Willys-Overland Motors, Inc. v. Krenz

164 F.2d 533, 1947 U.S. App. LEXIS 3156
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 1, 1947
DocketNo. 10460
StatusPublished

This text of 164 F.2d 533 (Willys-Overland Motors, Inc. v. Krenz) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willys-Overland Motors, Inc. v. Krenz, 164 F.2d 533, 1947 U.S. App. LEXIS 3156 (6th Cir. 1947).

Opinion

McAllister, circuit judge.

In November, 1944, the Willys-Overland Company was interested in building an incinerator on its premises in Toledo, Ohio, for the purpose of disposing of rubbish from its manufacturing plant. Appellee was engaged in the business of constructing such incinerators, and, upon the request of the Engineering Department of WillysOverland, called and discussed the matter. In the course of his conversation, he mentioned an incinerator he had constructed at Fremont, Ohio, and representatives of the company afterward inspected this example of his work. On another meeting with them, appellee received an idea of the type of construction they wanted, and was asked to prepare a plan and drawings representing what they had described to him. He had such plans prepared, and after numerous conferences with members of the Engineering Department, and after many alterations in the original plans, appellee, on February 6, 1945, delivered in person to the proper officials of the Engineering Department, blueprints, specifications, and a bid to construct and erect an incinerator and furnish all labor and materials for such work. In order to burn the required amount of 5,000 pounds of mixed rubbish per hour and to do it by a method that was smokeless, odorless, and sparkless, the incinerator had to be approximately 23 feet in length, 16 feet in width, and 11 feet in height, with a smokestack 70 feet high. Appellee’s bid was in the amount of $20,900. Not receiving a reply to the offer, appellee got in touch with the Engineering Department about ten days after he had submitted his offer, and was told that everything was then in the hands of the Purchasing Department. He then called upon the Chief Purchasing Agent and was referred to the Assistant Purchasing Agent, Edellstein, who, he was told, was in full charge of the incinerator project. Edellstein informed him that nothing had yet been decided upon but that by the end of that week, the contract would be awarded to one of the bidders. Some days later, Edellstein called appellee by telephone and the conversation that took place between them forms the main basis for this controversy.

Appellee claims that his written offer was orally accepted by the company in the above conversation qn February 24, 1945, and became a binding contract. The Willys-Overland Company contends that the offer was [534]*534not'accepted, but that it was the understanding that further terms were to be included in the contract, and that inasmuch as such terms were never agreed upon, no contract resulted, appellee’s offer was not accepted, and no binding agreement ever took place between the parties. A contract to construct the incinerator was awarded by the company to someone else, and appellee sued in damages for the profits which he claimed he would have realized had he been allowed to proceed with the construction of the incinerator in accordance with the terms of the contract upon which he relies. The case was tried before a jury which found in favor of the appellee, and judgment was, accordingly, entered, from which this appeal is taken. Appellant contends that there was no evidence to sustain the verdict of the jury, and that the trial court, therefore, erred in not directing a verdict of no cause of.’action on appellant’s motion, and in not sustaining, after the trial, a motion to enter judgment notwithstanding the verdict.

Was there sufficient evidence of a contract between the parties to sustain the verdict of the jury? That is the chief issue in the case.

In considering the claims of error, we are required briefly to review the testimony, especially with respect to what took place on February 24, 1945, the date on which appellee claims the company orally accepted his offer. On that day, it is admitted that Edellstein, the Assistant Purchasing Agent of the company, called appellee by telephone. What they said to each other in that conversation is the determining factor in this case.

Appellee testified that Edellstein told him that the Willys-Overland Company accepted his offer to build the incinerator; that he also told appellee that the company was much in need of the incinerator and “to get busy on it right away”; that he mentioned there was the question of government priorities- — -that is, an award, during wartime, by the government, allotting materials for construction, necessary to the welfare or safety of the people; that the procurement of such an allotment by the government was necessary, but would be taken care of within a week or ten days by Willys-Overland, who retained a representative in Washington for that special purpose. Appellee further testified that Edellstein stated that there were, however, certain matters in connection with the project that appellee could “go ahead with and start performing so that when (the priority allotment) does come through, it will be that far advanced along.” During their telephone conversation, appellee says that Edellstein “was checking over as he talked to me and he noticed that there were no terms in this proposition — this proposal.” It is understood by both parties to the suit that the word, “terms,” as used throughout the proceedings by the witnesses, means the amounts to be paid and the times of payment on the contract, as the construction work progressed. There was no misunderstanding as to the total sum to be paid, namely, $20,900. Edellstein, according to appellee, said that his only interest was to see that Willys-Overland was protected, and, in reply to this statement, appellee says that he informed Edellstein: “I told him I would be willing to do the job and they could pay for it when the job is accepted and completed. He said: ‘No, that is not necessary.’ He told me that anything that is fair would be agreeable to-him.”

It appears that it is customary with the Willys-Overland Company that when a purchase or contract is made by the Purchasing Department, at least of material required by the Engineering Department, a copy of the vendor’s proposal, together with the-requisition for material, is sent by the Engineering Department to the Purchasing-Department with a purchase order, and that such requisition and purchase order bear a number assigned to that particular purchase or contract. The vendor customarily receives from Willys-Overland a copy of the purchase order, which corresponds to a written acceptance of his offer. Appelleeunderstood this customary procedure, but did not receive such a written purchase order. He stated that Edellstein told him that if it were not for the priority feature, appellee “would receive the order by mail Monday.” Edellstein, :however, gave appellee the order number on the job, and appel[535]*535lee testified that he said: “Krenz, I am giving you the order number. Here it is. We want some action on it.”

Substantially all of the foregoing testimony of appellee is supported by the testimony of Nellie Waterhouse, who had an apartment in the same building in which appellee’s office was located, and who had an arrangement with him to take telephone messages for him. She made notes (which were produced at the trial) while she listened to the telephone conversation between Edellstein and appellee, as to the acceptance of appellee’s offer, the amount of the bid, the order number for the job which was given by Edellstein, and his instruction to proceed with the work at once. As soon as the telephone conversation was terminated, Miss Waterhouse came downstairs to appellee’s office and congratulated him upon securing the order.

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Bluebook (online)
164 F.2d 533, 1947 U.S. App. LEXIS 3156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willys-overland-motors-inc-v-krenz-ca6-1947.