Nathanson v. Brown & Williamson Tobacco Corp.

189 Misc. 1024, 68 N.Y.S.2d 914, 1947 N.Y. Misc. LEXIS 2180
CourtNew York Supreme Court
DecidedMarch 11, 1947
StatusPublished
Cited by7 cases

This text of 189 Misc. 1024 (Nathanson v. Brown & Williamson Tobacco Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nathanson v. Brown & Williamson Tobacco Corp., 189 Misc. 1024, 68 N.Y.S.2d 914, 1947 N.Y. Misc. LEXIS 2180 (N.Y. Super. Ct. 1947).

Opinion

Shientag, J.

Motion by plaintiff for an order dismissing the first, second, third, fourth, fifth and sixth defenses contained in the answer of the defendant Brown & Williamson Tobacco Corporation. According to the complaint, plaintiff spent many years in the Philippine Islands making business [1026]*1026acquaintances among the importers of merchandise from the United States. Among such business acquaintances were customers of the plaintiff for whom plaintiff purchased United States goods for shipment to the Philippine Islands. One of the customers was the defendant Araneta, a businessman living in Manila. Prior to 1945 plaintiff entered into negotiations with the defendant tobacco corporation for the purchase of cigarettes for shipment to the Philippine Islands. During the month of October, 1945, the defendant corporation requested that plaintiff introduce Araneta to said corporation to enable it to sell directly to Araneta. In consideration of this introduction, said corporation agreed to pay plaintiff 5% commissions as long as said customer continued to purchase cigarettes from the defendant corporation, either through the plaintiff or directly from the defendant corporation.” This 5% commission was to be included in the selling price of the cigarettes, with the knowledge and consent of Araneta. The defendant corporation further agreed not to sell its product to Araneta unless provision was made for the payment of commissions.

In pursuance of this agreement, which was communicated to Araneta, the introduction was made. This agreement continued from October, 1945, until January 9, 1946. On January 11, 1946, at the request of the corporation, plaintiff agreed to accept a flat commission of $1 per case of cigarettes. This was the only modification of the contract. Pursuant to the agreement, substantial amounts of cigarettes were sold to Araneta. Plaintiff received $20,000 from the defendant corporation under date of January 11, 1946. This is only a partial payment of commissions earned under the agreement. On information and belief, $100,000, the exact amount being unknown, was due for commissions. Prior to the commencement of the action plaintiff demanded an accounting from the defendant corporation of all merchandise sold and delivered, which was refused. Due performance of the contract and that plaintiff has no adequate remedy at law are- then alleged.

For the second cause of action plaintiff alleges that while the agreement was in full force and effect, the plaintiff at the request of Araneta entered into negotiations with defendant corporation through its agents to obtain an agency for Araneta for the sale of defendant’s products upon the distinct understanding and agreement that plaintiff would continue to receive as Ms commissions so long as the said agency con[1027]*1027tinued or so long as the defendant Araneta continued to purchase the products of the defendant corporation, the sum of $1 per case. On January 15, 1946, the defendant corporation agreed with plaintiff that it, the defendant corporation, would enter into an agency agreement with Araneta, but in violation of the fiduciary relationship ” between plaintiff and defendant, defendant in February, 1946, entered into an agreement directly with Araneta agreeing to-sell defendant corporation’s product to Araneta and to make him an agent of its products in the Philippine Islands without providing for the payment of any commission to plaintiff. It is alleged that this agreement was made for the purpose of depriving plaintiff of his commissions. It is also alleged that large quantities of cigarettes were delivered under this agency agreement. When analyzed this cause of action is to be interpreted as claiming that in consideration of plaintiff’s introduction of defendant to his client Araneta, defendant would enter into a contract with Araneta to sell Araneta cigarettes and that the contract would provide for a commission to plaintiff on each lot sold.

For a third cause of action it is alleged that defendants Wilson and Butler were employed by the defendant corporation; that the defendants, including Wilson and Butler, in February, 1946, conspired together and formed a deliberate plan and scheme to deprive plaintiff of any commission in connection with the sale of its product to Araneta; that the various acts done were all steps of the conspiracy to bring about this result; that as a result the agency agreement pleaded in the second cause of action was entered into; that it was agreed with Araneta to sell its product at a price less than the price paid by Araneta theretofore by omitting the commissions, and large quantities of cigarettes were sold to Araneta; that by reason of the conspiracy the plaintiff has been deprived of commissions on all merchandise.

The relief asks for an accounting and a decree that plaintiff is entitled to commissions upon all future sales of merchandise to Araneta and that they be paid. '

The defendant corporation sets up six defenses. The first defense pleads that plaintiff is not the real party in interest. In essence the defense is that since the plaintiff originally dealt with the defendant corporation as an agent of New Bra Enterprises, Inc., he must necessarily be suing in this action on behalf of that corporation. Essentially this question could [1028]*1028be raised by a general denial but since the meaning of the denial is set forth plainly in this defense, I see no reason for striking it out.

The second defense pleads that the alleged agreement or agreements sued upon by their terms were not to be performed within one year from the making thereof, and that neither said agreement nor agreements nor any note or memorandum thereof was ever made in writing and subscribed by the defendant or its lawful agent. The third defense pleads that the agreement or agreements were not to be performed before the end of a lifetime and that they were not in writing.

These two defenses thus plead the Statute of Frauds. The defendant in a detailed analysis of the cases on this subject states what it considers to be the rules for determining the availability of the .Statute of Frauds as a defense where an oral contract for an indefinite term is pleaded. The statement is as follows: “1. If in an oral contract for an indefinite®term a contingency upon which termination will result is expressly provided for, which said contingency could possibly occur, within a period of a year, or if a provision for termination by a party or parties to the contract is contained within the contract, which provision permits termination by a party or parties to the contract within a year, or if the subject matter of the contract positively indicates that full performance was in the contemplation of the parties intended to take place within a year, then the contract is performable within a year and the Statute of Frauds is not a defense.

“2.

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Bluebook (online)
189 Misc. 1024, 68 N.Y.S.2d 914, 1947 N.Y. Misc. LEXIS 2180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nathanson-v-brown-williamson-tobacco-corp-nysupct-1947.