Jones v. Standard Oil Co. of California

• Decision Date: 07 August 1931
• Docket Number: 23131.
• Citation: Jones v. Standard Oil Co. of California, 2 P.2d 76, 164 Wash. 83 (Wash. 1931)
• Parties: JONES et ux. v. STANDARD OIL CO. OF CALIFORNIA.
• Court: Washington Supreme Court

2 P.2d 76

164 Wash. 83

JONES et ux. v. STANDARD OIL CO. OF CALIFORNIA.

No. 23131.

Supreme Court of Washington

August 7, 1931

Department 2.

Appeal from Superior Court, Kitsap County; Sutton, Judge.

Action by George W. Jones and wife against the Standard Oil Company of California, with a counterclaim by defendant. Judgment for plaintiffs, and defendant appeals.

Affirmed.

Battle Hulbert & Helsell, of Seattle, for appellant.

Marion Garland, of Seattle, for respondents.

BEALS J.

Plaintiffs who for some time had been conducting a service station in the city of Bremerton, stated in their complaint two causes of action. In the first, they alleged that between January 10 and October 1, 1929, they had sold 38,010 gallons of defendant's gasoline, upon which they were entitled to an allowance of 2 cents per gallon more than they had already received. In the second cause of action, they alleged that they had rented to defendant a service station at a net rental of $41.67 per month, and that defendant owed them ten months' rent. Defendant, in its amended answer denied any indebtedness on plaintiffs' first cause of action, and, as to their second, admitted owing rent for the month of October, but denied that it owed any other rental. By way of an affirmative defense and counterclaim, defendant alleged that plaintiffs were indebted to it for goods sold in the sum of $359.90. Upon the trial, defendant abandoned its denial of the facts set forth in plaintiffs' second cause of action, and admitted its indebtedness to plaintiffs in the sum of $416.70 for ten months' rent; plaintiffs, on their part, admitting their indebtedness for goods sold in the amount claimed by defendant, as above set forth. This left the only issue to be tried that set forth in plaintiffs' first cause of action, in which they claimed that defendant was indebted to them in an amount equal to 2 cents a gallon on the gasoline which plaintiffs had sold between the dates above set forth. This issue was tried to the jury, which returned a verdict in favor of plaintiffs for the sum of $686.64. From a judgment entered upon this verdict and upon the respective admissions of the parties hereto, defendant appeals, contending that the same is erroneous in so far as it includes the amount found by the jury to be due plaintiffs from defendant on the gasoline account.

It appears from the testimony that respondents, for some time prior to January 10, 1929, had been operating their service station, selling appellant's gasoline under an agency contract, by the terms of which they received 4 cents per gallon for all gasoline sold, appellant fixing the price at which the product should be retailed. On the date last above referred to, the previous arrangement between the parties was modified by a proposition submitted by appellant to respondents, and accepted by them, the new agreement reading as follows:

'Seattle, Wash., January 10, 1929.

'Mr. G. W. Jones, Naval & Bursell Sts., Charleston, Washington.

'Dear Sir: Referring to the agency agreement and lease agreement in effect between you and ourselves, dated November 8th, 1928, we hereby propose that the agency agreement, except paragraph 9 thereof, be suspended until further notice to you from us, and that during the period of such suspension you be licensed to use the premises for the sale of petroleum products upon the payment of said sum of $1.00 monthly as therein provided, we agreeing to supply you with such products for the purpose of your trade at the following prices:

'For Red Crown Gasoline four (4¢) cents per gallon less than our posted Service Station or posted Plant price therefor, at time and place of delivery; and on the tenth day of each calendar month we will credit your account in a sum equivalent to two (2¢) per gallon for all Red Crown Gasoline delivered to you on said premises during the preceding calendar month.

'For products other than gasoline the price will be as stated in said agency agreement.

'The agency agreement will be reinstated upon notice from us to you of the termination of the arrangement evidenced hereby. The lease agreement will remain in force during the period of this arrangement.

'Please express your approval by signing the confirmation on the enclosed copy of this letter.

'Yours truly,

'Standard Oil Company of California

'By J. J. Valentine [Signed].

'Confirmed: Geo. W. Jones [Signed].'

At this time, respondents were indebted to appellant in a considerable sum, and were doing business with appellant on a cash basis; all deliveries of gasoline thereafter made to respondents being paid for in cash at the time of delivery. After the making of the new contract, it seems to be conceded that respondents could sell the gasoline which they had purchased from appellant at any price they pleased; they testifying, however, that they did sell the gas at the price posted by appellant, or the price at which the gasoline was billed to them. It appears from the testimony offered on behalf of appellant that it maintained regular schedules of prices which were posted at each of its substation plants; the prices being fixed at its main office in San Francisco and forwarded to its agent in Seattle, who in turn distributed the schedules to the substations where they were posted on bulletin boards. Appellant submitted the following statement of account concerning its dealings with respondents between the dates above referred to:

                                                                         Posted
                                                                                          Plant
                            Date.               As Billed to Jones.    Net Price to      Price.
                                                                          Jones.
                From Jan. 10/29 to Feb.14/29    17 cents                 15 cents      21 cents
                From Feb. 15/29 to Feb. 19/29   15 cents                 13 cents      19 cents
                From Feb. 20/29 to March 18/29  13 cents                 10 cents      17 cents
                From March 19/29 to May 31/29   19 cents                 16 cents      23 cents
                From June 1/29 to June 18/29    19 cents                 15 cents      23 cents
                From June 18/29 to June 19/29   19 cents less 4          15 cents      23 cents
                From June 20/29 to June 30/29   20 cents less 4          16 cents      23 cents
                From July 1/29 to Oct. 1/29     21 cents less 4          17 cents      24 cents
                

Respondent George W. Jones, who will hereinafter be referred to as though he were the sole respondent, testified that early in June, he, being of the opinion that he was not receiving from appellant proper credits, complained to appellant, and that he was forthwith allowed a...