Fitzgerald Bros. Brewing Co. v. Kelley's Estate

105 A. 246, 92 Vt. 471, 1918 Vt. LEXIS 202
CourtSupreme Court of Vermont
DecidedNovember 11, 1918
StatusPublished
Cited by1 cases

This text of 105 A. 246 (Fitzgerald Bros. Brewing Co. v. Kelley's Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fitzgerald Bros. Brewing Co. v. Kelley's Estate, 105 A. 246, 92 Vt. 471, 1918 Vt. LEXIS 202 (Vt. 1918).

Opinion

Taylor, J.

The plaintiff is a New York corporation engaged in manufacturing and bottling ales, porter, and lager beer at Troy, New York. During the years 1913, 1914, and 1915, it had a license to conduct a wholesale liquor business in this State. It claims to recover from the estate of James A. Kelley on an original promise by him in his lifetime to pay for certain intoxicating liquors sold and delivered to one Thomas Smith, who had a license of the seventh class to do business in the city of Rutland in 1914 and 1915. The claim specified is an unpaid balance due for liquors purchased by Smith between February 22 and May 1, 1915. There was trial by jury with verdict and judgment for the plaintiff. The only questions presented arise on exceptions to the overruling of defendant’s motion for a directed verdict.

No claim is made that the goods sued for were not delivered, nor that the balance claimed has been paid. It is contended that the plaintiff cannot recover because the liquors were sold to Kelley, or to Kelley and one Rafferty, unlawfully. Plaintiff’s license, which was of the fourth class, gave it the right to sell intoxicating liquors by wholesale to licensees only. Kelley held a second-class license under which he conducted business in the [473]*473Bardwell House block. Tbe business carried on under the seventh-class license held by Smith was conducted at the “cold storage plant,” as it was called at the trial. The defendant’s claim was that this license, though issued to Smith, was in fact Kelley’s, and that the business at the “cold storage” was owned by Kelley or by Kelley and Rafferty; that Smith was a mere servant and had no interest in the business; that, though the goods were shipped and charged to Smith, they were in fact sold to Kelley personally and not to Smith on Kelley’s credit; and that the plaintiff knew these facts when it sold and shipped the liquors sued for.

It may be conceded that, if the plaintiff’s dealings with the “cold storage” were with Kelley, or Kelley and Rafferty, personally knowing that Smith entered into the transaction only in name to give it color of legality, the form of the transaction would not save the plaintiff from the consequence of an unauthorized sale. See Garrett-William Company v. Watkins, 84 Vt. 299, 79 Atl. 387 Ann. Cas. 1913 A, 846. And it must be conceded that some of the evidence strongly tended to support the defendant’s claim; but on a motion for a directed verdict the merits of the motion depend upon the view of the evidence most favorable to the opposing party — a fact too often ignored in presenting such motions for review.

The evidence in point was somewhat conflicting, and it cannot be said that it was so unequivocal as to afford the basis of but a single inference. Considered in the proper views, it fails to disclose any manifest illegality in the transaction involving the plaintiff; nor does it make the inference necessary that the plaintiff was party to an attempt to evade the law. Rafferty, called as a witness by the plaintiff, gave evidence partly in direct and'partly in cross-examination tending to show that the “cold storage” business was really the business of himself and Kelley; that Smith worked for them on a salary and had nothing to do with the business except in name; that he heard Kelley telephone Thomas Fitzgerald; the plaintiff’s vice-president and treasurer, respecting the ‘ ‘ cold storage, ’ ’ and heard him say to Fitzgerald something to the effect that the “cold storage” license was his; that Smith meant Kelley; that he thought his name was mentioned; and that Kelley said the “cold storage” deal would be with Kelley and Rafferty. Fitzgerald, who it appeared represented the plaintiff in the negotiations with Kelley respecting the [474]*474business at the “cold storage,” testified in direct examination in substance that his first talk with Kelley was by telephone, in. which Kelley informed him that a seventh-class license had been granted to Thomas Smith to do business at the “cold storage”" in Rutland and requested him to come to Rutland to make arrangements for supplying the '1 cold storage ’ ’ with ale, lager, and. bottled beer; that he asked who Smith was, and was told, “He is. a friend of ours up here and is all right”; that Kelley said the-transaction would involve considerable credit, as the goods were-to be shipped in carload lots; that soon after witness came toRutland, saw Kelley at his house, had a long talk with him abqut the manner of doing business’ at the ‘£ cold storage, ’ ’ including-how the goods were to be shipped and how they were to be distributed to licensees; that Kelley gave orders for two carloads of' beer to be shipped to Smith about April 30, 1914, and said that, he (Kelley) would pay the bill; that the arrangements then made were to continue during the period of the license held by-Smith, and Kelley said he would pay for goods sold to-Smith during that time; that the goods then and subsequently ordered’ were shipped to Smith and charged to him on the books of the-company; that it was arranged that witness should come to Rut-land at regular intervals to settle the “cold storage” accounts.with Kelley; that the account was settled in full up to February-20, 1915, Kelley making all the payments on Smith’s account; and that he relied on Kelley to pay when he sold the goods.

In cross-examination Fitzgerald testified that he didn’t regard Smith as principal in the business, understood from the start that Kelley was the principal, and afterwards thought he discovered that Rafferty had some interest; that he didn’t remember of Kelley’s telling him that Smith was going to have a. license, but that it was really his and Rafferty’s; said there may have been such a talk, but did not remember it; that he supposed he had a perfect right under his license to sell to either Kelley or Smith, as Kelley was himself a licensee; that he charged the goods to Smith at Kelley’s request; that Kelley wanted the shipments to the “cold storage” to be in Smith’s, name as he had the license.

Later, he testified that all that Kelley said on the subject was that he wanted the goods charged to Smith; that Kelley told" witness to ship the goods to Smith and he (Kelley) would pay for them.

[475]*475The evidence made it a jury question whether the sales were to Smith on Kelley’s credit, or to Kelley personally. If the sales were to Smith, it is not claimed that the transaction was unlawful, except in respect of certain matters to be considered later. It is also urged in support of the motion that, if Kelley was not the purchaser of the goods, his promise was collateral and unenforceable because not in writing. But the evidence was at least sufficient to make it a jury question whether Kelley’s promise was original or collateral. Taking Fitzgerald’s version of the oral agreement, it was clearly original, unless the import of the language used was affected by the attending circumstances. See Pocket v. Almon, 90 Vt. 10, 96 Atl. 421.

As a further ground of the motion, the defendant says the plaintiff cannot recover because Fitzgerald did not have an agent’s certificate authorizing him to solicit business for the company in this State as required by what is now G. L. 6490, 6491. The point is inadequately briefed, but we infer that the claim is that the failure of such soliciting agents to comply with the statute requiring certification makes sales solicited by them illegal. But such is not the purpose and effect of that statute. It penalizes the solicitor, but not the sale.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Potter v. Crawford
175 A. 339 (Supreme Court of Vermont, 1934)

Cite This Page — Counsel Stack

Bluebook (online)
105 A. 246, 92 Vt. 471, 1918 Vt. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitzgerald-bros-brewing-co-v-kelleys-estate-vt-1918.