Modine Manufacturing Company v. Carlock

510 S.W.2d 462, 1974 Mo. LEXIS 583
CourtSupreme Court of Missouri
DecidedMay 13, 1974
Docket57139
StatusPublished
Cited by42 cases

This text of 510 S.W.2d 462 (Modine Manufacturing Company v. Carlock) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Modine Manufacturing Company v. Carlock, 510 S.W.2d 462, 1974 Mo. LEXIS 583 (Mo. 1974).

Opinion

HOUSER, Commissioner.

Modine Manufacturing Company, the corporate successor to American Foundry and Furnace Company, sued M. F. Carlock on an open account for $10,677. Carlock filed an answer and a counterclaim for $150,000 damages. Tried to the court without a jury judgment was rendered for Modine for $12,506, including interest, on the petition, and for Modine and against Carlock on the counterclaim. Carlock appealed prior to January 1, 1972.

We review the case upon both the law and evidence as in suits of an equitable nature, not setting aside the judgment unless clearly erroneous and giving due regard to the opportunity of the trial court to judge of the credibility of the witnesses. Rule 73.01(d), V.A.M.R.; Public Water Supply Dist. No. 8 v. Maryland Casualty Co., 478 S.W.2d 293 [1] (Mo. 1972). The law of Illinois, where the contracts in question were made and performed and the transactions occurred, governs the substantive contractual rights of the parties. Schoene v. Hickam, 397 S.W.2d 596 [5] (Mo.1965).

On November 8, 1960 American and Carlock signed a printed form of Manufacturer’s Agreement naming Carlock as a Distributor (Exhibit 1). Par. 1 granted to Carlock “a franchise to sell” designated heating and ventilating equipment and air handling products of American in Cook, Lake and DuPage Counties in Illinois. In Par. 3 Carlock agreed “to confine his selling activities to customers located” in that territory, and that in instances in which Carlock’s customer directed delivery of products to its affiliates located in another *465 distributor’s territory Carlock should work out with the distributor in that other territory, in advance of consummation of sale, a satisfactory installation and service arrangement, including compensation. Par. 4 provided:

“In only those instances set forth below we reserve all rights without limitations to sell within Distributor’s territory either direct or through others any products without any obligation to pay Distributor any commission or other charges on the following sales.
“(a) To the United States or any State Government or any department or bureau thereof.
“(b) To Manufacturers who install such equipment in or with their products.
“(c) To the following established Sales Outlets.
Powers Regulator Co. and their Sales Outlets.
Barber-Colman Co. and their Sales Outlets.”

Par. 5 required American to assist Carlock in developing the territory by personal calls, mailings, and trade journal advertising, and to “direct all inquiries received from the territory” to Carlock. Par. 7 provided: “Manufacturer’s prices to Distributor shall be the same as those extended to all other Distributors.” In Par. 8 Carlock agreed to pay American on every shipment of its products “Distributor’s price from Manufacturer in effect at the time of such shipment and on the following terms: 2% — 10 days — Net 30 days, F. O.B.” American, at Bloomington, Illinois. Carlock agreed to pay all installation and service costs. Par. 16 provided: “This agreement shall continue in force and govern all relations and transactions between parties hereto until terminated. Either party may terminate this agreement upon thirty (30) days written notice.” Par. 18 provided that Carlock was not the agent or legal representative of American and had no authority to obligate or bind American in any manner. Par. 20 provided: “It is declared by both parties that there is no oral or other agreement or understanding between them affecting this agreement or relating to the selling, installation or servicing of products. This agreement supersedes all previous agreements between the parties.”

During the first year of Carlock’s activities in the Chicago area, beginning in March, 1961, he operated on salary as an employee and not as a manufacturer’s representative. American realized all profits from his sales. He billed customers on his own stationary. When payment by check was made Carlock endorsed the checks to American.

After the first year Carlock operated as a manufacturer’s representative. He was a sole proprietor. He bought items from American and resold them at prices determined by him. His profit was the difference. American would send Carlock an invoice a few days after shipment of goods purchased by Carlock and mail monthly statements of account.

American was merged into Modine in 1965, and all references to “American” are to be understood as including its successor Modine, where appropriate. Modine assumed American’s contractual obligations. Carlock’s representation of Modine was terminated as of October 31,1966.

Modine brought this action April 27, 1967 to recover items allegedly due on open account between June 29, 1964 and May 31, 1965. Carlock filed an answer July 25, 1967, amended May 15, 1970, asserting offsets and credits of $2,060 on account; offsets and credits by way of counterclaim, and the affirmative defense of breach of contract. Carlock filed a counterclaim October 6, 1969, amended May 15, 1970, seeking $150,000 damages for breach of the written contract and alleged oral agreements.

*466 The case was tried to the court without a jury. Modine called Carlock as its only witness and offered 13 exhibits in evidence. Carlock testified in his own behalf on his answer and counterclaim and called as witnesses Charles Hopper, an engineer, and Henry Sharp, a manufacturers’ representative who testified as an expert on customs and usages in the trade. The former sales manager and the former president of American testified in rebuttal. Carlock offered 301 exhibits in evidence, 295 of which were received. The exhibits consisted of the printed Manufacturer’s Agreement, correspondence, memoranda, purchase orders, invoices, credits, debits, checks, interoffice communications, drawings, specifications, computations, documentary memorials of innumerable business transactions between American or Modine and Carlock, other distributors, customers and purchasers, extending over a 5-year period, and lengthy interrogatories and answers.

The trial court’s order deciding all issues on both petition and counterclaim for Mod-ine and against Carlock was accompanied by written findings of fact and conclusions of law.

On Carlock’s Counterclaim

The areas of disagreement are as follows:

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510 S.W.2d 462, 1974 Mo. LEXIS 583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modine-manufacturing-company-v-carlock-mo-1974.