Neal v. Novelty Leather Works

165 N.W. 681, 198 Mich. 598, 1917 Mich. LEXIS 917
CourtMichigan Supreme Court
DecidedDecember 27, 1917
DocketDocket No. 137
StatusPublished
Cited by1 cases

This text of 165 N.W. 681 (Neal v. Novelty Leather Works) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neal v. Novelty Leather Works, 165 N.W. 681, 198 Mich. 598, 1917 Mich. LEXIS 917 (Mich. 1917).

Opinion

Steere, J.

The Novelty Leather Works is a Michigan corporation located in the city of Jackson, engaged in the manufacture and sale of leather goods and novelties of various kinds, including certain automobile appliances. During the time of the events involved in this litigation, it had four stockholders and three directors, of whom defendant Collins was president, and general manager, and John Bennett treasurer.

Defendant Collins had secured a patent, or patent rights, for an invention called the “Collins Always Ready,” or “Quick Action,” curtain, designed to facilitate the manner of holding automobile curtains on the inside and convenience in using them, the rights and equitable ownership of which belonged to the Novelty Leather Works.

Plaintiff was a so-called “manufacturer’s agent,” engaged in the sale of automobile material and accessories with his office in the' city of Detroit. In the summer of 1912, as defendants were about to put this device upon the market, plaintiff became interested and participated, in an agency capacity, in its promotion, on whose initiative and to what extent is a matter in dispute. Plaintiff claims that on Collins’ solicitation he entered into an agreement with defendants in the fall of 1912 to act as their general agent in promoting and assisting in the sale of this device and licenses to use it, in consideration for which he was to receive 10 per cent, of defendants’ receipts from the sales of the appliance and royalties from licenses to automobile [600]*600manufacturers for its use; that in fulfillment of the agreement on his part he did, as stated in his bill of complaint for an accounting—

“assist the said defendants in the sale of said device and licenses, and did provide stenographic service, service with correspondents, distribution of printed matter, and the use of his office for said defendant, the Novelty Leather Works, and that a large number of circular letters soliciting trade by mail were sent out by your orator, in performance of his part of said contract. That your orator likewise solicited business, personally calling on automobile manufacturers, and that, as a result of the efforts of your orator working in conjunction with said defendant, the Novelty Leather Works, a large amount of business was secured for the said automobile curtain device.”

Defendants deny any contract of general agency; and, in explanation of plaintiff’s admitted relations with them, claim that, when in Jackson showing defendants the merchandise he was handling, plaintiff, was impressed with the merits of their curtain device and said he could place it with the General Motors Company, of which his brother was president; that on this proposal it was agreed that if he could-accomplish it defendants would pay him 10 per cent, commission on the deal; that the only transaction then talked about was a license to the General Motors for use of the patent, of which Collins testified:

“He was to consummate the sale, go to the officials and complete the arrangement for the demonstration, and I was to put the — I was to demonstrate the curtain and make it and put it on, and he was to close the deal.
“Q. What were you to pay him for that?
“A. Ten per cent.”

Collins also testified that up to this time they were furnishing the device on tops they were making without extra charge and had “no idea of the selling as a license proposition” until plaintiff brought it up, and [601]*601Collins then told him “if he could do that” they would pay him 10 per cent, for such sales as he actually consummated, “would furnish literature and give him an opportunity to make the sales.” Asked of the termination of their relations in the latter part of 1913, “Why did you dismiss Mr. Neal or sever your connection with him?” Collins replied:

“There were two reasons, one was that, when the Cadillac Motor Car Company started to evade our patent by certain methods, I discovered the evasion when they had 1,500 cars out, and some time later Mr. Neal apparently was giving my aifairs very little attention.”

Plaintiff’s claim and alleged grounds for equitable relief are, briefly stated: That he advertised the curtain by personal interviews and correspondence and assisted in the solicitation of patronage from many automobile companies doing business in Michigan and elsewhere, until, largely as the result of his activities while its general agent, defendants realized a profitable business in this patented device with numerous automobile manufacturers; when defendants refused to recognize his contract of employment as general agent or his services in that behalf, declined to pay the money due him under said contract, refused to furnish him any statement, and denied his right to information from or inspection of their books to ascertain upon what sales and royalties they owed him commissions, charging that they have been withheld from him and the desired information concealed for the purpose of defeating his claim and defrauding him out of his just compensation amounting to a sum largely in excess of $500, for which reasons he prays an accounting, an adjudication and adjustment of his rights, and a decree for such sum as may be found his due.

At the hearing oral and documentary evidence was introduced, including a large amount of correspond[602]*602ence with different automobile concerns and between the parties to this suit, indicating, amongst other things, individual efforts on plaintiff’s part as well as active co-operation between him and defendants to promote the business; Collins frequently writing him on the subject with instructions to follow up prospective customers, “get busy,” “get circulars off- at once,” etc. After testimony had been introduced by both parties leading up to and upon the question of plaintiff’s right to an accounting, the trial court held, “without any prejudgment of the case at the present time, that an accounting should be had of all the business that was done by the defendant company in these curtains up to October, 1913,” and made an order of reference to a circuit court commissioner of Jackson county for that purpose. Upon return of the report and testimony taken by such commissioner, the court found that a contract existed between the parties as plaintiff claimed, that upon undisputed sales during the period in question plaintiff’s commissions of 10 per cent, amounted to $223.80, and decreed judgment in his favor for that sum, with costs.

Defendants in appealing from this decree urge that the following four vital questions were erroneously disposed of by the trial court adverse to their rights:

“(1) Whether or not the plaintiff has failed to prove, by a preponderance of evidence, a contract of agency between plaintiff and defendants, or either' of them ?
“(2) That if any contract of agency did exist between plaintiff and defendants or either of them, was it a special agency, and not a general agency?
“(3) Did defendant Collins have authority to bind the Novelty Leather Works by a contract of agency?
“(4) After all improper, incompetent, irrelevant, and immaterial evidence is excluded, has the plaintiff proven his case by a preponderance of the evidence?”

Plaintiff was not called as a witness nor present at [603]

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Cite This Page — Counsel Stack

Bluebook (online)
165 N.W. 681, 198 Mich. 598, 1917 Mich. LEXIS 917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-v-novelty-leather-works-mich-1917.