Higdon v. Smith

1977 OK CIV APP 21, 566 P.2d 464, 1977 Okla. Civ. App. LEXIS 121
CourtCourt of Civil Appeals of Oklahoma
DecidedMay 3, 1977
DocketNo. 49228
StatusPublished

This text of 1977 OK CIV APP 21 (Higdon v. Smith) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Higdon v. Smith, 1977 OK CIV APP 21, 566 P.2d 464, 1977 Okla. Civ. App. LEXIS 121 (Okla. Ct. App. 1977).

Opinion

BRIGHTMIRE, Presiding Judge.

This action was brought by one group of AMPI dairy farmers against another for recovery of damages resulting from the cancellation of three milk base sales contracts. Plaintiffs achieved a jury verdict. From an order overruling a motion for a new trial defendants appeal.

I

August 3, 1970, Max and Harmon Smith transferred 300 pounds of milk base to Le-lon Higdon, 200 pounds to Paul Higdon, and 291 pounds to C. A. Campbell, at a price of $10 per pound, for a total of $7,910. The transfers were accomplished at Associated Milk Producers, Incorporated (AMPI) Oklahoma division offices in Oklahoma City by executing standard forms provided by AMPI as required by the association’s base plan. Each transfer agreement included a “seller’s affidavit” in which the seller swore he would not offer for sale for five years, milk for human consumption in fluid form, and that if he did, the agreement would become void and he would refund the base purchase price to buyers.

Under the AMPI plan each member was allocated a certain amount of so-called milk base — a right to market Class I milk, i. e., milk to be packaged for human drinking and selling for a higher price than Class II milk, a category referring to milk sold for all other uses. Milk base is measured by the pound. Though an AMPI member could sell milk in excess of his base allocation, he had to sell it at the lower price set [466]*466for Class II milk sales. Once milk base poundage had been allocated to existing member producers additional pounds could be acquired only by transfer from one member to another as was done in this case.1

Almost two months after the base transfers in question AMPI wrote Max and Harmon Smith advising that their transfers to the Higdons and Campbell had been can-celled, because “[information has been received by this office that John Smith was approved for the sale of ‘Grade A’ milk, August 7, 1970, and shipments began to Colvert’s Dairy, Ardmore, Oklahoma.” “This action,” continued the letter, “constitutes a violation of the Class I Base Plan and the affidavit of transfer . . . .” resulting in the latter’s cancellation effective October 1, 1970. A copy of this letter was sent to plaintiffs.

Lelon Higdon discussed the cancellation shortly afterward by telephone with Harmon Smith, who said he would “get it straightened out.” However, he did not and while the transferees did appeal the cancellation to an AMPI committee, it was upheld because on the hearing date, March 11,1971, “. . .no person representing the appellants appeared. . . .”

II

In April 1971, the base transferees filed this action against the Smiths. The amended petition stated two causes of action. The first asked for restitution of the $7,910 consideration paid to and retained by defendants, and the second alleged that the breach of contract by defendants had forced plaintiffs to sell their milk at Class II prices resulting in lost profits totaling $6,739.32.

A demurrer to the amended petition claiming plaintiffs’ cause of action was based upon an illegal contract was sustained. The order was appealed and the state court of appeals, division one, reversed the ruling and remanded for trial. Higdon v. Smith, OkLApp., 44 Okl.B.Ass’n J. 638 (1973).

The case was tried to a jury October 29, 1975. Plaintiffs produced evidence generally substantiating their allegations that: (1) transfer contracts had been entered into among the parties; (2) the base transfers had been cancelled by AMPI; (3) defendants had refused to return the consideration paid by plaintiffs; and (4) plaintiffs had, because of the cancellation, been required to sell the quantity of milk that would have been covered by the base at two dollars less per pound than the Class I price, until December 1971.

Defendants rested without presenting any evidence, and the jury returned a unanimous verdict for plaintiffs on their first cause of action in the amount of $7,910 and on their second in the amount of $3,369.66. Defendants’ motion for a new trial was overruled and from that order they appeal.

Ill

Defendants assail the judgment on four grounds: (1) the court erroneously admitted the AMPI cancellation letter over their objection; (2) failure of trial court to sustain, sua sponte, a demurrer to plaintiffs’ evidence or to direct a verdict for defendants; (3) the jury’s province was invaded by one of the instructions given; (4) failure of the trial court to strike plaintiffs’ entire second cause of action from plaintiffs’ petition— again, sua sponte.

IV

In their first proposition defendants complain of admitting the above-mentioned cancellation letter on the ground it was “hearsay of the rankest form.”

What happened was that plaintiffs offered as evidence a copy of the September 29, 1970 letter through their witness Elmer Anderson, AMPI’s current division manager [467]*467in Oklahoma City,2 who testified that a copy of the letter was kept in his office in the normal course of business, and that when it was mailed, the office records were changed to reflect the cancellation.3 Defendants’ general objection to the letter— that it was “incompetent, irrelevant and immaterial” — was overruled.

Whether hearsay or not, the letter was admissible as evidence that defendants received notice of the action taken against them by AMPI, namely, cancellation of the transfer agreements. Smith v. Munger, OkLApp., 532 P.2d 1202 (1974). Since it was admissible on at least one ground, the court did not err in overruling defendants’ general objection. Once admitted the letter and its contents had general evidentiary value absent a limiting order. Since defendants never requested such an order, the question of the propriety of one never arose. Wininger v. Day, Okl., 376 P.2d 211 (1962); Adamson v. Allende, 178 Okl. 464, 62 P.2d 1229 (1936).

V

The next suggested error — that the trial court failed on its own motion to dictate into the record and sustain a demurrer to plaintiffs’ evidence or to direct a verdict in favor of defendants on the ground that there was insufficient evidence to support the. verdict in favor of plaintiffs — like their fourth proposition is so lacking in legal sophistication as to imply total unfamiliarity with very elementary rules of state law. The court has no duty or even a right to try one side of a lawsuit. The statute — 12 O.S. 1971 § 577 subd. 3 — makes it incumbent upon defendant, not the court, to challenge the sufficiency of his opponent’s evidence. And failure of defendant to stand on an overruled demurrer at the close of plaintiffs’ case in chief or move for a directed verdict after all the evidence is in is one good way to estop oneself from later on attacking the sufficiency of adversarial evidence. Richardson v. Butler, 206 Okl. 79, 240 P.2d 1058 (1952). Since defendants never once objected in any form to the sufficiency of plaintiffs’ evidence, their second complaint has to be rejected.

VI

The third mistake said to have been made is that the court invaded the province of the jury in stating the issues it was to decide by assuming that defendants continued in fact to operate a dairy farm in violation of the transfer agreements.

This is not a fair analysis of instruction number two.

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

Related

Richardson v. Butler
1952 OK 26 (Supreme Court of Oklahoma, 1952)
Smith v. Munger
532 P.2d 1202 (Court of Civil Appeals of Oklahoma, 1975)
Wininger Ex Rel. Wininger v. Day
1962 OK 201 (Supreme Court of Oklahoma, 1962)
Stagner v. Files
1938 OK 169 (Supreme Court of Oklahoma, 1938)
Adamson v. Allende
1934 OK 588 (Supreme Court of Oklahoma, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
1977 OK CIV APP 21, 566 P.2d 464, 1977 Okla. Civ. App. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/higdon-v-smith-oklacivapp-1977.