Jacobs v. Kraft Cheese Co.

164 A. 774, 310 Pa. 75, 1933 Pa. LEXIS 398
CourtSupreme Court of Pennsylvania
DecidedDecember 7, 1932
DocketAppeal, 311
StatusPublished
Cited by5 cases

This text of 164 A. 774 (Jacobs v. Kraft Cheese Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacobs v. Kraft Cheese Co., 164 A. 774, 310 Pa. 75, 1933 Pa. LEXIS 398 (Pa. 1932).

Opinion

Opinion by

Mr. Justice Maxey,

Plaintiff sued to recover damages for his wrongful discharge by defendant, after nine weeks of employment, under a contract entered into by the parties to employ plaintiff as cheesemaker in defendant’s plant for a period of seventy-eight weeks at $100 a week. After verdict and judgment for plaintiff, defendant appeals from denial of his motions for judgment n. o. v. and for a new trial.

In the latter part of July, 1927, plaintiff, claiming to have developed a novel and secret process for the manufacture of an improved grade of cream cheese, went to Chicago, where defendant maintained its chief establishment. Defendant wished to improve its product and *77 took plaintiff on as a cheesemaker in its plant for a trial period of three weeks. Before revealing the details of his alleged secret process, plaintiff sought the protection of a long-term agreement. Accordingly, the parties entered into a written contract on August 17, 1927. By its terms defendant agreed to employ plaintiff in an instructive and supervisory capacity in its cheese factories for seventy-eight weeks at a salary of $ 100 a week plus expenses, and plaintiff agreed to give the defendant his full time during that period. Then follows this clause in the contract: “It is understood that the obligations of Kraft made herein are conditioned upon Jacobs’s producing a cream cheese satisfactory to the market and trade as demonstrated by increased sales by Kraft of the cream cheese produced by Jacobs” (Italics ours.)

Plaintiff continued in defendant’s employ from this date until October 4,1927, a period of about seven weeks. During this period, the testimony for both parties tended to show plaintiff was stationed at defendant’s Milledgeville, Illinois, plant, and there superintended the making up of an average of 1,800 lbs. of cheese a day, which towards the end of this period increased to about 15,000 lbs. a week, subject to some variation. When what was termed a “batch” of cheese of about 1,800 lbs. had been sufficiently processed, which required three or four days, it was packed in three-pound boxes and shipped to Chicago. It was there tested and disposed of as defendant saw fit.

On October 4, 1927, defendant expressed dissatisfaction with the quality of plaintiff’s product and dismissed him from its service. This suit is for damages for plaintiff’s loss of the contract salary during the remainder of the term.

Plaintiff was his only witness on direct examination. He testified that the cheese he made was of good quality and had none of the defects alleged by defendant. He also testified that he had various conversations with defendant’s officers and agents in which they admitted sat *78 isfaetion with plaintiff’s product, spoke approvingly of it, and declared that sales would increase.

Defendant’s sales manager, on cross-examination, admitted an increase of production towards the end of plaintiff’s employment. But defendant’s evidence was all to the effect that plaintiff’s cheese ivas of poor quality and contained such defects as to render it unfit for sale. There was also testimony that the production of plaintiff’s cheese steadily decreased. Defendant’s further testimony was that plaintiff’s product was never marketed, that there was never any attempt to put it on sale because of the disastrous results to defendant’s trade which might follow, but that, on the contrary, plaintiff’s cheese was reprocessed and used as a base for an inferior grade of cheese sold under the name of “Kay.” Defendant’s witnesses testified that plaintiff had the complete cooperation of defendant in all matters, and that his employment was terminated only after weeks of fruitless and costly experiment.

A nonsuit was refused. The jury returned a verdict for the plaintiff in the sum of $5,468. Rules for judgment non obstante veredicto and for a new trial having been obtained, the court in banc discharged them and directed that judgment be entered on the verdict. Defendant appealed.

The trial judge in presenting the case to the jury aptly said: “In article ix, in the body of the agreement, Jacobs agrees to devote his full time and knowledge at all times to the manufacture of a cheese satisfactory to the demands of the trade and market, and further agrees at all times to produce a cream cheese satisfactory to said market and trade. Now, there it tells you what is meant by satisfactory. The cheese he produced was to be satisfactory to the demands of the trade and market. This is so plain that there can be no possible misinterpretation of it; and in the final paragraph fit is understood that the obligations of Kraft made herein are condi *79 tioned upon Jacobs producing a cream cheese satisfactory to the Kraft Company.’

“Now, at first blush that might seem to change the intent of the contract, because up above it was to be satisfactory to the trade and market. Here it says ‘satisfactory to Kraft.’ Then it goes on and says ‘which means a cheese which is satisfactory to the market and trade,’ and then it goes further on to say ‘as demonstrated by increased sales by Kraft of the cream cheese produced by Jacobs.’ So that the obligation of Jacobs was to produce a cheese that was satisfactory to the trade and the market, and it provided that the test of that shall be the sales of that cheese.

“There might be some argument here as to whether the satisfaction of the market had been demonstrated by increased sales; but, members of the jury, that question is taken out of this case because the defendant admits that they made no sales, and there can be no argument that Jacobs’s cheese was not satisfactory, based on the fact that sales did not increase, when, in fact, the defendant made no sales. It is obvious that if the defendant chose not to sell this cheese from some arbitrary reason, they cannot hold that against Jacobs. It was their implied obligation under this contract, if they were to stand on the clause in regard to increased sales, to use reasonable diligence to increase its sales. So we have this controversy narrowed right down to a very, very narrow issue, and that issue is what kind of cheese did Jacobs make?

“If Jacobs made a cheese that was good, such a cheese as would be satisfactory to the trade if it had been offered to the ti*ade, then he is entitled to recover in this case. On the other hand, if the cheese made by Jacobs was such that it could not be sold to the trade, or at least that if sold to the trade would not be satisfactory to the trade, then Jacobs has not fulfilled his obligation and the Kraft people were justified in dismissing him, and he cannot recover. That is the issue.”

*80 The learned trial judge correctly defined and submitted the issue in this case. The plaintiff in order to recover had to produce a cream cheese “satisfactory to Kraft which means a cheese which is satisfactory to the market and trade as demonstrated by increased sales by Kraft of the cream cheese produced by Jacobs.” That is the condition which Jacobs had to meet. It is expressed twice in the contract, once in the third paragraph as already quoted and earlier in the second paragraph, as follows: “Jacobs agrees......to the manufacture of a cream cheese satisfactory to the demands of the trade and market.”

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Cite This Page — Counsel Stack

Bluebook (online)
164 A. 774, 310 Pa. 75, 1933 Pa. LEXIS 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-v-kraft-cheese-co-pa-1932.