Rapp v. King

16 F.2d 392, 1927 U.S. App. LEXIS 3614
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 6, 1927
DocketNo. 4620
StatusPublished

This text of 16 F.2d 392 (Rapp v. King) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rapp v. King, 16 F.2d 392, 1927 U.S. App. LEXIS 3614 (6th Cir. 1927).

Opinion

WESTENHAVER, District Judge.

This is an action upon a contract. The plaintiff in error, also plaintiff below, recovered a verdict and judgment for -$550.90. As he wants more, he prosecutes error to reverse the judgment. Numerous complaints are made, which can be best understood and disposed of by a rather full statement of the issues and of the rulings of the trial court.

Plaintiff’s petition alleges that on March 10, 1919, defendant, a producer of coal, agreed with plaintiff, a dealer in coal, to deliver to such of plaintiff’s customers as he might designate, at their places of business and in such quantities as they might order, between March 10, 1919, and April 1, 1920, 50,000 tons of high grade domestic lump coal in sizes not less than two inches in diameter and at the price of $2.40 a ton at the mine for orders received prior to December 1,1919, and $2.50 between December 1,1919, and March 10, 1920; that said coal was to be sold in advance by plaintiff for such prices as he could obtain above the prices stated; and that the proceeds of said sales were to be collected by defendant, and one-half of the difference between the purchase and selling prices was to be paid the plaintiff, each party paying his own expenses. It is further averred that plaintiff sold to his customers said 50,000 tons of coal; that defendant made deliveries to a few of said customers; that some of said coal was not of the kind called for by the contract and was rejected for that reason; that defendant failed and refused to furnish coal of the kind called for by the contract; and that plaintiff was compelled to purchase coal elsewhere at enhanced prices. As a result of this alleged breach, plaintiff claimed damages to the extent of one-half of the difference between the prices at which defendant had agreed to furnish the coal and the prices at which plaintiff had resold the same to his customers.

Defendant by his answer denies that he was a producer of coal, and alleges that he was a jobber, buying and selling coal, and denies generally and specifically that any contract was made such as is stated by plaintiff. Defendant then states specifically the terms of the contract which he claims was made. He avers that it was agreed that plaintiff should try to sell coal from time to time at prices in excess of the prices at which the defendant could buy the same; that plaintiff was' to keep in frequent communication with defendant as to the prices at which plaintiff should sell coal, so as to make a profit thereon ; that the profits realized on such sales so made should be divided equally between the parties, or that one-half of such profits should be paid plaintiff as his commissions on such sales. He also avers that plaintiff had been paid his full commissions, and ’that in fact, upon a proper statement of accounts, plaintiff was indebted to the defendant.

Upon the issues thus framed, the case was tried to a jury. At the conclusion of plaintiff’s testimony, defendant moved for a verdict in his favor on the ground, among others, that the contract stated in the petition was not proved, which motion was denied and an exception taken. Again, at the conclusion of all the testimony, defendant renewed his motion on this ground, which was again denied and exception taken. In point of fact, there is no evidence to support the contract pleaded. It was so ruled in the charge to the jury. The trial court, however, permitted a full investigation of the entire controversy, and sent the case to the jury under a charge authorizing a recovery in accordance with the court’s view of the contract actually made and proved, regardless of all defects in the pleadings. No amendment was at any time asked or made to conform the petition to the case made by the testimony. Defendant is not complaining of these irregularities, and plaintiff obviously has no ground of complaint.

The trial court, in its charge, construed the contract or relationship between the parties as one of principal and agent. Whether this was the proper view may well be doubted. The error, if any, however, is in plaintiff’s favor. The charge permitted a recovery by plaintiff of one-half of the difference between plaintiff’s selling price and defendant’s purchase price upon all the sales made or orders taken which had been filled, including some 17 ears shipped to the Detroit Coal Sales Company and refused by it. The charge likewise permitted the jury to exclude all losses which defendant had suffered upon all shipments, ineluding the ears rejected by the Detroit Coal Sales Company, except under conditions not now necessary to state, for the reason that the verdict deducted nothing because of any losses sustained by defendant. The verdict was for the maximum amount to which plaintiff is entitled, including interest, measuring plaintiff’s damage by the difference between defendant’s purchase price and plaintiff’s resale price, [394]*394and excluding all losses suffered by defendant in connection with any of tbe shipments. This finding of the jury renders immaterial or harmless all errors complained of by plaintiff, except those now to be stated.

The meritorious question involves certain sales which plaintiff claims to have made and ordered defendant to fill, but which were not filled, including that part of the order of the Detroit Coal Sales Company not covered by the rejected shipment. It is defendant’s theory that plaintiff was not its agent, but that the parties had assumed a relationship of joint adventurers or- of partners; that the sales made or orders taken by plaintiff were taken in his own name and on, his own account; that the plaintiff might at his option place or refrain from placing with defendant any or all such orders, and that defendant became interested therein only when an order was so placed and accepted; and also that plaintiff’s profit or commission was to be one-half only of the net profits after deducting losses on the business actually done. In so far as defendant might be liable because of a refusal to furnish coal or fill any order, it is contended that no such ease is pleaded, and that no facts appear warranting a recovery on that theory.

The trial court construed the contract or relationship as that of principal and agent. Its charge permitted a recovery upon all sales made or orders taken by plaintiff with respect to which, under the law applicable to principal and agent, he was able to show a commission had been earned. As to the disputed orders not filled, the court charged that he had not taken these orders or made sales contracts in such a manner as to create an enforceable obligation in defendant’s favor against the purchasers. For this reason, the court gave a binding instruction that plaintiff was not entitled to recover anything because of the unfilled orders in dispute, in-■eluding the residue of the order of the Detroit Coal Sales Company. If any error was committed against plaintiff, it was in so charging.

Upon an examination of the entire record, we are of opinion that in this respect the charge is correct. Many of the unfilled orders could not be enforced by the customer against defendant, as contracts for the sale of coal, or by defendant against anybody. .All of them, whether valid contracts or not, were taken by the plaintiff in his own name. The practical interpretation by the parties of their relation was that plaintiff might or might not, as he saw fit, turn all or any part of his orders over to the defendant to be filled, or fill them himself from other sources.

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Bluebook (online)
16 F.2d 392, 1927 U.S. App. LEXIS 3614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rapp-v-king-ca6-1927.