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Nat Nal Service Stations, Inc. v. Wolf
304 N.Y. 332
NY
1952
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*1 appear The Federal rule does While be different. remedy Compensation Longshoremen’s Act afforded employer nullify employee, is exclusive as between it does not rights against parties (Seas or alter the third workman’s Shipping 102). Co. v. Nor Sieracki, 328 does bar U. S. party recovering the third from the thus sued from workman’s employer damages required employee Ship employer’s negligence. (Green reason of the v. War ping Supp. Administration, 66 F. v. United 393, 395; Severn Supp. Supp. States, F. 68 F. States, 21; Benevento v. United * * * ” involving maritime indemnification. cases J.) (Barbara Ransom, Inc., 191 Misc. 960 (Froessel, may To the added the later case list cases above cited 691) where States F. 2d the United Rich v. United Appeals that the Second Circuit stated Court States “ despite Long provisions indemnity exists Compensation Act ”. shoremen’s and Harbor Workers’ Appellate Division should be modified opinion court herein, with the with costs this in accordance Belgian against Appellate Dow and and in Division to Line with costs. modified, affirmed, as so Transoceanic, and, Ftjld J., Lewis, Ch. Desmond, Dye, Froessel, Loughran, concur. JJ.,

Judgment accordingly. Appellant, Henry Nat Nal Service Wolf Inc., Stations, Respondents. et al., July 15, April 21, Submitted decided 1952.

334 A.

Jerome Strauss I. The appellant. Frauds is not a defense. First Church v. (Trustees Baptist Brooklyn Co., Fire Ins. Kent v. 19 N. Y. Warren 62 305; 560; Kent, Holbrook, Chemical & Mfg. Co. v. 118 Y. Voigt, Blake v. 586; 134 Y.N. 69; Spector Co., Co. v. Serutan 60 N. Y. 2d 270 S. Div. Hasbrouck, Ward Woert v. App. 993; Y. Van 169 N. 407; v. & Susquehanna R. Albany Co., International R. 538; Ferry Co., American v. Fidelity Co. Brown v. 350; 207 Babcock, Henie, 265 Scanlan Div. App. App. Div. 596; v. Rochester Folding Browne, Box Co. v. App. Berth 179 N. Y. 542; Suren Knapp *3 Handel, Fitzpatrick, Adams 205 App. 124; 125 N. v. Fairbanks, Hedeman & Co., Morse II. There 240.) Gen. should be favor (Zurich judgment of summary plaintiff. Co., Accident & Liability Ins. v. Bethlehem Steel Co. 495.)

Milton H. Spiero Samuel Finkelstein for respondents. The contract on is and unenforcible under relied void of Frauds. (Martocci New York 301 Y. Brewery, Greater Cohen v. Bros. Bartgis 289 Y. J. This is an action to recover an agreement

Conway, which set out in the of the following complaint. paragraph ‘‘ Fourth : That heretofore the defendants entered duly into an agreement with plaintiff, wherein and whereby promised defendants and to and that so as from long plaintiff purchased Vacuum Oil Com- Socony or Standard either or pany both, Oil Company for of gasoline through at its business defendants and accepted the defendants defend- same, equal ants would an amount the discount allowed Vacuum defendants said Socony Company Oil and both of them, Standard Oil or either or each Company purchased.” so gallon allegation each and every denying

