Plant Manufacturing Corp. v. Renner

214 A.D. 606, 212 N.Y.S. 710, 1925 N.Y. App. Div. LEXIS 10574
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 18, 1925
StatusPublished
Cited by2 cases

This text of 214 A.D. 606 (Plant Manufacturing Corp. v. Renner) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plant Manufacturing Corp. v. Renner, 214 A.D. 606, 212 N.Y.S. 710, 1925 N.Y. App. Div. LEXIS 10574 (N.Y. Ct. App. 1925).

Opinion

Dowling, J.:

This is an action brought to recover damages for breach of contract. The appellant describes the contract as one for an exclusive sales agency. The respondents call it an executory contract for the sale of merchandise. It appears that on the 27th day of January, 1920, the plaintiff, a corporation engaged in selling and distributing decorative lamps and miscellaneous wrought iron goods to retail stores and jobbers throughout the United States, and the defendants, under the name and style of Renner &'Maras, a copartnership engaged in working metal goods, entered into a written agreement, wherein the plaintiff is referred to as the first party and the defendants as the second parties, the terms of which are as follows:

“First. The first party is to act as sole and exclusive selling agent for the second parties on all Wrought Iron and other Metal Goods of similar- character which they manufacture or cause to be manufactured for sale among retail stores, jobbers, decorators or [607]*607any other medium where the goods are to be resold at retail, except goods manufactured for:

“ Chamberlayne, Inc., 503 East 72nd St., N. Y. C.

“ The Herter Looms, 841 Madison Ave., New York City;

“ J. C. Demarest & Co., 561 Madison Ave., N. Y. C.

Second. The second partios agree to refer to the first party all inquiries and orders received by them direct from any parties (except the above specified firms) for the goods covered by this agreement.

“ Third. On all new designs whether created by the first or second parties, the second parties shall, after the approval of the design by the first party, use their best efforts to work out showroom and salesmen’s samples with the utmost possible speed and where any preliminary trade opinions on first samples are necessary, there shall be no charge to the first party for such samples until they have been accepted as being ready for sale.

“Fourth. After finished designs and cost prices have been approved by the first party, it agrees to purchase outright all samples it requires for showroom and salesmen’s purposes and will afterwards place regular orders for stock of the various designs according to such quantities and costs as shall be mutually agreed upon between both parties. The second parties shall render to the first party at the end of each month, a correct statement of all bills covering shipments during the month and the first party agrees that it will pay this amount on the basis of 2% discount for payment on or before the 10th of the following month or net for payment on or before the last day of the following month.

“Fifth. The second parties agree to do everything in their power to fill the first parties orders as promptly as possible and not neglect same through any other work they may be engaged on, and also agree to guarantee their product by making good without charge any reasonable claims which may be made by the first party due to defects in manufacture.

“ Sixth. This agreement shall be in force for one year commencing from the date of the signing of this agreement by the first and second parties. If within this period the first party placed with the second parties a total amount of orders amounting to $8,000.00 or more, the first party shall have the option of continuing this agreement for the following year on the same terms as the first year. If within the second year the first party places with the second parties a total amount of orders amounting to $10,000.00 or more the first party shall have the option of continuing this agreement for the following year on the same terms as for the second year. If within the third year the first party places with the second [608]*608parties a total amount of orders amounting to $12,000.00 or more, the first party shall have the option of continuing this agreement for as long as it may desire on the same terms as for the second year referred to in this agreement.”

From time to time designs were approved and numbered and the cost prices fixed. During the" first year of the agreement the plaintiff placed orders with the defendants to the amount of $18,000. The defendants made deliveries on account thereof amounting to $16,004.40, and plaintiff paid $15,962.75 prior to January 27, 1921.

Plaintiff elected to continue the agreement during the second year. This was conceded by the defendants’ president in his testimony taken by deposition. On January 31, 1921, defendants transferred all of the assets and business of the copartnership to Renner & Maras, Inc. On February 12, 1921, defendant Renner, as president ■ of that corporation, wrote the following letter to plaintiff on the letterhead of the firm of Renner & Maras: We beg to advise you that the firm of Renner & Maras has transferred the business recently conducted at the above address to Renner & Maras, Inc., a corporation created under the laws of the State of New York, and said firm is no longer in existence.

The corporation Will be glad to execute any orders with which you may be pleased to entrust it upon terms similar to those made to others.”

On March 12,1921, the corporation of Renner & Maras, Inc., by H. Renner, its president, wrote to plaintiff a letter, still on the letter-! head of the firm of Renner & Maras, as follows: This corporation does not know of any agreement or contract in existence with the Plant Manufacturing Corporation, and has no desire to enter any. In the future this corporation will extend credit to the Plant Manufacturing Corporation up to the amount of ‘ Five hundred Dollars ’ ($500.00) per month, payable in 30 days, 2% discount for cash 10 days.”

It further appears that Renner & Maras, Inc., instituted an action against plaintiff on April 25, 1921, to .recover the purchase price of goods delivered by the corporation under orders sent by plaintiff between March 3, 1921, and April 20, 1921.

There is testimony to the effect that after defendants refused to carry out the contract, plaintiff made efforts to procure similar goods from other sources, but those they were able to procure were unsatisfactory and the prices so high that they could not compete with Renner & Maras, Inc.

To establish damages, plaintiff showed profits on its transactions » in defendants’ goods of $5,141.03, or thirty-five and three-tenths per cent, during the first year. Through Frank A. Henn, a sales[609]*609man formerly in the employ of Renner & Maras, Inc., plaintiff established that from April, 1921, to December, 1921, he sold about $22,500 worth of goods manufactured according to plaintiff’s designs; that his examination of the books of Renner & Maras, Inc., showed that up to December 31, 1921, it had sold goods manufactured according to plaintiff’s designs to the value of about $40,000.

In dismissing the complaint the learned trial court said: I will dismiss the complaint on both causes of action. * * * I think it is too indefinite and speculative and too vague. There isn’t anything on which a jury could assess damages, there isn’t any basis on which the Court can submit it to the jury. Your contract is too indefinite, too speculative and vague; there is no obligation created upon which damage could be ascertained.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Steinhilber v. Challenger Steel Products Corp.
19 Misc. 2d 770 (New York Supreme Court, 1959)
R. S. Stokvis & Sons, Inc. v. Kearney & Trecker Corp.
58 F. Supp. 260 (S.D. New York, 1944)

Cite This Page — Counsel Stack

Bluebook (online)
214 A.D. 606, 212 N.Y.S. 710, 1925 N.Y. App. Div. LEXIS 10574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plant-manufacturing-corp-v-renner-nyappdiv-1925.