Hollweg v. Schaefer Brokerage Co.

197 F. 689, 117 C.C.A. 83, 1912 U.S. App. LEXIS 1315
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 15, 1912
DocketNo. 2,206
StatusPublished
Cited by19 cases

This text of 197 F. 689 (Hollweg v. Schaefer Brokerage Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hollweg v. Schaefer Brokerage Co., 197 F. 689, 117 C.C.A. 83, 1912 U.S. App. LEXIS 1315 (6th Cir. 1912).

Opinion

KNAPPEN, Circuit Judge.

The defendant in error (who was plaintiff below) recovered verdict and judgment against plaintiff in error for $6,451.60 as damages for the breach of an alleged brokerage contract for the selling of fruit jars. The facts necessary to be stated! at this time are these:

Plaintiff in error (hereafter called defendant) was engaged in the manufacture of glass fruit jars at Greenfield, Ind., under the name of “Greenfield Eruit Jar & Bottle Company.” Plaintiff was a corporation engaged in merchandise brokerage, with office at Toledo, Ohio; Wil[692]*692liam H. Schaefer being its president and active representative. Defendant’s principal competitors were the Hazel-Atlas Glass Company and Ball Bros. Glass Manufacturing Company (referred! to in the record as “Ball”) ; the latter company apparently controlling the market in large part. Plaintiff had represented defendant as his selling agent during the years 1908 and 1909; the territory being confined to Toledo. During this period plaintiff and defendant were attracted by the so-called! “Owens process,” by which fruit jars were manufactured entirely by machinery and without hand work. The result was that the defendant obtained the right to manufacture jars by the' Owens process, beginning with the season of 1910, which would naturally open in October or November of that year. Plaintiff was specially enthusiastic over the advantages and attractiveness of the Owens process, and the testimony tends to show that it was to a considerable extent through his influence and enthusiasm that defendlant decided to acquire the right to use that process. On February, 4, 1909, defendant made plaintiff a proposition for the selling of jars in Toledo upon certain brokerage commissions and premiums, the idea being that out of the premiums plaintiff should reimburse itself for any concessions required to be made from defendant’s general prices. No premiums were to be paid when the price of quart jars should be less than $3.75 per gross. Plaintiff criticised this proposition principally because no term was provided!, and urged a five-year contract. Plaintiff also urged that it be given additional territory. Defendant was unwilling to make a five-year contract, but in April agreed that the February proposition should stand from year to year. Plaintiff agreed to this, and “started to work on that basis” for the 1910 season, in a campaign of advertising and interesting retailers in the new jars. About September 25, 1909, Detroit was added! to the Toledo territory. In the early part of October an arrangement was made with plaintiff to try to sell some of the new jars for 1910 delivery at a price of $3.75 per gross, contracts being taken in plaintiff’s name (to avoid Ball’s cutting, prices) ; the price being guaranteed against both Ball and the Hazel-Atlas Company’s opening prices, the customers being at liberty to cancel their contracts and take competitor’s jars in case the latter’s price should be lower than defendant would meet. Afterwards, and during October, plaintiff sold 32 car loads, partly in Detroit and partly to Ohio customers. No sales were made after October 11th, at which time the special price was withdrawn. On November 1,1910, Schaefer was called to defendant’s factory to discuss the opening, price for the season of 1910. The result of this conference was that plaintiff was given, in addition to the Detroit territory, all of Ohio except Cleveland, Cincinnati, and Columbus;, defendant agreeing to set aside 250 cars for Ohio and 50 cars for-Detroit. A special opening selling price of $3.75 per gross was agreed upon, contracts to be made upon a special form, with a guaranty of price, terms, and conditions, against both Ball and the Hazel-Atlas Company, with substantially the same provisions for cancellation by customers as contained in Schaefer’s contracts with customers before referred to, in case competitors’ prices should be less than stated in [693]*693the contract and lower than defendant cared to meet. Such contracts were to' be “submitted to the factory for acceptance.” Plaintiff immediately went to work under this arrangement, interviewing customers as well as local brokers of the defendant, and substituting, contracts on the new form for the contracts previously made in plaintiff’s name with certain of the customers. On November 5th defendant, by telegram to plaintiff, withdrew the special price of $3.75 per gross. The special price withdrawal was not regarded as a termination of plaintiff’s relations with defendant. On the contrary, Schaefer continued at work advertising the jars with the retail trade, all with the knowledge and approval of the defendant. Plaintiff seems to have thought that the withdrawal of the special price was due to the danger of overselling. The parties corresponded from time to time with reference to a meeting for discussing the subject of reopening prices and what should be done with customers who had bought jars and wanted more at the same price. The meeting was put off from time to time to suit defendant’s convenience, and finally was set for December 1st, on which date plaintiff learned, through the public press, of the selling by defendant of his plant to Ball, including the right to manufacture under the .Owens process. The sale to Ball appears to have been made in November; the precise date not being given. Ball took over from defendant the contracts for the 32 cars sold by plaintiff. November 25, 1910, Ball rendered Schaefer a statement covering brokerage commissions and premiums on the 32 cars. Plaintiff paid no attention to this communication. At the close of the testimony for plaintiff (defendant having introduced none), the latter’s request for directed verdict was denied, and the case, submitted to the jury under detailed instructions. The errors assigned relate to the refusal to instruct verdict, the admission of evidence, the charge as given, and requested instructions refused. These assigned errors relate generally to (1) the contention that no valid contract was shown; (2) the proposition that if the contract was valid, no breach of it by defendant was shown; and (3) the measure of damages.

1. The validity of the alleged brokerage contract.

[1] Plaintiff’s petition alleges the making of a brokerage contract on or about February 4, 1909, for the Toledo territory and for the season of 1910. It alleges that this contract was modified, and enlarged by mutual agreement on or about October 1, 1909, whereby plaintiff was given the right to sell during the season of 1910 not less than 250 car loads in Ohio, outside of Cincinnati, Cleveland, and Columbus,, and 50 car loads in Detroit. The scale of commissions and premiums to be paid, and plaintiff’s agreement to perform, and his subsequent acts in performance until prevented by defendant’s sale of the business, are set out in detail. Defendant insists that the alleged contract was shown to be invalid, first, as contravening, the statute of frauds; and, second, for lack of mutuality.

(a) As to the statute of frauds: It is conceded that the alleged contract was for the season of 1910, and that the season wouldl not regularly open, and was not expected to open until the latter part of [694]*6941909, and that it would continue until October, 1910.

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Cite This Page — Counsel Stack

Bluebook (online)
197 F. 689, 117 C.C.A. 83, 1912 U.S. App. LEXIS 1315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollweg-v-schaefer-brokerage-co-ca6-1912.