Kelly-Springfield Tire Co. v. Bobo

4 F.2d 71, 1925 U.S. App. LEXIS 2895
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 16, 1925
Docket4341
StatusPublished
Cited by17 cases

This text of 4 F.2d 71 (Kelly-Springfield Tire Co. v. Bobo) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly-Springfield Tire Co. v. Bobo, 4 F.2d 71, 1925 U.S. App. LEXIS 2895 (9th Cir. 1925).

Opinion

RUDKIN, Circuit Judge

(after stating the facts as above). The issues of fact in this ease having been determined by the court without the intervention of a jury, according to section 649 of the Revised Statutes (Comp. St. § 1587), the rulings of the court in the progress of the trial, if excepted to at the time and duly presented by bill of exceptions, are subject, to review by this court, and, if the finding is special, the review may extend to the determination of the sufficiency of the facts found to support the judgment. Revised Statutes, § 700 (Comp. St. § 1668).

Before the consolidation of the two eases, the plajntiff in error moved for judgment on the pleadings. In one case, upon the ground that the complaint of the defendant in error did not state facts sufficient to constitute a cause of action. In the other ease, upon the ground that the answer of the defendant in error did not state facts sufficient to constitute a defense or counterclaim. These motions were denied, and upon the rulings of the court the first error is assigned. v

The objections to the complaint in the one ease and to the answer in the other are bas.ed on the same grounds find may be considered together. Speaking generally, these objections are: First, that the contract between the parties was one of agency and was, therefore, terminable or revocable at the will of either party; second, that the plaintiff in error had an absolute, right to terminate the contract whenever it beeame satisfied that the defendant in error was not giving it proper representation, and of the latter fact it was the exclusive judge; third, that the contract is void for uncertainty because it does not fix, or prescribe any mode for fixing, the kinds and sizes of tires and tubes or define what is meant by popular sizes; fourth, that the contract and facts alleged in' the complaint and answer do not entitle the defendant in error to any damages whatever; and, fifth, that - the contract is void under the statute of frauds.

The parties are not agreed as to the construction or meaning of the contract in-suit. The plaintiff in error contends that it is a mere contract of agency, while the defendant in error contends that it is a contract of sale. As said by the Supreme Court in Banker Brothers v. Pennsylvania, 222 U. S. 210, 32 S. Ct. 38, 56 L. Ed. 168: “This is one of the common cases in which parties find it to their interest to occupy the position of vendor and’ vendee for some purposes under a contract containing terms which, for the purpose of restricting sales and securing payment, come near to creating the relation of .principal and agent.”

In Willeox & Gibbs Co. v. Ewing, 141 U. S. 627, 12 S. Ct. 94, 35 L. Ed. 882, it was held that a contract very similar 'in terms was a contract of agency only. But, for the purposes pf this ease, it is not very material whether the relation established by the contract was that of vendor and purchaser, or that of principal and agent; for the defendant in error was at liberty to terminate the contract at any time by simply refusing to pay his accounts, or give proper representation, and inasmuch as he might terminate the contract at will, the like privilege cannot be denied to the plaintiff in error, unless the contract was founded upon a valuable consideration. In the latter ease the right of revocation does not exist. Thus, in Pierce v. Tennessee Coal, etc., Railroad Co., 173 U. S. 1, 19 S. Ct. 335, 43 L. Ed. 591, in consideration' of the release of a claim for personal injuries, the railroad company agreed to pay the injured, employee wages at the rate of $65 per -month and to allow him his fuel and the benefit of á garden, so long as the disability to do further work continued, and the employee, on his part, agreed to do such work as he could. For the breach of this contract the company was held liable, notwithstanding there was no obligation upon the part of the employee to continue in its service for any specified time. Many other cases might be cited to the same effect. The principal question in the case , is, therefore: Was there a consideration for the agreement. That there was a consideration within the ordinary and accepted meaning of that term does not admit of question. “Good consideration” is defined by the Civil Code of California as follows: “Any bene *73 fit conferred, or agreed to be conferred, upon the promisor, by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered, or agreed to be suffered, by such person, other than such as he is at the time of consent lawfully bound to suffer, as an inducement to the promisor, is a good consideration for a promise.” Deering, § 1605.

“Consideration”'has also been defined as: “A benefit to the party promising, or a loss or detriment to the party to whom the promise is made.” 13 C. J. 311.

It is there further said: “It may be laid down as a general rule, in accordance with the definition given above, that there is a sufficient consideration for a promise if there is any benefit to the promisor or any loss or detriment to the promisee. It is not necessary that a benefit should accrue to the person making the promise; it is sufficient that something valuable flows from the person to whom it is made, or that he suffers some prejudice or inconvenience, and that the promise is the inducement to the transaction. Indeed there is a consideration if the promisee in return for the promise, does anything legal which he is not bound to do, or refrains from doing anything which he has a right to do, whether there is any actual loss or detriment to him or actual benefit to the promisor or not.” Id. 315.

Here the defendant in error was induced to purchase a small stock of tires and tubes from a third party, and in consideration of the purchase, the plaintiff in error granted him the exclusive right to purchase and sell similar tires and tubes in certain territory so long as he promptly paid his accounts and gave proper representation. The purchase of this small stock without any means of replenishing it and without any exclusive right to purchase and sell in the vicinity was a very different matter from its purchase accompanied by such exclusive privilege. For this reason the defendant in error might well be prejudiced by a revocation of the exclusive privilege; but whether he was, or was not, is not material on the question of consideration. So, too, the plaintiff in error may have benefited by the third party purchase in order to close out an existing agency and establish a new one in its place; but whether it was, or was not, is again immaterial. In other words, the consideration in this class of cases does not differ from the consideration required in any other case, nor is it necessary to show that the implied agreement against revocation was supported by a special or independent consideration. The plaintiff in error, for a consideration, granted to the defendant in error the exclusive right to purchase and sell in certain territory for a specified time, and the consideration for this grant extended to every part of the agreement including the implied agreement not to revoke.

Willeox & Gibbs Co. v. Ewing, supra, is cited in support of the right to revoke at will; but so far as the ease is in point at all it would seem to support the contrary view.

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Cite This Page — Counsel Stack

Bluebook (online)
4 F.2d 71, 1925 U.S. App. LEXIS 2895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-springfield-tire-co-v-bobo-ca9-1925.