Poe v. the White Co.

7 Tenn. App. 652, 1928 Tenn. App. LEXIS 93
CourtCourt of Appeals of Tennessee
DecidedFebruary 11, 1928
StatusPublished
Cited by1 cases

This text of 7 Tenn. App. 652 (Poe v. the White Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Poe v. the White Co., 7 Tenn. App. 652, 1928 Tenn. App. LEXIS 93 (Tenn. Ct. App. 1928).

Opinion

ÍIEISKELL, J.

We have compared the Chancellor’s finding of facts in this case with the record and find it correct. We therefore, *653 set it out in full as a. concise yet full statement of the purposes and contentions of the suit, the material facts and the action of the court. It is as follows:

“This suit involves a trade for an automobile truck alleged to have been made September 24, 1925. As originally filed the bill sought specific performance, but by an amendment it prayed the alternative relief of damages for breach. The defendant denies the authority of its agents to make the trade, or, rather, denies that a contract was ever consummated, because of the want of approval by any authorized agent.

The complainant was the owner of a second-hand Reo auto bus. He acquired it from the Byrd Motor Company of this city, in a trade for two lots somewhere in Florida, which had cost him $700. The Byrd Motor Company had purchased it at the sale in the bankruptcy proceeding of Tom Dalton’s estate, who had operated it in the bus line business between Lafayette, Ga., and Chattanooga. In his deposition in this cause complainant says that the bus was worth between $800 and $1,000. However, he called as a witness, one D. P. Miller, an employee of the defendant, who is familiar with the values of used cars, and in response to a question of complainant’s solicitor, Miller, stated that at the most the value was $350.

The defendant, The White Company, appears to be the name of the sales organization of the White Truck Company, which is engaged in the manufacture and sale of automobile trucks at Cleveland, Ohio and maintain branches for the purpose of sales in the various cities in the country. At the time of this transaction, the southeastern district branch was located in Atlanta, Ga., and said district .branch maintained a sub-branch at Chattanooga, which was under its control. In this sub-branch at Chattanooga were a manager and a salesman. At the date of this transaction one E. P. Soule was the said manager.

On September 24, 1925, complainant Poe inquired of said Soule how much he would allow him for his said Reo bus in trade for one of the defendant’s Model 15 trucks. Defendant’s regular price for such a truck delivered at Chattanooga was $2339.50. Soule drove Poe’s Reo bus around a block and then informed Poe that he would allow him $2,000 credit for it on the purchase of a truck. Miller testified that Soule was drunk on this oceason and not in full possession of his mental faculties. Poe testifies that he did not notice any evidence of inebriety. It would seem that something serious must have been the matter, with him because the value of the Reo bus was so disproportionate to the credit of $2,000 which Soule offered to allow that no sane and honest man, acting as agent for another, would have made such an order.

Poe and Soule, so far as Soule could, closed the transaction that same day. Poe signed in triplicate a printed form of order used *654 by the defendant in such cases, one copy of which was giv.en to Poe and is exhibited by him with his bill. By reference to this exhibit it will be seen that it does not purport to be a contract in any sense but only what its name, appearing at the top of the paper, to-wit, “Customer’s Order” implies. It is signed by Poe alone and is addressed to “The White Company, Cleveland, Ohio.” It de- ■ scribes the kind of truck wanted and states the delivery price of $2339.50 and the allowance of $2,000, for the Reo bus, showing' a balance of $339.50, for which a sixty days’ note was to be dated and delivered on the delivery of the truck. The order contains this statement:

“This order is given subject to the approval of an officer of The White Company at Cleveland, Ohio.”

Poe did'not await the-delivery of the truck to execute his sixty-day note for the balance of $339.50 referred to in the order. Instead, he gave his check for the immediate payment of the amount, and Soule directed Miller (against his judgment, as he says) to give Poe a receipt showing “payment in full” for the truck, which he did, and the same appears as Exhibit 4 to the bill. On the same day Poe delivered the Reo bus to Soule. A few days after this transaction Soule was relieved as manager of the sub-branch at Chattanooga and one J. H. Barrett was appointed in his stead. Soule left Chattanooga and later was discharged from defendant’s employ. His deposition was not taken by either side and it does not appear that his whereabouts are known. Poe’s check and Reo bus were retained at the Chattanooga branch until October 13, 1925, when Barrett returned the check to him in a letter stating that the defendant could not accept his order for the truck and notifying him to send'and get' the bus. This letter is Exhibit 3. to the bill.

The order signed by Poe above referred to was never approved by any officer of The White Company at Cleveland or by anybody else except Soule. Apparently with the view of showing that it was approved by the Atlanta branch, Poe relates a telephone conversation which Soule had with the Atlanta .branch in his presence while the transaction was going on. But according to Poe’s own version of the conversation, it related only to the question of how soon a truck of the kind desired by Poe could be delivered. Poe makes no pretense that Soule stated to the Atlanta branch the terms of the proposed trade or received any authority to make it.

Poe’s principal insistence, however, is that no approval was necessary and that as shown by its course of dealing Soulé had authority to bind the defendant.- To establish this proposition he took the deposition of Miller, the witness before mentioned who is in the employ of defendant ás accountant in the Chattanooga branch, and of one II. A. Sparks who was in its employ in 1922, when the James Supply Company conducted the branch here. To *655 disprove it defendant took the deposition of E. J. Speh, the manager of defendant’s Home Office Sales Department at Cleveland. These witnesses differ slightly in their description of the details of procedure observed in the cas.e of offers negotiated by a branch such as existed at Chattanooga, but they all agree that neither Soule nor any of his predecessors or successor in the Chattanooga branch nor the manager of any other branch of the defendant anywhere had authority to bind the defendant by a contract of sale, evén fox cash at the listed price, without approval from a higher authority and this was the practice followed. It may be said that this limitation in the extent to which it goes, is unusual, but Poe cannot complain because the very paper which he signed showed by the recital above quoted that his offer had to be approved by some one other than Soule.

It is true that after the business of the defendant increased the requirement that offers be approved by an officer was relaxed and offers could be approved by lesser representatives. Speh says that he or his assistant' was the final authority upon this subject. Miller’s deposition seems to indicate that offers could be approved by a regional vice-president. The question of exactly who must have approved seems to me to be immaterial in this case, because the offer in question was never approved by anybody. The argument for complainant seems to be that since approval by an officer was then no longer necessary, approval by Soule was sufficient.

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Bluebook (online)
7 Tenn. App. 652, 1928 Tenn. App. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poe-v-the-white-co-tennctapp-1928.