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HOME BUILDERS MERCER COUNTY v. DELLWOOD CORPOATION (11/08/54)

November 8, 1954

HOME BUILDERS OF MERCER COUNTY, INC.
v.
DELLWOOD CORPOATION, APPELLANT.



Appeal, No. 223, March T., 1954, from judgment of Court of Common Pleas of Allegheny County, April T., 1951, No. 1153, in case of Home Builders of Mercer County, Inc., v. Dellwood Corporation. Judgment affirmed. Assumpsit. Before KENNEDY, J., without a jury. Verdict for plaintiff and judgment thereon. Defendant appealed.

COUNSEL

W. Denning Stewart, for appellant.

H. Fred Mercer, with him Chester B. Scholl and Mercer & Buckley, for appellee.

Before Stearne, Jones, Chidsey, Musmanno and Arnold, JJ.

Author: Arnold

[ 379 Pa. Page 256]

OPINION BY MR. JUSTICE ARNOLD

This action of assumpsit was tried without a jury by the court below, which entered judgment for the plaintiff, and defendant appeals.

Gunnison Homes manufactured prefabricated houses and entered into a written contract with the plaintiff, granting to it a non-exclusive privilege to purchase Gunnison products for resale in all of Mercer and Lawrence Counties. This franchise was terminated on November 2, 1950.

The defendant, Dellwood Corporation, was engaged in the general business of financing and erecting dwelling houses, and obtained a similar dealer contract for a part of Beaver County, which contract on May 10, 1950, was extended to all of Beaver County.

[ 379 Pa. Page 257]

On May 3, 1950, plaintiff and defendant entered into negotiations (at which a representative of Gunnison Homes was present) resulting in a written contract by which the defendant promised to pay the plaintiff the sum of $150.00 for each Gunnison house which was ordered to be delivered to defendant's Union Manor Plan of Union Township, Lawrence County, Pennsylvania. The defendant was to have the right to order from Gunnison Homes and have delivered not in excess of 60 houses in the Union Manor Plan, "it being understood ... that you [Home Builders] ... shall continue to be the authorized franchised dealer for Gunnison Homes, Inc. ... for Lawrence County ... during the entire period of this agreement."

On July 12, 1950, the defendant obtained from Gunnison Homes an extension of its franchise to include Lawrence County.

Between May 3 and July 12, 1950, defendant ordered and erected eight Gunnision homes in its Union ...


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