The defendants answered, defense, a separate quoted, pleaded paragraph ‘‘ its terms was the oral agreement thereof ”. within one performed judg- defendants for summary A then made by motion was affidavit Practice. The ment under rule 113 of the Buies Civil individual defendant motion was made support no facts. Since summary but stated surprisingly there- we must look, has been granted, the complaint dismissing and the affidavit of the complaint to the allegations fore, opposition corporation president which material affidavit states of that portion motion. The ‘‘ sta- gas has garage facts: the following Manhattan, Borough City Avenue, tion at 14 Second thereat. The gas sale purpose for the York, of New had an corporate arrange- defendant Wolf oil, companies supplying oil with various ment or allowance based discount received defendants them purchased by through of gasoline of gallons number obtain a greater allowance, In order to the companies. increase the volume of their orders desired me with the if proposition came to and hence for gasoline, gasoline through them, thereby give my I would equal to me amount volume, they their increasing from the companies upon them oil received to the discount if I orders. gave them, my whatever orders which and then they accepted the defendants I did give name to the oil under which companies, in their transmitted *4 cent a gallon. at least one Through- a discount of received they through and them some purchased I period out orders which accepted gasoline, gallons 907,115 * * * the Personal Law 1 section 31 of Property Subdivision by only agreements as to apply so construed has been within one terms performance year do not admit their- within performance and if their the time unlikely improbable may be, however the year, of the statute. proscription not come does agreement Fire Baptist Brooklyn First Church v. Trustees (See, e.g., Holbrook, Mfg. & Co. Chemical Warren Ins. Voigt, 118 N. Y. 586; Blake v. 134 N. Y. Hasbrouck, Ward agreement alleged clearly here was one at will and for specific by no definite or time and thus its terms did not of necessity beyond making. extend one from the time of its complaint party It is clear from the and affidavit that neither obligated anything. plaintiff itself to do Unless and until had n gasoline offered an order and the defendants accepted only had such offer and filled the then order, legal obligation, did there come into existence a viz., obligation of defendants to discount. The promise by plaintiff purchases defendants to allow a discount on plaintiff through by obligate plaintiff if made did not them through plain buy its defendants. The purchased gasoline through tiff could have same someone plaintiff placed than if other On other hand defendants. obligation under it. order the defendant was no obligated party to deal with the other. Each time Neither was plaintiff buy gasoline offered to from defendants and the accepted gasoline, the offer con and sold there was defendants separate contract and there became due from defend cluded specified, party obligated but neither was ever ants discount by received enter another such contract. The discounts into companies the named oil as received became defendants from ” plain owing by the defendants to the and due and ” complaint. pleaded paragraph tiff so Seventh pláintiff suing reality recover the due from discounts independent completed contracts. executed, a series of When, placed plaintiff they accepted an order defendants acceptance grant an order the discount. became bound imposed the discount conferred plaintiff. duty it to Until defend offered an order was unless rights any party indi or duties. As has been had neither ants, agreement defend the terms cated above thereby accept an order refuse to time could at ants hand was payment On the other of a discount. .avoid place any orders with defendants. obligated at time to contractual neither Since succeeding respect order to each into new enter *5 dissenting for it in the words of the gasoline seems quite clear, “ to power bargain retained the below, Justice that both parties Div. App. terms.” (279 future fully order] its concerning [a free at all times were Thus defendants 206, a by refusing discontinue either discount payment no dis an order or that thenceforth notification to by all at times to place Plaintiff was free counts be paid. that orders for elsewhere to notify its for acceptance. offered to them no further would be terms of with an contract alleged by We are confronted time, which neither was to do anything bound there terms nothing bring is consequently Frauds. Brewery v. New Greater York The cases of Bartgis Bros. Co. (301 (264 App. 57) are con- affd. 289 N. Y. referred below not to the 846) In both set allegations complaints those cases the trary. indefinite for binding parties periods forth contracts In termi- of time. neither case was party given Martocci In the case relationship. nate the contractual amended, (pp. 60-61) complaint, “ in supplemented by writings, later agreement, whereby introduction defendant consideration ” defend- large corporation, and well-known “ commission ant ” on all per cent sales made (5%) five it. been paid for The contract had corporation executed further there fully nothing 62-63): him ever to do. We said our opinion, (Cohen of Frauds to this transaction applies the Statute Co., If Bros. affd. 289 Y. Bartgis 846). had an event which might of the contract here included the terms within a relationship parties year, the contractual end time would not beyond bring liability defendant’s however, the Since, the statute. terms contract within will continue relationship beyond are such even though continuing liability it is within the statute, one. a contingent is subject merely which defendant deciding liability endurance of defendant’s factor. orders from Lorillard defendant would not mere cessation relationship parties; alter the contractual it would between the *6 performance; plaintiff possession not constitute in would still be though may right, monetary of his contractual have value, no immediately (Emphasis supplied.) the ever.” In case at any right bar neither contracual which had had in duration time. (supra)

The case Cohen the as the Mar is, substance, same (supra). plaintiff, tocci case a salesman, commission employed by alleged the defendant. Plaintiff the 1938, orally agreed defendant him commissions based placed by Paper Corp., a Resolute Products customer procured by plaintiff, the time whether or the not employ placing was in the at the defendant’s time of the allegations According complaint orders. to the the defend Paper Corp. ant had to sell Resolute Products procured of cake boxes for the account of the cus holding Inc. tomer, Cushman & In. Sons, the contract was being unenforcible of within Frauds court said (264 App. 261): are 260, “We mindful of the rule that con performance year, though tracts admit of within a unlikely performed, be thus not are within the statute. [Citing cases.] the contract here But is a different charac only for not is it of indefinite duration ter, but, terms, imposed obligation long defendant which continues so Paper Corp. Resolute as the defendant and Products exist. It Paper Corp. is true that if Resolute Products should no year, within defendant no commissions would thereby but the contract be defendant’s would not have earned, ‘ performed,’ apply then for it would been orders that * * * accepted succeeding years. might con- be Unlike require performance single may act which tracts which requires may within a here executed contract period for an unlimited defendant, time, commis- Paper Corp. from Resolute Products sions on orders performance impossible year.” and, therefore, placed upon the defendant under oral the. (supra) case was one in the Cohen which would con Paper long.as the defendant Resolute Products tinue as possess Corp. The defendant did not in existence. were right a matter the contract as and could to terminate Pape" in no Resolute placed by avoid on orders way liability Taylor accept. (See which it was bound to Corp. Products Fairbanks, Hedeman Co., Morgan’s Sons later herein.) Morse & 286 N. Y. discussed the plaintiff cases (supra) Martocci Cohen In both contracts. respective salesmen had their parts executed constituted case the plaintiff’s performance in the customer, introduction to the having the contract by plaintiff performed part case the his those cases In both for the defendant. procured customer respective plaintiffs performance by impose necessary the consideration agreement constituted their part out carry the defendants binding obligation *7 promises, by paying in with their of the accordance contracts, whenever the customers to plaintiffs commissions on sales Co-op. Assn., League (Rubin Dairymen’s made. passed upon The considered question sole “ its terms is [was] whether the contract Cohen by case was thereof.” from the

