Kaisershot v. Gamble-Skogmo, Inc.

96 N.W.2d 666
CourtNorth Dakota Supreme Court
DecidedMay 25, 1959
Docket7823
StatusPublished
Cited by10 cases

This text of 96 N.W.2d 666 (Kaisershot v. Gamble-Skogmo, Inc.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kaisershot v. Gamble-Skogmo, Inc., 96 N.W.2d 666 (N.D. 1959).

Opinion

STRUTZ, Judge.

This is an appeal from an order sustaining a demurrer to the plaintiff’s complaint, all pleadings having been served prior to July 1, 1957, when demurrers were abolished by the adoption of the North Dakota Rules of Civil Procedure.

The plaintiff became a retailer of farm implements, machinery, and parts, for which the defendant was the wholesaler, under a contract entered into with the defendant. Several years later, the defendant desired to make other provisions for the retail sale of its farm implements, machinery, and repairs, and gave to the plaintiff notice that it was cancelling or discontinuing his contract as such retailer. The defendant made no offer to take over the balance of the farm implements, machinery, and repair parts remaining in the plaintiff’s possession- at the time of such cancellation.

The plaintiff’s complaint is based on Sections 51-0701, 51-0702, and 51-0703 of the North Dakota Revised Code of 1943.

Section 51-0701 provides that when a person engaged in selling farm implements, machinery, and repair parts enters into a contract with a wholesaler, manufacturer, or distributor of such farm implements, machinery, and parts, and such wholesaler, manufacturer, or distributor thereafter desires to cancel the contract, such wholesaler, manufacturer, or distributor, as a condition precedent to such cancellation or discontinuation, shall pay to such retailer, unless the dealer shall desire to keep such merchandise, a sum equal to seventy-five per cent of the net price of all farm implements, machinery, and repair parts in stock at the time of such cancellation. Such statute further provides that, upon such payment, title shall pass to the manufacturer, wholesaler, or distributor, and such manufacturer, wholesaler, or distributor shall be entitled to possession thereof.

Section 51-0702 provides for the manner in which the price of such farm implements machinery, and repair parts still in the possession of the retailer at the time of cancellation of his contract is to be determined; and Section 51-0703 provides for the remedy of the retailer if the manufacturer, wholesaler, or distributor refuses to make payment to the dealer, and provides •for the bringing of a civil action by the retailer for seventy-five per cent of the net price of such farm implements, machinery, and repair parts as the retailer may have on hand at the time of the cancellation of his contract.

The plaintiff’s complaint alleges that the parties entered into a contract in November of 1949; that in 1951 the defendant discontinued the contract and that, upon discontinuance of his contract, the plaintiff had on hand $1,500 worth of parts and $10,000 worth of farm implements; that the defendant made no settlement or payment to the plaintiff, as provided by law on the discontinuation of such contract, and that as to the farm implements the plaintiff “ * * * tried to get the defendant to take them back at seventy-five per cent and was unable to do so.”

The plaintiff thereupon proceeded to sell the farm implements and machinery and realized about sixty per cent of the net price of such implements from such sale. The plaintiff either was unable to dispose of any of the repair parts or made no effort to do so, since the complaint alleges that the plaintiff has all of such parts in his possession.

The plaintiff’s complaint is for seventy-five per cent of the wholesale value of the repair parts and for the difference between seventy-five per cent of the value of the farm implements and machinery, to which' the plaintiff claims he is entitled under the above statute on cancellation of his contract, and sixty per cent of such value, the amount which plaintiff realized from the sale of such farm implements and machinery on defendant’s failure to pay to the *669 plaintiff the seventy-five per cent on cancellation of the contract.

The defendant deniurred to the plaintiff’s complaint on the ground that the complaint failed to state a cause of action. An order sustaining such demurrer was entered by the trial court, and the plaintiff thereupon appealed, to this court from such order.

Generally existing statutes and the law of the land at the time a contract is made become a part of such contract and must be read into it just as if an express provision to that effect were expressly incorporated therein. Dunham Lumber Co. v. Gresz, 71 N.D. 491, 2 N.W.2d 175, 141 A.L.R. 60; State ex rel. Cleveringa v. Klein, 63 N.D. 514, 249 N.W. 118, 86 A.L.R. 1523; Werner v. Riebe, 70 N.D. 533, 296 N.W. 422, 156 A.L.R. 1254.

An order sustaining a demurrer is an appealable order. Sec. 28-2702, Subsec. 4, NDRC 1943.

The trial court, in its order sustaining defendant’s demurrer, did not give the plaintiff leave to plead over, and the plaintiff made no application for permission to do so. Where a demurrer to a complaint is sustained, and the plaintiff does not apply for leave to amend his complaint, he is deemed to have elected to stand on the complaint as originally served. Iowa & Dakota Tel. Co. v. Schamber, 15 S.D. 588, 91 N.W. 78.

Since a demurrer reaches only those defects in a complaint which are apparent on its face, and since the courts have no right to go outside of the pleadings for information foreign to the record, if a demurrer to the plaintiff’s complaint is to be sustained such defects must appear on the face of the complaint. Schnoor v. Meinecke, 75 N.D. 768, 33 N.W.2d 66.

The plaintiff’s complaint, after alleging that the defendant is a corporation, that the plaintiff was a dealer, and that under a contract with the defendant the plaintiff had agreed to buy all of his implements and parts from the defendant, further alleges:

“IV.
“That in 1951 the above named defendant discontinued said contract; that prior to that, said plaintiff was to handle Cockshutt products, but in that year Cockshutt products were taken away from the plaintiff and given to somebody else;
“V.
“That Secs. 51-0701 and 51-0702 of the North Dakota compiled laws for 1943 were enacted to cover the situation;
“VI.
“That upon the discontinuance of this contract, plaintiff had on hand $1500.00 worth of parts (wholesale price), and that no settlement or payment has ever been made for the same, although the plaintiff demanded the same and is willing to surrender the parts for the sum of 75% of $1500.00, or $1125.00.
“VII.
“That as to the implements on hand at the time of the discontinuance of the contract, plaintiff had on hand approximately $10,000.00 of implements on hand and he tried to get the defendant to take them back at 75% and was unable to do so;
“VIII.

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Bluebook (online)
96 N.W.2d 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaisershot-v-gamble-skogmo-inc-nd-1959.