Rogers v. Frank Lyon Company

489 S.W.2d 506, 253 Ark. 856, 1973 Ark. LEXIS 1674
CourtSupreme Court of Arkansas
DecidedJanuary 29, 1973
Docket5-6082
StatusPublished
Cited by13 cases

This text of 489 S.W.2d 506 (Rogers v. Frank Lyon Company) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Frank Lyon Company, 489 S.W.2d 506, 253 Ark. 856, 1973 Ark. LEXIS 1674 (Ark. 1973).

Opinion

John A. Fogleman, Justice.

Frank Lyon Company recovered judgment for $2,207.94 in a suit on open account against Robert T. Rogers doing business as Rogers Hardware and Lumber Company. Appellant contends that the judgment is not supported by substantial evidence and that the circuit judge erred in overruling his motion for new trial. We find no reversible error.

Appellee offered numerous appliance shipping orders to sustain its allegations that Rogers was indebted to it in the total sum of $5,679.22 for merchandise sold and delivered to the Rogers Hardware and Lumber Company during 1969 and 1970. These were introduced through Owen Morrow, Manager of Credit Sales for appellee. Appellant argues that appellee failed to meet its burden of proof because the witness had no personal knowledge of the transactions purportedly reflected by those records. The records showed that some of the merchandise was sold to another party, and no proof of actual delivery of the merchandise was offered.

Morrow was the custodian of the records introduced, and stated that he was familiar with the account, which had originated in 1966 or 1967. He testified that the records introduced were kept in the regular course of business. Morrow explained the process followed by appellee in reference to this and other accounts as follows: Each invoice originates from a phone call from Rogers or one of his employees or from Lyon’s representative in the territory, and orders were filled by shipping merchandise from Lyon’s Fort Smith or Little Rock branch to Rogers Hardware Company. The invoices were supported by “appliance shipping orders” based on these orders and were prepared on multi-copy forms, the original being kept in the Lyon Company files, the first copy accompanying the shipment to the customer, the second kept in the credit files and the third kept in the accounting files. The company’s computer then posted each invoice to the purchaser’s account and billed the customer at the end of each month. An IBM copy of the invoice was transmitted to the customer on the day following its processing.

Morrow identified an IBM summary of the Rogers account, a copy of which he said was mailed to the customer. Copies of appellee’s shipping orders and the computer print-out of the Rogers account showing a balance due amounting to $5,679.22 were admitted into evidence. The last date the records of the Rogers account indicated shipment of merchandise to Rogers was July 7, 1970, and the last credit appearing on the account was for $82.96 entered on March 16, 1971. Morrow also identified a memo from Rogers dated September 15, 1970, and testified that he had no recollection of any item of the account having been questioned by any Rogers employee and that the files did not indicate any such question. One invoice for $1,799.55 dated November 24, 1969, for merchandise shipped to Hiwasse Homes was originally charged to Rogers’ account, but for some reason Morrow could not readily explain was transferred to an account of Hiwasse Homes, established February 9, 1970. Other invoices of $199.95 and $1,920. Morrow said, were also transferred to Hiwasse Homes. Morrow stated that Charles E. Simms was credit manager of Frank Lyon Company, and, as such, in charge of the overall extension of credit and collections at the time of the transactions with Rogers, and that he (Morrow) handled distressed accounts and had nothing to do with this account during 1969 and 1970.

Five of the orders totalling $4,665.10 indicated upon their faces that they were for goods sold to Borg-Warner Acceptance Corporation. Morrow had no connection with the shipping department and no personal knowledge of the shipping of the merchandise represented by any of the written orders. His entire testimony was based upon company records. A statement of the account showing a balance due of $2,329.14 was exhibited on cross-examination of Morrow, who said that it was prepared by Sims on August 27, 1970. During cross-examination Morrow also identified a copy of a letter of November 17, 1970, addressed to Rogers, stating that the account amounted to $2,133.40; a computerized statement dated December 24, 1970, reflecting a balance of $1,885.05; and a statement of May 26, 1971, showing a credit balance of $21.20. Morrow explained that one of the Borge-Warner invoices (for $1,265.55) was for merchandise to be sold to Borg-Warner and shipped to Rogers by agreement among the parties, but charged to Rogers when Borg-Warner refused to accept it.

Rogers denied owing appellee for invoices for $203.83, $1,265.55, $404.90 and $169.95, totalling $2,044.23, saying that he had paid Borg-Warner for them but could not say whether he actually received the merchandise or not. Morrow testified that Borg-Warner refused to finance these purchases by Rogers on a floor plan and that the records showed that the merchandise was then charged to Rogers and a corrected billing sent to him.

He explained that the three merchandise orders for a total of $3,919.50 were charged to Hiwasse Homes, after he advised Sims that the refrigerators listed on them had actually been shipped to Hiwasse Homes. He said that Sims left trade acceptances dated July 15, 1970, for this merchandise for signature by Hiwasse Homes and transferred the items to the Hiwasse Homes account in 1969, but it is admitted that the acceptances were never signed and returned to appellee. Morrow testified that the transfer of these charges to the Hiwasse Homes account was made when the trade acceptances were prepared. Rogers stated that these invoices were not again charged to his account until after the suit was filed and denied that he had ever agreed to pay for this merchandise. According to Rogers he was the owner of 54% of the stock of Hiwasse Homes, organized in November of 1969, and Rogers Hardware Company made some sales to Hiwasse Homes in 1970. Each appliance shipping order reflected a date of shipment, and a bill of lading number. Most orders indicated the identity of the carrier.

The records introduced through Morrow were properly admitted in evidence under Ark. Stat. Ann. § 28-928 (Repl. 1962). See Walker v. State, 241 Ark. 300, 408 S.W. 2d 905, appeal dismissed, 386 U.S. 682, 87 S. Ct. 1325, 18 L. Ed. 2d 403 (1967); Swafford Ice Cream Company v. Sealtest, 252 Ark. 1182, 483 S.W. 2d 202. Morrow’s lack of personal knowledge might have affected the weight given his testimony, but not its admissibility. The jury might well have found for appellant on the testimony offered, or returned a verdict for appellee in some lesser amount, but we cannot say that there was no substantial evidence to support the verdict. While we cannot say how the jury arrived at its verdict, it is obvious that it found for Rogers on items totalling $3,471.28, since the verdict was that much less than the amount indicated by the statement on which appellee sought to recover.

Judgment on the jury verdict rendered December 3, 1971, was entered on January 13, 1972. On February 8, 1972, appellant filed a motion for new trial on account of newly discovered evidence.

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Bluebook (online)
489 S.W.2d 506, 253 Ark. 856, 1973 Ark. LEXIS 1674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-frank-lyon-company-ark-1973.