Hawbaker v. Laco Gas Burner Co.

231 N.W. 347, 210 Iowa 544
CourtSupreme Court of Iowa
DecidedJune 23, 1930
DocketNo. 40106.
StatusPublished
Cited by2 cases

This text of 231 N.W. 347 (Hawbaker v. Laco Gas Burner Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hawbaker v. Laco Gas Burner Co., 231 N.W. 347, 210 Iowa 544 (iowa 1930).

Opinion

Evans, J.

Defendant Laco Gas Burner Company is said to be an unincorporated company, and the defendant L. A. Cocklin is the owner and manager thereof. On August 20, 1927, the parties hereto entered into the following written contract :

“Salesman Agreement.
“This agreement made and entered into at Griswold, Iowa, this the 20th day of August, 1927, by and between Jacob K. Hawbaker of Dallas Center, Iowa, an unincorporated company, will be known herein and after as the parties of the first part, and Laco Gas Burner Company doing business as........................, an unincorporated individual or company of Griswold, Iowa, will be known herein and after as parties of the second part. Witnesseth:
“(1) It has been mutually agreed by both parties concerned that the following territory of Dallas, Guthrie, Greene, Boone and Story, in the state of Iowa, is to be held as exclusive territory for the sale of Laco Oil Gas Burners by the second party on a commission basis of 33 1/3 per cent and 25 per cent of the manufacturer’s list price, except in special eases, by which the first party reserves the right to sell therein without the consent or being obligated to the second party.
“(2) It has been agreed that the second party, Jacob K. Hawbaker, is to start to work on August 22, 1927, and this *546 territory will be held exclusive and the second party is to receive commission of 33 1/3 per cent and 25 per cent of the manufacturer’s list price on all mail orders that come from the territory (except in special cases, by which the first party reserves the right to sell therein, without the consent or being obligated to the second party), providing the party of the second part devotes his entire and exclusive time to furthering the sales of Laco Gas Burner. Providing that he sells not less than any model Laco Gas Burners on or before January 1st, 1928. This contract remains in full force and effect, and binding on both parties, providing that the party of the second part sells for the party of the first part not less than ...........Laco Oil Gas Burners on or before..............................192.....
“ (3) It has been further mutually agreed that this agreement automatically terminates itself without cancellation by either party, when the second party fails to devote his entire and exclusive time to further the sales of Laco Oil Gas Burner.
“Laco Gas Burner Company,
“L. A. Cocklin,
“Parties of the first part.
“Jacob K. Hawbaker,
“Party of the second part.”

The plaintiff sues to recover from the defendants his commissions alleged to have been earned, pursuant to this contract, upon certain sales made in the exclusive territory awarded to the plaintiff under such contract. Some of the sales for which commission is claimed, were made by the defendants themselves, and some of them were made through Whitcomb, a purported dealer at Adel, in Dallas County. The oral evidence purports to explain the two commissions recited in the written contract as being a dealer’s commission of 33 1/3 per cent and a general agent’s commission of 25 per cent. The plaintiff sued for both commissions upon each sale, amounting to a total of $1,500. The defense interposed may be briefly stated as follows: (1) A general denial; (2) a failure to conform to the contract; (3) a mutual abandonment of the contract in September, 1927; (4) that the sales made by the defendants themselves were so made within the permission of the contract, which provided for such sales in “special eases;” (5) that none of the sales claimed for, save one, were made through the instrumentality of the plaintiff; *547 (6) a counterclaim for $450 unpaid purchase price for three burners sold to the plaintiff himself, which burners the plaintiff had failed and neglected to receive, and the same were held by the defendants subject to his order.

The -plaintiff pleaded, in reply to the counterclaim, that the order signed by him for three burners was obtained by one Morton by false representation; that the order was delivered conditionally only to said Morton, and that the condition was never performed; and, in substance, that the contract of August 20th was subsequently entered into, and in legal effect supplanted the former contract now sued on in the counterclaim.

The trial court awarded the plaintiff a commission of 25 per cent on six specific sales, for a sum total of $383.75.

I. It will be noted from the contract that it did award the plaintiff certain exclusive territory, including Dallas County. All the sales claimed for by plaintiff were made in Dallas County. That the sales were made by or through someone’ subsequent to the execution of the contract, is not disputed. A burden falls, therefore, at this point upon the defendants to explain such sales consistently with the terms of the contract. The defendants introduced evidence tending to show the abandonment of the contract in September. The mutual conduct of these parties seems quite inexplicable, and the trial court found it so. The plaintiff, in September, 1927, did write to the defendants, authorizing them to cancel the contract. The defendants replied that the plaintiff had never conformed to the contract, and that there was nothing to cancel. Notwithstanding this warlike correspondence, they continued their mutual transactions precisely as they were doing before. The subsequent correspondence between them discloses their mutual attitude as continuing their contractual relation. The plaintiff claimed to be devoting his time to the service of the defendants. He did sell one outfit, and claimed to have been instrumental in aiding the sale of others. Two or three of the sales were made directly by Whitcomb, who purported to be a dealer of the defendants’ at Adel. Two or three of the sales were made directly by the defendants themselves to parties in Dallas County. The trial court found, under the evidence, that the contract was mutually deemed in force between the parties at the time all *548 such sales were made. The contention of the defendants as to the sales made directly by them is that such sales were made under the permission of the contract, which reserved to the defendants the right to sell “in special cases.” The contract failed to define the “special case” in which the defendants could make their own sale. The reservation, such as it was, did not purport to be general, but qualified only. We think this failure in the provisions of the contract left the defendants without any reservation at all. To hold otherwise would be to say that the reservation was general, and not special, and that it necessarily applied to all sales which might be made by the defendants in their own behalf. Clearly, such was not the intent of the contract. The contention of defendants at this point is that the sales made by them were so made pursuant to an exhibition of their goods at the. State Fair; that such a sale constituted a “special case,” and was, therefore, permissible.

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231 N.W. 347, 210 Iowa 544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawbaker-v-laco-gas-burner-co-iowa-1930.