Townsend v. Melody Home Manufacturing Company

541 P.2d 1370
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 30, 1975
Docket47290
StatusPublished
Cited by8 cases

This text of 541 P.2d 1370 (Townsend v. Melody Home Manufacturing Company) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Townsend v. Melody Home Manufacturing Company, 541 P.2d 1370 (Okla. Ct. App. 1975).

Opinion

BRIGHTMIRE, Judge.

This action arose when Melody Home Manufacturing Company (Melody) reneged on its promise to pay a sales incentive bonus to one of its dealers, T-Bar-W Mobile Homes (T-Bar-W), after the latter had earned it by purchasing nearly one hundred thousand dollars worth of mobile homes in 1972.

T-Bar-W’s petition, filed in May of 1973, alleges that it purchased from Melody 14 mobile homes in 1972 in the total amount of $92,732.65, and that these purchases were made pursuant to Melody’s bonus plan. 1 Therefore T-Bar-W alleges, it *1372 is entitled to its “bonus percentage” of 1½ percent of the gross purchases, or $1,390.-99.

Melody answered with a general denial asserting that T-Bar-W did not comply with the terms of the bonus plan and is therefore not entitled to any relief.

The case was tried to a jury in January of 1974. After both parties had introduced evidence and rested, the trial court sustained T-Bar-W’s motion for a directed verdict based on the conclusion that Melody had not presented evidence of a defense to T-Bar-W’s proved cause of action. From that ruling and the awarding of attorney’s fees, Melody appeals.

Melody, a manufacturer of mobile homes, has its principal office in Fort Worth, Texas. Oklahoma City is the home of T-Bar-W, a partnership that retails mobile homes to the consumer.

Because various interpretations of a phrase used in the bonus offer — “paid for promptly” — developed, Melody says it decided to send a letter to all of its dealers in April of 1972, defining those words to mean that payment must be within IS days from the date of delivery 2 — a letter which T-Bar-W denies receiving.

*1373 It is undisputed that between June 23 and the latter part of November 1972, T-Bar-W purchased 14 mobile home units from Melody for the sum of $92,732.65. The only reason given by Melody for refusing to pay a 1½ percent bonus was that the time lapse between delivery of eight units and receipt of payment ranged from 18 to 35 days. Only six of the purchases were paid for within the 15-day period and these totaled less than the $60,000 minimum required for the bonus.

In this regard, however, it is also uncon-troverted that payments to Melody in all eight of the disallowed purchases were made under a “floor plan” arrangement with General Electric Credit Corporation of Oklahoma City (GECC) — a plan Melody itself devised. Under it T-Bar-W placed an order for a mobile home from Melody and Melody contacted GECC to see whether funds were available on behalf of T-Bar-W for the purchase of the unit. If funds were available, Melody received a committal number. When the mobile home was delivered to T-Bar-W, Melody sent an invoice to GECC (and a copy to T-Bar-W) along with a “Manufacturer’s Statement of Origin” (M.S.O.). Upon receiving them GECC contacted T-Bar-W for confirmation that it had received and accepted the unit. If the dealer did so confirm then GECC mailed payment for the unit to Melody. T-Bar-W was charged interest commencing three days after the invoice date. 3

Melody argues that directing a verdict against it was wrong because: (1) an issue of fact existed and (2) the credit company was an agent of T-Bar-W so that the former’s slothfulness is imputed to the latter. Moreover, contends Melody, the trial court abused its discretion in the amount of attorney’s fees it awarded.

In regard to its first point Melody argues that three factual issues existed for jury resolution: (1) Did T-Bar-W comply “with the terms of the [bonus] contract”? (2) Was the April “amendment of the contract” (the letter defining the word “promptly”) binding on T-Bar-W? and (3) If it did not receive the letter, then was a unit “paid for promptly” if payment was delayed for more than 15 days past delivery?

The first suggested issue is not one at all. Melody presented not a scintilla of evidence upon which could rest a finding that T-Bar-W failed to do everything required of it in regard to the delivery of and payment for all 14 mobile homes in question. All of Melody’s evidence went to showing delays on the part of GECC— delays which seemed to inhere in procedure Melody insisted be followed. So the fact was and is that T-Bar-W, insofar as it possibly could, fully and promptly complied with the terms of the bonus offer.

The second and third suggested issues being related may be treated together. If indeed issues they are, they are not material ones. Regardless of whatever “Banks or Finance Companies” the April letter (footnote 2) refers to, its clear implication and tenor is that the “situations” complained about are those over which the dealer had some control and capability of altering in order to comply with the 15-day promptitude. If it does not then the letter effected simply a cancellation of the bonus *1374 offer, and if a cancellation was intended, it was ineffective because not expressly stated. certain it is we cannot construe the letter as referring to the T-Bar-W situation where the dealer had no control over the finance company and its obligation to fulfill relevant written procedural commitments to Melody; To do so would amount to a renunciation of fair play and extending a helping hand to a situation bearing a close resemblance to inducing a rabbit to advance by dangling an unobtainable carrot in front of it.

What the letter did do, however, was to reveal Melody’s realization that its use of the imprecise term “promptly” did not create a definitive condition but a general statement as to expectations. Thus, though the April letter created no fatal barrier to T-Bar-W’s bonus entitlements, it did, for clarity’s sake, stand in need of an interpretation of Melody’s use of “promptly.” Perhaps the one recommended by Melody in its brief is as good as any:

“PROMPTLY — verbial form of the word prompt which means ready and quick to act as occasion demands. Missouri K & T Railroad Company vs. Missouri Pacific Railroad Company, 103 Kansas 1, 175 P. 97, 103. The meaning of the word depends largely on the facts in each case. Irvin vs. Koehler, CCANY 230 F. 795, 796; Stovel & Strickland vs. McBrayer, 20 Ga.App. 93, 92 S.E. 543.”

To repeat an earlier observation, the facts of this case admit of but one finding and that is that at all relevant times T-Bar-W was “ready and quick to act as occasion” demanded.

Melody’s second proposition— that the credit company was an agent of T-Bar-W — is based on the idea that the payments made by GECC to Melody were for T-Bar-W’s benefit resulting in GECC being an agent of the latter.

However, the trial court’s adjudicatory reasoning did not involve an agency relationship as demonstrated by the following conclusions of the trial court:

“1. Evidence is uncontradicted that the Defendant set up the agreement between G.E.C.C. and in relation to the floor-plan as to how the payments for this merchandise was [sic] to be paid for and who was to make the payments.
“2.

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Bluebook (online)
541 P.2d 1370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsend-v-melody-home-manufacturing-company-oklacivapp-1975.