Martin Stamping & Stove Co. v. Manley

69 So. 2d 671, 260 Ala. 112, 1953 Ala. LEXIS 80
CourtSupreme Court of Alabama
DecidedDecember 17, 1953
Docket8 Div. 676
StatusPublished
Cited by8 cases

This text of 69 So. 2d 671 (Martin Stamping & Stove Co. v. Manley) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin Stamping & Stove Co. v. Manley, 69 So. 2d 671, 260 Ala. 112, 1953 Ala. LEXIS 80 (Ala. 1953).

Opinion

LAWSON, Justice.

Hugh M. Manley, a resident of Madison County, Alabama, and Martin Stamping and Stove Company, Inc., an Alabama corporation, on April 7, 1948, entered into a written agreement, the material parts of which will be set out in the report of the case.

On August 1, 1949, the agreement of April 7, 1948, was amended in writing so as to reduce the royalties to which Hugh M. Manley was entitled from ten per cent to five per cent of the gross receipts of the articles manufactured and sold by Martin Stamping and Stove Company, Inc., under the provisions of the original agreement. When we hereafter refer to the written agreement we have reference to both the original agreement and the amendment thereto.

After the expiration of the period of time covered by the written agreement and on *117 January 22, 1952, Hugh ■ M. Manley filed his hill in the circuit court, of Madison County, in equity, against Martin Stamping and Stove Company, a corporation, and against Frederick H. Martin, individually and as vice-president of Martin Stamping and Stove Company.

The written agreement of April 7, 1948, is made Exhibit A to the bill and the amendment of August 1, 1949, is made Exhibit B.

The case made by the bill is hereafter stated. We will summarize some of the averments of the bill and will also quote some of its provisions.

From April 7, 1948, until April 7, 1951, the period of time covered by the written agreement, Martin Stamping and Stove Company fully complied with the terms, of the provisions of the said agreement, paying to Manley all royalties due him for metal shades and awnings manufactured and sold of the character or type covered by the said written agreement.

But shortly prior to April 7, 1951, the respondents notified Manley “that after April 7, 1951, respondents would continue to manufacture such metal awnings and shades embodying the interlocking feature between panels, for which feature complainant’s patent application was pending in the United States Patent Office, but that respondents would not pay complainant any royalties upon said metal shades and awnings which they would continue to manufacture and sell after said 7th day of April, 1?51.” : .

•• Upon being so advised by- the respondents, “complainant served notice upon respondents that he had elected to treat said contract as amended, as renewed and/or extended and demanded performance óf a said renewed and/or extended agreement for the additional term of three (3) years beginning on the 7th day of April, 1951.”

. -From April 7, 1951, until the date .this bill was filed, “the respondent did in truth and in fact continue to manufacture the aforesaid metal awnings and shades with said interlocking feature, and did in truth and in fact continue to sell said awnings and shades after April. 7, 1951, but wrongfully failed and refused, on demand made by complainant, to pay him the royaltiqg provided for under ‘Exhibit A’, as amended,”

Although the respondents continued to keep records as provided for in paragraph 3 of the written agreement, they failed and refused to deliver to complainant a complete statement of all awnings and shades manufactured and sold by them subsequent to April 7, 1951, and- the respondents also “'failed and refused to allow complainant to inspect the books and accounts of said corporation relating to the manufacture and'sale of said awnings and shades with the interlock feature between panels since the 7th day of April, 1951, notwithstanding complainant’s demand,” although complainant was given that right by the provisions of paragraph 4 of the said written agreement.

It is further averred in the bill as follows :

“11. That complainant relied upon respondents complying with the provisions of Paragraphs 3 and 4 of said Exhibit to the bill, by keeping the records in said paragraphs agreed by respondents to be kept, and so relying, complainant failed to keep any record with reference to the quantity of metal awnings and shades manufactured, the dates when sold, the names of the persons to whom they were sold, the prices at which they were sold, and the amount received from each of such sales, and, therefore, complainant has no means of obtaining the information with reference to said matters other than by and through the aid óf this Court for relief against respondents by way of discovery.
“12. That notwithstanding respondents cannot affirm in part the contract made ‘Exhibit A’, as amended, and repudiate it in part, and notwithstanding respondents cannot accept the. benefits of said contract while they shirk its disadvantages, by their efforts to do so Jn continuing tó manu *118 facture, after April 7, 195-1-, the -aforesaid metal awnings and shades, and by-refusing to pay complainant royalties of 5% derived from the sale of said awnings, respondents renewed and/or extended said ‘Exhibit A’, as amended, and thereby bound themselves to manufacture under said renewed and/or extended contract a minimum of 5,000 awnings and shades a year for an additional three year period. Complainant further avers that subsequent to respondents’ giving complainant notice that they would continue to manufacture . said. metal awnings after April 7,- 1951, but would not pay complainant. royalties from the sale of said metal awnings,- ■ complainant ' served notice upon respondents that he had elected .to trea't said contract, as amended, as- renewed and/or extended, and demanded performance of a said renewed and/or extended agreement'for the additional term of three (3) years beginning on the 7th day of. April, 1951. And complainant further avers' that by reason of the -aforesaid 'notice and conduct on the part' of réspo'ndents,' and', the notice to respondents of the election -made by complainant,-'the respondents have' become bound'to” manufacture a minimum of 5,000 . met'al awnings and shades per year for each year of said additional thrfee year period,'for which saM'Jcóñtract has been'r-gnewed and/or ext'ended;' .and'that’complainant in equity and good, coriscience is entitled to have this Court grant him relief by way óf .specific performance'by respondents of said renewed''.and/or extended agreement.'' . .' . ’’
•“13. That, if 'complainant ;• ismistaken in his averments ..in. Paragraph JNo. 12 next above, to the effect that complainant, átid' respondents by 'their conduct, havé renewed or extended'''the amended cont'rdct; made Exhibit to the bill, then ‘ he avers, in the alternative; '^h'á''f’he disdosed to tfie''f espond.ents, in confidence, his methód'of manufacturing '.rrietal shade's and aWnih'gs with 'intérlóclc between panels, 'for which he had -made application .for letters patent, and that the respondents- in continuing the manufacture of said, metal awnings and shades after April 7, 1951, and sale-of same, refusing to-pay complainant the royalties fixed by said agreement, the respondents by said wrong became liable to complainant for all profits realized by them from said manufacture and sale from the 7th day of April, 1951 to the date of the filing of this bill, and for all damage suffered by -complainant for said breach- of confidence by the respondents.

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Bluebook (online)
69 So. 2d 671, 260 Ala. 112, 1953 Ala. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-stamping-stove-co-v-manley-ala-1953.