Schonwald v. F. Burkart Manufacturing Co.

202 S.W.2d 7, 356 Mo. 435, 1947 Mo. LEXIS 584
CourtSupreme Court of Missouri
DecidedApril 21, 1947
DocketNo. 39708.
StatusPublished
Cited by25 cases

This text of 202 S.W.2d 7 (Schonwald v. F. Burkart Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schonwald v. F. Burkart Manufacturing Co., 202 S.W.2d 7, 356 Mo. 435, 1947 Mo. LEXIS 584 (Mo. 1947).

Opinion

*441 HYDE, J.

This is an action for damages for breach of contract. Plaintiff obtained a verdict for $109,664.68. Defendant has appealed from the judgment entered.

Defendant contends that plaintiff failed to make a case for the jury. The following facts appear from a consideration of the evidence from the view most favorable to plaintiff. Late in 1942, the use of leather was restricted by the United States Government because of war needs. Leather shoes were rationed early in 1943 and the shoe industry began to look for substitutes for leather and rubber (also restricted) to use for shoe soles for non-rationed shoes. Plaintiff had been in the shoe business for twenty years as sales representative for shoe manufacturers. He said that he began experimenting with various materials in- March 1943 to develop a synthetic sole. In April, while in an eastern shoe factory, he noticed that a pyroxylin compound was used to cement shoe soles to uppers. He decided to experiment with *442 it for the purpose of laminating materials, other than leather, to get the necessary thickness for shoe soles. When he returned to St. Louis in May, he got' some pyroxylin 'cement from the Compo Shoe Machinery Company which manufactured it under the name of Compo Cement. He began experimenting with a few-yards of cotton duck, which he had obtained from a tent company. He made these experiments in the basement of the apartment building where he lived, dipping pieces of the material into pans of pyroxylin, hanging them up to dry; then putting a weaker pyroxylin solution on them and sticking them together under pressure with a hand press which he bought from a bookbinding supply company. He found that he was able to get a successful lamination of three thicknesses of canvas which would have the proper thickness and strength for use as a shoe sole. Plaintiff learned that pyroxylin was composed of materials not essential to the war effort so that an ample supply was available. This was not true of some other kinds of cement which might have been suitable.

During the time plaintiff was working on this canvas sole he also attempted to develop a rope sole. He went to Mr. Harry Burkart, President of defendant, to see if he could purchase sisal, which is a fiber in the nature of hemp; and to see if they could weave the fiber so that it could be used for a sole. Defendant was a large user of sisal in connection with its fiber upholstery business, for automobiles, mattresses and furniture, which was its principal business. However, he found that sisal was also restricted because of war use. In his conversation with Mr. Burkart concerning-his proposed rope sole, plaintiff also mentioned his laminated duck sole. Mr. Burkart was very much interested and wanted to know about it. Plaintiff said that he would tell him about it if he promised to make it exclusively for him. Mr. Burkart said he could not promise to manufacture it, but if they did make it, they- would make it only for him. Plaintiff then came back the next day and showed him samples of his material. This occurred during the first week of June 1943. Mr. Burkart called defendant’s production manager, Mr. R. B. Morrow, and asked plaintiff to work with him to see if they could use the material for large volume production of shoe soles. Early in 1943, defendant had undertaken to make a cloth sole for a Nashville, Tennessee, company, using lighter cloth and a different type of cement, laminated under heat; but had never gone into production on it and had given up this project before plaintiff talked to Burknart. Plaintiff and Morrow worked for a period of about six weeks before obtaining proper lamination by his process under the conditions in defendant’s factory. One trouble first encountered was that too much pressure was used by the press available there, so that it squeezed out too-much of the cement, and the material would not stick. There was also difficulty in getting the best consistency of the pyroxylin and in finding how to put it on *443 tlie doth with rollers which would spread it evenly. Pyroxylin was composed of cellulose nitrate and was very inflammable so that there was a fire hazard to be considered in the operations. Plaintiff had contacted Mr. Israel Dennis of the Dennis Chemical Company and found that he could furnish the pyroxylin required for large scale production. He introduced Dennis to Morrow, and Dennis made suggestions about the use of pyroxylin and assisted them in their experiments.

During this period plaintiff had some shoes made up with the laminated duck soles and used them as samples in contacting shoe manufacturers. About the middle of July, plaintiff and Morrow told Burkart that they were able to make satisfactory soles, and were ready to go into production. Plaintiff said that he was ready to begin selling them, and asked Burkart what they would charge him for the soles. It was intended at that time that plaintiff would buy defendant’s product as a jobber and sell the soles to the shoe manufacturers. Burkart said they couldn’t fix the price until they had determined their cost by making a production run. He asked plaintiff what he thought he could get. Plaintiff suggested $1.50 per sheet of a size sufficient to make four pairs of soles. Burkart suggested that plaintiff bring him an order on which they could make a production run. Plaintiff had been sampling the trade during the six weeks experimental period and immediately obtained an order for 100,000 pairs of soles, 25,000 sheets, from the Lown Shoe Company of Auburn, Maine. Burkart refused to accept this offer. He said: “After all, we don’t know what this sole is. We have never been in the shoe business, and we have only your word for it that this is a good sole. ’ ’ He said he would not ship that much merchandise clear to Maine when it was a product he didn’t know anything about, because it might either be shipped back or he might have to send men there to make adjustments. He told plaintiff to see if he could get some orders for 1000 to 1500 sheets from local shoe companies.

Plaintiff did get such local orders and after some of them were filled Burkart set a price of $1.26 per sheet to plaintiff. He asked plaintiff what he would sell them for and he told him $1.50 to larger users and $1:65 to smaller ones. Burkart and Mr. H. W. Hagnauer, vice-president and sales manager of defendant, suggested to him that it would be better to make a lower price because the demand would be greater. Hagnauer suggested that they be sold at $1.40 per sheet, and that instead of defendant selling it to him for resale, plaintiff should sell it for defendant and they would bill it and pay him 10 °/0 as commission and royalty. Plaintiff asked what the objection was to him selling it and billing it. Burkart said that plaintiff did not have the organization to do it; and Hagnauer said that production would involve a lot of money, and that it would be better for plaintiff to sell it for them. Plaintiff asked to have an agreement in writ *444 ing; but Burkart said this was not necessary, saying: “You brought this to us and if it weren’t for you we wouldn’t be in it. We are making this for you exclusively and all you have to worry about is selling it.” Plaintiff said: “Under no circumstances are you to allow anyone else to sell it or are you allowed to make it for anyone else.” Mr.

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Bluebook (online)
202 S.W.2d 7, 356 Mo. 435, 1947 Mo. LEXIS 584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schonwald-v-f-burkart-manufacturing-co-mo-1947.