Jackson v. Strowger Automatic Telephone Exchange

34 S.E. 207, 108 Ga. 646, 1899 Ga. LEXIS 314
CourtSupreme Court of Georgia
DecidedAugust 2, 1899
StatusPublished
Cited by5 cases

This text of 34 S.E. 207 (Jackson v. Strowger Automatic Telephone Exchange) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. Strowger Automatic Telephone Exchange, 34 S.E. 207, 108 Ga. 646, 1899 Ga. LEXIS 314 (Ga. 1899).

Opinion

Fish, J.

It appears from the pleadings in this case that in May, 1895, the plaintiff, J. Hardwick Jackson, entered into negotiations with the defendant company, the Strowger Automatic Telephone Exchange, ■jvith a view to purchasing from the company “the exclusive right to use the Strowger automatic switchboard and telephones in the States of Georgia, North Carolina, South Carolina, and Alabama, during the life of the patents” thereon. Under the contract as finally consummated, he was to pay for this privilege $10,000, the first two payments being, respectively, $1,000 and $1,500, and the balance being divided into three equal payments of $2,500 each. This agreement was in its nature purely executory, the company obligating itself to issue to the plaintiff a license for the exclusive use of its patent rights only on condition that he should, within a stipulated period, duly meet the first two payments agreed upon. It was the intention of the plaintiff to organize a company and sell and transfer to it the privilege thus contracted for; but, for various reasons assigned, he was unable to do so, although, in order to assist him in carrying out his design, the defendant extended, from time to time, the period within which he obligated himself to make the two payments necessary to secure the desired license. As a result of this indulgence, the time fixed by the original agreement as that within which compliance on his part with the condition precedent therein named would be accepted by the opposite party was finally extended “until December 24th, 1895.” Among other documents ah tached as exhibits to the plaintiff’s petition is one which purports to be the draft of an agreement fixing the terms upon which the company was to furnish him with the mechanical appliances connected with its system, and containing various stipulations as to the royalty to be charged by it, the defense of litigation involving its patent rights, etc., etc. This paper does not, however, bear the signature of either the plaintiff or the defendant, nor, indeed, does it purport to have been executed by any one whomsoever. None of the various other documents attached to the petition, and relied on by the plaintiff as evidencing the contract between himself and the com[648]*648pany, can properly be said to connect this paper therewith, for in not one of them is it identified or recognized as a part of that contract, or even referred to. And not only is this true, but no attempt is made by the plaintiff to explain in his ¡petition upon what possible theory this unsigned instrument can be regarded as having any binding force or effect upon the defendant or any one else. It is to be observed, in this connection, that the contract under consideration was one falling within the operation of the statute of frauds, as it was not one to be performed within a year. Such a contract can not rest partly in writing and partly in parol. Lester v. Heidt, 86 Ga. 226; Augusta Southern R. Co. v. Smith & Kilby Co., 106 Ga. 864. Accordingly, notwithstanding there may have been a verbal understanding to the effect that this unsigned memorandum should constitute a part of the written contract, such parol agreement, whether made contemporaneously or subsequently, could count for nothing. In considering the questions which this case presents for determination we shall, therefore, entirely disregard the totally irrelevant exhibit just referred to as being attached to the plaintiff’s petition.

It would seem that the written contract above outlined is alleged merely by way of inducement, in order to present a history of the transactions between the contracting parties and explain what subsequently occurred. Indeed, the agreement really declared upon is wholly contained in the following correspondence between them: Under date of December 24, 1895, the plaintiff addressed to the company’s president a letter, in the course of which he inquired: “Will you allow me to sell the exclusive right for Augusta, and pay you the amount on account of the State rights, and refer parties here to me as to prices on the instruments?” As explaining his purpose in making such request, the writer added: “My reason for asking this favor is, that I have worked up a good local exchange, and can make enough on construction to pay the first two payments to you, viz., $1,000.00 and $1,500.00.” In answer to to this inquiry, the company’s president replied by letter, dated three days later, as follows: “As per your request, we will allow you to sell the exclusive right for the City of Augusta, [649]*649according to conditions outlined in your letter. But we will again call your attention to the fact that time is the essence of all agreements, and trust that you will let us know your pleasure in the matter at your earliest opportunity.” So far as appears, no further correspondence was had with reference to this matter until September 2, 1896. On that date Jackson wrote the company’s president: “We will commence work here next week and will send in our order for 300'’phones. . . As soon as I get this exchange up, I shall push things lively for you. Mr. Langdon contemplates visiting you with the purpose of making better arrangements than I have offered. I want to ask you to simply refer him to me, as I have complied with your instructions, and if we make an exception in this case, it will have to be done in others. Of course, this is confidential. Langdonis arrangements with me are a duplicate of license to me, except the royalty is $4.00 instead of $2.50.” The addressee of this communication replied: “We have yours of recent date, and are now awaiting your order. We shall also carry out your instruction in reference to Mr. Langdon.” In this connection, the plaintiff alleges in his petition “that, relying upon the promises and agreement of defendant, as appear” from the correspondence above set forth, “he organized a company at Augusta, Georgia, and secured the co-operation and capital of Paul E>. Langdon, and others, who subscribed to the stock and bonds of said local company, which said local company erected a switchboard and all equipments and placed the same in successful operation at Augusta, Georgia, with about two hundred and fifty telephones of the Strowger Automatic Telephone Exchange system” ; that “for the right to use the switch-hoard said local company was to pay the sum of $4.00 to the Strowger Automatic Telephone Exchange” for every telephone connected therewith, “for each-and every year during the life of the patent or any extension thereof”; that under the aforesaid contract between plaintiff and the defendant company, he was entitled to $4.00 per annum for each of these telephones; that said company was under the obligation of accounting for and turning over to him “the first year’s royalty or rental of $4.00 on each telephone switch, and $1.50 of said royalty or [650]*650rental for each year thereafter, . . all of which undertakings and agreements defendant has violated and totally failed and refused todo”; and furthermore, “that under the aforesaid contract between plaintiff and defendant, he is entitled to a profit of $5.00 on each telephone established, or sold, in the city of Augusta, Georgia, and at the time of the institution of this suit there had been established 327 telephones and 327 switches.” It was further averred “that the conduct of defendant in openly denying the existence of said contract is an attempt to take advantage of all the time and labor expended by plaintiff in successfully establishing” this local exchange in Augusta. Attached to the petition is the following statement of the indebtedness which the plaintiff alleges arose in the manner just recited :

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Bluebook (online)
34 S.E. 207, 108 Ga. 646, 1899 Ga. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-strowger-automatic-telephone-exchange-ga-1899.