Trucker Sales Corporation v. Potter

137 P.2d 370, 104 Utah 1, 1943 Utah LEXIS 44
CourtUtah Supreme Court
DecidedMay 10, 1943
DocketNo. 6553.
StatusPublished

This text of 137 P.2d 370 (Trucker Sales Corporation v. Potter) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trucker Sales Corporation v. Potter, 137 P.2d 370, 104 Utah 1, 1943 Utah LEXIS 44 (Utah 1943).

Opinions

WADE, Justice.

Plaintiff, the Trucker Sales Corporation, respondent here, brought this action against the defendants, William M. Potter and Mike Gambero, doing business as the Lone Pine Cbal Company and George A. Schultz and Earl N. Radcliff to obtain a judgment for money which it claimed was owing to it. under a written contract. Plaintiff was awarded judgment and defendants, except William M. Potter, bring this appeal.

George A. Schultz and Earl N. Radcliff, being the owners of certain coal mining property, on July 1, 1938, leased it for á term of ten years to William M. Potter and Mike Gám-bero at a royalty of fifteen cents, per ton of all coal mined therefrom. Potter and Gambero formed a partnership whiicli they called the Lone Pine Coal Company and on October 1', 1938, entered into a written contract with plaintiff, which will hereinafter be called Exhibit “A,” whereby plaintiff was *3 appointed Sales Agent for a ten year period, for all coal sold by the partnership, at a commission of twenty-five cents per ton. On the same day, Schultz and Radcliff, owners of the mining property, entered into a written contract which will hereinafter be referred to as Exhibit “B,” to which Exhibit “A,” was attached and made a part thereof, whereby Schultz and Radcliff affirmed plaintiff’s appointment as Sales Agent and agreed that they and their interests shall be bound by all the terms of Exhibit “A” as effectively as though they themselves had been parties to said agreement.

The trial court placed the following construction on these contracts: (1) That as long as it actively solicited business for and used every reasonable means to dispose of the partnership’s total output of coal the plaintiff was entitled to its twenty-five cent per ton commission on every ton sold by the partnership, even though the sale was not made by plaintiff nor as a result of its efforts; (2) that plaintiff was entitled to its twenty-five cent commission on every ton of coal mined and sold by the partnership, even though such coal was taken from beyond the boundary lines of the property described in Exhibit “A”; and (3) that the defendants Schultz and Radcliff are primarily liable to plaintiff for all commissions owing to it under Exhibit “A.” If these constructions are correct, then there was ample evidence to sustain the court’s decision, but if either of them is not correct then the case must be reversed.

On the first proposition appellants contend that the following facts clearly express the intention that plaintiff was only to receive a commission on the coal sold as a result of its efforts: (1) That plaintiff is characterized in the contract and promised to act as “Sales Agent” for all the coal produced by the partnership, and not merely as “solicitor” or “employee”; (2) that plaintiff promised “to actively solicit business” and “use every reasonable means to dispose of Producer’s output of coal”; (3) that if a certain amount of coal per day was not sold plaintiff agreed to *4 ¡purchase the unsold portion thereof; (4) that sales tickets were to be issued to each purchaser, and a duplicate thereof sent to plaintiff; and (5) that producers were required to keep the price of coal ddwn, and notify plaintiff of any .change in price. In what way these facts express such an intention does not appear as they seem to be as consistent with plaintiff’s contention as with the contention of the appellants.

On the other hand, the court’s construction is that given •the contract by the parties themselves. From October 1, 1938, when the contract was entered into, until August 1941, almost three years, the partnership furnished plaintiff with duplicate slips and paid without question plaintiff’s commission on all coal sold. Appellants first raised this question on October 6, 1941. Nothing could show the intention of the parties more clearly than the interpretation they themselves place upon a contract. It is well settled in this state that where the parties to a contract, with full knowledge of the terms thereof, by their actions before any controversy has arisen, place upon it a construction which is not contrary to the usual meaning of the language used the courts will follow that construction. Fowers v. Lawson, 56 Utah 420, 191 P. 227; Roberts v. Tuttle, 36 Utah 614, 105 P. 916; Titton v. Sterling Coal & Coke Co., 28 Utah 173, 77 P. 758, 107 Am. St. Rep. 689; Snyder v. Fidelity Savings Association, 23 Utah 291, 64 P. 870; Woodward v. Edmonds, 20 Utah 118, 57 P. 848; Peay v. Salt Lake City, 11 Utah 331, 40 P. 206.

The same result is reached from the language of the contract, Exhibit “A” which provides:

“1. That the said Sales Agent shall be and is hereby constituted the Sales Agent of all coal mined and sold by the Producers, to act for the Producers in all matters pertaining to the sale of coal wherever and to whomsoever the said coal is sold.
“2. That the said Sales Agent agrees to receive and the Producers agree to pay to the Sales Agent the sum of Twenty-five (25c) cents per ton as a sales commission on all grades, classes and sizes of coal, irrespective of the place of sale or the place of loading or whether the *5 said sales are made for cash, credit or trade, on all coal sold by the producer. * * *
“8. It is agreed that the Sales Agent will actively solicit business for the producers and use every reasonable effort to dispose of the Producers total output of coal. * * *”

In the first paragraph plaintiff is expressly made the Sales Agent of all coal mined and sold by the producers. There is no limitation to such coal as the plaintiff shall individually sell, or to such coal as plaintiff shall, by its efforts, induce the buyer to purchase. In the second paragraph it expressly provides that the plaintiff shall receive a commission on “all coal sold by the producers,” thereby expressing the intention that the commission should be paid on all coal sold, rather than limiting it to coal sold as a result of plaintiff’s efforts. In paragraph 8 the plaintiff’s duties were stated to be to “actively solicit business for the Producers.” Thus providing that plaintiff’s duties are to solicit business rather than to transact the business of making sales. The only thing that expresses anything to the contrary is the statement in the first paragraph, where plaintiff is authorized to “act for the Producers in all matters pertaining to the sale of coal,” which suggests that plaintiff was to transact the business of each sale. That this suggestion was not the intention of the parties is clearly shown by their actions as above detailed; in fact, the defendants have never yet suggested that plaintiff was required to have a man at the mine to transact the details of each sale. In view of the construction placed on this contract by the parties thereto, and the language of the contract itself, the court did not err in holding that plaintiff was entitled to its commission on every ton of coal sold by the defendants, whether or not the purchaser was induced to buy as a result of the efforts of the plaintiff. In fact, it is hard to see how any other construction could be placed thereon.

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Related

Peay v. Salt Lake City
40 P. 206 (Utah Supreme Court, 1895)
Woodward v. Edmunds
57 P. 848 (Utah Supreme Court, 1899)
Snyder v. Fidelity Savings Ass'n
64 P. 870 (Utah Supreme Court, 1901)
Tilton v. Sterling Coal & Coke Co.
77 P. 758 (Utah Supreme Court, 1904)
Roberts v. Tuttle
105 P. 916 (Utah Supreme Court, 1909)
Fowers v. Lawson
191 P. 227 (Utah Supreme Court, 1920)

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Bluebook (online)
137 P.2d 370, 104 Utah 1, 1943 Utah LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trucker-sales-corporation-v-potter-utah-1943.