Morse Chain Co. v. T. W. Meiklejohn, Inc.

4 N.W.2d 162, 241 Wis. 45, 1942 Wisc. LEXIS 187
CourtWisconsin Supreme Court
DecidedMay 6, 1942
StatusPublished
Cited by1 cases

This text of 4 N.W.2d 162 (Morse Chain Co. v. T. W. Meiklejohn, Inc.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morse Chain Co. v. T. W. Meiklejohn, Inc., 4 N.W.2d 162, 241 Wis. 45, 1942 Wisc. LEXIS 187 (Wis. 1942).

Opinion

Fowler, J.

The plaintiff sued to recover for stokers sold to the defendant. The defendant counterclaimed for damages for fraud for inducing the defendant by fraudulent representations to enter into a contract as an exclusive distributor of the plaintiff’s stokers in specified territory. The case was before this court in 237 Wis. 383, 296 N. W. 106. The facts of the case are sufficiently stated in the report of that case and will not be here repeated any further than is necessary to dispose of the case in view of the mandate of that case which reads as follows: “The judgment of the circuit court is reversed, and the cause is remanded for retrial on the question of damages upon the counterclaim, and the entry of judgment as required on the findings made.”

The case had been twice tried by the circuit court when first here. The first trial was by Judge Van Pelt, without a j ury. The second by J udge Lock ney, without a j ury. Both trials resulted in dismissal of the counterclaim and entry of judgment for plaintiff for the balance due on a running account for the price of the stokers sold to the defendant which was admitted by the defendant. The counterclaim was originally laid for breach of contract in selling stokers to re *48 tailers for sale within the territory assigned to the defendant. It appeared on the trial that there were no sales by plaintiff to dealers subsequent to the execution of the contract, although sales had been theretofore made to a ’ chain-store company (hereinafter referred to as' the “Ward Company”) which conducted a mail-order business and also conducted retail stores within the territory, and such stofes were retailing within the territory and the mail-order store was selling the stokers previously sold to the Ward Company. The trial judge held that the prior sales did' not operate to breach de-fendárit’s contract and dismissed the complaint, but intimated that the defendant had an action for falsely representing that no dealers had right to sell within defendant’s territory, and found that plaintiff had sustained damages for such fraud to the amount of $2,051.99. After dismissal of the complaint, the plaintiff moved the court for leave to amend the complaint which the court granted and’ordered a new trial on the amended complaint. Judge Lockney, before whom the new trial was had, held that an integration clause of the written contract precluded introduction of evidence of fraud in inducing the contract and for that reason dismissed the complaint. But he also found' the damages sustained by the defendant through fraud of the plaintiff, and fixed them at $7,322.67. This court, by reason of the divergence of the damages found on the two trials, ordered a new trial in the interests of justice for assessment of damages only.

On the third trial before Judge Hughes he made detailed findings of the different items of damages claimed by the defendant. The total damages including interest found by Judge Hughes amount to $7,131.74. Deducting from this the amount due the plaintiff on the open account, gave a balance of $6,089.49, for which judgment in favor of the defendant was entered. The plaintiff appeals from this judgment on the ground that the evidence as to the defendant’s damages was all inadmissible. The defendant by motion for *49 review urges that two items of claimed damages rejected by the court for which Judge Lockney had assessed damages, were wrongly rejected by Judge Hughes under the rule of the law of the case. The defendant also contends that under the rule of the law of the case the evidence of damages was all admissible as Judge Lockney had allowed damages on all items of damage claimed by the defendant and that this court by not rejecting the evidence as contended for by the plaintiff impliedly held it admissible..

Three questions are before the court on this appeal: (1) Whether the evidence supports the finding of the trial judge as to the damages sustained by the defendant by reason of a fraud perpetrated on the defendant by the plaintiff. (2) Whether the court erred in ruling upon the taxation of costs made by the clerk of the trial court. (3) The defendant by motion for review raises the question whether the trial court erred in not making awards upon two items of damage claimed by the defendant.

(1) The fraud involved, as appears from the opinion filed when the case was first before us, was falsely representing that no one had any right.'to sell the plaintiff’s stokers in the territory assigned to defendant, whereas the plaintiff had previously sold to the Ward Company two thousand stokers to retail through branch stores and through mail orders, which might be sold in competition with defendant.

The appellant claims that the only way to establish any damage to the defendant to a reasonable certainty was to show what sales the Ward Company had made within the territory assigned to defendant as sole distributor and award the defendant its profits on those sales on the assumption that defendant would have made them but for the Ward Company competition. It also claims that as the Ward Company' sold only a single type of the plaintiff’s stokers and the defendant three types the damages permissible should have been limited to those attributable to the single type sold by Ward Com *50 pany. The same grounds of objection to the proof of damages were laid on the previous appeal that are here laid. We did not in our opinion in the former case expressly rule upon the contentions there made by the plaintiff. Judge Hughes considered that as we did not reject the contentions of the plaintiff they were impliedly overruled. The defendant contends that, the rule of the law of the case required Judge Hughes to. rule as he did and to reject the plaintiff’s contentions as to the nature of the proof of damages. Defendant’s counsel cite, with several other cases upon the point of the law of the case, the recent cases of State ex rel. Littig v. Superior Court, 231 Wis. 58, 62, 285 N. W. 419, wherein it is stated that a litigant “is concluded by the mandate of this court as to all matters actually presented or which might consistently with legal rules have been presented to this court upon appeal,” and to the still more recent case of State ex rel. Lisbon Town Fire Ins. Co. v. Crosby, 240 Wis. 157, 2 N. W., (2d) 700, 701, in which that rule is applied.

We should perhaps have expressly ruled in our former opinion upon the propositions presented by the plaintiff as to the nature of the proof of damages. However, we were then of the opinion, as we are now, that the line of proof adopted by the defendant was under the circumstances of the case proper. The contract contemplated a continuous course of business by defendant as the sole distributor of the plaintiff of its stokers in the district assigned to the defendant. The only contract ever signed by both parties recited that the contract was to continue until superseded by a subsequent sales agreement or until terminated as provided in the agreement. Another clause provided that either party might terminate the agreement with or without cause upon giving to the other party thirty days’ notice of termination. The record contains no notice of termination nor does it contain any subsequent agreement signed by either party. The evidence shows that it was contemplated that the defendant should do ex *51

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4 N.W.2d 162, 241 Wis. 45, 1942 Wisc. LEXIS 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morse-chain-co-v-t-w-meiklejohn-inc-wis-1942.