Universal Products Co. v. Emerson

179 A. 387, 36 Del. 553, 6 W.W. Harr. 553, 100 A.L.R. 956, 1935 Del. LEXIS 15
CourtSupreme Court of Delaware
DecidedMay 13, 1935
DocketNo. 3; Writ of Error to the Superior Court for Sussex County, Action of Debt, No. 26
StatusPublished
Cited by33 cases

This text of 179 A. 387 (Universal Products Co. v. Emerson) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Universal Products Co. v. Emerson, 179 A. 387, 36 Del. 553, 6 W.W. Harr. 553, 100 A.L.R. 956, 1935 Del. LEXIS 15 (Del. 1935).

Opinion

Harrington, J.,

delivering the opinion of the Court:

Under its assignments of error, Universal Products Company, the defendant below, the plaintiff in error, contends that the court below should be reversed:

1. Because it abused its legal discretion when it refused to set aside the verdict of the jury, and to grant a new trial in this case.

2. Because, at the trial,, it gave certain erroneous instructions to the jury.

3. Because, at the trial, it failed to give certain requested instructions to the jury.

In connection with the first contention made by it, the defendant below claims that the evidence before the jury in the trial court did not sustain their verdict, and the judgment for Annette E. Emerson of $165,216.97 based thereon, and should, therefore, have been set aside on its motion. This was because of the further contention that it so clearly appeared by uncontradicted evidence that the original royalty agreement had been changed by a subsequent agreement of the parties, made September 27, 1926, whereby the royalty of 25c on each and every joint had been reduced [561]*561to 121/20 on the so-called “G” or small joints, that no verdict for any such amount as was found by the jury was legally possible.

The record, undoubtedly, shows that beginning with September 9, 1925, the defendant below, by letters and telegrams, was insisting on the change in question being made in the original royalty agreement; and that between that date and March 28, 1928, there were numerous letters and telegrams between J. B. Flick, President of Universal Products Company, and Victor L. Emerson, the husband of Annette E. Emerson, the plaintiff below, relating to that question.

Apparently, there were also some personal interviews and telephone conversations between these parties during this time, but we do not know what took place at them as Mr. Flick died in March of 1932, before the case was tried in the court below, and Mr. Emerson, though present at the trial, was not interrogated on that question.

It is conceded that Mrs. Emerson was, also, present at the trial in the court below, but did not testify.

Passing for the moment the question as to. whether the record conclusively shows that Mr. Emerson had the right to bind Mrs. Emerson by any such modification contract, we will first consider whether it appears beyond question that the contract relied on was made, or whether that was for the jury to determine.

On August 23, 1926, Victor L. Emerson wired Mr. Flick, the President of Universal Products Company, the defendant below, the plaintiff in error,

“just returned and received your message Call me by ’phone Monday will arrange practically as outlined on small joint as submitted.”

. On September 8, 1926, Mr. Flick wired Mr. Emerson ■

“I am anxiously awaiting authority to use the 25c Royalty price on the Model ‘G’ Universal Joint. You promised me over the telephone [562]*562that you would attend to this last week. Now get busy so that I will have something to back up what I am trying to do.”

Apparently receiving no reply to this message, on September 14, 1926, Mr. Flick again wired Mr. Emerson,

“Can I depend upon the twenty-five cent Royalty on Model ‘G’. This is very urgent and may mean the loss of big business if it can not be done. Must have some assurance from you. Wire reply and write me that it will be done.”

Still receiving no reply from Mr. Emerson, Mr. Flick again wired him on September 16, 1926,

“Can you answer my wire of fourteenth. If I slip on this it may mean anywhere from ten to twenty thousand loss for you next year. Wire me to-day just what you can assure me of.”

On September 17, 1926, Mr. Emerson wired Mr. Flick,

“Will confirm by letter our conversation concerning reduction and use of special joint license for cover. It is understood that in no case will these special joints be substituted, or in any way interfere with the use or conditions controlling other models of joint. Have been engaged with the oil hence the delay.”

On the same day, September 17, 1926, Mr. Flick telegraphed Mr. Emerson thanking him for his wire. He, also, added,

“I anticipate some things in a short time that will interest you and will wire which way the bug hops.”

By later and repeated telegraphic messages during the same month, he continued to insist on the requested reduction being made in the then agreed royalty on the “G” or small joint. In one of these telegrams he, in part, said,

“Pass up the metal boot on the G joints we have figured to sell this job at cost to get in on the market; notwithstanding we have spent thousands of dollars to put this across. Our competitors are over fifty cents a job lower than us and you know what this means. Have Mrs. Emerson and Shaffer wire us Saturday if this can be done; Monday may be too late.”

The following telegram by Mr. Flick to Mr. Emerson [563]*563is not dated, and the récord is not perfectly clear as to when it was sent. There is testimony, however, that it was sent in the Fall of the year 1926. From its language it would seem to be the next in order of time. It stated,

“I am only asking the concession on ‘G’ model. It will have to be sold for less than Six Dollars complete. I feel certain we can land this job on twenty-five cent basis. Monday noon is the time they have given us for final decision and it will mean thousands of dollars to you. Wire me early Monday.”

Mr. Emerson made no reply to these requests until September 27, 1926. On that day he telegraphed Mr. Flick, stating, among other things:

“You asked that royalty on the half size (the ‘G’ joint) be reduced to twenty-five cents per set which I grant conditionally upon your statement that the same is to be sold direct to actual builders of quantity production only for less than Six Dollars per set and that it will not be used or substituted on cars using No. A joint and in no way interfere with the sale price of other size joints. If sold for Six Dollars or more the royalty tó be six per cent, of the gross selling price otherwise to be subject to conditions in existing contract.”

At the end of this telegram he, also, said,

“As soon as possible will take necessary steps to protect the Universal Products Co. and myself. It is understood that the conditions herein will be embodied and signed in a contract representing A. E. Emerson and myself. Wire me if satisfactory.”

Mr. Flick telegraphed Mr. Emerson the same day, namely, September 27, 1926,

“We have christened the size double A to Model G to get away from other present Model A as far as possible to avoid errors. * * * Your wire satisfactory and hope to send you word that we will get this job * * *.”

The latter words, apparently, referred to a job which Flick had stated in an earlier telegram that he thought he could land on a 25c basis.

On March 1, 1927, Mr. Flick wrote Mr. Emerson quoting in full the Emerson letter of September 27, 1926. [564]

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Bluebook (online)
179 A. 387, 36 Del. 553, 6 W.W. Harr. 553, 100 A.L.R. 956, 1935 Del. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-products-co-v-emerson-del-1935.