Turner Broadcasting System, Inc. v. Europe Craft Imports, Inc.

367 S.E.2d 99, 186 Ga. App. 286, 1988 Ga. App. LEXIS 329
CourtCourt of Appeals of Georgia
DecidedMarch 9, 1988
Docket75663
StatusPublished
Cited by11 cases

This text of 367 S.E.2d 99 (Turner Broadcasting System, Inc. v. Europe Craft Imports, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turner Broadcasting System, Inc. v. Europe Craft Imports, Inc., 367 S.E.2d 99, 186 Ga. App. 286, 1988 Ga. App. LEXIS 329 (Ga. Ct. App. 1988).

Opinion

Benham, Judge.

Appellant Turner Broadcasting System, Inc. (TBS) sued appellee Europe Craft Imports, Inc. (ECI) on an account for television adver *287 tising TBS claimed it broadcast on ECI’s behalf in the fall of 1984, after reaching an agreement to do so with Warren, Muller, Dolobowsky, Inc. (WMD), ECI’s advertising agency. After TBS presented its evidence at trial, ÉCI moved for a directed verdict on the ground that TBS did not prove that it ever had an account with ECI, and that under OCGA § 10-6-55, TBS could not seek payment of the debt from ECI because TBS extended the credit to the agent, WMD, and not the principal, ECI. The trial court granted WMD’s motion, and TBS filed this appeal.

1. In its first three enumerations of error, TBS takes the position that the grant of WMD’s motion was error. We agree. While it is true that “[i]f the credit shall be given to the agent by the choice of the seller, he may not afterward demand payment of the principal” (OCGA § 10-6-55), it was not shown that, as a matter of law, TBS gave credit to the agent and not the principal. A TBS account representative testified at trial that ECI had advertised with TBS the year before the advertising in question was placed, and that because of that prior relationship she contacted WMD, the advertising agency that ECI used, and sought ECI’s business again. TBS offered WMD several television commercials during National Basketball Association and Southeastern Conference Football games in the fall of 1984, for the promotion of ECI’s “Members Only” clothing line. The TBS account representative and WMD’s representative discussed the schedule TBS proposed and changed it in accordance with the wishes of ECI’s advertising manager, as communicated through WMD. The account representative further testified that when the WMD representative placed the advertising order, ECI was to be responsible for payment; that the advertisements were shown as agreed, and that the WMD representative said that both he and the client, ECI, were satisfied with the advertisements. Exhibits were introduced that showed TBS sent confirmation of the order to WMD showing ECI as the advertiser and WMD as the agent.

TBS’ credit manager testified that “Members Only” advertisements for ECI had been run on TBS before the advertising in question; that on the other occasions the ads were placed through an agency; that sometimes TBS received payment from the agency and in some cases it was received from ECI directly; and that “Members Only” ads were placed after the schedule in question and that ECI paid for them directly. The credit manager also testified that in January 1985 he contacted WMD to ask when payment would be received for the ads in question, and was told that WMD was not in business and that he needed to contact ECI directly for payment. When that contact was made, the manager was told that ECI was familiar with the problem and to send copies of the bills and they would be paid. The invoices were sent but were not paid. The manager testified on *288 cross-examination that TBS never took any credit information or a credit application from WMD or ECI.

Appellant called the controller of ECI to testify, and he stated that before November 1, 1984, ECI used WMD as its advertising agency; that when ECI wanted to advertise it called WMD to place the ads for it; and that ECI had put money into an escrow account for the purpose of paying all of the media stations for the advertising that WMD ordered for ECI’s fall advertising campaign for its “Members Only” line.

