Walter Brewing Co. v. Hoder

230 P.2d 170, 123 Colo. 421, 1951 Colo. LEXIS 279
CourtSupreme Court of Colorado
DecidedApril 9, 1951
Docket16252
StatusPublished
Cited by5 cases

This text of 230 P.2d 170 (Walter Brewing Co. v. Hoder) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walter Brewing Co. v. Hoder, 230 P.2d 170, 123 Colo. 421, 1951 Colo. LEXIS 279 (Colo. 1951).

Opinion

Mr. Justice Hilliard

delivered the opinion of the court.

A case involving an oral contract, and a subsequent oral modification thereof. More particularly, the controversy involves the modification feature. Plaintiff Hoder, defendant in error, as successor to earlier parties in interest, and defendant, Walter Brewing Company, plaintiff in error, will be referred to as designated in the court below, where plaintiff enjoyed favorable verdict and judgment. Plaintiff, as well as his predecessors in interest, resided in El Paso county, while defendant, a corporation, has its principal place of business and general offices in Pueblo county.

It is not disputed that early in 1940, plaintiff was engaged in the distribution of two eastern beers in several Colorado counties, including El Paso; that in March of that year, plaintiff and defendant entered into an oral agreement whereby plaintiff became distributor of defendant’s product in El Paso county (and some additional territory), with certain profits to accrue therefrom. Prior thereto defendant had operated as its own distributor in the El Paso county territory, but seemingly was not satisfied with that arrangement. In aid of its then operation it had there a warehouse, two trucks, a walk-in ice box, and an ice machine. It had one special employee, Noel Moats, in whose continued employment it was interested. There was testimony in behalf of plaintiff that as a part of the consideration for the exclusive agency for the distribution of defendant’s product in the territory hereinbefore stated, plaintiff purchased some of defendant’s said equipment for one thousand *423 dollars, employed Moats, and began the distribution of defendant’s beer in the alloted territory. There is not a hint that either party regarded the contract other than as valid and binding, and both parties scrupulously performed in accordance with their agreement for approximately two years, both profiting modestly as they went along. Seemingly, had conditions remained as they were in 1940, no dispute would have arisen.

But in December, 1941, the Japanese Empire struck at Pearl Harbor, and our country was at war. A change of immense magnitude took place in the territory covered by the contract. All lines of business were affected, including the beer business. Camp Carson was established in El Paso county, bringing in soldiers by the thousands. Their patronage was well worth-while, and plaintiff set about trying to get it. Success did not attend immediately, but finally, he testified, the camp purchasing agent approached him relative to the matter, and that said agent likewise called on defendant in its office in Pueblo. Be that ás it may, the picture had changed, and before long defendant was supplying its brand of beer to the soldiers of Camp Carson. What in the beginning had been a routine business arrangement with modest profits for both plaintiff and defendant, became overnight, as it were, a business of great magnitude, and of' unanticipated profits. Passing' for the moment consideration of the whys and wherefores thereof, and the relative rights and liabilities of plaintiff and defendant as between themselves, it was not long before defendant, instead of delivering the required amount of its product to plaintiff at Pueblo for wholesale distribution in the territory comprehended in the contract, was making direct delivery of the required amount to Camp Carson, in El Paso county.

1. A preliminary inquiry is, Did plaintiff have an exclusive contract to serve outlets for defendant’s beer in El Paso county? Plaintiff and several witnesses, including his wife, testified that such an agreement was *424 made. Karl Walter for defendant, testified otherwise. The jury, proceeding in the light of unchallenged instructions, resolved the question in favor of plaintiff. There is much in the record otherwise, as our study convinces, to support the resolution of the jury.

2. On the premise of the foregoing, Is Camp Carson, the place and cause of the large increased sales of the product of defendant’s brewery, and, although in El Paso county, and which was nonexistent at the time of the established contract, to be eliminated from the reckoning of profits to be shared by plaintiff? We are not of that view. “It is well established that the grant of an ‘exclusive agency’ to sell, i.e., the exclusive right to sell the products of a wholesale dealer in a specified territory ordinarily is interpreted as precluding competition by the principal in any form within the designated area.” Navy Gas & Supply Co. v. Schoech, 105 Colo. 374, 98 P. (2d) 860. Counsel for defendant cites Anheuser-Busch, Inc. v. Grovier-Starr Produce Co., 128 F. (2d) 146. We do not regard that case as in point. It involved the authority of an agent to make a certain contract, not the effect thereof. All the circumstances considered, we believe that when the agreement was made in 1940, “the intention of the parties” (Schoech case, supra) was that plaintiff would be the sole distributor for Walter’s beer in El Paso county. Neither party, of course, foresaw or anticipated that a large military camp was to be installed there in 1942. That plaintiff wrought a better contract than he knew, and that defendant did not know how easy it would be to sell its entire product by that time, may not be held to void the contract. Plaintiff’s insistence on its observance by defendant was that of any ordinary business man pressing his advantage. It cannot be the function of courts to withhold the fruits of a contract on the ground they were richer than anticipated. It is significant, we think, that defendant did not question the contract while plaintiff was realizing but little money therefrom.

*425 When the Camp Carson account became a possibility, in the accomplishment thereof both plaintiff and the representative of defendant, as the evidence indicated, bent every effort to that end. When success crowned their united efforts, both parties were concerned with the problem of handling the account, and they talked it over. Plaintiff testified that Karl Walter, manager of defendant, said, “It is too big an account for you to handle up there. We will deliver the beer and carry that account ourselves and pay you your profits.” Walter denied that he so stated, but his version of the matter was not convincing to the jury, as the verdict, and judgment of the trial court make manifest. .

4. Did the court err in denying the motion for a change of venue? We think not. Plaintiff was a resident of El Paso, and defendant of Pueblo, county, where service was had. Defendant contends that the transfer of the beer at the brewery in Pueblo to Hoder was an out and out sale in the county of Pueblo; that it was sold there and delivered there, with no agreement to pay the profits at any particular place. It cites the Colorado case of Maxwell-Chamberlain Motor Co. v. Piatt, 65 Colo. 140, 173 Pac. 867, which would be in point if the premises were as here. In that case a Denver motor concern entered into a written agreement with Piatt of Mesa county, agreeing to sell to him in Denver, and to deliver to him in Denver, motorcars for resale without Denver. The entire contractual obligation was completed in Denver, defendant’s residence. The motorcars were delivered there, received there, and paid for there. Nothing remained to be done.

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230 P.2d 170, 123 Colo. 421, 1951 Colo. LEXIS 279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walter-brewing-co-v-hoder-colo-1951.