Keller v. Baumgartner

64 F. Supp. 276, 1945 U.S. Dist. LEXIS 1620
CourtDistrict Court, E.D. Wisconsin
DecidedApril 24, 1945
DocketCivil Action No. 1478
StatusPublished

This text of 64 F. Supp. 276 (Keller v. Baumgartner) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keller v. Baumgartner, 64 F. Supp. 276, 1945 U.S. Dist. LEXIS 1620 (E.D. Wis. 1945).

Opinion

DUFFY, District Judge.

Plaintiff and defendant executed a written contract dated August 17, 1943. Although it was in the form of a letter addressed to the plaintiff and signed by the defendant, it was in fact prepared by the plaintiff. (The contract is set out in detail in a foot note.1) Plaintiff claims fees of $46,064.33, alleging he is entitled to same under the clauses of the contract providing that he receive a service fee equal to ten [278]*278per cent of the gross billing on orders secured directly or indirectly through his efforts, and that subsequent orders from the same sources shall carry the same service fee. Plaintiff claims that directly or indirectly he secured orders for the defendant from nine companies, to wit, Amertorp Corporation, Automatic Products Company, Cullman Wheel Company, Dyna-matic Corporation, Lear Avia, Inc., Link-Belt Company, Pullman Standard Car Manufacturing'Company, Todd and Brown, Inc., and Universal Paper Products Company. If the claim’ is not barred by See. 101.31, Wis.Stats., defendant concedes that plaintiff is entitled to a service fee on orders from five of the above named companies, but denies his right to collect any fees on orders from Amertorp Corporation (St. Louis Plant), Lear Avia, Inc., Universal Paper Products Company, and the December 4, 1943, and the January 11, 1944, orders received from Pullman Standard Car Manufacturing Company.

Defendant Baumgartner operated a machine tool business at Milwaukee, known as Reliable Tool and Machine Works (hereinafter referred to as “Reliable”). At the time of the trial he had about 175 employees. In 1943 he had gross sales of $1,270,000, and in 1944 they approximated $1,000,000. Plaintiff Keller was a registered engineer in Illinois. In the spring of 1943 he solicited business from the defendant, as well as others, signing his letter “William H. Keller, President,” although Keller Engineering Company, the name which was on the letterhead, was not incorporated. On April 22, 1943, Harold E. Fleming, then the defendant’s director of sales, wrote Keller enclosing a tool list of Reliable’s facilities and suggesting a meeting with him. On August 17, 1943, Keller appeared at the office of the defendant and presented a card describing himself as president of the Keller Engineering Company. Defendant Baumgart-ner was favorably impressed with Keller’s statement of his qualifications. Keller then produced the document which he had prepared, which was entitled “Engineering Service Agreement,” and which was signed that day.

Previous to August 17 plaintiff had some contact with Pullman Standard Car Manufacturing Company (hereinafter referred to as “Pullman”). At the time of signing the agreement Keller spoke of his intention to try to obtain Pullman business for defendant. Plaintiff thereafter delivered to Pullman a folder containing a list of Reliable’s facilities, and visited the Pullman plant at Hammond, Indiana, where he met Mr. Bradley who was in charge of sub-contracting. Bradley gave Keller several prints and spec[279]*279ifications so that Reliable could submit quotations, and Keller mailed them to Reliable on August 21. Subsequently Keller made additional efforts to obtain Pullman, business for the defendant. However, before plaintiff ever approached Reliable, Pullman had been on defendant’s mailing list, and in the spring of 1943 Pullman contacted defendant with respect to certain router bits. Defendant’s director of sales, Fleming, called on Pullman and discussed the matter. Although no orders eventuated, samples were forwarded by Pullman as late as August 30, 1943.

Shortly after the contract between plaintiff and defendant was signed, defendant submitted bids through the plaintiff to Pullman for one tool and two screw contracts. The bids on the screw contracts were rejected as being too high. Keller then submitted lower bids for the same work upon behalf of the Giddings and Lewis Machine Tool Company of Fond du Lac. Keller’s explanation of such action was that lie was merely testing the market.

In the latter part of October, 1943, Pullman, through Mr. Bradley, inquired by ’phone of Huber, who was defendant’s production manager, as to the status of Keller. When told he was on a commission basis, Bradley advised that he would have nothing to do with Keller or with defendant’s business if Keller were connected with it. In the meantime Keller had suggested that Bradley visit defendant’s factory at Milwaukee. Bradley did so on November 22, 1943, at which time he again told Baumgartner that he would not deal with Reliable through Keller and that no orders would be forthcoming if Keller were to receive a commission.

Defendant told Keller by ’phone to “stay out” of Pullman, and wrote him saying: “The Pullman Company pointed out to us some while back that they would not deal through any jobber and we therefore ask that you do not represent us with this firm since you cannot possibly represent us where it is contrary to the wishes of the customer.” Keller testified that nevertheless Baumgartner orally promised him a commission on any Pullman business that might be obtained, but defendant emphatically denies any such conversation. However, Keller did at all times contend that he was entitled to a commission on any Pullman business.

The first two Pullman orders received by defendant are dated November 18, 1943, and the third order is dated November 23, 1943. These were received prior to defendant’s final demand that plaintiff “stay out” of Pullman. The first two orders were can-celled, but Reliable commenced shipments and billings under the third order. Defendant did not send plaintiff copies of the invoices sent to Pullman or otherwise noti fy him that such orders had been received. On December 4, 1943, Reliable received a fourth Pullman order amounting to $98,-943.02, and on January 11, 1944, a fifth order totaling $53,550. Plaintiff likewise received no notice from defendant of the receipt of these orders.

Keller frequently complained to the defendant because of its failure to furnish him with copies of inquiries, orders, invoices,. etc. While Keller received some payments on account, he insisted additional compensation was due him. On January 20, 1944, he started suit against the defendant in the Circuit Court of Milwaukee County alleging that more than $15,000 was due to him, and he garnisheed defendant’s bank account. Baumgartner thereupon invited plaintiff to come to the office and examine Reliable’s records. Plaintiff, his attorney, and his accountant visited the Reliable plant on January 29, 1944, and Baumgartner introduced them to Mr. Frieseke, the controller. The accountant asked to see all open orders and Frieseke gave him the open order file, from which, together with the invoice billing register, a statement was prepared purporting to show the total merchandise invoiced to Keller’s accounts and also the amounts still on order. The statement failed to reveal any amounts “on order” with the Pullman Company. No information was given to plaintiff about the two large orders that had been received from Pullman. The statement contained a computation of the commissions owing to plaintiff. The accounts listed in the statement were Amertorp Corporation (St. Louis Office), Dynamatic Corporation, Link-Belt Company, Todd and Brown, Inc., Universal Paper Products Company, and Cullman Wheel Company. The commission at ten per cent, less amounts theretofore paid, amounted to $562.81. At the same time Baumgartner prepared a statement addressed to plaintiff saying in part:

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Bluebook (online)
64 F. Supp. 276, 1945 U.S. Dist. LEXIS 1620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keller-v-baumgartner-wied-1945.