Wright Manufacturing Corp. v. Scott

360 N.E.2d 2, 172 Ind. App. 154, 1977 Ind. App. LEXIS 746
CourtIndiana Court of Appeals
DecidedFebruary 14, 1977
Docket1-1275A221
StatusPublished
Cited by12 cases

This text of 360 N.E.2d 2 (Wright Manufacturing Corp. v. Scott) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright Manufacturing Corp. v. Scott, 360 N.E.2d 2, 172 Ind. App. 154, 1977 Ind. App. LEXIS 746 (Ind. Ct. App. 1977).

Opinion

STATEMENT OF CASE

Lowdermilk, J.

Defendants-appellants, Wright Manufacturing Corp., and Wright Tool & Manufacturing, Inc. (Wright) *155 appeal from the judgment of the trial court which awarded plaintiff-appellee, Keith F. Scott, d/b/a K. F. Scott and Associates (Scott) $93,573.34 damages for breach of an oral agreement to pay commissions.

FACTS

The facts necessary for our disposition of this appeal are as follows: In 1967, Scott and Wright entered into an oral agreement whereby Scott would procure business for Wright in exchange for a 5% commission on all orders he obtained. The parties made no provision concerning fees subsequent to the termination of their relationship. By letter dated November 24, 1970, Wright terminated Scott’s agency effective December 31, 1970.

The trial court made findings of fact which provided in pertinent part as follows:

“Findings of Fact

“1. Plaintiff is a manufacturer’s representative engaged in the business of selling various manufacturer’s products to manufacturers of major appliances, such as refrigerators, ranges and home laundry equipment. The defendants are corporations organized and existing under the laws of the State of Indiana.
2. In 1967, Maurice Wright was doing business as Wright Tool & Die and was engaged primarily in the tool and die business, but did some roll forming of products. In 1967, the plaintiff and Maurice Wright made an oral agreement that Wright would pay the plaintiff five percent (5%) upon the amounts received by Wright from sales of manufactured goods whose orders were procured by the plaintiff. The plaintiff was to receive no commission on orders for tooling necessary to manufacture such products. Plaintiff was to service the customers he procured for Wright, and was to pay all of his expenses himself. Subsequently, Maurice Wright caused his business to be incorporated as the defendant corporations, and to the defendant corporations continued the same relationship with the plaintiff.
3. The sales which plaintiff obtained for the defendants were for metal trim on the major appliances of various manufacturers. The business with these manufacturers was done on an annual basis. The new models of appliances would generally come out in the fall of each year. In the summer *156 of each year, the manufacturers would issue blanket purchase orders for the coming model year, and as the year proceeded, amend these orders by what were called “releases,” which specified what quantities were required at specific times. Sales under the original order would thus continue throughout the model year.
4. Plaintiff would call upon the various customers throughout the model year at intervals of three to four weeks. During these calls, he would inquire of the customer’s buyers as to whether there were any problems or anything upon which he should follow up with the defendants. In this way, he would prevent small problems from becoming major irritations. He would also consult with the customers’ designers who were working on the next model year and give them advice as to the problems and costs involved in proposed new trim. If the customers called plaintiff and wanted him to visit with respect to some question, as they did on many occasions, he would visit the customer, and if necessary, take along personnel from the defendants to discuss the problem which initiated the call. This calling upon the customers and the servicing of the customers with respect to orders already received, was for the purpose of maintaining good relationships throughout the product year so that the defendants could be in a good position to obtain business for the next product year. During these visits, plaintiff would entertain the customers’ representatives, and on occasion, when they were in Indianapolis, would entertain them in Indianapolis. The defendants would not reimburse the plaintiff for his expenses in providing such •services to the customer.
5. When the time for the orders for the new model year were to be obtained, the customers would generally submit their requests for quotations directly to the defendants. The defendants would then make a quotation and submit it to the customer with a copy to the plaintiff. Plaintiff would then follow up with the customer to see if the purchase order for the coming model year was to be issued to the defendants. In some instances, questions were raised by the customer with the plaintiff about the price quotation, and sometimes, at the customer’s request, the defendants would requote in accordance with the customer’s request in order to obtain the business. After the purchase orders for the coming year had been issued, the plaintiff would continue to service the account during the model year in order to procure the business for the following year.
*157 6. After the purchase orders had been obtained from the customers for the 1970-71 model year, plaintiff continued to service the accounts for the defendants at his own time and expense, until the end of 1970. He ceased servicing these accounts because on November 24, 1970, the defendants terminated plaintiff’s relationship by letter which read as follows:
‘Please be advised that effective December 31, 1970, all arrangements or agreements between yourself and Wright Manufacturing Corporation and Wright Tool & Manufacturing, Inc., are terminated. . . .’
7. Thereafter, the defendants were able to prevail upon the principal customer, Midwest Manufacturing Corporation, to issue new purchase orders for the balance of the model year. Such purchase orders had never before been issued during the middle of a model year, nor have they been issued since. They were issued solely as a subterfuge to aid the defendants in avoiding the payment of commissions to the plaintiff.
* * *
9. Plaintiff was the procuring cause for all of the business the defendants obtained from the following customers for 1970-1971 model year:
Midwest Manufacturing Corporation
Admiral Corporation, National Service Division
Fedders Corporation, Edison, New Jersey
Fedders Corporation, Greenville, Michigan
Franklin Manufacturing Co.
Frigidaire Division of General Motors Corp.
Canadian Admiral
Gibson Products Corporation
Kelvinator, Inc.
Tappan Company
“Plaintiff was also a procuring cause in obtaining the business from the same companies for the 1971-72 model years, to the extent that he continued to call upon and service at his own expense such customers after the purchase orders had been obtained for the 1970-71 model year. He continued to service such customers up until the end of 1970.

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Bluebook (online)
360 N.E.2d 2, 172 Ind. App. 154, 1977 Ind. App. LEXIS 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-manufacturing-corp-v-scott-indctapp-1977.