Pritchard & Thompson Advertising Agency, Inc. v. Pereira

147 So. 507, 1933 La. App. LEXIS 1624
CourtLouisiana Court of Appeal
DecidedApril 24, 1933
DocketNo. 14253.
StatusPublished
Cited by1 cases

This text of 147 So. 507 (Pritchard & Thompson Advertising Agency, Inc. v. Pereira) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pritchard & Thompson Advertising Agency, Inc. v. Pereira, 147 So. 507, 1933 La. App. LEXIS 1624 (La. Ct. App. 1933).

Opinion

HIGGINS, Judge.

Plaintiff sued the defendants Louisiana Baking Corporation and George E. Pereira, in solido, for the sum of $SOO, alleged to be due under a written contract for advertisment dated March 26, 1930. The defense is that the amount claimed is due only by the Betty-Lou Bakeries, Inc., the Louisiana Baking Corporation having discharged its part of the joint obligation, and that Pereira is not individually liable because he signed the contract in the-capacity of president of the above-named corporations.

There was judgment in favor of the defendants, dismissing the suit, and plaintiff has appealed.

The record shows that the plaintiff is engaged in the advertising business, and that Betty-Lou Bakeries, Inc., of Houston, Tex., conducted a bakery business. On March 26, 1930, the plaintiff, through Kenneth Thompson, its vice president, submitted on its printed stationery an offer to Louisiana Baking Corporation of New Orleans, La., for certain advertising through the means of signs along the public highways in the vicinity of New Orleans and along the highway between New Orleans and Houston, Tex., for a consideration of $200 per month for a period of 24 months. The offer was executed in duplicate, and was accepted by George E. Pereira, who was president of both corporations. The duplicate retained by Mr. Thompson was signed as follows:

“George E. Pereira
“Betty-Lou Bakeries
“Louisiana Baking Corporation.”

The copy left in the possession of Mr. Pe-reira is signed as follows:

“George E. Pereira, Pres.
“Betty-Lou Bakeries, Inc.
“Louisiana Baking Corporation.”

The plaintiff contends that the agreement constitutes a solidary obligation of the Louisiana Baking Corporation and George E. Pe-reira. The defendant argues that the agreement is a several obligation of the Betty-Lou Bakeries, Inc., and Louisiana Baking Corporation, and that Pereira did not obligate himself as an individual, but signed in his capacity as president of both corporations. Plaintiff counters 'by saying that Mr. Kenneth Thompson, who negotiated the contract with Mr. Pereira, was under the impression and led to believe that the Betty-Lou Bakeries, Inc., and the Louisiana Baking Corporation were one and the same company, which operated and maintained an office in New Orleans, Houston, Tex., and Nashville, Tenn., and that the suffix “Pres.,” after Pereira’s name, and the suffix “Inc.,” after “Betty-Lou Bakeries”,on the duplicate original retained by Pereira, were added to the document after the contract was signed; it being the intention of the parties that Pereira was signing individually as a guarantor.

The evidence shows that Betty-Lou Bakeries, Inc., was a corporation organized under the laws of Texas and engaged in the bakery business at Houston. The Louisiana Baking Corporation was organized under the laws of Delaware and conducted the same kind of business in New Orleans. The stockholders *508 of the two corporations are composed of different individuals, but the president and secretary of the Texas and Delaware companies are the same. The Nashville company was also in the bakery business, and the plaintiff was one of its stockholders. The Louisiana Baking Corporation owned the copyright on the words “Betty-Lou,” and leased the right to use this trade-name to the Tennessee and Texas companies.

On June 7, 1928, the plaintiff executed an order for the Betty-Lou Bakeries, Inc., in Houston, Tex., for a half-tone cut of a picture of its building, and the invoice covering the work was sent by the plaintiff to the Betty-Lou Bakeries, Inc., at No. 2019 -Congress street, Houston, and paid by that company on June 14, 1928.

On September 14 and 18, 1928, there appeared in the “Houston Dispatch” certain newspaper advertisements which contained in bold print the words “Betty-Lou Cake, baked in Houston,”- and “Betty-Lou Bakeries, Inc.” These advertisements were written and prepared by the plaintiff company at the request of Betty-Lou Bakeries, Inc., of .Houston, Tex.

Mr. Thompson, in his testimony, admits that in his capacity as vice president on January 10, 1929, he entered into a written contract with Betty-Lou Bakeries, Inc., to furnish outdoor advertising in Houston, Tex.

Under the written order of the Betty-Lou Bakeries, Inc., the plaintiff, on September 10, 1929, furnished three thousand cardboard store hangers, and the invoice covering same was sent by the plaintiff to Betty-Lou Bakeries, Inc., at Houston, Tex., and paid 'by that company’s check on November 15, 1929,

Under date of December 31, 1928, an invoice covering outdoor advertising was addressed and sent to the Betty-Lou Bakeries, Inc., by the plaintiff, amounting to $202.40, which was paid by check of Betty-Lou Bakeries, Inc., on March 1, 1929. In 1929 plaintiff also prepared two pages for a four-page circular which showed that the outstanding picture of the group was the building occupied by Betty-Lou Bakeries, Inc., at Houston.

In addition to the above transactions, a written contract was entered into between the plaintiff and the Betty-Lou Bakeries, Inc., on October 1, 1928; the agreement being signed “Betty-Lou Bakeries, G. E. Pereira.” The plaintiff, acting under this agreement, sent invoices, each for the sum of $200 per month, to the Betty-Lou Bakeries, Inc., at Houston, which were all paid up to and including the invoice of September 30, 1929, by checks of. the Betty-Lou Bakeries, Inc. Mr. Thompson, on cross-examination, admitted this fact, but said he was not familiar with the details, as it was a question of bookkeeping. The invoices for $200 each for advertisements under this agreement of October 1, 192S, covering the months of October, November, and December of 1929, and January and February of 1930, amounting to the sum of $1,000 were unpaid when the plaintiff company submitted the proposal-or offer of March 26, 1930, which forms the basis of the contract upon which the present suit is brought.

On March 26, 1930, the same day on which the contract sued upon in the instant case was signed, Mr. Thompson agreed with Mr. Pereira to accept for the five unpaid invoices a note for the sum of $1,000 signed by Betty-Lou Bakeries, Inc. It appears "that Mr. Pe-reira signed his name under the corporation name without the suffix “Pres.” on this note. In his testimony Mr. Thompson states that the note was put in the safe, and later, when he heard that the Betty-Lou Bakeries, Inc., of Houston, Tex., had failed, he looked at the note, and was amazed .to see that it was a note of the Betty-Lou Bakeries, Inc., and not the Louisiana Baking Corporation.

The preponderance of the evidence also shows that on March 26, 1930, the day the contract in question was signed, Mr. Pereira caused his office to prepare and deliver to Mr.

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Related

Fisher v. New Orleans Coffee Co.
155 So. 281 (Louisiana Court of Appeal, 1934)

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147 So. 507, 1933 La. App. LEXIS 1624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pritchard-thompson-advertising-agency-inc-v-pereira-lactapp-1933.