Prigge v. Selz, Schwab & Company
| Citation | 158 N.W. 975,134 Minn. 245 |
| Decision Date | 28 July 1916 |
| Docket Number | 19,813 - (208) |
| Parties | PAUL W. PRIGGE v. SELZ, SCHWAB & COMPANY |
| Court | Supreme Court of Minnesota (US) |
Action in the district court for Waseca county to recover $3,000 for false representations in inducing plaintiff to purchase the stock in trade of Dahl & Lust. Defendant obtained an order requiring plaintiff to show cause why an order should not be made vacating the attempted service of the summons and complaint upon defendant. The matter was heard before Childress, J., who discharged the order to show cause. The answer alleged that defendant was incorporated under the laws of Illinois, was not doing business in Minnesota, and at the time of the service had no officer or agent within the state. The case was tried before Childress, J., and a jury which returned a verdict for $750. Defendant's motion for judgment in its favor notwithstanding the verdict was denied. From the judgment entered pursuant to the order for judgment defendant appealed. Affirmed.
Appeal from denial of motion for judgment non obstante.
1. Where the defendant moves for judgment notwithstanding the verdict but makes no motion for a new trial, the only questions for consideration by this court are whether the trial court had jurisdiction and whether there is any competent evidence tending to sustain the verdict.
Foreign corporation doing business in Minnesota.
2. The trial court correctly held that defendant was doing business in this state and that the service of the summons upon its representative was valid.
Sale -- action for false representations by third person as to value.
3. It is the general rule that misrepresentations by the vendor of the value of his goods do not give rise to a cause of action unless coupled with other fraudulent representations, or acts, by which the vendee is misled or overreached; but this rule does not apply to one who is not the vendor. Defendant not being the vendor of the goods in question is not relieved by the above rule from responsibility for false representations as to value made by its representative. Held that there is evidence tending to support the verdict.
Frank B. Kellogg, C. A. Severance, Robert E. Olds, S. B. Wilson and Mayer, Meyer, Austrian & Platt, for appellant.
Moonan & Moonan, for respondent.
Defendant made a motion for judgment notwithstanding the verdict, but made no motion for a new trial and this court cannot grant a new trial upon this record. If the court had jurisdiction of defendant, the only question for consideration is whether there is any competent evidence reasonably tending to sustain the verdict. Northwestern Marble & Tile Co. v Williams, 128 Minn. 514, 151 N.W. 419, L.R.A. 1915D, 1077; Helmer v. Shevlin-Mathieu Lumber Co. 129 Minn. 25, 151 N.W. 421; Daily v. St. Anthony Falls Water Power Co. 129 Minn. 432, 152 N.W. 840; Bosch v. Chicago, M. & St. P. Ry. Co. 131 Minn. 313, 155 N.W. 202.
Before answering, defendant made a motion to set aside the service of the summons on the ground that it was a foreign corporation not doing business in this state and without any agent in this state upon whom legal service could be made. The denial of this motion is assigned as error.
Defendant is an Illinois corporation which manufactures shoes and sells them to retail dealers. It also arranges for the operation in various localities of what are known as "Selz Royal Blue" stores. When an arrangement is made to operate one of these stores, defendant enters into a contract with the dealer which provides that the store shall be known and advertised as the dealer's "Selz Royal Blue" store, and that the dealer shall handle defendant's shoes exclusively; shall make no purchases for his business except from defendant; shall have no creditor except defendant; shall do a cash business; shall make weekly reports to defendant; shall make and submit an inventory at least twice a year; shall pay 50 per cent of the purchase price of the initial stock in cash; shall make sufficient subsequent payments so that he shall at no time owe defendant more than 50 per cent of the purchase price of the stock actually on hand, and shall keep his stock insured for the benefit of defendant as its interest shall appear. In consideration of these undertakings, defendant agrees to extend credit to the dealer at all times, on open account without interest, in an amount not exceeding 50 per cent of the purchase price of the stock actually on hand, to do the "newspaper advertising" at its own expense for the first year, and to make suggestions and give advice respecting the management of the business when requested by the dealer. Defendant has a state representative in Minnesota who has charge of its business in this state, who has established many "Selz Royal Blue" stores in this state, and who personally and through salesmen under him sells defendant's shoes to such stores and to other merchants. The summons was served upon such state...
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