Miller v. Sirloin Stockade

578 P.2d 247, 224 Kan. 32, 24 U.C.C. Rep. Serv. (West) 847, 1978 Kan. LEXIS 336
CourtSupreme Court of Kansas
DecidedMay 6, 1978
Docket48,589
StatusPublished
Cited by13 cases

This text of 578 P.2d 247 (Miller v. Sirloin Stockade) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Sirloin Stockade, 578 P.2d 247, 224 Kan. 32, 24 U.C.C. Rep. Serv. (West) 847, 1978 Kan. LEXIS 336 (kan 1978).

Opinion

The opinion of the court was delivered by

Miller, J.:

The plaintiff, John P. Miller, commenced this action against defendant, Sirloin Stockade, Inc., seeking damages for breach of an alleged oral contract whereby the plaintiff agreed to sell and the defendant agreed to buy all of the potatoes and other produce required by defendant’s seven restaurants in Kansas and Nebraska during the calendar year 1974. Plaintiff appeals from summary judgment entered by the trial court, which ruled that no enforceable contract was entered into because the quantities of the potatoes and other produce were not specified, and for the further reason that the defendant did not admit in its pleadings, testimony, or otherwise in court, that a contract of sale was made.

The issues on appeal are: (1) Is a “requirements contract” valid in Kansas? (2) Did Sirloin Stockade admit in its pleadings, testimony, or otherwise in court, that a contract for sale was made? (3) Did the trial court err in entering summary judgment when there were material facts in dispute?

The plaintiff also listed as a point on appeal a contention that the trial court erred in overruling his motion for a new trial, made *33 on the basis of newly discovered evidence; however, this point was not briefed and was not argued on appeal. Points specified but neither briefed nor argued are deemed abandoned. State, ex rel., v. Unified School District, 218 Kan. 47, 52, 542 P.2d 664 (1975).

Miller is a wholesale produce dealer in Salina, Kansas. He supplied produce to a Sirloin Stockade restaurant located there. Early in January, 1974, he met with the defendant’s district manager, Tom Layne, and the local restaurant manager, Robert Danskin. The depositions of the plaintiff, Layne, and Danskin disclose that an oral agreement was made between Layne and Miller, whereby Miller would supply all of the baking potatoes and all other produce required by each of the seven outlets in Layne’s district during the year 1974. The price of potatoes was fixed at $6.75 per hundred; the price of the rest of the produce was to be “competitive.” Miller commenced servicing the seven stores. He ordered two carloads of potatoes in order to have an ample supply. Approximately sixty days later, all of the restaurants except the one at Salina ceased placing orders with Miller. He was paid for all potatoes and all other produce he had delivered. Miller was left with a huge inventory of potatoes, and he sustained a sizable loss.

We turn first to the question of the validity of a “requirements contract.” K.S.A. 84-2-306 provides:

“(1) A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or requirements as may occur in good faith, except that no quantity unreasonably disproportionate to any stated estimate or in the absence of a stated estimate to any normal or otherwise comparable prior output or requirements may be tendered or demanded.

The Kansas comment to this section states:

“Subsection (1) is concerned with the ambiguities of contracts which set quantity in terms of the seller’s output or buyer’s requirements rather than a definite amount. The section rejects the construction of some cases that such terms render the agreement unenforceable for reason of indefiniteness or lack of mutuality of obligation. The section fixes some boundaries for variance in the performances of the parties by requiring that the tender of output or demand for requirements be made in good faith, and that the quantity not be unreasonably disproportionate to stated estimates or previous experience.”

Even before the advent of the Uniform Commercial Code, we recognized the validity of requirements contracts. Southwest Kan. Oil & G. Co. v. Argus P. L. Co., 141 Kan. 287, 39 P.2d 906 (1935); *34 City of Holton v. Kansas Power & Light Co., 135 Kan. 58, 9 P.2d 675 (1932).

In the case at bar, the alleged contract was for all of the baking potatoes and other produce needed and required by the defendant’s seven restaurants, during the period of a year. We hold that the contract was definite enough in quantity, under the U.C.C., and was not unenforceable by reason of indefiniteness.

The primary issue before us is whether the defendant has admitted in its “pleading, testimony or otherwise in court that a contract for sale was made.” K.S.A. 84-2-201 provides:

“(1) Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. . . .
“(3) A contract which does not satisfy the requirements of subsection (1) but which is valid in other respects is enforceable
“(b) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made . . . .”

Defendant, in its pleading, does not admit the existence of a contract. Plaintiff contends, however, that the testimony of both Layne and Danskin, in their depositions, constitutes an admission on behalf of Sirloin Stockade that an oral contract was entered into. Neither Layne nor Danskin, however, were officers, agents or employees of Sirloin Stockade at the time their depositions were taken. Plaintiff does not cite any authority which supports the proposition that a former employee may make a binding admission, in court, on behalf of a former employer, and we find no such authority. K.S.A. 60-236, a part of our rules of civil procedure, sets forth the procedure whereby one party may request admissions of another; .no such procedure was followed here. K.S.A. 60-460(g), (h), and (i) are indicative of who may make admissions: parties themselves, their representatives, agents authorized by the party before the termination of such relationship, and the like. Layne and Danskin were no longer employed by Sirloin Stockade when their depositions were taken. There is no showing that they were authorized to make any binding admissions or statements on behalf of the defendant at that time.

There is no suggestion by the plaintiff that the defendant has *35

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Bluebook (online)
578 P.2d 247, 224 Kan. 32, 24 U.C.C. Rep. Serv. (West) 847, 1978 Kan. LEXIS 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-sirloin-stockade-kan-1978.