Sappa v. Strite-Anderson Manufacturing Company

221 N.W.2d 660, 300 Minn. 116, 1974 Minn. LEXIS 1316
CourtSupreme Court of Minnesota
DecidedMay 10, 1974
Docket44269
StatusPublished
Cited by4 cases

This text of 221 N.W.2d 660 (Sappa v. Strite-Anderson Manufacturing Company) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sappa v. Strite-Anderson Manufacturing Company, 221 N.W.2d 660, 300 Minn. 116, 1974 Minn. LEXIS 1316 (Mich. 1974).

Opinion

Gordon L. McRae, Justice. *

Appeal by defendant from a judgment entered for plaintiff, Leon J. Cohen, following trial in district court of an action on a contract.

Richard F. Sappa and Leon J. Cohen (plaintiff) brought separate actions against defendant to recover commissions claimed to be due for services rendered in procuring for defendant a contract with A. C. Electronics Division of General Motors Corporation, a firm located in Milwaukee. These actions were consolidated for trial and were heard by the district court sitting without a jury. The trial court concluded that defendant was entitled to judgment against Sappa and that plaintiff Cohen was entitled to judgment against defendant in the sum of $12,000. The only appeal is by defendant from the judgment entered for plaintiff Cohen. In ordering judgment for plaintiff, the trial court found that he had performed services for defendant under an implied contract and that the reasonable value of these services was $12,000. We affirm.

Defendant, Strite-Anderson Manufacturing Company, is a closely held corporation involved in die casting and plastic molding. Richard F. Sappa was at the time involved herein a manufacturer’s representative for defendant within a designated territory. Plaintiff, 59 years of age at the time of trial, maintains *118 a business office in Minneapolis and had been involved in the mechanical trades and sales engineering for 30 years. In the early spring of 1966, plaintiff was personally acquainted with the officers of defendant and was familiar with its operations. In March 1966, while returning on an airplane from a business trip, plaintiff met a cost engineer from A. C. Electronics. That company had recently obtained a prime contract in the “M 905 fuse” program, its first ordnance venture requiring die cast components. Having learned in this meeting that A. C. Electronics was looking for a supplier of component parts, plaintiff arranged a meeting between officers of defendant and employees of A. C. Electronics. This meeting led to negotiations which culminated in defendant’s being awarded a contract calling for delivery to A. C. Electronics of die cast components for a sales price of $395,198. Plaintiff brought his action claiming an express agreement on the part of defendant to pay a 5-percent commission on the amount of the contract. It appears that prior to the commencement of the action defendant, conceding that plaintiff was entitled to be compensated for his services, had offered to pay him $500 as a “finder’s fee.” In its answer, however, defendant denied any agreement to pay a 5-percent commission and denied that the sales to A. C. Electronics had been made as a result of plaintiff’s efforts. On the claim made by Sappa under his contract as a manufacturer’s representative for commissions due in the same transaction, the trial court found for defendant.

Without further detailing the voluminous and often conflicting testimony, it can be said that the following evidentiary facts find support in the record: That plaintiff was responsible for defendant’s obtaining a substantial contract with A. C. Electronics ; that the services rendered by plaintiff were more than those of a mere “finder” and were, in fact, essentially those of a manufacturer’s representative; that plaintiff was qualified by training, experience, and knowledge of defendant’s business to perform the services of a manufacturer’s representative in this case; that defendant had stipulated with Sappa that if the *119 latter was entitled to any compensation for his services as a manufacturer’s representative for defendant in the A. C. Electronics transaction, the amount would be $11,895.18; and that, despite defendant’s claim that there was no customary commission for manufacturers’ representatives in the industry, there was a customary commission of 5 percent less tooling costs, which commission in this case would have amounted to approximately $18,700. At trial defendant’s officers conceded that plaintiff was entitled to some compensation. Opinion evidence relating to the value of plaintiff’s services ranged from $500 to $19,760.

Defendant concedes the fact of a contract but contends that the trial court erred in determining the amount due plaintiff under said contract. Thus, the sole issue presented is whether the evidence supports the trial court’s finding that services rendered by plaintiff on behalf of defendant had a reasonable value of $12,000. It is defendant’s position that the trial court accorded undue weight to, or treated as controlling, two items of evidence on the issue of damages and as a consequence ordered judgment in an excessive amount. These two items of evidence are (1) the stipulated amount that would have been due Sappa for his services as a manufacturer’s representative had he prevailed in his action and (2) the testimony relative to the customary commission rate for manufacturers’ representatives in the industry.

On the question of damages, both parties cite Stevens v. Wisconsin Farm Land Co. 124 Minn. 421, 145 N. W. 173 (1914), in support of their arguments on the propriety of the factors which may have been considered by the trial court in making its finding on reasonable value. In Stevens we held that it was error for the trial court to submit to the jury the issue of the reasonable value of plaintiff’s services under instructions which made the customary real estate broker’s fee determinative of the amount due plaintiff. However, we there said:

“* * * The question at issue was the reasonable value of the services of brokers in effecting an exchange of property. Any *120 evidence which would throw light on the value of the services was admissible. The time spent, the money expended, the amount involved, the results achieved, and customary charges for similar services, were all proper elements to be considered. Mechem, Agency, § 606; Clark & Skiles, Agency, § 353; Forsyth v. Doolittle, 120 U. S. 73, 7 Sup. Ct. 408, 30 L. ed. 586. In determining the value of the services of an agent, we cannot wholly ignore the benefit of those services to the principal. This is perhaps the most important of the several elements of value. The authorities sustain this position.” 124 Minn. 422, 145 N. W. 173.

Thus, the trial court did not err in receiving evidence as to the customary commission rate for manufacturers’ representatives in the industry. 1

Furthermore, it is apparent that the trial court did not treat this evidence as controlling or determinative of plaintiff’s rights. As earlier indicated, the evidence, though conflicting, would support a finding that the customary commission was 5 percent of $395,198, less tooling costs, or about $18,700. The trial court fo.und the reasonable value of plaintiff’s services in this case to be slightly less than two-thirds of that amount and, therefore, could not be said to have treated the customary commission as controlling.

Defendant further contends that the trial court adopted an improper measure of damages when it awarded as the reasonable value of plaintiff’s services the same amount which would have been due Sappa as a negotiated commission had the latter prevailed in the lawsuit.

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Bluebook (online)
221 N.W.2d 660, 300 Minn. 116, 1974 Minn. LEXIS 1316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sappa-v-strite-anderson-manufacturing-company-minn-1974.