“If there is any evidence tending to establish . . . agency, the questions should be submitted to a jury.” Warnock v. Elliott, 96 Ga. App. 778, 789 (101 SE2d 591) (1957). “The intention of the parties, as to who is to be bound where the principal is disclosed, is usually a question of fact for a jury.” Kingsberry Homes v. Findley, 242 Ga. 362, 365 (249 SE2d 51) (1978). The evidence produced at trial as outlined above was sufficient to show that ECI had had an account with TBS in the past with arrangements being made through its agent, WMD. On some occasions payment was made through WMD and sometimes it was made directly by ECI. The evidence also supported the theory that ECI was the disclosed principal and WMD its agent, and that TBS did not intend to give credit to the agent, but to the principal. The evidence was sufficient for a jury to find that to have been the situation, and, if it did, ECI would be liable for the costs incurred by TBS for the ads. See Southeastern Foam Prods, v. Hilton Hotels Corp., 149 Ga. App. 372 (254 SE2d 494) (1979). It is clear that the evidence presented in this case did not demand a verdict for appellee ECI. The trial court erroneously deprived TBS of having a jury resolve whether ECI had an account with TBS, either directly or through the agency relationship with WMD. Therefore, we reverse the judgment. OCGA § 9-11-50; Deroller v. Powell, 144 Ga. App. 585 (2) (241 SE2d 469) (1978).

2. Appellant attempted to have the TBS account representative testify that the standard practice in the media advertising industry was that the responsibility for debts on advertising ordered by an agency ultimately lay with the client that hired the ad agency. The trial court refused to allow the jury to hear the testimony, and appellant cites the refusal as error. While as a general rule “[ejvidence of known and established usage shall be admissible to aid in the construction of contracts as well as to annex incidents” (OCGA § 24-6-5), “it cannot destroy, contradict, or modify what is otherwise manifest. Where the intent and meaning of the parties are clear, evidence of a usage to the contrary is irrelevant and unavailing.” Newark Fire Ins. Co. v. Smith, 176 Ga. 91, 94 (167 SE 79) (1932). The evidence appellant sought to introduce, that as an industry practice the advertiser was ultimately responsible for paying for the ads, contradicted the *289 documents that appellant had admitted into evidence and upon which it relied, i.e., the confirmation sent to WMD that stated “agency and advertiser acknowledge and assume full responsibility jointly and severally for payment of all advertising broadcast services and related expenses incurred, ordered and provided on behalf of the advertiser by Turner.” Therefore, the trial court did not err in rejecting the parol evidence.

3. The trial court refused to admit into evidence a TBS exhibit which consisted of a letter from appellee’s attorney to TBS’ credit manager to the effect that if TBS wanted the invoices to be paid it needed to execute a form releasing ECI from further obligation to pay TBS for those invoices, and of the unexecuted form. The court’s reason for excluding the exhibit was that it was not executed and its purpose was for settlement of the dispute. Appellant contends that the exclusion was error in that the letter was an acknowledgment of the debt which constituted an admission. We agree.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Trickett v. Advanced Neuromodulation Systems, Inc.
542 F. Supp. 2d 1338 (S.D. Georgia, 2008)
C & F SERVICES, INC. v. First Southern Bank
573 S.E.2d 102 (Court of Appeals of Georgia, 2002)
Centre Pointe Investments, Inc. v. Frank M. Darby Co.
549 S.E.2d 435 (Court of Appeals of Georgia, 2001)
Chemtall, Inc. v. Citi-Chem, Inc.
992 F. Supp. 1390 (S.D. Georgia, 1998)
Lugue v. Hercules, Inc.
12 F. Supp. 2d 1351 (S.D. Georgia, 1997)
Williams v. Department of Corrections
481 S.E.2d 272 (Court of Appeals of Georgia, 1997)
Chakales v. Hertz Corp.
825 F. Supp. 312 (N.D. Georgia, 1993)
Houston v. Kinder-Care Learning Centers, Inc.
430 S.E.2d 24 (Court of Appeals of Georgia, 1993)
Scott v. Thompson
411 S.E.2d 508 (Court of Appeals of Georgia, 1991)
Leach v. Brilad Oil Co.
753 F. Supp. 366 (S.D. Georgia, 1991)
Jacobs v. Spano
387 S.E.2d 924 (Court of Appeals of Georgia, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
367 S.E.2d 99, 186 Ga. App. 286, 1988 Ga. App. LEXIS 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-broadcasting-system-inc-v-europe-craft-imports-inc-gactapp-1988.