Sunset Oil Co. v. Vertner

208 P.2d 906, 34 Wash. 2d 268, 1949 Wash. LEXIS 529
CourtWashington Supreme Court
DecidedJuly 28, 1949
DocketNo. 30859.
StatusPublished
Cited by14 cases

This text of 208 P.2d 906 (Sunset Oil Co. v. Vertner) 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
Sunset Oil Co. v. Vertner, 208 P.2d 906, 34 Wash. 2d 268, 1949 Wash. LEXIS 529 (Wash. 1949).

Opinion

Beals, J.

At all times herein mentioned, Sunset Oil Company, the plaintiff in this action, has been and is a corporation organized under the laws of the state of California, and authorized to do business in the state of Washington. Sunset Gas & Oil Company is a Washington corporation and a distributor for Sunset Oil Company.

June 9, 1945, Sunset Gas & Oil Company (herein referred to as Sunset Gas or seller) entered into a written “distributor’s agreement” with Fred R. Vertner (the defendant herein) and Stanley A. Pemberton, copartners engaged in the business of selling petroleum products and other mer *271 chandise in the city of Yakima and vicinity, under the name of Marine Oil Company (referred to in the agreement as “distributor”).

By the terms of this contract, the partnership agreed to purchase exclusively from Sunset Gas lubricating oils, gasoline, and other petroleum products for resale within a described area in Yakima county, during the period beginning June 9,1945, and ending May 31,1950.

In September, 1945, Mr. Pemberton sold his interest in the partnership to Mr. Vertner, and, in this opinion, we shall refer to Marine Oil Company as Vertner or distributor.

By the agreement above referred to, Vertner agreed to purchase each calendar month during the term of the agreement certain minimum quantities of petroleum products, namely, fifty thousand gallons of gasoline, one hundred gallons of lubricating oils, and fifty gallons of grease, the gasoline to be purchased at a price six and one-half cents per gallon less than the seller’s posted retail price. The prices to Vertner of the other products were fixed by standards set forth in the agreement.

By paragraph No. 5 of the contract, in consideration of the seller’s covenant to refrain from selling any of its branded products described in the agreement to third parties within the described territory, Vertner agreed not to “handle, directly or indirectly,” any petroleum products for sale or distribution within this territory other than those secured from seller, pursuant to the contract.

By paragraph No. 7, Vertner agreed to pay cash for all purchases at the time of delivery, unless otherwise agreed in writing by seller’s credit department.

Paragraph No. 8 of the agreement stated that Vertner understood that, pursuant to the provisions of the “Fair Trade Act,” the seller had certain rights and privileges relating to resale prices, Vertner agreeing not to sell the products which he purchased from seller at less than the seller’s posted service station tank wagon prices,

“. . . unless said sales are made at retail, in which event Distributor agrees that he will not sell such products *272 at less than the posted retail price established by Seller from time to time for the place of resale.”

By paragraph No. 9, Vertner also agreed that he would not sell any products purchased from seller to any person, unless the purchaser first agreed not to resell the products at less than the seller’s posted retail price at the place of resale.

The seller reserved the right to sell or assign its interest in the contract to a responsible oil company.

Paragraph No. 16 of the agreement reads as follows:

“No waiver by either party hereto of any nonperformance or breach of any covenant or provision of this agreement shall be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant or provision. All remedies, rights and options accorded herein, or otherwise available to the Seller shall be cumulative, and no one such remedy, right or option shall be exclusive of any other, and the pursuit of any such remedy, right or option shall not be deemed to waive any other or different remedy or relief to which the Seller might otherwise be entitled, either at law or in equity. Distributor waives any claim against Seller as to price, quantity or quality of any delivery of petroleum products hereunder, as well as any claim for damages resulting from any breach of contract on the part of Seller, unless such claim is made by Distributor to Seller in writing within ten (10) days after receipt of said delivery or breach of contract.”

Purchases by Vertner were shipped from the seller’s plant at Seattle to Yakima by common carrier until December, 1945, after which Vertner transported such purchases by his own truck.

August 22, 1946, Sunset Gas assigned its interest in the contract referred to above to Sunset Oil Company, plaintiff in this action.

By lease or pursuant to “products agreements,” Vertner controlled or owned interests in the following gasoline stations: (1) Moxee station in Moxee, Yakima county; (2) a station in Ellensburg, Kittitas county; (3) Curtis Cabin Camp station; (4) Yakima Truck Service station, and (5) a gasoline station, the latter three in the city of Yakima.

*273 By its amended and supplemental complaint, upon which the action was tried, plaintiff pleaded six causes of action, alleging, in its first cause of action, the making of the contract above referred to, the assignment of the contract to plaintiff by Sunset Gas, and the performance thereof by plaintiff; that, during the month of October, 1946, defendant, orally and by a written notice, informed plaintiff of his intention to sell his business; that, at some date thereafter, defendant did sell his business to a person unknown to plaintiff; and that, October 16, 1946, defendant ceased to purchase gasoline and other petroleum products from plaintiff, as he was required to do pursuant to the contract, and thereafter purchased products from others, failing to purchase from plaintiff even the minimum quantity of gasoline he was obligated by the contract to purchase each month. Plaintiff then alleged the profits which it would have realized had defendant performed the contract, and demanded judgment for damages, on account of defendant’s breach of the contract, in a sum exceeding sixty-eight thousand dollars.

In its second cause of action, plaintiff repeated certain allegations set forth in its first cause of action, and alleged that, during the month of September, 1945, defendant owned or controlled a service station at Moxee and requested plaintiff to paint that station; that plaintiff complied with the request, at a cost of $165.87, and that the parties hereto entered into a “service station advertising contract” for a term ending March 4, 1948. Plaintiff demanded judgment on its second cause of. action for $165.87.

By its third, fourth, fifth, and sixth causes of action, plaintiff made similar claims on account of painting four other service stations owned or operated by defendant, demanding, by each cause of action respectively, judgment for sums ranging from $169.38 to $259.83.

To this complaint, defendant filed a second amended answer and supplemental cross-complaint, denying that he had breached the contract pleaded by plaintiff and denying *274 that he was indebted to plaintiff upon any cause of action pleaded by plaintiff.

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Bluebook (online)
208 P.2d 906, 34 Wash. 2d 268, 1949 Wash. LEXIS 529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunset-oil-co-v-vertner-wash-1949.