Prunty v. Basshor

1 Balt. C. Rep. 44
CourtBaltimore City Circuit Court
DecidedMay 1, 1889
StatusPublished

This text of 1 Balt. C. Rep. 44 (Prunty v. Basshor) is published on Counsel Stack Legal Research, covering Baltimore City Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prunty v. Basshor, 1 Balt. C. Rep. 44 (Md. Super. Ct. 1889).

Opinion

PHELPS, J.—

For more than twelve years these parties were associated in a manufacturing enterprise in this city, and their multifarious and complicated dealings [45]*45extended over a large part of the United States. During all that time there was never a balance sheet nor a statement. As a natural consequence, for nearly four years they have had oil their hands this costly and so far fruitless litigation. Eighteen hundred pages of testimony, a wagon load of exhibits, and a $1,750 auditor’s report (not objected to as excessive by either side), compose the monument they have raised over their own imprudence. Among other moral lessons the case teaches, it well illustrates the homely maxim of common life, “short settlements make long friends.” Others there are, still more impressive. The leading principle involved in the case is one of public policy, and it is also one of grave moment, infinitely transcending, in its interest to society, any individual rights at stake.

The case comes up on the plaintiff’s exceptions to an auditor’s account. The account is credited with $63,233.92 by sales of “Prunty Relief Valves, &c.” On the debt side appears, among other items, one of $4,704.76 for “commissions.” This amount is to be increased (if the auditor is correct), by the addition of a number of other items of the same kind found in the abstract filed as part of his report, and included in the bulk of the largest item therein. There is nothing whatever in the pleadings to explain these charges.

The bill, answer, cross-bill, amended and supplemental cross-bill, and the cross-answer, are all silent with regard to these “commissions,” for what or to whom they were paid.

From the exhibits and correspondence in evidence, and from other testimony, it appears that, in order i o make sales of the machines at the prices charged for them to the municipal corporations of various States, for the use of their fire departments, the usage of the parties to which both the plaintiff and the defendants were privy, was to effect an understanding with the chief engineers of those departments, by which said officials were to receive contingent compensation in the event of the machine being accepted, generally fixed at the rate of twenty per cent, on the price of each machine sold through their influence, in some cases less, and in some cases more. It is not necessary to quote the testimony at targe. There is a great deal of it, running all through the record. Counsel on both sides during the argument admitted that such was its effect. Particular reference may be made to Prunty’s testimony, pp. 1642, 1665, 1687, 1668, 1672, 1679, 1698. Basshor, pp. 446, 515, 677, &c., 728; Stebbins’, pp. 1272, 1277, 1279, 1283, 1284, 1288, 1329, 1330, 1349, No. 2, 1350, 1538.

In most cases the contracts were made by the plaintiff, as the traveling salesman of the defendants. In some cases they were jnade by the defendants, or one of them, directly. Jn all oases they were made with the knowledge and consent of all parties.

There are exceptional cases in which the sales appear to have been legitimate. The dealings with the City of Baltimore on account of its fire department, so far as the evidence goes, were, with one disputed exception, of this character. Prunty had been an employee in the Baltimore fire department. He and his invention were well known to its officials. Before his connection with the defendants, in October, 1873, a number of his relief valves were actually in use upon the steam fire engines of this department. He himself naively testifies that there was “no occasion” for commissions here. (Page 1679.)

There was one transaction of $100 with Spillman in the early part of 1876 about which the testimony is conflicting. Spillman was chief engineer of the Baltimore City Fire Department, until the close of that year. He swears positively that the $100 was a “personal loan” from his friend Basshor. It never happened to be repaid by Spill-man. It never happened to be demanded by Basshor. It appears as one, of the charges against Prunty’s a payment made on account of the concern. That is the view of it to which both defendants stand committed, as a business operation. Basshor, who paid the money, is more explicit. He swears that the $100 was paid “as commissions for the sale of valves made to the Baltimore Fire Department.” These are his exact words, as taken down by the auditor, page 728. He further says that another $50 had been previously paid Spillman on Prunty’s order.

Prunty admits the payment of the $50, but swears it was for Spillman’s “services in New York,” and not, as commissions on any machines sold in Baltimore. He positively denies any [46]*46knowledge whatever of the $100 payment, and it is in this connection that he observes there was “no occasion” for commissions here. He says the $50 charge is correct, but objects to pay his half of the $100.

It is not the least of evils incident to crooked transactions that they impair the cre_dibility of all parties concerned in them. There is nothing for the Court to do here but to believe the two witnesses who swear to the innocence of all three, or else the one who swears to his own guilt and the guilt of the other two. The solution of this problem may be reserved until it is settled whether this and other issues are not merged in a greater question behind them.

The plaintiff in his bill claims an account, and payment, under the articles of agreement, of one-half the net profits arising from the manufacture and sale of the relief valves invented by him, and also a balance charged to be due as unpaid salary. The amount of this salary was not fixed by the agreement, but was left to be “hereafter agreed on.” No agreement having been arrived at as to salary, the plaintiff is now in effect suing as upon a “quantum meruit,” so far as- the item of salary is concerned.

The questions to be first considered are — 1st. Whether the plaintiff can enforce payment for salary for services which included sales, by the method indicated?

2d. Whether he is entitled in equity to an account of the profits derived from such sales?

The first question is not at all difficult of solution. By all the authorities it is plain that compensation for services of that nature cannot be recovered either at law or in equity.

.Services, a material part whereof consists in the corrupt solicitation of public officials, cannot be recognized by any Court as a lawful subject for compensation.

Greenhood Pub. Pol., 593, 4. (See 399, &c.)

Tool Company vs. Norris, 2 Wal. 54-58.

It is no answer that the objection is not raised by the pleadings.

Dunham vs. Presly, 120 Mass. 285.

Coppell vs. Hall, 7 Wall. 558.

Greenh., P. P., pp. 124-126.

Nor that there is nothing on the face of the written agreement which imports that any improper means were to be used in the introduction and sale of machines.

Riley vs. Jordan, 122 Mass. 231, 233.

Sherman vs. Wilder, 106 Mass. 537.

1 Bates Ptnp. Sec. 115.

Nor that the officials corrupted belonged to municipal corporations outside the jurisdiction of the State.

Oscanyan vs. Arm Co., 103 U. S. 261, 277, citing Watson vs. Murray, 23 N. J. Eq. 257.

Nor

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Bluebook (online)
1 Balt. C. Rep. 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prunty-v-basshor-mdcirctctbalt-1889.