Walton v. Nichols & Shepard Co.

128 N.W. 474, 26 S.D. 111, 1910 S.D. LEXIS 188
CourtSouth Dakota Supreme Court
DecidedOctober 4, 1910
StatusPublished

This text of 128 N.W. 474 (Walton v. Nichols & Shepard Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walton v. Nichols & Shepard Co., 128 N.W. 474, 26 S.D. 111, 1910 S.D. LEXIS 188 (S.D. 1910).

Opinion

CORSON, J.

This is an appeal by -the defendant from a judgment entered upon findings of facts bjr the circuit court, and from the order denying a new trial. The action was instituted by the plaintiff as trustee in bankruptcy of the firm of Carlson & Hunter, formerly copartners in the implement büsines's in the city of Webster, to recover of the defendant certain sums alleged to be due said firm at the time of their bankruptcy, as commissions on the sales of farm machinery for the defendant. It is alleged in the complaint in effect that -the defendant had collected the sum of about $2,000, to- which* the plaintiff was entitled as commissions due said firm of Carlson & Hunter at the time they became bankrupts. The defendant in effect by its answer denied any indebtedness whatever to the firm of Carlson & Hunter at the time they became bankrupt for the reason that they had, by the terms of -their contract with the defendant, become liable to it in a sum in excess of the amount of commissions collected by it and in its possession, as guarantors of the notes taken by them on the sale of farm machinery belonging -to the defendant, and that [113]*113therefore there was nothing due from it to the said Carlson & Hunter. The pleadings and findings are very voluminous, embracing a large number of exhibits and statements of accounts between the parties, and no useful purpose would be served by attempting to set them out in full, or to give even an abridgment of the same in this opinion. It may be stated generally that it is practically admitted by the pleadings that the defendant had in its possession about $1,500 which was collected as commissions earned by the said firm of Carlson & Hunter; but it claims, as before stated, that, by reason of certain stipulations made by Carlson & Hunter in their contract with the defendant as guarantors of notes taken by them on the sale of farm machinery belonging to the defendant, the defendant was entitled to retain the same as against the claim of the plaintiff until the said guaranteed notes were paid. The findings and conclusions of law as' originally drawn were in favor of the defendant, but subsequently the court, upon motion of the plaintiff, modified its original findings and conclusions and found the facts and stated its conclusions of law in favor of the plaintiff, and, entered judgment thereon in favor of the plaintiff for the sum of $344.79, and the costs of the , action.

It is contended by the appellant that the court erred in modifying its original findings, not on the ground, as we understand the contention of the appellant, that the court was not authorized to correct its original findings, but on the ground that the findings as finally made were not supported by the evidence. There were two items in the account which were mainly in controversy in this action. The defendant claims that Carlson & Hunter should be charged in their account as guarantors of two promissory notes executed by one Wasilk, amounting to about $1,000, which the court disallowed, and that Carlson & Hunter should be charged with the full amount -of the notes executed by one Munson to the amount of about $1,075, instead of the sum of about 70 per cent, of the notes, which would be the amount due the defendant as coming to it on account of the guaranty of Carlson & Hunter on the notes of the said Munson. The court, however, in its findings, [114]*114deducted from the amount guaranteed on the Munson notes the sum coming to Carlson & Hunter as commissions thereon, which was about the sum found due the plaintiff in the action. The only questions presented for our determination, therefore, are: Was the finding of the court that Carlson & Hunter were not liable as guarantors on the John Wasilk notes sustained by the evidence? Were the findings and conclusions of the court correct in allowing the commissions on the Munson notes by crediting them with the amount that would be due them upon the collection of said notes and deducting therefrom the commission that would be due Carlson & Hunter as commission on the Munson transaction?

It is contended by the respondent that the Wasilk notes were not, under the terms of their contract with the defendant, guaranteed by Carlson & Hunter, for the reason that the sale made to Wasilk of machinery was made by one Barrett, the traveling agent of the defendant, and therefore they were not liable on -those notes as guarantors. We are of the opinion that the court was right in its finding upon those notes as clearly under the evidence their payment was not guaranteed by Carlson & Hunter, and therefore they could not properly be chargeable as guarantors upon these notes. Presumptively the finding of the court was right that Carlson & Hunter were not liable as guarantors of the Wasilk notes, and, unless -there was a clear preponderance of evidence against such finding, the same must be sustained. It is disclosed by the evidence that Carlson & Hunter took the application of Wasilk for some farm machinery manufactured by the defendant, and forwarded it to the home office, and that the same was rejected by the company for the reason that the application was not accompanied by a statement of the financial condition of Wasilk. Thereupon the company sent its traveling agent, Barrett, to Webster, and he accepted an application of Wasilk for machinery, and made arrangements with -him to ship him the same. .

It i-s contended by the appellant that Barrett, in taking the application, was acting in connection with Carlson & Hunter, and by the stipulations contained in -their appointment as agents was, while acting with them, their agent. The clause in the contract [115]*115between the company and Carlson & Hunter relied upon by the defendant as making Carlson & Hunter guarantors of the notes of Wasilk reads as follows: “It is hereby agreed that, should the company furbish any one to assist the party of the second part in making sales, such person is to be considered at all times and for any purpose the agent of the party of the second part in any sale made by him or them in which the party of the second part may claim an interest or commission, and the party of the second part hereby agrees not to hold the company responsible for any statement or act of such agent while so engaged.” The construction placed upon this clause of the contract by the appellant, in our opinion, cannot be sustained, and, under the evidence in this case, Barrett, the traveling agent, could not be considered as the agent of Carlson & Hunter, or as assisting them in making the sale, and that, if he could be so considered, no obligation would be imposed upon Carlson & Hunter to guarantee the notes which were accepted by the agent, Barrett. The plaintiff in this case made no claim for commissions in favor of Carlson & Hunter on the sale made to Wasilk. 'The notes and securities from Wasilk seem to have been accepted by Barrett, and the only connection that Carlson & Hunter seem to have had with the transaction was that Hunter, under the dictation of Barrett, prepared the application and necessary papers connected therewith. A portion of the deposition of Hunter was introduced in evidence by the plaintiff in rebuttal ,in which he testifies as follows: “I know one J. J. Barrett, now residing in Minneapolis, Minn., and knew him during the year 1904. He was then a traveling salesman for the Nichols & Shepard Company, and collected their notes and accounts. During that year we had dealings with one John Wasilk. We took an order from him for a 20 horse power engine. We did not sell him such an engine. The engine was not shipped on that order.

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Bluebook (online)
128 N.W. 474, 26 S.D. 111, 1910 S.D. LEXIS 188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walton-v-nichols-shepard-co-sd-1910.