Price Bros. Lithographic Co. v. American Packing Co.

372 S.W.2d 138, 1963 Mo. App. LEXIS 445
CourtMissouri Court of Appeals
DecidedOctober 15, 1963
DocketNo. 31348
StatusPublished
Cited by4 cases

This text of 372 S.W.2d 138 (Price Bros. Lithographic Co. v. American Packing Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price Bros. Lithographic Co. v. American Packing Co., 372 S.W.2d 138, 1963 Mo. App. LEXIS 445 (Mo. Ct. App. 1963).

Opinion

BRADY, Commissioner.

The parties will be referred to by their designation in the trial court. Plaintiff’s action sought recovery of the unpaid balance due for certain labels stored in plaintiff’s warehouse which the plaintiff had printed pursuant to a sales contract with the defendant. The defendant denied that any money was due the plaintiff and set up certain affirmative defenses which will be specifically referred to later. The defendant’s counterclaim sought recovery of the money paid for the labels already delivered, the cost of tests performed at defendant’s plant, and damages. The jury found for the plain-' tiff in the sum of $5,365.00 for the unpaid balance due on the undelivered labels, and for the defendant in the amount of $120.00 representing the cost of 3 tests made at the plant. Judgment was entered accordingly. Defendant’s timely motion for new trial was sustained by the trial court on the ground that it had erred in giving plaintiff’s verdict-directing instruction 1. The issues presented by this appeal go beyond that point, however, as the defendant, being the party to whom the new trial was granted, contends the trial court erred in excluding certain testimony offered by the defendant and in admitting into evidence plaintiff’s exhibits 5 and 6. These points are contained within the motion for new trial and thus are available to defendant in this appeal as grounds to sustain the trial court’s award of a new trial. White v. St. Louis Public Service Co., 364 Mo. 111, 259 S.W.2d 795; Mo.Digest, Appeal and Error, ‘&=>854(6). There are no issues presented in this appeal arising from the verdict for the defendant for the costs of the tests.

The defendant produced “Smoky Canyon Chipped Beef” in addition to its other products. This product consists of slices of beef placed in polyethylene pouches filled with nitrogen. These pouches are then sealed and labeled with a 5i/&" x 6}i", three-color label by means of a heat sealing machine. Defendant had not experienced trouble with the labels supplied by one of plaintiff’s competitors and consideration of price was the only factor bringing about the change to plaintiff’s labels.

[140]*140A brief summary of the-pleadings will be helpful toward a clear understanding of the issues. Plaintiff alleged that it printed-2,-000,000 labels pursuant to a sales contract signed by both parties and that plaintiff had fully performed its obligations under that contract. The petition then alleges demand for payment upon the defendant and the defendant’s refusal to pay. Defendant admitted the contract and its refusal to pay for the labels, but pled that it was not indebted to defendant for any sum because defendant knew exactly what purpose these labels were to be put, the machinery and process that was to be used in accomplishing that purpose, and that “ * * * defendant relied on the plaintiff to furnish labels suitable for such purpose and use; that the labels furnished by plaintiff pursuant to such order were not fit for the defendant’s purpose or for the use to be made of them by defendant, nor were they fit for the purpose or use for which labels of that kind or description were generally intended; that as part of the contract referred to in paragraph 3 of plaintiff’s petition, plaintiff impliedly warranted that said labels would be suitable for the purpose for which defendant desired the same and were to be as suitable to be used by defendant on defendant’s machinery and equipment as were the labels procured from another source which defendant was using for the same purpose at the time said order was placed and said contract was entered into; and that, in addition, as part of the contract referred to in paragraph 3 of plaintiff’s petition, plaintiff impliedly warranted that said labels would be suitable for the purpose and use for which labels of that kind and description were generally intended.” Defendant’s counterclaim alleged the payment of $133.65 for labels delivered under the contract and which defendant contended were worthless. The counterclaim also alleged plaintiff’s agreement to pay all costs incurred by defendant in- testing plaintiff’s labels in the course of defendant’s production and gave those costs at $1,500.00. The defendant also sought recovery for $1,973.46 which it alleged to be the difference in the cost of labels it had to secure to replace those furnished by plaintiff and the cost of plaintiff’s labels had those labels been suitable “ * * for defendant’s purpose and use as plaintiff had impliedly represented and warranted they would be * *

Plaintiff’s sales manager, Fisher, was contacted by a friend of his who was employed by the defendant concerning a bid from plaintiff on the printing of Smoky Canyon labels. Upon being informed of plaintiff’s interest in submitting a bid, defendant’s employee sent several sample labels and information covering them to Fisher. The next month Fisher flew to St. Louis for a meeting with the president of the defendant company. The discussion at that meeting is not of importance to the issues here involved, but at the close of the meeting Fisher was introduced to Harold Fulton, defendant’s production manager, who took him to the label inventory area to get some representative labels imprinted with the names of the various distributors of Smoky Canyon Chipped Beef. Fisher testified that, while following Fulton to this area, he walked by the production lines but did not pay particular attention to them. On the other hand, Fulton testified that he briefly explained the production operation to Fisher as they walked along.

Upon his return to plaintiff’s plant in New Jersey, Fisher had the samples given him by Fulton calibrated and ascertained that some of the labels were printed on 70 pound paper while others were printed on 80 pound paper. Fisher then telephoned the defendant’s president, Mueller, who stated he would contact the present label supplier to ascertain what weight of paper was presently being used. Fisher then wrote a letter to Mueller, the pertinent parts of which follow:

“The purpose of this letter is to confirm the conversation we had in your office with regard to Price Brothers printing and Smoky Canyon Chipped Beef labels. These labels would be [141]*141printed on a 70 lb. coated two sides paper with coating that would make a complete seal with your polyethylene bag. The price of the labels would be $2.50 per M for both the blanks and the printed labels, for those we could make in multiples of 25 M and more. The price for the blanks together with the finished imprinting for those labels which are for less than 25 M would be $3.05 per M.
“Price Brothers would duplicate all existing Cheef and private labels which áre presently in existence free of engraving and plate charges and we agreed that for all new private labels we would have a flat $75 per plate charge.”

On May 13, 1960, Fisher made a second trip to defendant’s plant bringing with him some sample labels for testing. The actual number of sample labels he brought and the procedures followed to test the labels is in dispute. Fisher’s testimony was that he brought 10-12 identical sample labels which he gave to Fulton who then left the room for a few minutes; that Fulton returned with the sample labels attached to pouches filled with defendant’s product; that the pouches were permitted to cool for a moment, were then tested, and all the labels were found to have satisfactorily adhered; and that Fulton then informed Mueller that the labels adhered satisfactorily.

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Related

McKenna v. Personnel Advisory Board
702 S.W.2d 548 (Missouri Court of Appeals, 1985)
Kirst v. Clarkson Construction Company
395 S.W.2d 487 (Missouri Court of Appeals, 1965)
Price Brothers Lithographic Co. v. American Pack. Co.
381 S.W.2d 830 (Supreme Court of Missouri, 1964)

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Bluebook (online)
372 S.W.2d 138, 1963 Mo. App. LEXIS 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-bros-lithographic-co-v-american-packing-co-moctapp-1963.