Republic-Odin Appliance Corp. v. Consumers Plumbing & Heating Supply Co.

192 N.E.2d 132, 92 Ohio Law. Abs. 513, 24 Ohio Op. 2d 226, 1963 Ohio Misc. LEXIS 242
CourtCuyahoga County Common Pleas Court
DecidedMay 3, 1963
DocketNo. 737387
StatusPublished

This text of 192 N.E.2d 132 (Republic-Odin Appliance Corp. v. Consumers Plumbing & Heating Supply Co.) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Republic-Odin Appliance Corp. v. Consumers Plumbing & Heating Supply Co., 192 N.E.2d 132, 92 Ohio Law. Abs. 513, 24 Ohio Op. 2d 226, 1963 Ohio Misc. LEXIS 242 (Ohio Super. Ct. 1963).

Opinion

Hoddinott, J.

Plaintiff is a manufacturer of home water heaters. For about seven years, it did a large-scale business with defendant, which sold at wholesale to building contractors and at retail to home owners. This dual mode of business apparently offended the notions of orderly marketing procedure held by plaintiff and plaintiff’s other customers who competed with defendant, and gave rise to friction.

Defendant’s dominating figure is Bichard Friedman, its president. He is a skillful bargainer in a business which is highly competitive, and adept at obtaining substantial price discounts in his purchases. He is proud of taking cash discounts for prompt payment of all his bills; over the years, however, there were frequent disputes about items on the bills rendered by plaintiff. Defendant was a good, but hardly a favorite, customer of plaintiff.

In the latter part of November, 1958, plaintiff had about a dozen pending orders from defendant. Delivery was to be made in installments when requested. If payment for an installment was made by the 10th of the month following delivery, then a cash discount was allowed. Defendant contended it was entitled to take the discount on deliveries after the 25th of the month if paid before the 10th of the second following month, by reason of custom of the trade and previous dealings with plaintiff. Plaintiff disputed this position.

The sequence of events upon which this case turns started, November 28, 1958, when plaintiff’s credit manager wrote to Friedman: “... in view of the past due invoices and the various [515]*515unauthorized deductions which you have made, I feel that we must deny open account terms at the present time.” Friedman and plaintiff’s president, Milton Stevens, had some telephone conversations and, five days later, on December 3rd, the shipment which is plaintiff’s claim No. 14 (Plaintiff’s Exhibit G) was shipped on open account, as had been customary between the parties.

Three days later, on December 6, Friedman and Stevens had another telephone conversation during which Friedman made a series of extraordinary demands. They were reduced to writing in Friedman’s letter of December 22 to plaintiff (Defendant’s Exhibit 4) as follows:

“Mr. Stevens was advised that we would continue to do business with the Eepublic Heater Corporation only conditioned on the following terms.
“ (A) That the very poor competitive conditions created by Eepublic Water Heater through the sale of Eepublic products to the Gafney-Bierman Company would be stopped, that they would no longer have available to them the trade name “Eepublic,” but however Eepublic could continue to sell them Water Heaters under any other trade name. During this phase of the conversation Mr. Stevens advised such action would take thirty (30) days, and in the same sentence sixty days, and finally six months. Mr. Stevens was advised that we did not wish to start a similar situation to that which we had, based on loose statements, and that he should state some specific time limit and then stick to this.
“(B) That Consumers Plumbing and Heating Supply Company would hold up the monetary difference between the new cost of the 1300 approximate Water Heaters on order with Eepublic Heater Company, at the price those Water Heaters were ordered and at the price those Water Heaters would cost as a result of price increases which went into effect on November 1st. Mr. Stevens talked “have trust” and was advised that his company had not shown the proper attitude necessary to warrant them.
“(C) That any future Cleveland additional distribution would be okayed by Mr. Friedman of Consumers Plumbing and Heating Supply Company, before such distribution was com[516]*516menced, to prevent a reoccurrence of a similar situation to that prevailing.
“ (D) That Republic Water Heater Company was to refund to Consumers Plumbing and Heating Supply company the cash difference for two truck loads of Water Heaters purchased, from other sources, at the new higher price, and above that price for which the Water Heaters should have been shipped from Republic Water Heater Company. These heaters were necessary because of the refusal of the Republic Water Heater Company to make shipment to Consumers Plumbing and Heating Supply Company on specified orders. Mr. Stevens categorically denied any responsibility for obligation for this money.
“(E) That Republic Water Heater Company would refund to Consumers Plumbing and Heating Supply Company the amount of money rebated to Consumers Plumbing and Heating Supply Company’s customers which sum was necessary to refund to their accounts, in order that Water Heaters already delivered could be kept on the respective customers floors, and which refund was necessary because of the degeneration of the market for Water Heaters in the Cleveland area as a direct result of the operations of Gafney-Bierman Company. Any such obligation was again denied by Mr. Stevens.
“ (F) The Republic Heater Company would keep Consumers Plumbing and Heating Supply Company competitive in the future with all manufacturers selling Water Heaters in the general trading area, such as Morflow, Hotstream, Rheem, Cleveland Heater Company, Sands, White Heater Company, etc. This competitive condition was to be met immediately, and in the future at all times.
“(G) That Republic Water Heater Company would make Consumers aware of all advertising assistance available, such as post cards, service labels, catalogues, ad mats, etc.
“(H) That Republic Water Heater Company would extend the price protection date of all orders placed with Republic Water Heater Company by Consumers Plumbing and Heating Supply Company from December 31, 1958, by the number of days from October 31, 1958 (the date of the last stock shipment received) till the date of a letter from Republic [517]*517stating compliance with requests outlined by Mr. Friedman.
“(I) That Republic would offer continued service, usually prompt delivery, attendance to defective materials, local service, etc., as was necessary for continued satisfactory operation.
“(J) That Republic Heater Company and Consumers Plumbing and Heating Supply Company would have had their last misunderstanding, and that Consumers would be given the consideration due them as an outstanding distributor for Republic Water Heater Company.”

Three days after the conversation with Stevens, on December 9th, plaintiff shipped the heaters which are the subject of plaintiff’s claim 15 (Plaintiff’s Exhibit H).

On December 10, a balance was due on the account and on December 12 defendant purported to pay it, except that defendant held back $7,000 which was to be paid “when instructed by R. C. Friedman.”

Then, on December 19th, plaintiff’s vice president and general manager, William Lennon, wrote in a letter to Friedman, the following:

‘ ‘ This company is ready, willing and able to fulfill its legal obligations. Shipment of water heaters can be made under our terms and conditions of sale. We have certain orders from your company on file specifying quantities, model numbers, prices and job names, along with dates of completion. We are prepared to live up to the obligations of these orders.
“. . .

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Bluebook (online)
192 N.E.2d 132, 92 Ohio Law. Abs. 513, 24 Ohio Op. 2d 226, 1963 Ohio Misc. LEXIS 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-odin-appliance-corp-v-consumers-plumbing-heating-supply-co-ohctcomplcuyaho-1963.