Isbell v. Anderson Carriage Co.

136 N.W. 457, 170 Mich. 304, 1912 Mich. LEXIS 821
CourtMichigan Supreme Court
DecidedMay 31, 1912
DocketDocket No. 59
StatusPublished
Cited by29 cases

This text of 136 N.W. 457 (Isbell v. Anderson Carriage Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Isbell v. Anderson Carriage Co., 136 N.W. 457, 170 Mich. 304, 1912 Mich. LEXIS 821 (Mich. 1912).

Opinion

Steere, J.

This action is brought by William G. Isbell against the Anderson Carriage Company to recover damages for the alleged breach, by wrongful termination, of a contract giving plaintiff and one George D. Grant the agency for sale of defendant’s electric automobiles during a period of five years. . At the time of entering into said contract, the plaintiff and said Grant associated as partners in the enterprise, and-, as parties of the second part, agreed by this contract to ‘ ‘ establish the Anderson Electric Agency for the exclusive sale and care of the electric automobiles which are made by the first party.”

Summarized, the terms of this agreement are: The manner of conducting the details of this agency are to be “such as will be at all times entirely satisfactory to the Anderson Carriage Company.” At the time of the signing of the contract, the second parties shall place an order “for one Victoria top and one coupé top electric,” the second parties to be entitled to a discount of 20 per cent, from the established price list of said Anderson Carriage Company on its electrics, to pay 25 per cent., on placing orders, the balance on delivery of the machines, first parties to refer all inquiries and intending purchasers to the Anderson Electric Agency, and to assist the sales of its electrics by giving personal attention to parties sending to its factory for that purpose. That out of town purchasers coming to Detroit shall have free and sufficient demon[306]*306stration and examination of machines at their agency. That machines sold to W. C. Anderson, W. P. McFarlane, W. M. Locke, C. A. Newcomb, or W. Kritser will not be considered a violation of the contract. That said contract shall run for a period of five years, subject to the keeping of its terms as stated.

The principal contention in this case centers around the second paragraph of said contract, which is as follows:

“ Second. It is agreed on the part of the second parties that the method of conducting said agency and the detailed care given to each of the Anderson machines which are sold shall be such as will be at all times entirely satisfactory to the Anderson Carriage Company, and the Anderson Carriage Company are to at all times have the privilege of properly investigating the methods which are used in the care and sale of their machines. It being understood that the business policy of such agency will be such as to build up and foster the sale and use of Anderson Electrics in the city of Detroit. This agency shall do business in a building that shall be satisfactory to the first parties and also maintain satisfactory storage and charging stations.”

This contract is dated September 19, 1907, though the testimony tends to show that it was signed three or four days later. Within two days after signing the same the parties executed the following supplemental agreement:

“ It is further understood and agreed that nothing contained in this contract, dated September 19, 1907, between the undersigned parties, to which this is attached and of which this forms a part, shall be construed as preventing, during the time in which such contract remains in force, the parties of the second part thereto from selling gasoline cars; but that the sale, at any time, of such cars by said parties of the second part is expressly allowed and is no infringement of such contract; and, further, that said parties of the second part may store and care for gasoline cars until such time as a sufficient number of electric cars is secured by them for storage purposes to occupy the storage capacity of their garage, the object of this being to give said second parties an opportunity to make .their bus[307]*307iness a paying enterprise. It is further understood and agreed that said first party shall give said second parties sixty days’ notice to correct any error or mistake that may arise in carrying out the conditions outlined in paragraph two of said contract.
“The Anderson Carriage Company, “By W. C. Anderson, President.
“W. G. Isbell.
“ Geo. D. Grant.”

On August 6, 1908, said George D. Grant assigned to plaintiff all his right, title, and interest in the above contract.

It is the testimony of both parties that it was understood and agreed Isbell & Grant would supply a new garage in which to conduct the business. Before or contemporaneously with the signing of said contract, plaintiff entered into an agreement with one J. S. Farrand, Jr., for the erection of a garage at 730-732 Woodward avenue, in which to conduct the business contemplated by said contract with the Anderson Carriage Company, and leased the same for five years. The plans for said garage were submitted to Mr. Anderson, president and manager of defendant, who expressed himself entirely satisfied with them. Plaintiff further claims that it was understood and agreed by all parties concerned that temporarily during the time of the construction of the Farrand garage the business of this agency should be taken care of in Grant Bros’, garage. The Farrand garage was completed between the latter part of February and 15th of March, 1908. On September 24, 1907, pursuant to the contract, a Yictoria top and a coupé top electric were purchased and $3,280 paid for the same by Isbell & Grant. They were also engaged in the sale of gasoline automobiles as contemplated in the supplemental contract.

On December 31, 1907, defendant served written notice on Isbell & Grant that they were not carrying out the contract in a manner satisfactory to it, naming 12 particulars in which it claimed their methods were not satisfactory or in accordance therewith, and giving notice that, [308]*308if they failed to correct these matters in a way satisfactory to defendant within 60 days, it would consider the contract canceled. The particulars named are as follows:

“ (1) That your lack of advertising in the daily papers, through the mail, and by demonstration; (2) that your failure to employ proper salesman, manager, battery man, and man to wash, care, and charge machines; (3) that your method of caring for machines which have been left at your place for care; (4) that your method with reference to not being liberal enough in exchange deals; (5) that you fail to foster trade by co-operation with other garages and dealers in gasoline machines; (6) that your methods of having your telephone calls answered; (7) that the methods of Wm. G. Isbell in handling prospective buyers; (8) that your business policy and method in not placing orders with us for electrics in advance of sales being actually made; (9) that the method and business policy in not having our electrics in stock covering the various styles we make ready to deliver in the event of effecting a sale; (10) that the present appliances for charging electrics is not what it should be; (11) that you fail to put forth satisfactory efforts to sell our electrics; (12) that your business policy is not such as to foster the sale and use of Anderson electrics in the city of Detroit.
“ In none of the above-mentioned ways are you giving satisfaction to us or keeping your contract.”

Isbell & Grant replied, vigorously denying that the particulars named in the notice were borne out by the facts or they had failed to observe their contract, asserting their intention and desire to carry out its provisions.

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Cite This Page — Counsel Stack

Bluebook (online)
136 N.W. 457, 170 Mich. 304, 1912 Mich. LEXIS 821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/isbell-v-anderson-carriage-co-mich-1912.