Reo Motor Car Co. v. Young

177 N.W. 249, 209 Mich. 578, 1920 Mich. LEXIS 633
CourtMichigan Supreme Court
DecidedApril 10, 1920
DocketDocket No. 84
StatusPublished
Cited by11 cases

This text of 177 N.W. 249 (Reo Motor Car Co. v. Young) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reo Motor Car Co. v. Young, 177 N.W. 249, 209 Mich. 578, 1920 Mich. LEXIS 633 (Mich. 1920).

Opinion

Fellows, J.

The defendant for some 17 years had been a successful dealer in automobiles and accessories in the city of Detroit. In 1912 he began under a contract for a year to handle cars made by the plaintiff. [580]*580He had a desirable location at 752-758 Woodward avenue, with a service station on Forest avenue east. This property, at the time of the transaction out of which this litigation arose, was leased from three different owners under leases hereinafter more particularly described. The parties seem to have been mutually satisfied with their dealings and new contracts were entered into for succeeding years, the last one being executed July 27, 1918, and expired by its terms July 31, 1919. These contracts seem to have been profitable to defendant and the testimony fairly discloses that he had laid away a competency and could live from his income. During and succeeding the war plaintiff was unable to supply defendant with' all the cars he could sell but he testifies that he made money even in the lean years. Plaintiff could sell all the cars it could make during these years without effort, and defendant was among its preferred distributors. He was complimented on occasions by plaintiff’s officers and agents, and efforts were made as far as possible to supply his needs for cars. In the spring of 1919 the plaintiff by its board of directors decided upon a change of policy in the disposition of its product in Detroit. It determined to establish a factory branch there and handle the business itself. Very shortly after the final decision of the board on this subject, and on May 6th, this fact was communicated to defendant at the office of the company in Lansing, the defendant and Mr. Cole, his sales manager, having come to Lansing that morning. There is a decided conflict in the testimony as to what took place at the Lansing meeting, but it is agreed on all hands that the conference lasted until lunch time and the written agreement was not prepared until afternoon. The trial judge in his opinion, speaking of the agreement and the claim that it did not contain all the terms agreed upon, said:

[581]*581“In my opinion, the written contract embodies all of the terms of the arrangement made between the parties. The defendant is a shrewd business man, and after his surprise and disappointment on learning that his contract was not to be renewed, sought to make the best arrangement with plaintiff that he could with the. view to retiring from business. The arrangement which was made was based almost entirely upon his own suggestions, and I am satisfied that it was thoroughly understood between the parties.”

The agreement that day executed is as follows:

“This agreement by and between Reo Motor Car Company, a Michigan corporation, hereinafter designated as the vendee, party of the first part; and M. A. Young, of Detroit, Michigan, hereinafter designated as the vendor, party of the second part:
“Witnesseth: That whereas, the vendor is and for several years has been distributor in Detroit for Reo automobiles and automobile trucks, manufactured by the vendee; and whereas, the vendee is contemplating establishing a branch house in Detroit on or about August 1, 1919, for the distribution of Reo automobiles and automobile trucks; and whereas, it is the mutual desire of the vendor and the vendee that the vendee shall relieve the vendor of obligations in the nature of unexpired leases of property now used in the conduct of the vendor’s business;
“Now, therefore, for and in consideration of the mutual undertakings hereinafter expressed; and for and in consideration of the sum of one dollar ($1) by the vendee to the vendor in hand paid, the receipt whereof the vendor hereby acknowledges, the parties hereto agree and contract as follbws:
“1. The vendor will execute forthwith an assignment of the unexpired portion of each of three several leases, which said assignments shall run to Reo Motor Car Company and shall become effective on August 1, 1919. The.leases herein referred to are as follows:
“(a) A lease' on the first floor of the building located at 752-786 Woodward avenue, Detroit, which lease covers the quarters now used by the vendor as an automobile ^ salesroom and office and which lease expires approximately February 1,1921. (It is agreed [582]*582that the monthly rental stipulated by said lease is not in excess of $300.)
“(b) A lease, expiring on or about May 1, 1922, on the building at 758 Woodward avenue. This lease is subject to a sub-lease from the vendor to Meisner Tire Company, under which the Meisner Tire Company pays to the vendor a monthly rental of $175, for the front part of said building. In assuming the vendor’s obligations as lessee under the original, it is understood that the vendee also succeeds to his rights under the sub-lease, including the right to the monthly rental from Meisner Tire Company.
“(e) A lease, expiring approximately June 1, 1920, on the building (now occupied by the vendor as 'a service station) situated at 212-214 Forest avenue E.; it being understood-that the monthly rental under said lease is not in excess of $200.
“2. The vendee agrees to accept the assignment of the said three leases, and to assume the lessee’s obligations thereunder, from the date the assignments become effective and the vendee takes possession of the leased premises.
“3. The vendor agrees to sell to the vendee, and the vendee agrees to buy, all office fixtures (including safes, typewriters, desks, chairs, tables, etc.), whether such office fixtures are in use at the sales room or the service station; all tools and equipment of every kind used by the vendor in the conduct of his business; and good will and the vendee agrees to pay therefor the sum of twelve hundred fifty dollars ($1,250) which payment shall be made at the time that the actual transfer is made, which in no event shall be later than August 1,1919.
“4. The vendee agrees to purchase from the vendor on or prior to August 1, 1919, all used cars (not exceeding a total of twelve) which the vendor shall have on hand unsold at the close of business on July 31, 1919. The price to be paid the . vendor for said used cars, shall be determined by an appraisal of three persons, two of whom are to be appointed by F. H. Akers, sales manager of the vendee, and the third to be appointed by the vendor.
“5. As soon as possible after the close of business on July 31, 1919 (or sooner if practicable) the vendee [583]*583.will repurchase from the vendor all new automobile parts for Reo automobiles and trucks, which the vendor shall at that time have in his possession unsold. The price at which these parts shall be repurchased shall be the then current price at which such parts are sold by the vendee to its distributors.
“6. The vendor will permit the vendee, if it so elects, to put decorators at work either at the salesroom or the service station or both, at any time after July 1, 1919, for the purpose of redecorating or making necessary changes, provided, however, that such work shall be done in such manner as to interfere as' little as possible with the continued operation of the vendor’s business. '
“7.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gaval v. Wojtowycz
164 N.W.2d 724 (Michigan Court of Appeals, 1968)
M & D ROBINSON CO. v. Dunitz
162 N.W.2d 318 (Michigan Court of Appeals, 1968)
Leighton v. Leighton
159 N.W.2d 750 (Michigan Court of Appeals, 1968)
Reinink v. Van Loozenoord
121 N.W.2d 689 (Michigan Supreme Court, 1963)
Rose v. Gilbert
31 N.W.2d 690 (Michigan Supreme Court, 1948)
Walters v. Durbin
268 N.W. 746 (Michigan Supreme Court, 1936)
Woods v. Johnson
253 N.W. 257 (Michigan Supreme Court, 1934)
Gillette v. Metzgar Register Co.
219 N.W. 644 (Michigan Supreme Court, 1928)
St. Pierre v. Masson
219 N.W. 687 (Michigan Supreme Court, 1928)
Krause v. Hoffmann
214 N.W. 146 (Michigan Supreme Court, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
177 N.W. 249, 209 Mich. 578, 1920 Mich. LEXIS 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reo-motor-car-co-v-young-mich-1920.