Electric Equipment Corp. v. Delco Appliance Corp.

252 A.D. 1, 297 N.Y.S. 498, 1937 N.Y. App. Div. LEXIS 5567

This text of 252 A.D. 1 (Electric Equipment Corp. v. Delco Appliance Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Electric Equipment Corp. v. Delco Appliance Corp., 252 A.D. 1, 297 N.Y.S. 498, 1937 N.Y. App. Div. LEXIS 5567 (N.Y. Ct. App. 1937).

Opinion

Edgcomb, J.

Defendant, a subsidiary of the General Motors Corporation, is engaged in the manufacture and sale of lighting plants designed to supply electric current to persons beyond the reach of public service hues. These plants consist of a gasoline engine, generator and battery, together with the necessary wiring. As the life of the average battery is less than that of the generator, it must, of necessity, be renewed from time to time. Especially is that so if the battery is defective.

Plaintiff, a corporation organized and existing under and by virtue of the laws of Iowa, alleges in its complaint that during the years 1927 to 1930, inclusive, it had been appointed distributor of defendant’s product in the State of Iowa, and that, in the course of its employment, it replaced a number of batteries used in connection with the lighting plants, after the sale and delivery of the plant itself; that in many instances the dealer or customer paid for the new battery less than the regular sale price fixed by the defendant, and that, by reason thereof, plaintiff lost the usual and accustomed profit which it made on a normal sale. This action is brought to recover the difference between the regular selling price to the dealer and the amount actually received from the customer or dealer for the new battery. This sum the plaintiff has chosen to designate in its complaint as the cost to it of making these replacements.

The propriety of the judgment entered in plaintiff’s favor is challenged upon this appeal.

The duties, rights and obligations of the respective parties are fixed by five distributor’s agreements, dated respectively February 1, 1927, September 15, 1929, January 1, 1930, April 8, [3]*31930 and January 15, 1931, all of which are similar in their general provisions, and which specify in great detail the covenants and agreements between the signers.

We are met at the outset with the fact that the first three of these contracts are not signed by the plaintiff, but by “ Joseph Kimmel, distributor, doing business as the Electric Equipment Co.” in one instance, by The Electric Equipment Co., distributor, by Joseph Kimmel ” in another, and by “ The Electric Equipt Co., distributor, by Joseph Kimmel, Prop.” in the third. The last two agreements are signed “ The Electric Equipment Corporation, distributor, by Joseph Kimmel, President and Treas.” It appeared from the cross-examination of Mr. Kimmel that the plaintiff was not incorporated until January, 1930, and that prior to that time he personally, except during the war period, was doing business under the assumed name of “ Electric Equipment Company.”

Assuming for the moment that the distributor was entitled to recover for services, or cost, or loss of profits for replacing these defective or worn out batteries, it is difficult to conceive how the plaintiff, which was not in existence until January, 1930, and which never had any contractual relation with the defendant until April 8, 1930, is entitled to any part of such recovery accruing prior to the latter date on a complaint which alleges that “the defendant agreed to indemnify and reimburse plaintiff of [for] the cost to him of all such adjustments and replacements,” and that the “ plaintiff incurred as the cost of such replacements and adjustments ” the sums mentioned, and on no proof whatever of any assignment of the claim of the distributor named in the agreements, or of any subrogation of the plaintiff to Mr. Kimmel’s rights in the premises.

This question was squarely brought to the attention of the court by a request to charge that the plaintiff could not recover for any replacements or adjustments made prior to April 8, 1930, as it appeared from the evidence that the contracts made prior to that date were not made with the plaintiff. The refusal to charge as requested constituted error.

A party can recover only in harmony with his proofs and his pleadings. A judgment must be secundum allegata et probata. (Walrath v. Hanover Fire Ins. Co., 216 N. Y. 220, 225; Reed v. McConnell, 133 id. 425, 434; Bradt v. Krank, 164 id. 515, 519; Truesdell v. Sarles, 104 id. 164, 167; Douglass v. Wolcott Storage & Ice Co., Inc., 251 App. Div. 79.)

Plaintiff’s attempt to reform the complaint is unavailing. At the close of the evidence a motion was made to amend the complaint to conform to the evidence, but plaintiff refused to state in what [4]*4particulars it wished to change its pleading. The motion was denied. After the verdict had been rendered, and after defendant’s motion for a new trial had been made and argued, plaintiff again moved to amend the complaint to conform to the proof by alleging that any claims arising under the three contracts signed by Mr. Kimmel personally became and were the property of the plaintiff before the commencement of this action, and that Mr. Kimmel was estopped from claiming otherwise. This motion was granted, and defendant excepted.

While the allowance of an amendment to a pleading during trial rests largely in the discretion of the court, and while there may be occasions when a plaintiff might properly be permitted to change his complaint even after a verdict, the rule seems to be well settled that, if a plaintiff fails to prove the cause of action set up in bis complaint, he should not be permitted, after the verdict has been rendered, to amend his pleading to conform to the proof, and thus save the verdict. A party is entitled to know before the case goes to the jury just what issue he is called upon to meet. One cannot be said to have had his day in court when a verdict is permitted to be upheld upon an issue which was never submitted to or passed upon by the jury. (Northam v. Dutchess County Mutual Ins. Co., 177 N. Y. 73, 75.) This amendment came too late, and the granting of the motion under all the circumstances was an abuse of discretion.

But even if the reformation of the complaint had been proper, the proof does not justify a recovery by the plaintiff for any services performed or loss which occurred prior to April 8, 1930.

The plaintiff is a separate legal entity from Mr. Kimmel, and in fact from its own stockholders, officers and directors. Except as we may infer from the fact that Mr. Kimmel signed the name of the plaintiff to the last two distributor’s agreements as its president and treasurer, -there is no evidence in the case to connect him with the corporation. The suggestion of counsel that Mr. Kimmel and the plaintiff are one and the same being, or that plaintiff took over Kimmel’s rights under the first three distributor’s agreements by virtue of the provisions of section 90 of the Stock Corporation Law has no force. There has been no consolidation of corporations here. Besides, plaintiff is an Iowa corporation, and is in no way affected by the statutes of this State, except as to its right to do business here. There is no evidence from which it could be said that the plaintiff has succeeded, by assignment or otherwise, to any claim of Kimmel, or that it has the right to recover on any theory for anything which happened prior to April 8, 1930.

[5]*5But the defendant does not rest here. It disputes the right of the plaintiff to any judgment, even though the transaction upon which the recovery is based took place after April 8, 1930. This question necessitates an examination of the agreement between plaintiff and defendant, in an effort to determine just what the arrangement between the two actually was.

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Related

Walrath v. . Hanover Fire Ins. Co.
110 N.E. 426 (New York Court of Appeals, 1915)
Newburger v. American Surety Co.
151 N.E. 155 (New York Court of Appeals, 1926)
Higgs v. De Maziroff
189 N.E. 555 (New York Court of Appeals, 1934)
Thomas v. . Scutt
27 N.E. 961 (New York Court of Appeals, 1891)
Northam v. Dutchess County Mutual Insurance
69 N.E. 222 (New York Court of Appeals, 1903)
Douglass v. Wolcott Storage & Ice Co.
251 A.D. 79 (Appellate Division of the Supreme Court of New York, 1937)

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Bluebook (online)
252 A.D. 1, 297 N.Y.S. 498, 1937 N.Y. App. Div. LEXIS 5567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/electric-equipment-corp-v-delco-appliance-corp-nyappdiv-1937.