Kirby v. GULF OIL CORP.

94 S.E.2d 21, 230 S.C. 11, 1956 S.C. LEXIS 96
CourtSupreme Court of South Carolina
DecidedJuly 26, 1956
Docket17193
StatusPublished
Cited by6 cases

This text of 94 S.E.2d 21 (Kirby v. GULF OIL CORP.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirby v. GULF OIL CORP., 94 S.E.2d 21, 230 S.C. 11, 1956 S.C. LEXIS 96 (S.C. 1956).

Opinion

Oxner, Justice.

This action was brought by Paul E. Kirby against the Gulf Oil Corporation and Dudley J. Whitlock, Jr., to recover actual and punitive damages on account, of an alleged conspiracy to oust Kirby from a filling station operated by him at Union, South Carolina and drive him out of business. Each of the defendants moved to strike certain portions of the complaint and also interposed a demurrer. The motions and demurrers were overruled in an order filed on October 16, 1953, from which there was timely notice of intention to appeal. Defendants later filed separate answers. The case was tried in December, 1953 and resulted in a verdict in favor of the plaintiff for $4,500.00 actual damages against both defendants and $50,000.00 punitive damages against Gulf Oil Corporation alone. During the trial of the case defendants made timely motions for nonsuit and directed verdict and later for judgment non obstante veredicto or, ip the alternative, for a new trial. All of these motions were refused. The defendants have appealed from the order refusing the motions to strike and overruling the demurrers and from the judgment entered on the verdict of the jury.

*15 There are numerous questions raised by the exceptions but we need consider only those relating to the failure of the Court to direct a verdict in favor of appellants. The consideration of this question necessitates a rather lengthy review of the testimony.

D. Jean Whitlock, father of appellant Dudley J. Whit-lock, Jr., owned and operated a service station at the northeast corner of North Pinckney and Academy Streets in the town of Union where he sold Gulf products at retail. He was also distributor for Gulf products in Union County.

Respondent Kirby is 51 years of age. His education did not extend beyond the sixth grade. Prior to 1945 he worked some twenty years at a service station and around ten years as a textile employee. In September, 1945, while employed at a dry cleaning establishment in the town of Union, he was approached by Whitlock, Sr., with reference to working at the filling station above mentioned located at the corner of Pinckney and Academy Streets. Kirby agreed to do so and within a few days began operating this station at a salary of $25.00 per week. The volume of business increased and four or five months later his salary was raised to $50.00 a week. This arrangement continued until January 1, 1947, at which time Whitlock, Sr., orally rented the premises, on a month to month basis, to Kirby who then took over the operation of the station for his own account. An inventory was taken of the stock of goods and merchandise, including the gasoline and oil on hand, which was sold to Kirby for $835.20 cash. In August or September, 1947, at Whitlock’s insistence, Kirby bought the fixtures and equipment at the filling station for $1,100.00. Previous to that time he had had the use of this equipment as a part of the rental agreement. At first the rent was fixed at 1‡ a gallon which was added to thé amount of Kirby’s invoices and included in the checks issued by him to Gulf when the gasoline was delivered. Later the rent was fixed at $150.00 a month and paid by adding a gallon to the invoices. In Whitlock’s accounting to Gulf, he would deduct the and credit same to *16 Kirby’s rent account. If this amounted to less than $150.00 in any month, Kirby paid the difference to Whitlock and if it produced more than $150.00, the excess was applied on the purchase price of the equipment. Kirby didn’t have the money to pay the $1,100.00 for the fixtures and equipment and it was agreed that this could be done by applying all amounts realized from the 1%‡ a gallon, in excess of $150.00 a month, as payments on equipment. Kirby also rented the back part of the building, used as a garage, for $50.00 a month, which was paid direct to Whitlock.

During the early part of June, 1948, Fred R. Lawrence, area sales representative of Gulf, approached Kirby in an effort to induce him to enter into an advertising program for a twelve months’ period. Kirby informed Lawrence that he had no assurance that he could operate the station for that length of time, whereupon Lawrence stated that if he entered into this program arrangements would be made to enable him to continue to operate the station for a year. Lawrence said that he would get Kirby a contract so that “nobody couldn’t move me out of that place for a period of twelve months.” Relying on these promises, Kirby agreed to enter into the advertising agreement, which was to cost $49.50 for the ensuing year. Kirby gave Lawrence a check for $9.50 and the balance of $40.00 was to be paid in installments of $10.00 every three months. As a part of this advertising program, Kirby was to furnish Gulf with the names of his customers to whom various types of advertising material were to be sent, including Christmas cards showing Kirby’s name and place of business. Subsequently Lawrence and Whitlock came to plaintiff’s station to obtain the list of customers and approximately 150 names were turned over to Lawrence so that Gulf could mail to these customers Christmas cards and other advertising matter.

On or about July 15, 1948, Whitlock prepared and brought to Kirby four written agreements which were signed by Kirby and turned over to Whitlock to be forwarded to the Greenville office of Gulf for the signature of *17 the district manager. Copies were to be returned to Kirby within a few days. Three of these contracts provided for the sale by Gulf and the purchase by Kirby of the latter’s requirements at this station of kerosene, gasoline and lubricating oil and grease. Attached to these was a rider permitting the use of Gulf’s credit cards. The agreements relating to kerosene and gasoline were to run for a period of one year beginning July 15, 1948 and from year to year thereafter unless terminated by one of the parties by written notice prior to the anniversary date. The lubricating oil and grease contract ran for a period of one year, beginning August 1, 1948. The fourth agreement provided for the loan or lease by Gulf to Kirby of certain pumps and other equipment at the station. All four agreements were witnessed by Whitlock, Sr. The loan or lease agreement was to run for a period of one year. It recited that Kirby had a valid and subsisting lease on the station from Whitlock “running from month to month.” On the back of this agreement Whitlock consented to the installation of the leased equipment on the premises, waived any right to a lien thereon for rent, and agreed that Gulf could at any time remove same.

All of these agreements were promptly forwarded by Whitlock to the district manager in Greenville who signed same but Kirby was not furnished with copies. According to Kirby, no notice was ever given by Gulf of a desire to terminate any of the foregoing contracts.

On or about August 1, 1948, Kirby was called by Whit-lock to the Gulf bulk plant and told that he would have to purchase $2,200.00 worth of tires, tubes, batteries and supplies. A little later Whitlock and Lawrence came to Kirby’s filling station and demanded that he purchase this $2,200.00 worth of merchandise. Kirby stated that he was not financially able to do so. The conversation then became quite heated.

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Bluebook (online)
94 S.E.2d 21, 230 S.C. 11, 1956 S.C. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-v-gulf-oil-corp-sc-1956.