Frank H. Gibson, Inc. v. OMAHA COFFEE COMPANY

137 N.W.2d 701, 179 Neb. 169, 1965 Neb. LEXIS 422
CourtNebraska Supreme Court
DecidedOctober 29, 1965
Docket35793
StatusPublished
Cited by16 cases

This text of 137 N.W.2d 701 (Frank H. Gibson, Inc. v. OMAHA COFFEE COMPANY) 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
Frank H. Gibson, Inc. v. OMAHA COFFEE COMPANY, 137 N.W.2d 701, 179 Neb. 169, 1965 Neb. LEXIS 422 (Neb. 1965).

Opinions

Spencer, J.

This case was previously heard herein. Our former opinion, reported at 178 Neb. 329, 133 N. W. 2d 462, reversed the judgment of the trial court and remanded the cause with directions to enter dismissal of the action on [172]*172the defendants’ cross-appeal. We now determine that our former opinion should be vacated.

This is an action brought by plaintiff, Frank H. Gibson, Inc., hereinafter referred to as Gibson, against Omaha Coffee Company, E. C. Conroy Coffee Company, Inc., hereinafter referred to as Conroy, and Kenneth Loseke, for damages alleged to have resulted from a conspiracy to purchase plaintiff’s business on their own terms, and if unable to do1 so, to take over plaintiff’s sales force, coffee routes, and customers.

In the trial of the action to a jury, Gibson recovered a judgment of $20,000. The trial court sustained a motion for a new trial. Gibson perfected an appeal, and the defendants perfected a cross-appeal.

Gibson was incorporated in 1931. At all times involved in this litigation, Edgar J. Bellows was its president, treasurer, and manager, and the owner of 625 shares of its stock. His wife was the owner of 10 shares. Kenneth Loseke was vice president and secretary, and the owner of 100 shares of stock for which he paid $2,500 in 1952. Bellows, his wife, and Loseke were the directors of the corporation, and the owners of all of its stock. George Christian, Mel Oliver, and Bill Dickens, along with Loseke, were the coffee salesmen employed by Gibson. Loseke was the customer’s serviceman and supervised Gibson operations. For 2 months each summer he was in sole charge of the business. The business of Gibson was the selling of coffee, teas, and sundry items, primarily to restaurants, cafes, hospitals, factories, and other commercial enterprises, within a radius of 150 miles of Omaha. As a part of its business, Gibson provided certain equipment to regular customers using its products. The customers were served by established truck routes, over which the salesmen heretofore mentioned regularly delivered the products of the company. These salesmen were long-time, experienced employees, and operated without formal contracts of employment.For 2 years .prior to October 1, 1962, Gibson had pur[173]*173chased all of its coffee from Conroy, whose place of business was in Kansas City, Missouri. These purchases amounted to approximately $150,000 per year. Conroy was not in the retail business but was strictly a wholesaler, and had no retail sales force available.

Edgar J. Bellows, who will hereafter be referred to as Bellows, was referred to in our previous opinion as being 74 years old. His age is not a matter of record, but from statements made on rehearing, his age was overstated in our former opinion by at least 13 years. Bellows testified that before leaving on a vacation August 19,1962, he visited with his auditor and with Loseke about the possibility of selling Gibson because of his health, age, and business competition, and authorized the auditor to explore the possibility. The auditor made contact with the Continental Coffee Company and Conroy. Bellows did not return from his vacation until September. He had his first conference with Continental Coffee Company on September 11, 1962. At that time Continental made an offer for Gibson good will of $5 per pound on the average weekly coffee sales for the preceding 1-year period. It is undisputed that this average was 6,000 pounds per week, so the offer was for $30,000, exclusive of physical assets. According to plaintiff’s evidence, employment was also, offered certain Gibson employees, with or without contract, at a higher rate of pay.

The jury returned a verdict for the plaintiff, so this record must be reviewed in the light of the following rule: “In determining the sufficiency of evidence to sustain a verdict it must be considered most favorably to the successful party, any controverted fact resolved in his favor, and he must have the benefit of inferences reasonably deducible from it.” Graves v. Bednar, 171 Neb. 499, 107 N. W. 2d 12.

On September 12, 1962, Bellows had a conference at a motel in Omaha with Ralph Clark, who will hereinafter be referred to as Clark, president and sole stock[174]*174holder, of Conroy. The conference adjourned until the next morning.- When Bellows and his wife returned the next morning, they observed papers scattered about the room on which appeared the names of Gibson customers. Clark then stated that Loseke had furnished him the names of the customers. It was Bellows’ testimony that he had not authorized Loseke to negotiate any sale with Conroy, and particularly did not authorize the furnishing of the names of Gibson customers.

Clark and Bellows met the next day when the officers and stockholders of Gibson were discussed. Bellows quotes Clark as saying, with reference to Loseke’s stock: “ ‘Well, you won’t need to worry about that too much.’ * * * ‘We’ll take care of Mr. Loseke on his stock.’ ” They then went to the auditor’s office to- examine the tax and operating statements of the company. At the next meeting, on September 17, 1962, the sale of the equipment was discussed. Bellows’ testimony is that Clark on that occasion said: “ ‘Well, if we can’t work something out,’ * * * ‘we are prepared to go into business ourselves, set up our own company. Your boys, men, have agreed to gO' with us, and we will start this company and start delivery of coffee to your customers next Monday morning.” Bellows testified that he was flabbergasted by this and left almost immediately.

A further meeting was held the next day, at which time Clark stated he would have a contract drawn by bis attorney in Kansas City. The following day, Clark met Bellows in an automobile in front of Bellows’ office. On this occasion, the testimony is that Clark said maybe they could figure out a deal for around $40,000 for the business. Dave Clark, son of Clark, then said: “ ‘Well, you know that we can go into business next Monday morning.’ * * ‘We have room rented and trucks are available and merchandise can be brought in here overnight, and we’ll start in next Monday morning.’ ” Clark again stated that the Gibson employees would go along with them.

[175]*175Bellows first called his attorney the night of September 19, 1962. On September 21, 1962, a meeting was held in the office of Bellows’ attorney. Present were Clark, Dave Clark, Clark’s attorney, Bellows*, Mrs. Bellows, Bellows’ auditor, and Bellows’ attorney. Mrs. Bellows, addressing Clark, said: “ ‘Ralph, I understand that you are going into business, here in Omaha with our men and deliver our customers.’ ” Clark answered, “ ‘That’s right, we are prepared to do that.’ ” The meeting broke up. Loseke then put in an appearance. Loseke, under questioning by Bellows’ attorney, admitted that he and the Gibson salesmen would start with Conroy the next Monday. The attorney asked him and his men to stay with Gibson for another week, to permit an agreement to be worked out, to which he agreed. Bellows also testified that he had previously talked with Loseke about Clark’s statement that he and the salesmen were going with Conroy, and asked: “ ‘Is that right?’ ” Loseke answered: “ ‘Yes, we have decided to do that.’ ” Bellows had also visited with two of the salesmen, who confirmed Loseke’s statement, and Oliver told him, “ ‘Yes, that’s right.’ * * * ‘We have decided to all stick together.’ ”

After the meeting in the attorney’s office, Bellows instructed his attorney to see if Conroy would raise its offer $5,000 for an agreement by Bellows not to compete.

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Frank H. Gibson, Inc. v. OMAHA COFFEE COMPANY
137 N.W.2d 701 (Nebraska Supreme Court, 1965)

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Bluebook (online)
137 N.W.2d 701, 179 Neb. 169, 1965 Neb. LEXIS 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-h-gibson-inc-v-omaha-coffee-company-neb-1965.