Ruckstell Corp. v. Great Lakes Aircraft Corp.

THE COURT. Upon a thorough reading of the evidence and briefs, we are satisfied with the disposition made of this cause by the District Court of Appeal, Second District, Division Two, and we therefore adopt its opinion as and for the decision of this court. It reads:

“From a judgment in favor of plaintiff entered on the verdict of a jury, defendant has appealed.

“Plaintiff’s last amended complaint claims damages by reason of the breach by defendant of an alleged contract with plaintiff under which the latter alleged it was acting as distributor in southern California and Arizona of airplanes manufactured by defendant. A part of the damages allowed by the jury for such alleged breach was the sums of money laid out in preparing to perform and in performing such contract, less the income received from such performance and the value of materials on hand at the time performance was prevented.

“Many points are urged by appellant, but most of them are based on the contention that the evidence does not support the finding of the jury by special verdict that a contract was entered into between plaintiff’s assignor and defendant, as alleged in the complaint, on July 18, 1929, or in fact at any time, and that in consequence there was no such contract to breach. It is not questioned that there were some sums due plaintiff from defendant for labor done, supplies furnished and money advanced at plaintiff’s [180][defendant’s] request, but such amounts do not aggregate the large judgment given, $26,570.87, which can only be justified by the existence of the contract alleged.

“The evidence shows without dispute that on April 19, 1929, J. G. (Tex.) Rankin was appointed distributor for defendant corporation's products in California, Washington, Oregon and Idaho, and that he had contracted to buy from defendant one hundred airplanes of different models, it being provided in such contract that if within ninety days from date of the agreement he increased such contract by agreeing to purchase one hundred additional planes, the following states would be added to his territory, viz., Montana west of the Rocky mountain continental divide, Nevada, Utah and Arizona. The contract also provided that it could be cancelled by either party with or without cause by mailing the other written notice of its intention so to do, and that such cancellation should operate as a cancellation of all orders for planes or parts not actually shipped; and further, that the relation created between the parties by the contract was that of ‘vendor and vendee and not principal and agent, and neither the distributor nor any of its associate dealers, subdealers or employees shall be deemed the representatives of the company for any purpose whatever’. It was further provided that before closing an agreement with any associate or subdealer a copy of the proposed agreement should be submitted to defendant corporation. This contract was cancelled by defendant ‘about the first of October, 1929.’