Downs v. Delco-Appliance Corp.

138 So. 525
CourtLouisiana Court of Appeal
DecidedDecember 8, 1931
DocketNo. 881
StatusPublished
Cited by2 cases

This text of 138 So. 525 (Downs v. Delco-Appliance Corp.) 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
Downs v. Delco-Appliance Corp., 138 So. 525 (La. Ct. App. 1931).

Opinion

MOÜTON, J.

In May, 1930, a Delco Gas Plant was installed in plaintiff’s home by Raoul A. Levy, the agent of Frank Leblanc.

In July, 1930, upon striking a match near the plant; the water heater exploded and, • plaintiff alleges, knocked him down, severely burning his legs, arms, and face.

It is alleged by plaintiff that Levy and. Leblanc were the agents of the Delco-Light Company when the gas plant was installed; that the Royal Indemnity Company had issued an insurance policy to the Delco-Light Company to indemnify it for injuries that might result from the acts of its employees or agents.

Plaintiff is claiming in this suit $5,000, for the injuries suffered by him from the explosion, against Raoul A. Levy, Frank Leblanc, the Royal Indemnity Company, and the Del-cp-Light Company, now going under the name of Deleo-Appliance Company, and which will be referred to in the course of this opinion as the Delco-Light Company.

The Delco-Light Company, a Delaware corporation, filed an exception ratione personae to the jurisdiction of the lower court, which was sustained, dismissing plaintiff’s suit against that company, from which plaintiff appeals.

The question of jurisdiction is the only one presented for decision.

The Delco-Light Company grants to distributors the franchise to sell Delco-Light products, repair and replacement parts in certain designated territories, which is shown by the written contract that company had with George M. Foose of Baton Rouge, now its distributor for a certain territory designated in the agreement.

The proof shows that Raoul A. Levy was the one who installed the gas plant in plaintiff’s home, and that he was then the agent of Frank Leblanc. The case will therefore be considered with reference to Leblanc, as to whether he was the agent of the Delco-Light Company at that time.

The record shows in March, 1920, Leblanc entered jnto a Delco-Light dealer’s written agreement with W. P. Galloway CompMiy granting him the franchise to sell Delco-Light products in Pointe Coupee, East Felici-ana, Baton Rouge, etc. There is no written contract shown to have existed between the Delco-Light Company and the W. P. Galloway Company. In the written Delco-Light dealer’s agreement however, between the Galloway Company and Frank Leblanc, the Gab' loway Company is called the distributor.

In this dealer’s contract several provisions are made in reference to and for the protection of Delco-Light Company, which indicate that in its quality of distributor the Galloway Company was operating under the Del-co-Light Company.

A Mr. Smith, it is shown, came from the Del-co-Light Company factory to attend a dealers’ meeting in Baton Rouge; that Smith went, in company with Levy, to plaintiff’s home to inspect the installation of the plant. It also appears that Mr. Lestor, who had attended the dealers’ convention with Mr. Smith, and had come direct from the factory of the Del-co-Light' Company, as testified to by Levy, took out the burner from the plant installed-in plaintiff’s home, and that Smith took it [526]*526back to tbe factory, and was, at the time, the Delco service manager.

The record shows also that Levy, agent of Leblanc, was distributing literature of the Deleo-Light Company which he had received from the Galloway Company. Besides, Leblanc saysi he was dealer for the Deleo-Light products under W. P. Galloway, distributing office for Arkansas and Louisiana.

The foregoing facts, to which we have referred, and others that we find unnecessary to mention, are convincing, to the effect that the Galloway Company was the distributor for the Deleo-Light Company, which through the action of Smith and Lester, its representatives, recognized Leblanc as a dealer in its products by virtue of his agreement with the Galloway Company, its distributor.

In Leblanc’s contract with the Galloway Company, it is provided that the agreement does not constitute him “the agent or legal representative as distributor and/or Deleo-Light Company for any purpose whatsoever.” The same is found in the contract of the Deleo-Light Company with Foose.

Leblanc says he was not the agent of the Deleo-Light Company. This opinion was a mere conclusion of law on his part, and whatever was his intention in entering in his agreement with the Galloway Company could not control the legal effect of-his contract, nor could the provision in his dealer’s agreement, that he was not constituted the agent or representative of the Galloway Company.

The relation of principal and agent is created by the existing facts, and that relationship exists, though the parties may not have intended such facts to have such legal effects, or though they may have expressly agreed that such should not be the legal effect. Page on Contracts, vol. 2, § 960, p. 15Ó3.

We must therefore direct our attention to the facts and circumstances of the case to ascertain the relationship which existed between the parties, and what was the character or nature of the contract.

Counsel for defendant refer to the case of Standard Motors Finance v. Yellow Bayou G. & P. Co., Inc., 1 La. App. 424, where the court, in referring to a tractor which had been purchased, said:

‘.‘They ordered it from the Gulf Tractor Company, which shipped it to its own order with bill of lading attached to sight draft on them.”

The dealer’s, agreement between Leblanc and Galloway provides for purchases of the Deleo-Light Company products, on the following terms:

“Cash with order, sight draft with bill of lading attached.”

If these terms stood alone, evidently a salé would have resulted from the purchase by Leblanc of the apparatus he installed in plaintiff’s house for which as said he paid cash, and this case would fall under the ruling in the decision of the appellate court cited by counsel for defendant.

Another case, that of Turner v. Item Company, 6 La. App. 270, is cited by counsel to sustain his contention that the relation of Leblanc to the Deleo-Light Company was as vendee, and not in the capacity of agent. In that case papers were furnished to Fox by 'the Item Company, for which he agreed to pay two cents per copy for the Sunday issue and one cent per copy for other issues. Such an agreement embodied the elements of a clear-cut contract of sale. It was also provided in the agreement that Fox would act as dealer for three • months and, on settlement with the Item Company, that an amount for delivering the papers would be deducted from the amount due by him. There, again, the relation between the parties was as vendor and vendee, where there were no stipulations in the agreement indicating that Fox was to act as the agent of the Item Company in the disposition of the papers.

For the purpose of determining the true nature of the dealer’s contract, we will refer to the following provisions of the agreement. In that contract between Leblanc and the Galloway Company, after stating that cash should: accompany the orders by Leblanc for the Del-co-Light products, it says that the distributor further agrees to sell Deleo-Light repair and' replacement parts, the amount and kind of which shall be specified by distributor from time to time as distributor may deem necessary to insure good service to owners of Deleo-Light products in dealer’s territory.

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Related

Busby v. Walker
84 So. 2d 304 (Louisiana Court of Appeal, 1955)
Downs v. Delco-Light Co.
143 So. 227 (Supreme Court of Louisiana, 1932)

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Bluebook (online)
138 So. 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/downs-v-delco-appliance-corp-lactapp-1931.