McKee v. Elliott-Lewis Electrical Co.

11 A.2d 551, 139 Pa. Super. 325, 1940 Pa. Super. LEXIS 50
CourtSuperior Court of Pennsylvania
DecidedOctober 9, 1939
DocketAppeal, 262
StatusPublished

This text of 11 A.2d 551 (McKee v. Elliott-Lewis Electrical Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKee v. Elliott-Lewis Electrical Co., 11 A.2d 551, 139 Pa. Super. 325, 1940 Pa. Super. LEXIS 50 (Pa. Ct. App. 1939).

Opinion

Opinion by Cunningham, J.,

Howard A. McKee, plaintiff below and appellee here *326 in, has a verdict and judgment thereon in his action of assumpsit against Elliott-Lewis Electrical Company, doing business in Philadelphia and vicinity as the distributor for Delco-Frigidaire Conditioning Corporation, (sometimes referred to as Delco-Frigidaire Conditioning Division of the General Motor Sales Corporation of Dayton, Ohio) for commissions alleged to be due him upon a sale of air conditioning equipment to Universal Air Conditioning Company “for use in certain moving picture theatres in the Philadelphia metropolitan district.” Plaintiff declared upon a verbal contract of employment, relative to the year 1937, between Elliott-Lewis Electrical Company and himself under which he was employed as “manager of its air conditioning department in charge of sales,” his compensation to be a salary of $75 per week and traveling expenses, and in addition thereto certain overrides, or commissions, on all sales of Delco-Frigidaire air conditioning equipment in the territory for which defendant was the distributor, whether made directly by defendant or on its account.

Plaintiff’s term of employment ended November 26, 1937. He concedes he was paid by defendant his salary, traveling expenses, and his commissions on all sales made directly by defendant in the Philadelphia district. His contention is that he is entitled, under the terms of his contract, to a two percent commission on an additional sale of air conditioning equipment made during his term of employment by Delco-Frigidaire Conditioning Corporation, the manufacturing company for which defendant was the distributor, “for the account of The Elliott-Lewis Company,” to Universal Air Conditioning Company, for use in the Philadelphia district and at “the total price of $48,300 plus a writeup of $2,300, which amount of $2,300 was paid to The Elliott-Lewis Company as distributor.” This sale, he contends, was within the terms of his contract fixing his commissions, inter alia, upon “all national users’ *327 sales” made by the factory in the territory for which The Elliott-Lewis Company had a franchise. His suit, tried before Class, J., and a jury, was for $1,012, or two percent of the total amount involved in the sale to Universal Air Conditioning Company.

The defense of The Elliott-Lewis Company was, in general, that the sale to the Universal Air Conditioning Company was made directly by the Delco-Erigidaire Conditioning Division—the factory—and therefore did not fall within any of the classes of sales upon which the Elliott-Lewis Company had agreed to pay plaintiff a commission.

The case was necessarily for the jury as the controlling issue of fact was whether the parties, in making their verbal agreement for the employment of plaintiff, intended that he should be paid a commission upon a sale made under the practically uncontroverted circumstances surrounding the one here in question.

As to the terms of his contract of employment plaintiff testified: “A. I said to Mr. Eowland, (defendant’s general manager with authority to hire employees) ‘I want $75 a week, and an override of two percent on all sales made by the company in the Air Conditioning Department, and I want traveling expenses and an override of one percent on all national users’ accounts sold in the provincial Philadelphia territory, outside of metropolitan Philadelphia, and a two percent override on all national users’ sales sold by the EUiott-Lewis Company in metropolitan Philadelphia.’” (Italics supplied.)

The acceptance of this proposition by defendant was not denied; the issue was whether the last provision covers the sale to the Universal Air Conditioning Company.

Plaintiff’s position relative to the basis of his claim under that paragraph was thus indicated in his testimony. “Q. And exactly how much are you claiming as owing you? A. $1012 on commission. Q. Based on *328 what? A. On sales to the Universal Air Conditioning Corporation of approximately fifty thousand dollars’ worth of Delco-Frigidaire equipment, which was sold by the factory for the account of Elliott-Lewis, that is, in their territory in which they protected Elliott-Lewis.” In elaboration of his claim plaintiff testified that in the latter part of 1936 the defendant company was directed by a letter from Delco-Frigidaire Conditioning Division to get in touch with Mr. Golder of the Golder Construction Company, which latter company was building a theatre in Philadelphia for Warner Brothers Theatres, and talk to him about furnishing air conditioning for it. This letter was given to plaintiff who interviewed Mr. Golder and was given an opportunity to bid on the contract. Under the supervision of plaintiff a bid was prepared from the plans and specifications for the theatre; the bid was submitted to Mr. Golder who thought it was too high and told plaintiff “to go back and see what [he] could do.”

A later communication was received from the DelcoFrigidaire Division to the effect that Mr. Golder was going to build a number of theatres in territories not controlled by the Elliott-Lewis Electrical Company, some of them being in Pittsburgh, Washington, D. C., and other localities. In view of this situation the DelcoFrigidaire Division directed plaintiff to discontinue any further negotiations with Mr. Golder, stating, “that they would take the sale over from that point on” and would be in Philadelphia shortly to discuss it with him. Plaintiff continued: “They came in and discussed the fact that they wanted to sell a number of theatres in and around Philadelphia, and out of our territory, and that they would make it a blanket contract through the National Users’ Division, and the manager came in and discussed the nature of the sales with me, asking me what price they should pay on the equipment sold to the Warner Brothers Theatres. I told them we would take a certain mark-up over the cost of the equipment; *329 that we would stay out of the sale and they would make it direct and they would give us the difference between our profit and the price I told the Delco-Frigidaire Conditioning Corporation they would have to sell the contract for. Therefore, I claim I very definitely started the sale, and I was called off because they were going to handle other jobs, and that was the reason we did not contact Golder any more on this job. We did eventually get that job along with several others.”

Plaintiff stated he knew of his own knowledge that The Elliott-Lewis Company, by reason of its franchise from the Delco-Frigidaire Division, received a commission of $2300 on this sale, and, in further explanation of the transaction, testified that under the franchise or agreement between the Delco-Frigidaire Division and the defendant, as its distributor, the former agreed to protect the latter in all sales made direct from the factory to purchasers in the Philadelphia territory and that the sale was made with the “permission” of the defendant granted in consideration of the payment to it of $2300. Plaintiff’s testimony was that he demanded his commission on the sale as soon as the equipment had been installed and that the matter was still in dispute between defendant and himself when his employment was terminated.

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Bluebook (online)
11 A.2d 551, 139 Pa. Super. 325, 1940 Pa. Super. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckee-v-elliott-lewis-electrical-co-pasuperct-1939.