Mackie Motors Co. v. Dearborn Truck Co.

192 Iowa 458
CourtSupreme Court of Iowa
DecidedNovember 15, 1921
StatusPublished
Cited by4 cases

This text of 192 Iowa 458 (Mackie Motors Co. v. Dearborn Truck Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mackie Motors Co. v. Dearborn Truck Co., 192 Iowa 458 (iowa 1921).

Opinion

Evans, C. J.

i: contbaots: coSdSion^pra-cedent. I. Under the facts pleaded, this action may be deemed either to be one for damages or for the specific performance of a promise to pay. The plaintiff, an Iowa corporation, engaged in selling automobiles, trucks, and track attachments at Des Moines, Iowa, and the defendant, an Illinois corporation, engaged in the business of manufacturing and selling motor truck attachments at Chicago, on or about September 13, 1917, entered into the following written agreement:

"Agreement entered into this 13th day of September, 1917, between the Dearborn Truck Company, of Chicago, Ill., and the Mackie Motors Company, of Des Moines, Iowa, represented by Mr. B. H. Pierce.

"It is understood by this agreement that we are today entering an order for ten (10) two-ton units that are to be shipped as ordered. Credited in amount of $252.00 each, paid by the Mackie Motors Company on ten (10) one-ton units which are in a "car on track in Des Moines.

"In the event that the ten (10) [two-ton] units .'are not ordered out by the Mackie Motors Company by September 22d, we agree to reimburse the Mackie Motors Company in amount of $252.00 each for any of the ten (10) one-ton units remaining in their possession at that time.

"Further, the Mackie Motors Company agree to store the remaining unsold units, without charge, for -a reasonable time.

[460]*460“It is also understood that the carload of units are to be taken up Saturday, September 15th, 1917.”

The brackets and the insertion therein are ours, and are made as indicating the proper construction of the contract. It is this contract which plaintiff alleges in its petition was breached by the defendant. It appears without dispute in the evidence that, some time in July, 1917, the plaintiff ordered 14 one-ton units and 1 two-ton unit, together with housings therefor. The units referred to consisted of a rear axle, gearing, etc., to be attached to an ordinary automobile, thereby converting it into a truck. The one-ton units were delivered at Des Moines, Iowa, with draft for $3,657, the balance due defendant therefor, attached to the bill of lading. These units had not been removed from the car when the agreement above set out was entered into. The full purchase price of the 14 one-ton and the 1 two-ton units was $4,032, $375 of which was paid in advance of shipment. It will be noted that, though 15 units had been purchased by the plaintiff from the defendant, the agreement above set forth purported to deal with only 10 of them. The-plaintiff agreed, in effect, to take up the bill of lading and to pay the draft attached thereto on September 15, 1917. It did not pay such draft on that date, but did pay the same on September 22d following. The reason for this delay will be referred to later.

The first important question presented for our consideration is to construe the contract. The order of the court below construed the contract as an agreement by the defendant to credit the price óf the 10 one-ton units upon the price of" an equal number of two-ton units, and nothing more. The plaintiff contends that, under the agreement, the plaintiff was not bound to order the two-ton units, although it had the privilege so to do; and that, in the event that the plaintiff did not- order the two-ton units on or before September. 22, 1917, then the defendant agreed to “reimburse” the plaintiff to the amount of $252 for each one-ton unit then remaining on hand unsold. If the construction adopted by the trial court be correct, then the failure of plaintiff’s suit necessarily resulted. On the other hand, if the construction contended for by plaintiff be the correct one, then, the direction of a verdict, against the plaintiff was erroneous. Both parties agree that if, before September [461]*46122d, tbe plaintiff bad “ordered out” one or more two-ton units it would bave been tbe duty of tbe defendant to credit $252 upon the purchase price of each one. Tbe pivotal question, however, is: If tbe two-ton units were not ordered by plaintiff on or before September 22d, was tbe defendant then bound to “reimburse” the plaintiff to tbe extent of $252 upon each one-ton unit remaining unsold? We think this question must be answered in the affirmative, for tbe following reasons:

(1) Such is tbe literal provision of tbe agreement.

(2) Such was tbe construction which both parties, in their subsequent communication and negotiations, put upon such agreement.

Tbe specific defense put forward by defendant in this ease appears in Paragraph 10 of its answer, as follows:

‘ ‘ Tbe defendant denies that, in tbe event said one-ton units were not purchased by tbe plaintiff, then this defendant was to reimburse tbe plaintiff in tbe amount of $252 for each of tbe aforesaid ten (10) one-ton units; but this defendant alleges and states tbe fact to be that it agreed to credit tbe plaintiff with tbe purchase price of said one-ton units only in the event that said one-ton units were paid for by September 15, 1917.”

Tbe witness Mead, who was a sales manager for tbe defendant company, and who represented tbe company in the execution of tbe contract sued on, testified as follows:

“He [Mr. Pierce] wanted us to take back tbe 14 one-ton units. Tbe intent of that agreement was that Pierce gave us an order for 10 two-ton units, and on that order we agreed to credit tbe Mackie Company $252 for each of tbe 10 one-ton units, and we take back tbe one-ton units. All this' was conditional upon their compliance with tbe contract, i. e., that they should pay for tbe one-ton units by taking up tbe draft, as stipulated in tbe agreement. Tbe draft was then unpaid. In the event that the Mackie Company had not ordered the two-ton units shipped by September 22d [1917], we agreed to pay them $252 for each of the one-ton units remaining unsold on September 22d. In other words, we agreed to reimburse tbe Mackie Motors Company for tbe 10 one-ton units in tbe event that they were not sold by September 22d, and we would order them from Des Moines to other points. Provided they had taken up the draft by Septem[462]*462ber 15tb, we would buy back tbe 10 one-ton units and pay them $252 each, unless they had succeeded in selling them themselves. The Mackie Company did not take up the draft until September 22, 1917. The primary reason for entering into the contract referred to on September 13, 1917, was to get the draft taken up. The reason the Dearborn Truck Compmvy refused to repay to the Mackie Motors Company the amount of $252 each on the 10 one-ton units was because the Mackie Company did not take up the draft on September 15th, as provided in the written .contract under date of September 13th.”

It will be noted that the one breach of the contract charged by this witness against the plaintiff is that the plaintiff did not take up the draft on September 15th. The important thing at this point is that this witness construes the contract precisely as contended for by the plaintiff. There is in -evidence corre-spondence between the parties which adopts the same construction.

2 Contracts : promteTfo?111 promise. ' The order of the trial court dismissing the petition is predicated upon a construction that is contradictory to the testimony of the witness Mead. It is also predicated upon the idea that, though the terms of the contract might call for such a construction, yet there was no considera-

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Bluebook (online)
192 Iowa 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackie-motors-co-v-dearborn-truck-co-iowa-1921.