not to be within one performed year In neither N. Y. 846.) affd. 289 (264 escape the defendant case nor the could Cohen case commissions to plaintiffs to the contractual obligation plaintiffs’ The plaintiff. procured to the customer sales dependent upon not two cases was in those commissions right but was here, defendants, act of the or the plaintiffs the procured third party, the act of the dependent wholly which the an order placed the customer time Any customer. had to accept they faith bound good defendants were did If the customer called for. the commission plaintiffs after the contract was more than until not order under contractual still be would into the defendants entered on sub their commissions the plaintiffs to pay con avoid their not could The orders. sequent from the accept refusing obligations by tractual Morgan’s In Taylor the plaintiffs. procured by customers was brought by an action supra), Co. (124 184, 186, Sons commissions a written agreement recover “ upon all commissions paid be was to whereby said ”. This court purchasers bona fide from “ commissions upon the plaintiff allowed referee 188): (p. responsible accepted by parties, orders from which were duty defendant. We to the that it incline view accept presented defendant all orders purchasers, bona fide which were with the made accordance provisions right, and that did not have contract, arbitrarily accept without cause, to orders. refuse to Such require a construction of territory expense, travel over the own his six mentioned, year, part right reject times a with a defendant every presented deprive order him thus him, and to commissions.”

We have also Fairbanks, said in Hedeman v. Morse & Co. supra), 240, 250, that a salesman’s commis sions for the arbi services rendered could not defeated trary employer refusal of his orders from the cus procured by tomer the salesman. or dissolution retirement from' business of a (supra) or a

defendant customer cases Martocci did not take those out of cases the Statute of Frauds. Appellate (264 App. 261): Cohen case Division said suggested Corp. Paper It is that Resolute Products might retire business dissolve impossible per in which event the further contract would be ‘ formance and thus would terminate. But termination is not # * performance, but rather destruction of the contract provision authorizing parties where there is no either of the *8 ” Voigt, right.’ 69.) (Blake v. terminate as a matter of party neither nor under the Here, has, is it for them through agreement, of the furnish consideration terms performance party period beyond which will bind the other for a offering acceptance particular and of order. Plaintiff a perform perform all. need never If chooses to accept placing an order the not bound it. If defendants are perform acceptance an order do not of bind defendants as to is clear that each order future order. It themselves acceptance separate parties that the is a contract and herein and performed of have and executed series contracts. Appellate judgment of Division be should reversed Special of Term this order with costs court affirmed, and the Appellate' Division. and due for moneys suit is J. (dissenting).

Desmond, summary awarded have been and defendants agreement, the com- that the ground of on on motion, dismissal, one is sued plaint on agreement shows its face that our For unenforcible. which makes the Statute of Frauds taken are, course, complaint of the purposes, allegations legal question as are to the being true, and so we limited which particular under the enforcibility, statute, may a contract That such and complaint asserts describes. of mutuality lack be invalid for as (such some other reason point, too, and beside obligation) point, beside any- on defendants- to pay fact that there be no obligation would into entered between unless until there were thing and plaintiff chose parties separate whereby sales transactions for accept, chose to orders give and defendants defendants, con- definite, described, claims under one gasoline. Plaintiff agreed parties orally tract whereby, according pur- so from certain oil long purchase should that, chasers, defendants, plaintiff’s but through orders, so as defendants should those gasoline, long discount, a certain pay plaintiff defendants would commission or equal to that producers defendants, received quantities of If that oral purchased so by plaintiff. ‘‘ one law, contract so set by plaintiff is, By forth ” (Personal Prop- terms is not within one performed year Law, complaint properly then the was erty 1), subd. § dismissed. whether, gave, or defendants

Regardless when, plaintiff plaintiff’s right give for accepted, any gasoline, orders if amount orders defendants’ terms of accepted any them, would, treaty, that either nothing continue an indefinite time. There was within other do, agreed-upon could within to an end. Putting period, bring arrangement have future, into the indefinite way: plaintiff, another if collect the discount could nothing and there was accepted, deal, discharge do, *9 one, obligation. therefore, terminate agreement, which under the rule of Bartgis Bros. Co. (289 846), New Greater York Brewery 57), was unenforcible because was not put writing. should costs. affirmed, Dye

Lewis, and Froessel, JJ., Conway, J.; concur with Des- J., mond, dissents Loughran, Ch. J., opinion J., concur. Fuld,

Judgment accordingly. County v. Western Erie New Authority, Water Respondent, Company et Defendants. York Water al., al., et Appellants, Argued July April 9, decided 1952.

Case Details

Case Name: Nat Nal Service Stations, Inc. v. Wolf
Court Name: New York Court of Appeals
Date Published: Jul 15, 1952
Citation: 304 N.Y. 332
Court Abbreviation: NY
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