J. B. Colt Co. v. Grubbs

263 S.W. 749, 204 Ky. 189, 1924 Ky. LEXIS 433
CourtCourt of Appeals of Kentucky
DecidedJuly 1, 1924
StatusPublished
Cited by3 cases

This text of 263 S.W. 749 (J. B. Colt Co. v. Grubbs) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. B. Colt Co. v. Grubbs, 263 S.W. 749, 204 Ky. 189, 1924 Ky. LEXIS 433 (Ky. Ct. App. 1924).

Opinion

Opinion op the Court by

Commissioner Hobson-—

Reversing.

The appellant J. B. Colt Company is a corporation which manufactures and sells carbide lighting and cooking plants. Sales are made to patrons through salesmen employed by appellant by written contracts. The compensation of salesmen is regulated by the terms of the contract and by bonuses offered by appellant from time to time, based on the number of sales made.

In February, 1921, W. A. Thompson was a direct salesman of appellant at Hopkinsville. W. B. Grubbs was the manager of the postal telegraph company at Hopkinsville; his health was bad and his physician advised him to get into open air work; he knew Mr. Thompson and for a week or two went around with Mr. Thompson to learn something about the business of the Colt [191]*191Company. On February 10th Thompson gave him a'letter of introduction to H. L. Hartsoek, the managing salesman of appellant in Kentucky, having an office' in Louisville, with a view to his securing employment as a direct salesman. On the same day Grubbs sent to Hart-sock this telegram: “I have a letter from W. A. Thompson; can I see you in Louisville tomorrow?” Hartsoek replied in the affirmative; as to what followed the evidence is conflicting. The evidence for the appellees is to the effect that M. D. Grubbs had recently returned from the west. He was a younger brother of W. B. Grubbs and had been a telegraph operator in the west, but was then out of a job: They say that W. B. Grubbs gave M. D. Grubbs a letter of introduction to Hartsoek and that he went to Louisville and presented his letter of introduction and was known as M. D. Grubbs by Hartsoek. The evidence for the appellant is that M. D. Grubbs presented himself to Hartsoek at Louisville and delivered the letter from Thompson introducing him as "W. B. Grubbs and represented himself to Hartsoek ás W. B. Grubbs.

Ho made the application for employment as "W. B. Grubbs and so signed the contract. He made a written application to the Boyal Indemnity Company for án employe’s indemnity bond and signed this as W. B. Grubbs, describing himself in respect to his age, weight and physical appearance, but described his brother W. B. Grubbs in respect to his estate and the value thereof. The indemnity company issued a bond to W. B. Grubbs. The contract of employment was subject to the approval of one of appellant’s vice-presidents at its New York office. The contract was sent to New York and it was accepted there as the contract of W. B. Grubbs without any idea that the company was taking into its service M. D. Griibbs. The testimony of the agent at Louisville and the officer at New York is both to the effect that the company would not have taken or approved the contract if it had known that it was taking into its service M. T). Grubbs.

The -contract was for a sales agency at Princeton. M. D. Grubbs went to Princeton; he was known there as W. B. Grubbs; every sales contract he made with a purchaser was made in the name of "W. B. Grubbs; every communication he made to appellant was signed W. B. Grubbs; he opened accounts with banks and merchants [192]*192at Princeton, where he resided, as W. B. Grubbs; he was sued in Princeton police court as W. B. Grubbs and judgment was recovered against him in that name. Thus things ran along’ until about the first of September, when he claimed certain bonuses and commissions which the company was unwilling to allow, and he then filed this suit in the Caldwell circuit court. He brought the suit in the name of W. B. Grubbs; signed the petition as W. B. Grubbs and as such swore to it without disclosing to the clerk that he was not W. B. Grubbs.

In the third amended petition' it was alleged that W. B. Grubbs made the contract with the defendant with the understanding that he was only to render such services as he could, being himself engaged actively in another occupation and that the services sued for were rendered for the defendant by him through his brother M. D. Grubbs and M. D. Grubbs was joined as a party plaintiff. The defendant answered, pleading the facts above stated and charging that it had made no contract with M. D. Grubbs and that W. B. Grubbs had rendered no services ; that if it had known the facts the contract would not have been made and M. D. Grubbs would not have been allowed to act'. It insists that he obtained the contract by impersonating his brother and that it at all times supposed lie was the man who had been the manager of the postal telegraph company and who had the property qualifications named in the application for the bond, and that in fact M. D. Grubbs had acted as its agent without any bond and without its knowledge or consent.

The plaintiffs both testified in substance that W. B. Grubbs could not go to Princeton in February and that it was arranged between him and his brother that his brother should start the business and he would cóme over and go into it when he had finished up his work at Hopkinsville. They in substance say that this was known to Mr. Hartsoek and also to his successor, Mr. T. A. Frazier, who succeeded Hartsoek about April 1st; but the latter both positively swear to the contrary and their testimony is strongly confirmed by the fact that W. B. Grubbs himself wrote the company a letter in July asking his appointment as sales agent in Todd county and saying that his brother was the agent at Princeton. He did not sign this letter W. B. Grubbs, but he signed it Bruce Grubbs, and it certainly conveyed no information [193]*193that he was the man who was carrying on the business at Princeton or in any way interested in that business.

The case was submitted to the circuit judge on the law and the facts without a jury. ITis special finding of facts are:

“1. That plaintiffs, W. B. Grubbs and M. D. Grubbs, performed services for the defendant under contract, and that M. D. Grubbs was authorized to act for the said W. B. Grubbs, and did so act, and carried out said contract, and worked under same from the 23rd of February, 1921, until about the first of September, 1921.”
“2. That he made certain sales entitling him to recover over and above what had been paid him, $707.95.”

His conclusions of law are in these words:

“I conclude as a matter of law that although the contract involved in this case was made in the name of W. B. Grubbs, by agreement between W. B. Grubbs and M. D. Grubbs, it was carried out and performed in the name of M. D. Grubbs, and who acted in good faith and rendered most efficient service for which the defendant received the benefit; and I further find as a matter of law that "W. B. Grubbs, in his own name, had the right to prosecute this case for the use and benefit of M. D. Grubbs, he being made a party to said suit.
“I find as a matter of law that the defendant is in no wise prejudiced by the suit being prosecuted in the way that it is, and that having received the benefit of the services of M. D. Grubbs it is in no position to complain that the services were performed by M. D. Grubbs, or that the case is prosecuted as it is.”

. It will be observed that the court does not find that M. D. Grubbs acted in the place of W. B. Grubbs with the knowledge and consent of the defendant. His conclusion of law is that the defendant having received the benefit of the services of M. D. Grubbs must pay for them under the contract, although it made no contract with M. D. Grubbs and intended to make none.

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Related

Flaherty v. Bookhultz
297 P.2d 856 (Oregon Supreme Court, 1956)
J. B. Colt Co. v. Grubbs
268 S.W. 817 (Court of Appeals of Kentucky, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
263 S.W. 749, 204 Ky. 189, 1924 Ky. LEXIS 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-b-colt-co-v-grubbs-kyctapp-1924.