National Grocery Co. v. A. Santaella & Co.

295 P. 128, 160 Wash. 262, 1931 Wash. LEXIS 890
CourtWashington Supreme Court
DecidedJanuary 8, 1931
DocketNo. 22220. En Banc.
StatusPublished
Cited by2 cases

This text of 295 P. 128 (National Grocery Co. v. A. Santaella & Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Grocery Co. v. A. Santaella & Co., 295 P. 128, 160 Wash. 262, 1931 Wash. LEXIS 890 (Wash. 1931).

Opinions

Beals, J.

Plaintiff, a wholesale dealer in groceries, including tobacco, brought this action against defendant, an eastern manufacturer, to recover damages for breach of contract for the sale of cigars; alleging that, for several years prior to 1926, plaintiff had enjoyed an exclusive contract for the purchase and distribution of defendant’s cigars in the state of Washington and adjacent territory; that the practice of the parties, under this arrangement, was for plaintiff to place standing orders with defendant for certain of its brands, which standing orders were, from time to time, supplemented by special orders; that September 7, 1926, defendant advised plaintiff by letter that, on October 5,1926, the business relations existing between the parties would be terminated, and that defendant would make other arrangements for the distribution of its cigars in the territory formerly served by plaintiff; that defendant failed to ship any cigars to plaintiff after September 1, 1926; and that defendant failed to ship to plaintiff a large quantity of cigars which should have been shipped prior to October 5 under the standing orders, and a considerable quantity which should have been shipped prior to the date last mentioned under special orders. Plaintiff alleged that its profits upon the sale of these cigars, had they been received, would have amounted to $1,982.52, for which amount, together with interest, plaintiff asked for judgment.

Defendant having answered plaintiff’s complaint, denying the material allegations thereof, the action proceeded to trial before the court sitting without a jury, the court entering findings of fact and conclusions of law in plaintiff’s favor, and granting plaintiff *264 judgment in the sum of $1,948.40. From this judgment, defendant appeals.

Appellant contends that the standing orders as placed with appellant by respondent did not constitute, in law, binding contracts, save in so far as such contracts were consummated by deliveries made and accepted from time to time pursuant thereto. We do not find in the record testimony as to any agreed duration of these standing orders, and, following the case of Robbins v. Seattle Peerless Motor Company, 148 Wash. 197, 268 Pac. 594, we hold that the contract between the parties to this action, in so far as the standing orders are concerned, was terminable at will by either party. The general doctrine is stated in 13 C. J., p. 604, as follows:

“The rule seems to be that, there being no time limit specified in a contract of this kind, it is subject to cancellation at the will of either party. ’ ’

Respondent apparently does not contend that appellant could not, by notice, terminate the business relations between the parties as of October 5, in accordance with its letter of September 7; but contends that appellant should have filled the special orders which had been placed with it for delivery prior to October 5, and such standing orders as accrued prior to that date. It is not denied that respondent’s exclusive agency had been terminated prior' to September 1, 1926, by notice from appellant. The pertinent portion of appellant’s letter of September 7 reads as follows:

“This is to advise you that, commencing October 5, 1926, and thenceforward, we will make other arrangements for the distribution of all our brands of cigars in the above mentioned territory.”

Granting that appellant had the right to terminate the dealings between the parties at any time, it would *265 seem that, by this notice, appellant impliedly ratified respondent’s standing and special orders for cigars np to the date fixed by appellant, in its letter, for the end of the dealings between the parties. Onr opinion concerning other matters hereinafter mentioned renders it unnecessary to definitely decide this question; but we will assume, for the purposes of this opinion, that appellant was obligated to continue shipping cigars in accordance with the standing and special orders up to October 5, 1926.

The trial court, after finding the quantities of cigars which appellant should have sent to respondent prior to October 5, found that these cigars would have been resold by respondent in the regular course of its business at fixed standard prices, and that the handling and disposition of these cigars would not have caused respondent any additional expense in the operation of its tobacco department over and above the cost of the cigars, as specified in the orders, plus freight, insurance and some other charges. The court found that respondent would have realized a profit from the sale of these cigars in the sum for which it granted respondent judgment.

It appears from the testimony that respondent had on hand, during the month of September, a considerable quantity of the cigars manufactured by appellant, and that respondent still had in its possession a quantity of these cigars as late as the first of January, 1927. It is also true that respondent promptly protected itself by arranging with another manufacturer of cigars to handle its product, and sold such substituted brands of cigars to its customers when possible. We are unable to find from the record that, by reason of appellant’s failure to ship cigars to respondent after September 1st, respondent lost a single sale of cigars; or, in the course of its fall business, *266 sold one box less, all brands included, than it would have sold bad appellant continued shipping up to October 5. Neither does it appear that respondent realized any less profit from the sale of the brands which it purchased in lieu of appellant’s product than would have accrued to it had it continued to receive cigars from appellant. Bespondent’s officers testified that they would have sold, in the ordinary course of their business, all the cigars which they would have received from appellant had appellant filled respondent’s orders up to October 5; but appellant contends that such testimony is not sufficient to support the judgment rendered in respondent’s favor.

In the case of Rapidol Company v. Howe Company, 144 Wash. 543, 258 Pac. 469, an action brought by a foreign manufacturer against the local distributor (the reverse of the situation here presented) for the recovery of damages for breach of a contract whereby the defendant was to purchase the plaintiff’s product and dispose of the same at retail within a certain specified territory, the defendant admitted a considerable indebtedness for merchandise delivered, but alleged a breach of the contract by the plaintiff and sought recovery of a large sum, by way of damages, both for money expended in opening a market in the territory covered by the contract, and for loss of profits because of plaintiff’s alleged breach of the agreement. The trial court entered judgment in favor of the defendant, allowing defendant a large sum by way of damages. The product which was the subject matter of the contract was a hair dye, and it appeared that there were other similar dyes available the right to purchase one of which was procured by the defendant when its contract with the plaintiff was terminated, the defendant having thereafter pushed the sale of the *267 new product as vigorously as possible. In the course of the opinion, this court said:

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Bluebook (online)
295 P. 128, 160 Wash. 262, 1931 Wash. LEXIS 890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-grocery-co-v-a-santaella-co-wash-1931.