Bond v. Trim-Line, Inc.
Bond v. Trim-Line, Inc.
Opinion
This appeal is from a summary judgment in favor of Trim-Line, Inc. (Trim-Line), and against Robert L. