Producers Coal Co. v. Mifflin Coal Mining Co.

95 S.E. 948, 82 W. Va. 311, 1918 W. Va. LEXIS 88
CourtWest Virginia Supreme Court
DecidedApril 23, 1918
StatusPublished
Cited by16 cases

This text of 95 S.E. 948 (Producers Coal Co. v. Mifflin Coal Mining Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Producers Coal Co. v. Mifflin Coal Mining Co., 95 S.E. 948, 82 W. Va. 311, 1918 W. Va. LEXIS 88 (W. Va. 1918).

Opinion

Williams, Judge:

Plaintiff, a coal selling company, sued defendant, a coal producing' company, to recover damages for the breach of an alleged contract of sale to plaintiff of the output of defendant’s coal mine for a year, beginning April 1, 1916, and ending April 1, 1917, at the net price of $1.00 per ton, run of mine. Defendant is successor in title to the Mifflin Coal Company, and took over its contracts and assumed its obligations on, the 1st of January, 1916. At that time a written contract existed between plaintiff and defendant’s predecessor, bearing date August 26, 1912, whereby the latter company employed the former as its sole sales agent to sell the entire output of its mine on the Coal River Branch of the Chesapeake' & Ohio Railway, near the town of Clothier, for the period of four years and seven months, beginning September 1, 1912, and ending March 31, 1917, and in consideration of its selling and shipping the coal and guaranteeing the accounts, it was to pay it a commission of ten per cent, of the gross sums realized on all sales. That contract continued in force until April 1, 1916, when, as plaintiff contends, it was abrogated by the contract now sued on, which is also in writing and bears date April 26, 1916, and recites that it is confirmatory of an oral contract made in Huntington on the 13th of April, and is to take effect as of April 1st. It is signed by plaintiff company by D. H. Jenks its general manager, and by defendant company by Levi Deal its general manager. Defendant refused to furnisji plaintiff any more coal under that contract after the 1st of November, 1916, and denied the authority of its general manager Deal to make the contract and claimed it was'not bound thereby. On the trial of the case the jury found for defendant, and the court, after overruling plaintiff’s motion to set aside the verdict, rendered a judgment of nil capiat and that plaintiff pay defendant its costs, and it prosecutes this writ of error.

[313]*313Defendant’s evidence presents two grounds of defense: First, that Deal, its general manager, had no authority to substitute the contract of April, 1916, for the one of August, 1912; and, second, that even if the contract made by Deal and Jenks was valid and binding on the defendant, it was thereafter itself abrogated and the original contract of 1912 restored to take effect on the 1st of November, 1916, by mutual agreement made on the 25th and 27th days of September, 1916, between said Jenks, acting for plaintiff, and M. E. Eakin, A. M. Christley and R. M. Cross, constituting a committee appointed by the directors of defendant company, with express authority to close down its mine if plaintiff should refuse to handle its coal on a basis of 10% commissions, according to the terms of the contract of 1912. That the parties named were duly appointed such committee at a special meeting of the board of directors, of which they themselves ivere members, by a resolution duly passed and entered upon the minutes, is fully proven and not denied. The agreement, if any was made at Huntington in September, was not reduced to writing, and plaintiff denies that any agreement ivas then made to reinstate the contract of 1912, and insists that the sale to it of the coal at $1.00 per ton, made in April, 1916, was a binding contract and continued in force. Eakin, Christley and Cross all swear positively that it was then agreed that, after November 1, 1916, and continuing until April 1, 1917, plaintiff was to sell defendant’s coal on the open market, at the best prices obtainable, according to the terms of the original contract, and agreed to accompany its orders for shipments with a statement of the price it was getting, so that defendant Might know it was receiving the market price for its coal. On the other hand, Jenks, the only witness for plaintiff on this point, although admitting the conference between himself and the aforesaid committee, held i\i Huntington at the Frederick Hotel on the dates above named, is just as positive in his denial that anj agreement was then made. This was a fact which the jury had to determine. Plaintiff insists, however, that even if the jury believed the agreement which defend[314]*314ant’s evidence tends to prove was in fact made, it was not a binding contract for want of a consideration.

The first question is, did Deal have authority to bind his company by the contract of April, 1916? Defendant insists he had not, and that its directors never ratified the contract, because, it is contended, they.first learned of its existence early in the following September, and the president shortly thereafter called them together for the purpose of taking some action concerning it, and also to provide some more satisfactory way of disposing of its coal. Deal himself was a director of defendant company, as well as its general manager, and had been since its organization. He was also a practical coal operator, and was interested in coal mines in Pennsylvania, where he and all the other directors resided, though not all in the same .place. Deal employed a superintendent of the mine, put him in charge of its operation and did not visit the mine himself of tener than once a month, or perhaps not so often, during his term as general manager. Still, was it not a part of his duty as general manager to sell, or provide for selling the coal produced at the mine, and was not the contract which he made with plaintiff company within the scope of his duties? A corpoi*ation acts only by and through its officers and agents, and Deal was an agent of defendant, held out by it to the public, by virtue of his position, as representing it in the genei'al management of its business, one important feature of which was the sale of the product of its coal mine. Coal producing companies do not store their coal, but usually sell it before it is mined and to be delivered at a future time, and sometimes on contracts covering long periods of time. Defendant took over a contract, made by its predecessor, which provided for the sale of all its coal to be produced during a period of four years and seven months. For three months next prior to April, 1916, defendant had received much less than $1.00, as the average price per ton, for its coal sold under the 1912 contract, and Deal no doubt thought, in view of the prices then prevailing in the market, that it would be more advantageous to his company to secure the net price of $1.00 per ton during the remainder of the period covered by the original contract [315]*315than to take the risk of getting much less. That he had the power, as defendant’s general manager, to bind it by the new or modified contract, is borne out by the authorities.

The general manager of a corporation has authority to bind it by such contracts as are reasonably incident to the management of the business entrusted to him. It was, therefore, not incumbent upon plaintiff to prove that Deal was expressly authorized to make the contract sued on, in order to hold the defendant liable. His apparent authority, as general manager of its business, to make the contract was sufficient ground to create liability. Thomas and Moran v. Traction Co., 73 W. Va. 374; Union Bank and Trust Co. v. Long Pole Lumber Co., 70 W. Va. 558; and Lowance v. Johnson, 75 W. Va. 784.

Plaintiff’s instruction No. 1, which in effect told the jury that the contract of April, 1916, was binding on the defendant, and that, unless they believed from the evidence it was afterwards rescinded by mutual agreement, they should find for the plaintiff, ivas properly given.

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Bluebook (online)
95 S.E. 948, 82 W. Va. 311, 1918 W. Va. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/producers-coal-co-v-mifflin-coal-mining-co-wva-1918.