injure the plaintiffs business; the plaintiff had breached the agreement by failing to pay promptly and did not correct the default within 60 days after notice; the defendant had not waived the breach of the agreement by the plaintiff; there had been no accord and satisfaction; the defendant had converted the plaintiffs catalogs and the plaintiff had been damaged in the amount of $3,000 because of the conversion of its catalogs; and the plaintiff had not been damaged because of the defendant’s “bad faith” or “without cause” termination of the contract.

The trial court entered judgment for the plaintiff on [799]*799the verdict. Later, on the defendant’s motion to set aside the judgment or verdict, the trial court granted a remittitur for that portion of the verdict in excess of $800.

The trial court had instructed the jury that the plaintiff was required to pay the defendant for each invoice within 30 days and that the plaintiff was in default under the agreement if it owed the defendant on an invoice 30 full days or more past its shipping date. We held this instruction was erroneous and that the evidence did not show the plaintiff was in default. We concluded that a remittitur was improper under the facts and circumstances of the case because it was probable the jury did not understand the manner of the submission of the case and the verdict was the result of error or mistake. Diesel Service, Inc. v. Accessory Sales, Inc., 205 Neb. 381, 288 N.W.2d 258 (1980).

The judgment was reversed and the cause remanded for a new trial. This was a general remand and contemplated a new trial on all of the issues.

At the second trial the defendant introduced additional evidence relating to the plaintiff’s indebtedness to the defendant under the agreement. This evidence tended to establish that the plaintiff was in default under the agreement on March 28, 1975, but had eliminated the default by April 21, 1975, the day on which Thomas Wilson, the president of the defendant, came to the plaintiff’s office and told Daniel E. Kinnison, the president of the plaintiff, that the contract was terminated.

The trial court, however, withdrew from the jury any issue concerning whether the plaintiff was in default under the agreement on March 28, 1975. The jury was instructed specifically that the plaintiff was not in default on March 28, 1975, and that the defendant had no right to attempt to terminate the contract because of the alleged default.

The case was again submitted to the jury upon [800]*800special interrogatories. The jury returned the following verdict:

“1. Did the parties effect an ‘accord and satisfaction’ concluding and settling all duties and obligations owed by each to the other under their contract?
Answer _or . .....
Yes No
“2. Did defendant Accessory Sales, Inc., conspire with Lenvil Cranston for any of the purposes alleged by plaintiff Diesel Services, Inc. as set forth in Instruction No. 2?
Answer or _
Yes No
“3. Amount of damages, if any, incurred by plaintiff because of defendant’s conspiracy with Lenvil Cranston for the purposes alleged by plaintiff Diesel Service, Inc.
Answer _$250,000.00_
“4. Had the parties’ contract been in existence for a reasonable period of time, within the meaning of Instructions No. 16 & 23, when defendant Accessory Sales, Inc. attempted to terminate it?
Answer _ or _
Yes No
“5. Did plaintiff Diesel Services, Inc. ever receive reasonable notice of defendant’s intention to terminate the contract, within the meaning of Instructions No. 16 & 23?
Answer _or _
Yes No
“6. Amount of damages, if any, incurred by plaintiff because of (a) the parties’ contract not being in existence for a reasonable period of time prior to defendant’s attempted termination: or (b) because of termination: or both (a) and (b)
Answer $_”

Since the jury found that the defendant had conspired with Lenvil Cranston, the plaintiff’s former salesman, to injure the plaintiff’s business and acquire [801]*801its business by unfair business practices, the jury did not answer the last three interrogatories. The trial court entered judgment on the verdict and awarded the plaintiff attorney fees in the amount of $37,650 and costs in the amount of $2,117. The defendant has appealed.

The verdict of a jury will not be set aside on appeal unless it is clearly wrong. Sortino v. Paynter, 206 Neb. 348, 292 N.W.2d 916 (1980). In determining whether the evidence is sufficient to sustain a jury verdict, the evidence must be considered most favorably to the successful party, every controverted fact must be resolved in his favor, and he is entitled to the benefit of any inferences reasonably deducible from it. Lockhart v. Continental Cheese, Inc., 203 Neb. 331, 278 N.W.2d 604 (1979).

The evidence at the second trial was such that the jury could find the following facts to be true.

E. W. Wilson was the original president of the defendant Accessory. During the course of the business relationship with the plaintiff, E. W. Wilson retired and his son Thomas Wilson became president of the defendant. Prior to his father’s retirement, Thomas Wilson became friendly with Cranston, the plaintiff’s salesman, and eventually told other employees of the defendant that as soon as E. W. retired, he would “get rid of” the plaintiff, take over its customers, and sell the precleaner direct. Thomas Wilson also told the employees that Cranston would come to work for the defendant.

In 1973, prior to E. W.’s retirement, Thomas Wilson sent the plaintiff a notice of default stating that the distributorship agreement between the two companies would be canceled if the plaintiff did not bring its account current.

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Diesel Service, Inc. v. Accessory Sales, Inc.
317 N.W.2d 719 (Nebraska Supreme Court, 1982)

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Bluebook (online)
317 N.W.2d 719, 210 Neb. 797, 1982 Neb. LEXIS 992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diesel-service-inc-v-accessory-sales-inc-neb-1982.