Jurrens v. Lorenz Manufacturing Co. of Benson

1998 SD 49, 578 N.W.2d 151, 14 I.E.R. Cas. (BNA) 189, 1998 S.D. LEXIS 48, 1998 WL 253886
CourtSouth Dakota Supreme Court
DecidedMay 20, 1998
DocketNo. 20116
StatusPublished
Cited by10 cases

This text of 1998 SD 49 (Jurrens v. Lorenz Manufacturing Co. of Benson) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jurrens v. Lorenz Manufacturing Co. of Benson, 1998 SD 49, 578 N.W.2d 151, 14 I.E.R. Cas. (BNA) 189, 1998 S.D. LEXIS 48, 1998 WL 253886 (S.D. 1998).

Opinion

KONENKAMP, Justice.

[¶ 1.] After his commission agreement expired, a salesperson continued working without a written contract. When he was terminated five years later, his firm refused to pay him commissions on pending invoices pursuant to the terms of the former written agreement. At trial, the circuit court granted a directed verdict for the firm holding that no commissions were due. Because the parties continued business without the benefit of a written contract, adhering to some of the provisions of their expired agreement but not others, should the precise terms of any implied contract be left for a jury to determine? We conclude there was a legally sufficient basis upon which a jury could find the existence of an implied contract at variance from the original agreement. We reverse and remand for trial.

Facts

[¶ 2.] In 1986, Marvin Jurrens began working as a salaried employee for Lorenz Manufacturing Company, a farm equipment maker with divisions in Benson, Minnesota and Wa-tertown, South Dakota. When the Company’s sales representative for South Dakota left in 1988, Jurrens expressed an interest in taking the position. The Company agreed. They executed a Sales Representative Contract and Commission Schedule on May 20, 1988. With this agreement, Jurrens ended his status as an employee and became an independent contractor. He was to receive a commission based on the type of product sold, with a $400 weekly draw against earned commissions. The agreement reqúired Jur-rens to make regular calls on dealers at least every four weeks and prohibited him from selling competing products.

[¶ 8.] As initially drawn, the agreement identified South Dakota as Jurrens’ sales territory, excluding only a “house account” with an implement dealer in Watertown. On February 1, 1989, the parties amended the agreement to broaden Jurrens’ territory to include Nebraska. The agreement could be terminated by either party on thirty days’ notice. Paragraph 5a stated that on termination:

All invoices and shipments that are outstanding at the time of termination of contract will be the responsibility of Lorenz for collection and delivery and commissions will be lost.

The term of the contract ran “from July 1, 1988 to July 1, 1989.” It contained no renewal clause. When the contract expired, the parties continued doing business essentially the same as before, but without a written agreement. From time to time, however, certain changes were made: By mutual consent, the weekly draw was discontinued and, in 1990, North Dakota was added to Jurrens’ sales territory. The commission schedule, however, remained unchanged.

[¶ 4.] From an infection that began in his toe a year earlier and continued to spread, Jurrens’ right leg was eventually amputated below the knee in April 1994. During the time he was fighting this illness, he was unable to personally visit all his dealer contacts, but tried to stay in touch by telephone. Nevertheless, citing his inability to personally call on his customers, as required by the former agreement, Lorenz Manufacturing gave Jurrens a thirty-day notice of termination on April 8, 1994. The Company refused to pay commissions on any outstanding invoices and shipments pursuant to Paragraph 5a in the expired agreement. Jurrens brought suit. At trial, after Jurrens rested his case, the circuit court granted a directed verdict for the Company, concluding that Paragraph 5a in the original contract was still binding on the parties. Jurrens appeals asserting the trial court erred in enforcing the original agreement when after its expiration the parties operated under an implied contract with different terms.

Standard of Review

[¶ 5.] A directed verdict motion under SDCL 15-6-50(a) challenges the legal sufficiency of the evidence. Bauman v. Auch, 539 N.W.2d 320, 325 (S.D.1995); Haberer v. Rice, 511 N.W.2d 279, 284 (S.D.1994); Denke v. Mamola, 437 N.W.2d 205, 207 (S.D.1989); Carlson v. First Nat. Bank, 429 N.W.2d 463, 466 (S.D.1988); Sabag v. Continental South Dakota, 374 N.W.2d 349, 355 (S.D.1985). In ruling on the motion, a court is not free to weigh evidence or credibility. Denke, 437 N.W.2d at 207. Evidence [153]*153must be viewed in a light most favorable to the nonmoving party. Id.; Carlson, 429 N.W.2d at 466; Kreager v. Blomstrom Oil Co., 379 N.W.2d 307, 310 (S.D.1985). If any legally sufficient basis exists to support a verdict for the nonmoving party, the motion must be denied. Bauman, 539 N.W.2d at 325; Bankwest, Inc. v. Valentine, 451 N.W.2d 732, 734 (S.D.1990)(“If sufficient evidence exists so that reasonable minds could differ, a directed verdict is inappropriate.”); Dace v. ACF Indus., Inc., 722 F.2d 374, 375-76 (8th Cir.l983), on reh’g, 728 F.2d 976 (1984); 1 S. Childress & M. Davis, Federal Standards of Review § 3.01, 3-5 (2d ed. 1992).

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Bluebook (online)
1998 SD 49, 578 N.W.2d 151, 14 I.E.R. Cas. (BNA) 189, 1998 S.D. LEXIS 48, 1998 WL 253886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jurrens-v-lorenz-manufacturing-co-of-benson-sd-1998.