Practice, Civil, Agreement as to facts, Ordering verdict. Evidence, Presumptions and burden of proof.
At the trial of an action by the assignee of a corporation, engaged in the sale and lease of milking machines and the sale of dairy supplies, against one who had been its "division manager" for a certain territory, to recover upon an account annexed for certain supplies alleged to have been furnished to the defendant by the corporation, the plaintiff introduced in evidence an agreement, signed by the attorneys for the parties to the action, providing that the items and credits stated in the account annexed were substantially correct so far as they went; "that the defendant had some agency relations with the corporation previous to April 9 of a certain year; that thereafter up to some time in the following July they had business dealings and relations, agency or otherwise, when their dealings and relations ceased"; that "during the period of his said agency relations with the" corporation "the defendant received certain milking machinery supplies from the company, and was charged therefor by the company in his accounts with them; that some of the supplies were in his possession at the time of the termination of his relations with the company. The defendant claims and the plaintiff denies that the defendant should be credited for such supplies as were in his possession at the time of the termination of such relations, the defendant contending and the plaintiff denying that the relations and agreements of the defendant with such company were such that said credit should be given. It therefore is agreed that the only question to be tried before the jury shall be whether or not the defendant shall have any credit for such goods as were in his possession at the termination of his relations with said company; and that if the jury answer that the relations between the defendant and said company were such that said defendant should not have such credit, then the jury may find for the plaintiff in" a certain sum; "but that if the relations between the defendant and the" corporation "were such as to entitle him to credit for such supplies which he had on hand at the termination of his relations with said company, then the court may refer the case to an assessor who shall determine the amount of credit to which the defendant is entitled because of such supplies." Held, that the foregoing did not amount to an agreement to shift the burden of proof from the plaintiff as to his general right to recover and to impose it upon the defendant to establish as an independent defense his right to return the supplies on hand and to receive credit for them.
At the trial of an action by the assignee of a corporation, engaged in the sale and lease of milking machines and the sale of dairy supplies, against one who had been its "division manager" for a certain territory, to recover upon an account annexed for certain supplies alleged to have been furnished to the defendant by the corporation, it appeared that the items in the account annexed were correctly stated. The defendant introduced evidence tending to show that he was elected "division manager" by the directors of the corporation in November of a certain year, at a meeting when a majority of the directors were present, and that it also then was voted that his "commission" be twenty per cent "of installation fees and rentals of" milking machines "installed in his territory," that the corporation had its depot of supplies in Holyoke, that immediately after the directors' meeting the defendant had a talk with them and asked that they send him supplies at his place of business, to which the president replied that they did not have money enough to run two stations of supplies and that if he had them he would have to advance money toward them; that thereafter and until the time of the severance of his relations with the corporation two years later the defendant acted for the corporation in the selling and leasing of milking machines and kept supplies at his place of business, both supplies and machines being shipped to him on his order and invoiced to him at a gross price less his commission; that the defendant made collections and remitted to the corporation, but at no stated times; that in April of the second year of his service as "division manager," the directors of the corporation discontinued that office and notified him thereof; that during April a statement was made by the defendant and his agent of all transactions between the corporation and himself to that date, and the amount shown thereby to be due to the corporation from him was paid by him, the amount being accepted by the corporation in full satisfaction of all items previous to the time when the defendant ceased to be division manager with exceptions not material; that thereafter the corporation made to the defendant a proposition that he deal with it as a "dealer" subject to certain conditions, and that milkers and supplies be furnished to him at certain stated "discounts" from the list prices, and until the following July efforts were made to reach a mutual working basis, which proved futile. It was agreed that previous to the discontinuance of the office of "division manager," the defendant had had some agency relation with the corporation. All of the items in the account annexed which were material were for transactions which occurred after the defendant ceased to be "division manager." In letters to the defendant in May, the general manager of the corporation used the term "agent" as to the defendant. At the termination of his relations with the corporation in July, the defendant had on hand certain supplies and contended that he then had a right to return the supplies and have credit for them. The corporation refused to receive the supplies, and the defendant contended that he was entitled to credit for them in the action by the assignee. The parties agreed that, if the defendant's contentions were not sustained, judgment should be entered for the plaintiff on the account annexed, and that if his contentions were sustained the case should be referred to an assessor to determine the amount of the credit to which he was entitled. The presiding judge ordered a verdict for the plaintiff. Held, that the verdict was ordered improperly, since there was evidence for the consideration of the jury in support of the defendant's contention.
