Sevener v. Northwest Tractor & Equipment Corp.

247 P.2d 237, 41 Wash. 2d 1, 1952 Wash. LEXIS 407
CourtWashington Supreme Court
DecidedAugust 7, 1952
Docket31934
StatusPublished
Cited by23 cases

This text of 247 P.2d 237 (Sevener v. Northwest Tractor & Equipment Corp.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sevener v. Northwest Tractor & Equipment Corp., 247 P.2d 237, 41 Wash. 2d 1, 1952 Wash. LEXIS 407 (Wash. 1952).

Opinion

Donworth, J.

Plaintiff was, at the time this controversy arose, a salesman employed by defendant, a Washington corporation engaged in the buying and selling of machinery. He sought in this action to recover a commission of $24,562.44, which he allegedly earned in finding a buyer for eighty-six tractors pursuant to his contract of employment, or, in the alternative, that he be awarded the reasonable value of his services in finding a buyer at the special instance and request of defendant.

In his amended complaint, plaintiff alleged, as a first cause of action, his employment, that his compensation was five per cent of the gross sale price of machinery sold to buyers found by him, and that Frank Murphy, an officer of defendant corporation, requested him, early in May, 1947, to find buyers for machinery and equipment which had been acquired by a Philippine corporation having the same name as defendant. He further alleged that Murphy then informed him that he would be protected in connection with such sales, which was intended to mean, and which plaintiff took to mean, that he would receive his regular commission of five per cent of the gross sales price, but that thereafter, about July 1, 1947, Murphy told him his compensation for sales of the Philippine corporation machinery would be at the rate of five per cent of sixty-five per cent of the factory list price of the machinery, and that sales would have to be made at a price equal to or in excess of sixty-five per cent *4 of the factory list price in order for him to receive a commission.

Plaintiff then alleged in some detail the means by which he secured a buyer who, on or about June 25, 1947, purchased from the Philippine corporation eighty-six tractors for a total price of $491,248.82, which was equal to sixty-five per cent of the factory list price of the tractors, and that he had demanded and defendant had refused to pay him his commission thereon. He further alleged that defendant and the Philippine corporation of the same name were joint venturers, and that the sale of the eighty-six tractors was consummated in the course of the joint venture.

In his second cause of action, plaintiff pleaded that, at the special instance and request of defendant, he found a buyer for the tractors and that'the reasonable value of his services was $24,562.44.

• In its answer, defendant denied all the material allegations of the amended complaint and pleaded as affirmative defenses that the tractors were owned by Northwest Tractor & Equipment (Phil.) Corp. or another Philippine corporation, Northwest Commercial Corp.; that defendant was not entitled to and did not benefit from the sale; that Murphy was not authorized by defendant to make any agreement to pay commission upon sales of machinery belonging to the Philippine corporations and that any such agreement made by Murphy was not binding upon defendant; that plaintiff was not authorized to employ subagents in selling or to determine the terms upon which sales would be made by the Philippine corporations.

It does not appear from the record that plaintiff made any reply to these affirmative defenses.

The action was tried before the court sitting with a jury. Defendant’s challenge to the sufficiency of the evidence and' motion for dismissal at the close of plaintiff’s case was denied, as was its motion for a directed verdict at the conclusion of the trial.

The jury returned a verdict for plaintiff for the full amount prayed for. Defendant’s motion for judgment notwithstanding the verdict or in the alternative for a new' *5 trial was denied by the court, and from a judgment subsequently entered upon the jury’s verdict defendant has appealed.

The factual background of this controversy is an extremely complicated one. To attempt to describe the details of the business relationship of the parties and their connection with the sale of these tractors would unduly extend this opinion and would serve no useful purpose. The testimony introduced was in direct conflict upon the material issues presented. The jury had the right and duty to determine the factual issues under proper instructions. We, therefore, confine our discussion of the facts to those necessary to an understanding of appellant’s assignments of error.

At the conclusion of World War II, the United States had a large quantity of military equipment located in the Philippines. Approximately $630,000,000 worth of this equipment was declared to be surplus and given to the Philippine government, which in turn sold some of it to private buyers.

Bernard Campbell and Frank Murphy were, prior to July, 1946, equal partners engaged in the business of buying and selling machinery in Seattle. At that time, they incorporated their business as Northwest Tractor and Equipment Corp., appellant in this action. Except for one qualifying share, Campbell and Murphy owned all the stock of appellant, which was divided equally between them. Campbell was president and Murphy, vice-president of appellant corporation.

In August, 1946, respondent was employed by appellant as its sales manager and only salesman. The oral agreement whereby he was employed provided that he should be paid a commission of five per cent of the gross sales price of all machinery he sold. Murphy and Campbell maintained at the trial of this action that respondent did not become entitled to and did not receive commissions for merely finding buyers; that he was paid commissions only for sales that he consummated. Respondent testified that he was paid commissions whether he merely found buyers or whether he performed other duties in order to consummate sales. Re *6 spondent was paid a minimum salary of two hundred dollars per month, which was charged against commissions earned. At all times material to this controversy, machinery and tractors were in short supply and buyers were frantically trying to buy.

In February, 1947, Campbell went to the Philippines to investigate the possibilities of buying surplus army equipment which had been turned over to the Philippine government. Shortly after he arrived in Manila, he learned that a certain lot of equipment (designated as depot 16), consisting of approximately two hundred tractors besides cranes and other heavy machinery, would soon be offered for sale by the Philippine government. Both Murphy and Campbell inspected depot 16 and decided to acquire it, if possible. They considered having the purchase made through appellant corporation, but upon advice of their attorneys and accountants and in compliance with the wishes of others whom they had secured to associate with them in the venture, they decided to form a Philippine corporation for the purpose of buying depot 16. One of the principal reasons for organizing a new corporation was to reduce their tax liability.

On or about May 20, 1947, Northwest Tractor & Equipment (Phil.) Corp. (herein referred to as the Philippine corporation) was incorporated under the laws of the Philippine Islands for the purpose of buying depot 16. Shortly thereafter, another Philippine corporation, Northwest Commercial Corp., was formed for the purpose of engaging in general trade and acting as selling agent for the first mentioned corporation.

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Bluebook (online)
247 P.2d 237, 41 Wash. 2d 1, 1952 Wash. LEXIS 407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sevener-v-northwest-tractor-equipment-corp-wash-1952.