Stoddart v. Key

62 How. Pr. 137
CourtNew York Supreme Court
DecidedJuly 1, 1881
StatusPublished
Cited by2 cases

This text of 62 How. Pr. 137 (Stoddart v. Key) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stoddart v. Key, 62 How. Pr. 137 (N.Y. Super. Ct. 1881).

Opinion

Van Vorst, J.

— The contract of the 9th day of June, 1877, by the terms of which the defendant Key agreed, for the consideration therein expressed, to serve the plaintiff in canvassing _ for and selling the American reprint of the Encyclopaedia Britannica,” was made in the state of Pennsylvania. Although the canvassing and selling under the contract was to be done by Key in the states of Hew York and Hew Jersey, yet he was to report to the plaintiff at Philadelphia, where the book was published, and from whence he was to receive his supplies.

By the agreement Key was to forward to the plaintiff, at Philadelphia, at the end of each week, the name and address of each subscriber secured by him during the previous week, and, as far as possible, the name and address was to be written on the “ Contract order ” prepared and furnished by the plaintiff.

These orders were to be held by the plaintiff as collateral ■security so long as Key should faithfully fulfill the conditions of his contract, and in case of the non-continuance of the agency by Key,, or his non-fulfillment of the conditions of the contract, the orders were to become the property of the plaintiff to the extent of Key’s indebtedness to the plaintiff, the balance of Key’s commission or earnings under the contract, after the payment of his debt, was to revert to him or his assigns.

After entering into the agreement Key proceeded to canvass for the work, and procured some one hundred and fifty subscribers, or thereabouts, to whom the work published by the plaintiff was delivered as the volumes were issued. The work was to run through twenty-one volumes. At the time the agency was abandoned by Key, as is hereinafter men[139]*139tioned, six volumes had been published and delivered to subscribers.

The evidence shows that Key did not make, as he was required to do, regular and accurate reports of the names of all the subscribers.

The construction to be given to the letter of Key, written on the 31st day of January, 1878, to the plaintiff, based upon its language and his subsequent conduct, is that he, on that day, for all practical purposes, abandoned the contract and his agency thereunder.

Before that day he had heard of a new enterprise which was being formed under the direction of the defendant Hall, which opened to him hopes in another direction, and disturbed his loyalty to the plaintiff and his particular work. He had evidently lost faith in the plaintiff’s success.

In this letter, Key alludes to this cheap English edition of the Encyclopaedia which Mr. Hall, who had just returned from Europe, was about to put upon the market.

In concluding his letter he says:

Since writing the above, I have determined to sell out and give up this business. If you want it, come or send on, and I will give you the figures which I will take. This is final.”

At this time Key owed the plaintiff about $1,400 for books delivered to him under the contract for subscribers.

By the terms of the agreement he had an interest in the commission earned by him, subject to the payment thereout of the moneys due from him to the plaintiff. It must be considered that it was such resulting interest only which he could sell to any person other than the plantiff. For it cannot be supposed that he - could sell the contract and substitute a third person in his place, to assume its burdens and reap its future advantages, without the plaintiff’s concurrence.

The natural effect upon the plaintiff of such a notification as was contained in the defendant’s letter of the thirty-first of January, would be to excite his apprehension and move him to prompt action.

[140]*140The plaintiff had a large amount already invested in this enterprise, and Key’s field of operation under the contract was important.

The notification contains a clear and unqualified expression of Key’s abandonment of the business and of his final determination to sell out. It contains an implication of a right to sell to others, for he says, if “you want it” come or send on and I will give you the figures.

There was no other course open to the plaintiff, under such circumstances, than to take the defendant at his word. Any delay or hesitancy would only imperil the plaintiff’s enterprise.

In reply to this letter the plaintiff immediately telegraphed the defendant that to “ secure a settlement ” he must come-to Philadelphia without delay, and bring his record books and accounts.

On the second day of February the defendant went to Philadelphia; and in an interview with the plaintiff he said he was troubled about the business, had decided to give it up, and was going to South America. He said he wanted to be paid for the orders he had obtained, and would sell out his interest for fifteen per cent of the prospective value of the volumes yet to be delivered.

The plaintiff at once accepted the defendant’s offer, and said he would pay him the fifteen per cent demanded, but would require the orders to be proved by the delivery of one volume on each order.

This requisition, which must be considered as reasonable, the defendant refused. He said he wished to be settled with and immediately receive his money.

Plaintiff stated that in that way he might be paying for something that did not exist, but would adjust the matter in the way he mentioned. Ho such result being reached, the plaintiff said his business in Hew York must be protected, and that he would at once procure some other person to attend to it.

To this the defendant objected, saying that the plaintiff [141]*141should do nothing towards carrying on his business until he had settled with him.

Plaintiff at once appointed a person in Hew York to attend to his affairs. Key gave no further attention to his duties under the contract, but did enter into arrangements with Hall, the effect of which, if successful, will prove destructive to the plaintiff’s rights under the contract and injurious to his enterprise in general.

The subsequent action of Key clearly enough shows that he entertained no idea of going to South America, and that it was simply assigned as a plausible reason for abandoning his contract with plaintiff. His action afterwards shows that it was his then intention to enter into the service of Hall, and under him circulate the rival edition of the Encyclopaedia, to the exclusion of the plaintiff’s work. This secret purpose led him without doubt to reject the plaintiff’s reasonable request to test the accuracy of his orders by the delivery of one volume of the work, as a basis of fixing the fifteen per cent upon future deliveries.

That it was the purpose of the defendant Hall to injure the plaintiff’s enterprise appears by the evidence of Alvin J. Johnson, which is not contradicted.

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Related

American Law Book Co. v. Edward Thompson Co.
41 Misc. 396 (New York Supreme Court, 1903)
Keogh v. Main
18 Jones & S. 183 (The Superior Court of New York City, 1884)

Cite This Page — Counsel Stack

Bluebook (online)
62 How. Pr. 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stoddart-v-key-nysupct-1881.