RUGG, J.
This is an action of contract upon an account annexed. The defendant was in November, 1906, appointed division manager of a corporation (of which the plaintiff is assignee) for Vermont and New Hampshire. The business of the corporation was dealing in milking machines and dairy supplies. At this time the defendant had a talk with the president and directors of the corporation, in which, to quote the defendant's testimony, "They said they didn't have money enough to run two stations of supplies, and if I had the supplies I would have to advance money toward the supplies." The company's depot of supplies was then in Holyoke. The defendant acted for the corporation from this time until July, 1908, at first leasing and afterwards selling machines, and he kept certain supplies at his place in Vermont for local needs. Both machines and supplies were shipped to the defendant on his order, and invoiced to him at a gross price less his commission. It is not contended that the machines were sold to him, but it is contended that the supplies were sold to him. The defendant made collections and remitted, but at no stated times. A change in management of the corporation occurred in March, 1908, and negotiations followed for the establishment of a new business arrangement between it and the defendant. These came to naught, and the relations ceased in July, 1908. At this time the defendant had in his possession certain supplies, which he claimed the right to return and receive credit for under the terms of his original contract with the corporation.
The case was tried upon oral evidence, and an "Agreed Statement as to Facts." A question arises as to its construction. Among its terms were these: that "the items and credits stated in the account annexed to the plaintiff's declaration . . . are correct so far as they go," with exceptions not here material. "That during the period of his said agency relations with the New England Dairy Supply Company the defendant received certain milking machinery supplies from the said company, and was charged therefor by the company in his accounts with them; that some of the said supplies were in his possession at the time of the termination of his relations with the company. The defendant claims and the plaintiff denies that the defendant should be credited for such supplies as were in his possession at the time of the termination of such relations, the defendant contending and the plaintiff denying that the relations and agreements of the defendant with such company were such that said credit should be given," and that "the only question to be tried before the jury shall be whether or not the defendant shall have any credit for such goods as were in his possession at the termination of his relations with said company."
This does not amount to an agreement to shift the burden of proof from the plaintiff as to his general right to recover and to impose it upon the defendant to establish as an independent defense his right to the return of the supplies on hand and be credited for them. The dispute concerns the precise terms of the arrangement between the parties, and is, whether the defendant was a purchaser of all supplies sent or whether he was a consignee ultimately liable only for such as he finally sold. The controversy does not relate to what in pleading is a confession and avoidance, but to the character of the original contract as to the dairy supplies. This is confirmed by the fact that the declaration is a count upon an account annexed, and the answer a general denial and payment. The burden of proof as to what the contract was rested upon the plaintiff throughout. Wylie v. Marinofsky, 201 Mass. 583. The agreed facts admitted the correctness of the items, but did not reach to any admission as to what the contract was.
The question at issue in one aspect was whether the defendant received the supplies as agent or as purchaser. The fact that they were charged to him on account is not decisive and was for the jury to pass upon. That might have been found to be a matter of bookkeeping for convenience in keeping track of them. There are several circumstances which appear to support the claim of the defendant that he was agent and not purchaser. The supplies were shipped and charged to him in the same way as were the machines, but both sides agree that the machines were sent to him as agent and not as purchaser. They were all invoiced to him at the gross price less "his commission." Commission is not used in a proper sense as to goods sold directly to a consignee. Discount is the natural word to use in such connection, while commission correctly decribes that which an agent receives on sales. It further appeared that in some instances customers in the defendant's territory dealt directly with the corporation, and in these cases it paid to the defendant the same commission he would have received had he secured the customer himself. Letters from officers of the corporation speak of the defendant as its agent. The conversation between the defendant and the president and directors of the corporation at the time of his appointment as manager for Vermont and New Hampshire may have been found to amount only to an agreement on his part to make advances on account of supplies sent him so that the corporation would not be crippled by running two supply stations, which did not modify the general agency relation, and did not constitute an agreement to purchase.
In view of these considerations it could not have been ruled rightly as matter of law that there was no evidence to support the defendant's contention as to what the contract was. The nature of the relation was a question of fact.
Exceptions sustained.