Samuel Haas Trimmed Hat Co. v. Service Ass'n

297 S.W. 129, 222 Mo. App. 307, 1927 Mo. App. LEXIS 174
CourtMissouri Court of Appeals
DecidedJune 27, 1927
StatusPublished
Cited by3 cases

This text of 297 S.W. 129 (Samuel Haas Trimmed Hat Co. v. Service Ass'n) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samuel Haas Trimmed Hat Co. v. Service Ass'n, 297 S.W. 129, 222 Mo. App. 307, 1927 Mo. App. LEXIS 174 (Mo. Ct. App. 1927).

Opinions

ARNOLD, J.

— This is an action pleaded in equity, seeking to have a statement in a contract entered into between plaintiff and defendant, Service Association, to be a declaration of a voluntary, written express trust; and to have another statement in said alleged contract, as and to be an acceptance of said trusteeship by the defendant, Home Trust Company.

The defendant, the Service Association, was a corporation, and at the time in question, engaged in the business of a sort of collecting agency, selling its service to such persons or corporations having accounts for collection, the charge for such services depending upon the number of accounts to be collected. Tt appears the service consisted of a system of notices to be sent out by the owners of the accounts and under certain conditions, notices sent out by the Association. If a prospective purchaser of the system had, say 200 accounts, he would buy the system to cover the said 200 accounts, and pay the- Service Association the price of that system, and if, after the purchaser had followed the instructions printed on the books of the system, and after he had used the system on the total number of accounts, for which the same was sold, a specified amount was not collected, the Association agreed to pay the purchaser the difference between the amount actually collected and the aggregate amount fixed by the contract.

Defendant, the Home Trust Company, a corporation, had its home office and place of business at Kansas City, Missouri, and was the depository of the Association, in so far as the questions involved herein are concerned.

Plaintiff is a corporation engaged in thé millinery business in the city of St. Louis, Missouri, where it operated, owned and controlled some seven subsidiary firms at different locations in said city.

*310 On or about September 21, 1923, plaintiff, through its agent and representative, one William Dick, and one E. H. Flood representing the Service Association, signed a contract whereby plaintiff purchased from the Association its system covering 1200 accounts, and in the agreement, the Association agreed to pay plaintiff the difference between the money actually collected and $1600, provided the entire system was used. The testimony in plaintiff’s behalf showed that it had used the system on only 162 of the said accounts, and thereupon urged that it had complied with the contract, and brought tips action to recover the sum of $1600, no collections having been realized from the use of the system.

The contract upon which the suit is based, as shown by the petition, is as follows:

“Capital $100,000 Fully Paid

“THE SERVICE ASSOCIATION

“Make Checks Payable to The Service Association.

“(System and Service Protection.)

“System and Service will be Furnished

“From Kansas City, Mo.

“ (Incorporated)

“Fourth Floor, N. Y. Life Bldg.

“Kansas City, Missouri.

“IN CONSIDERATION

“of the sum of two hundred dollars ($200), paid to The Service Association, this 21st day of September, 1923, membership for a period of one year in said Association is hereby extended to Samuel Haas Trimmed Hat Company, Street, Jefferson & Locust, City, St. Louis, State, Missouri, which entitles said member to the use of One Copyrighted System and Service as Furnished with this membership by the said Association, which guarantees to pay to said member in CASH, 150 days from date of this contract, any difference between the amount actually collected through the use of this SYSTEM and SERVICE and ($1600) SIXTEEN HUNDRED DOLLARS. Said Member hereby agrees to cooperate with the Association and use the System and Service furnished according to instructions on the front page of the System.

“As evidence of Good Faith The Service Association has deposited with the HOME TRUST COMPANY of Kansas City, Mo., a special fund that we have set aside as a reserve to pay same in satisfaction of any claim in accordance with this guarantee.

'“THE SERVICE ASSOCIATION, in consideration of this membership, do hereby agree to allow full credit on the unused portion of the System and Service furnished with the membership at the end of one vear on renewal of membership in said Association,

*311 “THE SERVICE ASSOCIATION

“E. L. Neff, President,

“E. A. Noel, Sec’v & Treas.

“MEMBER

“Samuel Haas Trimmed Hat Company,

“By William Dick.

“Submitted by E. H. R. Flood,

‘ ‘ Representative. ’ ’

From plaintiff’s statement of fa.cts we quote the following:

“The ‘Certificate of Deposit,’ hereinafter called the certificate, . copy of which is printed on the document in question, was originally executed by defendant, Home Trust Company, hereinafter called the bank, on August 1, 19-23, on a letterhead of the bank, unattached to any contract and delivered to the Association without any restrictions imposed as to its use.”

From the last-quoted statement, it seems the certificate of deposit was unattached to the contract between plaintiff and the Association, but was written on a letterhead of the Trust Company, without any instructions as to its use. It appears that at the time the parties signed the printed form, or contract, plaintiff executed two written letters which were delivered to the Association’s agent, Flood, and attached to the printed form, as follows:

“Sept. 21, 1923.

“The Service Association,

“Kansas City, Mo.

“It is understood that should any of the claims submitted return unsold stock, no collection fee will be charged. .

“Tours very truly,

“Samuel Haas Trimmed Hat Co.”

‘ ‘ Gentlemen :—

“Claims on attached contract will be submitted by us as.well as the following firms, which are our subsidiaries.

“Betty Jane Style Shops,

“Jefferson Avenue, at Locust Blvd.

“Lily Trimmed Hat Co.,

“226-28-30 St. Charles St.

“Columbia Trimmed Hat Co.,

“400-02-04 No. Jefferson Ave.

“Banner Trimmed Hat Co.,

“2325-27-29 Locust Blvd.

“Crown Millinery Company,

“N, E- Corner Jefferson & Locust Blvd,

*312 “St. Louis Trimmed TIat Co.,

“Jefferson Ave., Locust & St. Charles.

“Liberty Trimmed Hat Co.,

“S. B. Corner Jefferson & St. Charles.

“Samuel Haas Trimmed Hat Co.

“"William Dick.”

The certificate of deposit, upon the terms of which, plaintiff bases its action against defendant, the Home Trust Company, is as follows:

“Certificate of Deposit

.“To The Members.-

“’Kansas City, Mo., August 1, 1923/

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Bluebook (online)
297 S.W. 129, 222 Mo. App. 307, 1927 Mo. App. LEXIS 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuel-haas-trimmed-hat-co-v-service-assn-moctapp-1927.