Hessig-Ellis Drug Co. v. Harley Drug Co.

145 N.W. 716, 95 Neb. 267, 1914 Neb. LEXIS 208
CourtNebraska Supreme Court
DecidedFebruary 13, 1914
DocketNo. 17,553
StatusPublished
Cited by1 cases

This text of 145 N.W. 716 (Hessig-Ellis Drug Co. v. Harley Drug Co.) 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
Hessig-Ellis Drug Co. v. Harley Drug Co., 145 N.W. 716, 95 Neb. 267, 1914 Neb. LEXIS 208 (Neb. 1914).

Opinion

Barnes, J.

Action to recover the sum of $720, with interest there-' on at 7 per cent, from November 7, 1908, alleged to be due plaintiff from defendant for the sale of a quantity of patent medicine called “Notts Melon Seed Kidney Cure.” Plaintiff alleged, in substance, that it was a corporation organized and doing business in Memphis, Tennessee, and defendant was a corporation organized and doing business in the city of Lincoln, Lancaster county, Nebraska; that on or about the 24th day of September, 1908, the defendant entered into a written contract with the plaintiff for the purchase of a certain product known as “Notts Kidney Cure,” to wit, eight gross of said product at $48- a gross, and three and one-half gross of said product at $96 a gross. A copy of the contract was attached to the petition as exhibit A, and it was alleged that said contract was signed by the defendant in pursuance of an agreement marked exhibit B, also made a part of the petition. It was further alleged that the contract was subsequently modified by the agreement of both parties, so as to change the advertising part thereof from the Journal and News to the Lincoln Star, as indicated by exhibits C and D attached to and made a part of the petition. It was further alleged that on or about the 29th day of October, 1908, plaintiff billed the goods in question to the defendant at the freight depot of the Chicago, Rock Island & Pacific Railway Company at Memphis, Tennessee; that on or about the 7th day of November, 1908, the defendant received and accepted the goods, paid the freight thereon, [269]*269and is now in the possession thereof; that plaintiff had complied with all of the conditions and stipulations of said contract on its part to be performed, and that there was due from the defendant the sum of $720 with interest as above stated; that plaintiff had made repeated demands on defendant for payment, and that defendant had refused, and still refuses, to pay the same.

The defendant, for answer to the petition, alleged, in substance: First, that the plaintiff ought not to be permitted to maintain or prosecute this action because the plaintiff, at the time the alleged contract was made, was a foreign corporation; that is to say, a corporation organized and incorporated under the laws of the state of Tennessee, and not under the laws of the state of Nebraska, and was not an insurance company or railroad company having or maintaining an agent or agents in this state; and that plaintiff had not, on or before the time said contract was entered into, named or appointed any agent or agents in this state upon whom service of process or notice of any legal proceedings might be served, and was not authorized to transact any business of any kind in this state. As a second defense, it was alleged that on or about the 24th day of September, 1908, a representative of the plaintiff came to the city of Lincoln, where the place of business of the defendant then was, and now is, and then and there proposed to sell the defendant the property mentioned in the petition know as “Notts Kidney Cure,” and produced blank forms of contract and filled up one of each of said blanks, which he retained, whereby it was agreed between plaintiff and defendant that none of the goods mentioned in exhibit B were to be shipped to the defendant until the advertising mentioned in exhibit A (which was attached to plaintiff’s petition) was commenced, and the said advertising was to be from 10,000 to 20,000 lines agate measurement of advertising in the Nebraska State Journal and Lincoln Evening News;that, contrary to the agreement of the parties, the plaintiff shipped said goods mentioned in said exhibit B to this defendant before said advertising was commenced, [270]*270and the said advertising was never done in the Nebraska State Journal and Lincoln Evening News, nor the Lincoln Star, as provided by the terms of said contract. It was further alleged that, when the goods arrived in the city of Lincoln, defendant paid the freight thereon, aggregating the sum of $20.09, before said goods were examined by defendant, and before it had an opportunity of knowing, and before it knew, that the same were fraudulently misbranded. It was further alleged that the said Notts (Melon Seed) Kidney Cure is a liquid, and is contained in bottles which had blown thereon the words “Dr. Notts Melon Seed Kidney and Bladder Cure;” and on the reverse side thereof was a printed label with the words “Dr. Notts Melon Seed Compound, Kidney & Bladder Remedy, 7% alcohol, guaranteed under the Food and Drug Act of June 30, 1906. Guarantee No. 1221;” that each bottle was inclosed in a paper container or wrapper bearing these words: “This remedy is a scientific preparation, skilfully prepared, containing the active principle of Melon Seed so long and favorably known by physicians of the United States as Nature’s corrective for Kidney and Bladder Diseases, combined with the most effective drugs known to modern science.” On the reverse side of the wrapper or container were printed the words: “Dr. Notts Melon Seed Compound, Contains 7% alcohol.”

It was alleged that said drug was fraudulently misbranded in this: That it did not contain any melon seed or active principle of melon seed; that instead of containing 7 per cent, alcohol the same contained not more than 3% per cent, of alcohol, as the plaintiff when it shipped said property to defendant well knew; that the labels on said bottles were false and fraudulent and untrue, because in truth and in fact the contents of said bottles contained not more than 3% per cent, of alcohol, and that said label was false and fraudulent in this: That the statement on said label affixed to said-bottle that the contents of the bottle were guaranteed under the Food and Drug Act of June 30, 1906, guarantee No. 1221, was false and untrue, and was known to be false, fraudulent and untrue by the plaintiff [271]*271at the time and date of the shipment of said order. It was further alleged, that, after the goods mentioned in plaintiff’s petition were received by defendant and placed in defendant’s store on sale, the defendant was prosecuted by the state of Nebraska for having said goods for sale, for the reason that the same were misbranded and were offered for sale in violation of the laws of the state of Nebraska, and this defendant was convicted of having said goods in its possession for sale, and was fined in the sum of $10, and costs of suit taxed at $1.80; that, as soon as defendant learned that said goods were misbranded, defendant notified the plaintiff of that fact, and that the sale thereof in this state was in violation of law, and that offering the same for sale would be unlawful, and notified the plaintiff to immediately remove said goods and repay to it the said sum of $20.09 which it had paid as freight on said goods; but that plaintiff refused, and ever since has refused, to either remove said goods or repay the defendant the amount paid as aforesaid; that defendant has said goods and has kept them in its store ever since on or about the 15th day of November, 1908, and the fair and reasonable charge for storing said goods for said time is $10 a month, and that defendant is- indebted to plaintiff on account thereof in the sum of $60. Defendant denied each and every allegation contained in the petition not expressly admitted by its answer, and prayed that plaintiff’s .cause of action be dismissed, and. that defendant have judgment against the plaintiff for the sum of $20.09; with interest thereon from November 15, 1908, and for the further sum of $60 for the storage of said goods.

Plaintiff’s reply was, in substance, a general denial of the facts set forth in the defendant’s answer.

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Bluebook (online)
145 N.W. 716, 95 Neb. 267, 1914 Neb. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hessig-ellis-drug-co-v-harley-drug-co-neb-1914.