Jarrett v. Pittsburgh Plate Glass Co., 10285.
| Decision Date | 14 November 1942 |
| Docket Number | No. 10285.,10285. |
| Parties | JARRETT v. PITTSBURGH PLATE GLASS CO. |
| Court | U.S. Court of Appeals — Fifth Circuit |
Robert L. Anderson, of Macon, Ga., for appellant.
William A. Fuller, of Atlanta, Ga., for appellee.
Before SIBLEY, HUTCHESON, and HOLMES, Circuit Judges.
Pittsburgh Plate Glass Company sued H. K. Jarrett on a note, with interest at 7% from its date. Liability for interest was denied, and a counter-claim was made for damages for breach of a contract that Jarrett should be sole dealer in Macon, Ga., for the products of Pittsburgh, and the damages were asked to be tripled because of a breach of the federal anti-trust laws. A motion to dismiss the counter-claim and one for summary judgment on the other pleadings were decided in favor of Pittsburgh, and Jarrett appeals.
The counter-claim is based on a printed form contract dated January 8, 1930, by which Jarrett agreed that as distributor for Pittsburgh Proof products he would maintain an adequate stock to serve the requirements of his trade, would aggressively push their sale, and take advantage of the Company's advertising and make other cooperative efforts. The Company agreed that at the end of every twelve months period in which the dealer had bought at the Company's printed prices, with dealer's discounts, and paid for a total amount of $10,000 but less than $15,000, it would set up on its books profits for the dealer of 7½% on one group of products and 10% on another group; and it was agreed that the Company might terminate the agreement at any time should the dealer fail to comply with the terms of sale or to cooperate fully. Added in writing at the end are these words: "The Company agrees to confine the sale of Proof Products to the above dealer for Macon, Ga." It is alleged that Jarrett complied with his contract, but on March 1, 1941, Pittsburgh Plate Glass Company over his protest opened a branch store in Macon, Ga., and began itself to sell Proof Products at prices less than Jarrett could profitably sell them, to the damage of his business $5,000, and causing a loss to him in the value of goods on hand of $800. These damages are also sought to be trebled by allegations noted hereafter.
It is argued that since this contract was indefinite as to its duration, it was only at the will of the parties; or that it was terminable after reasonable notice; or at the end of each twelve month period. On the other hand, it is argued that it was intended to last so long as the respective parties continued to buy and sell Proof Products and Jarrett complied with the terms of sale and cooperated, failure to do which was the sole reason for which the contract could be terminated by Pittsburgh. It is also argued that Jarrett was not bound to buy any amount of goods, and the contract was unilateral and not binding on either from the beginning. We find it unnecessary to decide these contentions, because the Robinson-Patman Amendment of the Clayton Antitrust Act, 15 U.S.C.A. Sect. 13(c), became law on June 19, 1936, 49 Stat. p. 1527. It prohibited receipt or payment of commissions or discounts in lieu thereof in sales transactions except for services rendered. Jarrett was not rendering service to Pittsburgh, but was buying its goods and reselling them as his own. It is conceded that after this Amendment the agreed percentage rebates could not lawfully be paid, and were not paid. Pittsburgh's promise to pay them could not be performed. If Jarrett was previously bound to buy such goods as his trade required, he was no longer so bound, because...
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