Krauss Wills Co. v. Publishers Printing Co.

390 S.W.2d 132, 1965 Ky. LEXIS 330
CourtCourt of Appeals of Kentucky
DecidedMarch 19, 1965
StatusPublished
Cited by4 cases

This text of 390 S.W.2d 132 (Krauss Wills Co. v. Publishers Printing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krauss Wills Co. v. Publishers Printing Co., 390 S.W.2d 132, 1965 Ky. LEXIS 330 (Ky. Ct. App. 1965).

Opinion

HILL, Judge.

This is an appeal from a judgment awarding appellant $1,770.80 and disallowing its claim for damages for alleged interference by appellee, Publishers Printing Company, with appellant’s employees causing them to terminate their employment with appellant. Appellant claimed it should have recovered a sum “closer” to $4,901.64.

For convenience, appellant will be referred to herein as “Krauss; ” appellees, Publishers Printing Company, will be referred to as “Publishersand H. J. Whitaker, Walter Diersing, George Strickland and Joe Bernzweig, will be designated “The Operators.”

On May 29, 1958, Krauss and Publishers entered into a contract under the terms of which Krauss agreed to furnish typesetting equipment to be delivered to and used by Publishers in its trades magazine printing establishment at Shepherdsville, Kentucky. Krauss furnished the necessary men to operate this equipment. These men are “The Operators” in this case.

On December 22, 1958, Publishers filed CA 651 against Krauss, alleging failure of Krauss to perform its contract to provide typesetting. This suit was dismissed with prejudice on December 27, 1958.

On December 10, 1959, Publishers filed the second suit, CA 781, again alleging failure to perform its contract, and failure to provide equipment detailed in the contract. A restraining order was asked and later obtained.

On December 11, 1959, Krauss filed action CA 784 against “The Operators,” seeking to restrain them from operating the equipment. Other pleadings and amendments were filed, but on March 14, 1960, the two last named actions were consolidated, a conference was held, and the trial court entered an order defining the issues. They are thus defined:

“1. Claim of wages due from Krauss by Whitaker, Strickland, Bern-zweig and Diersing.
“2. Claim of Publishers for damages and breach of contract from Krauss.
“3. Claim of Krauss for account due from Publishers.
“4. Claim of Krauss against appellees for lost profits, breach of contract, and punitive damages.
“5. Claim of Krauss against Simon and Publishers Printing Company for interference with its contract of employment with Whitaker, Strickland, Bernzweig and Diers-ing, punitive damages.”

With the exception of a short hearing held by the trial judge December 19, 1959, the case was tried by deposition. In all, the parties have taken and now have before us 26 volumes of depositions. Appellant has filed its 36-page brief, the ap-pellees filed one containing 98 pages.

The arguments relied on by appellant for reversal are as follows:

“1. The account.
“2. Krauss breach of contract induced by Publishers Printing Company or Simon.
“3. The conspiracy.
“4. Wrongful interference with contract of employment.
“5. Right of Krauss to jury trial.
“6. The injunction.
“7. Whitaker wages due from Krauss.”

It should be noted that Frank Simon, referred to above, is the principal owner and manager of Publishers.

We first discuss Argument 1.

[134]*134The account involves many credits and numerous billings; some for work done before billing, others for billings for “over-matter and typesetting ahead of billing.” At issue, also, is the period the amount should cover. Appellant contends the period commenced December 23, 1958. The order dismissing was dated December 27, 1958. Appellant does not deny that on more than one occasion it did not give ■credit for payments by Publishers. The evidence concerning the account was conflicting. The finding of fact on this issue is not “clearly” or at all erroneous. It is affirmed in this respect. Cr 52.01.

Arguments 2, 3 and 4 may well be discussed together. Krauss admits it breached its contract in Argument 2, but maintains' it was induced to and excused by the first breach of the contract by Publishers. So, we go directly to the major question presented in Argument 3, “the conspiracy ,”.,and Argument 4, alleged wrongful interference with contract of employment.

To review, the two suits here involved were filed December 10 and 11, 1959. The employees of Krauss left Krauss December 9. Some suspicion may be aroused by the close relations and working conditions of The Operators with /Publishers from the very beginning of -.the contract involved. This was made necessary by the very nature of the contract itself. The equipment was leased to Publishers to be used in its Shepherdsville plant and operated by Krauss’ selected personnel, The Operators.

At the outset it should be kept in mind/tKát a conspiracy is difficult of proof. Notwithstanding that difficulty, the burden if upon the jjarty charging it — Krauss in this case. Withers v. Berea College, Ky., 349 S.W.2d 357 (1961). Let us look at the situation and circumstances of the parties at the time and previous to the alleged conspiracy and alleged interference with The Operators by Publishers.

The record contains the testimony of Frank Simon, manager of Publishers. Here are some of the high lights of his voluminous testimony: He says Krauss misrepresented, at the very beginning, his experience in typesetting work; that Krauss misrepresented the number and standing of its customers; that its finances were seriously misrepresented; that a very short time after commencing -work for Publishers, Krauss constantly nagged Publishers for advances and weekly payments; that there was no accounting “whatsoever,” and that Krauss “had over a thousand dollars a' week in advance.” We quote further from Simon:

“Now this attitude is the most serious thing of all. Of course, when a company has the attitude that they will gouge the customer for all they can and charge everything that the traffic will bear with no regard for the customers’ needs, that is a critical thing that drives customers away and forces you into a one shot arrangement in getting new customers every day. Nobody would do business that way. That was his attitude. I had no inkling of this attitude before toward our customers and in December of 1958 the (Air Pollution Control Association of Pittsburg) — a $25,000.00 a year contract — cancelled the contract with me because Krauss-Wills Co., Inc., refused to complete copy in forty days for receipt. In thirty days it should have been finished, even in ten days. Mr. Harry cancelled the contract with me by registered letter. That was a $25,000.00 account we lost. Now, following that, in February of 1959 ■' the Who’s Who Directory, which we had a three-year contract with to print for $60,000.00 a year— the customer quit us and cancelled the year at. the end of the first issue because 'of the nightmare, they said— the nightmare of our experience with the Krauss-Wills Co., Inc., from the Chicago operation.”

The substance of this testimony is denied by Krauss.

[135]*135Evidence of difficulties between Krauss and Publishers is clearly demonstrated by a telegram dated September 30, 1959, from the former to the latter. We quote from it:

“Yours overtures of purchase to John Whitaker disrupting operations and morale.

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390 S.W.2d 132, 1965 Ky. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krauss-wills-co-v-publishers-printing-co-kyctapp-1965.