Haynes Chemical Corp. v. Staples & Staples, Inc.

112 S.E. 802, 133 Va. 82, 1922 Va. LEXIS 85
CourtSupreme Court of Virginia
DecidedJune 15, 1922
StatusPublished
Cited by8 cases

This text of 112 S.E. 802 (Haynes Chemical Corp. v. Staples & Staples, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haynes Chemical Corp. v. Staples & Staples, Inc., 112 S.E. 802, 133 Va. 82, 1922 Va. LEXIS 85 (Va. 1922).

Opinion

West, J.,

delivered the opinion of the court.

[84]*84The defendant in error, Staples & Staples, Incorporated, hereinafter called the plaintiff, recovered a judgment against the plaintiff in error, Haynes Chemical Corporation, hereinafter called the defendant, in the Law and Equity Court of the city of Richmond for the sum of $707.09 with interest from February 28, 1921, till paid. The case is here upon a writ of error to that judgment.

The plaintiff and defendant are both corporations duly chartered under the laws of the State of Virginia.

The defendant is engaged in the manufacture and sale of an insecticide product known as “Preventol.”

The plaintiffs are engaged in the advertising business, styling themselves “Advertising Counsellors,” who are in a sense advisors to the manufacturers of the country as to how to market their products, there being over one hundred of these advertising agencies in this country. A manufacturer desiring to put a product upon the market, selects an agent and directs him to map out plans for marketing his product. The agent’s remuneration for handling the advertising campaign usually consists of a commission of 15 per cent, on the space which the manufacturer buys and is paid by the publishers. The cost of drawings, displays and matters of that kind is invariably paid for by the manufacturer of the goods.

In August, 1919, C. P. Hasbrook, treasurer and a director of the defendant corporation, had an interview with H. L. Staples, president, and J. W. Fawcett, vice president, of the plaintiff corporation, and commissioned them to prepare an advertising plan for the defendant, showing them’how to put “Preventol” on the market, promising. them their plans would receive the heartiest consideration on the part of his people, and, if satisfactory, the advertising under [85]*85such, plan would go to them. The plaintiff does not submit plans in competition, and no notice of competition was given it until its plans had been perfected and submitted.

Acting under instructions of Director Hasbrook, the plaintiff proceeded to make the plans without expectation of payment therefor, if satisfactory, as in that event the plaintiff would be selected to handle the campaign and make his commission out of the publishers; and if unsatisfactory, it would be entitled to nothing, provided, in either event a decision in good faith was made on the merits of the plan. Later on Hasbrook requested the plaintiff to speed up the plan and on October 12, 1919, Staples and Fawcett presented the plan to C. P. Hasbrook, treasurer and director, L. G. Larus, director, and Roger Topp, vice president and general manager of the defendant corporation, all three of whom expressed themselves as satisfied with the campaign plan in all respects.

Hasbrook and Larus left the room, stating that Topp, as general manager, was the man to sell, and would have the last say; and at their suggestion the plans were left at defendant’s office for their study? Later Hasbrook attended a meeting of the board oí> directors of his company in New York, taking with him the proxy of Larus. Having no- notice of the meeting, no representative of the plaintiff was present to explain the plan, nor was the plan itself, the sketches, statistics, merchandise data, or results of trade investigations, there. At the close of the meeting, Hasbrook telegraphed Topp: “Our president deems it necessary to have a New York agent. Advise Staples.”

The plaintiff, on condition of a fair decision, on its merits, had spent a large sum of money to produce a satisfactory plan, and there is nothing in the tele[86]*86gram to indicate that the plan was not satisfactory-Later Topp said to Staples and Fawcett, in discussing what happened at the New York meeting, “It looks like you got the rough end of the poker; however, you did a good job; your work was fine, and we'l'feel you ought to be recompensed, and we would likeffor you to send us a bill for your expenses.”

The bill was sent, but not paid, and this suit was brought to collect it.

The defendant’s assignments of error are to the action of the court:

1. In refusing certain instructions asked for by the defendant;

2. In granting certain instructions;

3. In overruling defendant’s motion to set aside the verdict of the jury;

4. In entering judgment upon the verdict.

The instructions granted by the court were as follows:

Instruction No. 1.

“The court instructs the jury that if they believe from all the evidence that the defendant requested the plaintiff to devise and submit a plan of advertising to them, and it was known to the defendant that the costs and expenses were connected with the work to be done by the plaintiff, and no express agreement was made between the parties with reference to payment for the services of the plaintiff, then the jury may infer from the evidence an implied contract on the part of the defendant to reimburse the plaintiff for such expenses in connection with getting up the advertising plan as were reasonably within the contemplation of the parties.”

[87]*87Instruction No. 2.

“The court instructs the jury that if they believe from the evidence that the plaintiff performed certain work at the instance and request of the defendant and thereafter the defendant acknowledged liability to the plaintiff for the expenses incident thereto and promised to pay the same, they shall find for the plaintiff in whatever amount they deem reasonable under all the circumstances of the case for such expenses.”

Instruction No. 3.

“The court instructs the jury that if they, believe from the evidence that the defendant did no more than to agree that the plaintiff should devise and submit to it for its acceptance a plan for an advertising campaign, then the defendant is not liable to the plaintiff for any expenses incurred in and about getting up the plan to submit to the defendant.”

Instruction No. 4.

“The court instructs the jury that if they believe from the evidence that it was understood between the parties the plaintiff was merely to offer plans or specifications or a plan for advertising the product of the defendant for sale, and whether such specifications or plan were offered in competition with others or not, then the defendant is not liable for the expense of getting up such a plan unless accepted by it.”

Instruction No. 5.

“The court instructs the jury that where one party requests of another an opportunity of submitting an [88]*88offer, then unless it be in the minds of both parties and understood and agreed at that time that the party making the offer is to be reimbursed for his expenses in submitting the same, then the law does not raise an implied contract for such reimbursement unless the jury shall further believe that there is a custom and usage equally within the knowledge of both parties and with reference to which they can be necessarily presumed to have contracted, calling for such reimbursement.”

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Bluebook (online)
112 S.E. 802, 133 Va. 82, 1922 Va. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haynes-chemical-corp-v-staples-staples-inc-va-1922.