Skimin v. Fuelgas Co.

64 N.W.2d 666, 339 Mich. 523, 1954 Mich. LEXIS 458
CourtMichigan Supreme Court
DecidedJune 7, 1954
DocketDocket 75, 76, Calendar 46,139, 46,140
StatusPublished
Cited by7 cases

This text of 64 N.W.2d 666 (Skimin v. Fuelgas Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skimin v. Fuelgas Co., 64 N.W.2d 666, 339 Mich. 523, 1954 Mich. LEXIS 458 (Mich. 1954).

Opinion

Boyles, J.

This is an appeal by the defendant Fuelgas Company from a decree for the plaintiff Jesse E. Skimin, doing business as Huron Hardware, being successor in interest to Huron Hardware, *525 a copartnership, and having been duly substituted as party plaintiff, in a chancery case heard by the trial court concurrently with a replevin suit started by the defendant Fuelgas Company against Huron Hardware, in which the hardware company had judgment. Both cases involve the same transactions.. The decree in the chancery case adjudicates the entire matter by talcing into consideration the judgment in replevin in favor of the defendant in replevin, Huron Hardware. By stipulations, the entire matter was consolidated for hearing by the trial court,, and likewise consolidated here for decision on this appeal. The trial court entered a decree for this plaintiff, Huron Hardware, in the chancery case, which covered the judgment for Huron Hardware as the defendant in replevin.

Plaintiff Huron Hardware was a copartnership engaged in the retail hardware business at Oscoda, in Iosco county. The defendant Fuelgas Company is a corporation located at Flint, Michigan, selling bottled propane gas. For clarity, the plaintiff on this appeal will hereinafter be referred to as the hardware company, and the defendant Fuelgas corporation as the fuelgas company.

On May 5, 1949, the hardware company filed a bill of complaint in the circuit court for Iosco county in chancery to enjoin the fuelgas company from making false statements and for damages for illegally interfering with hardware company’s business, for an accounting to determine what was due it from their business transactions, and for a decree for the payment thereof. Two days later the fuelgas company obtained from said court a writ of replevin directing the sheriff to take into custody certain fuel-gas containers and regulators then in possession or control of the hardware company and deliver the-same to the fuelgas company upon security given as required .by law. Later, a return was waived *526 and a money judgment for the value asked. On the hearing of a motion to dismiss the replevin case, the court ordered it held in abeyance pending determination of the chancery case.

The litigation arises out of a written contract entered into by the parties in 1946, which designates the hardware company as an authorized fuelgas distributor for fuelgas company, to sell fuelgas and fuelgas appliances in Oscoda and surrounding territory. Thereafter, fuelgas company furnished the hardware company with its product, which the hardware company sold and distributed under the contract until in April, 1949, at which time hardware company notified fuelgas company that it was cancelling the contract, which both parties had the right to do upon notice, without good cause. The hardware company claimed that fuelgas company had breached the contract to furnish bottled gas and appliances, in many particulars. Upon the cancellation, both parties engaged in a bitter conflict for the customers for bottled gas which had been obtained by the hardware company.

The trial court, after an extended hearing, taking testimony applicable to both cases, entered judgment in the replevin case that fuelgas company was the owner of the property, that hardware company had a lien thereon, that the value of the property was $2,310 and the amount of the lien $3,157.60; that the defendant recover from the plaintiff therein $2,310.

In the chancery case, the trial court entered a decree enjoining the fuelgas company from making false statements about the hardware company or employing unfair trade practices, holding that the hardware company had sustained actual damages amounting to $1,516.85 as the result of the fuelgas company’s misconduct, that the fuelgas customers which’ the hardware company had obtained were *527 the hardware’s customers, not those of the fuelgas company, that the hardware company was entitled to repayment of $2,955.41 paid by it to fuelgas company as “deposits” on certain pressure tanks and equipment, less $2,310 which the court found to be due the hardware company in lieu of return, leaving a balance of $645.41 being owed by the fuelgas company to the hardware company on that account. The decree ordered the fuelgas company to pay the hardware company said sums of $1,516.85 and $645.41, totaling $2,255.36 together with interest. The fuel-gas company appeals.

The first question raised by appellant for reversal is as follows:

“Were the sums of money paid to appellant, Fuel-gas Company, Inc., by appellee, Huron Hardware, at time appellee obtained tanks and utilization equipment from appellant ‘deposits,’ and, as such, returnable to appellee when it surrendered the tanks and equipment, or were the said sums ‘prepaid rentals,’ to be retained by the appellant?”

Appellant claims that these sums of money paid to appellant by appellee were “prepaid rental” to be retained by the appellant. The trial court held otherwise, and decreed that the money belonged to the hardware company, that it had been paid to appellant as a security deposit to insure return of its property.

The provisions in the contract which control the decision of this question are as follows:

“1. The company (Fuelgas) hereby designates the distributor (Huron Hardware) as an authorized Fuelgas distributor at the town named above with the right, but not exclusive, to sell and distribute fuel-gas and fuelgas appliances in said town and surrounding local trade area under the terms and conditions herein stated; * * *

*528 “3. All fuelgas containers shall remain the property of the company, and the distributor shall account for and return to the company as promptly as possible all such containers, including those in the custody of distributor’s customers. A reasonable charge based upon its replacement value will bo made for each container when' shipped to the distributor, same to be cancelled upon its return to the company; and if not returned within 12 months from date of shipment to distributor, then the company may require the distributor to pay such reasonable charge or a monthly rental to be fixed by the company until such container is returned.

“4. Fuelgas utilization equipment will be consigned to the distributor for distribution to fuelgas consumers in accordance with terms fixed from time to time by the company. The distributor will make a cash deposit on each such equipment, the amount thereof to be fixed by the company. All such equipment and parts thereof shall remain the company’s property.”

We agree with the trial court that the contract itself negatives appellant’s claim that this money was paid for rental of equipment. Under the contract, fuelgas company was allowed to make a reasonable charge for containers, based on replacement value, to be “cancelled” upon their return to it. Hardware company was required to pay a “monthly rental” only on such containers as were not returned within 12 months. As to the other fuelgas equipment, the same purport was indicated in paragraph 4 of the contract. Hardware company was required to make a “cash deposit” on such equipment, in an amount to be fixed by fuelgas.

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Cite This Page — Counsel Stack

Bluebook (online)
64 N.W.2d 666, 339 Mich. 523, 1954 Mich. LEXIS 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skimin-v-fuelgas-co-mich-1954.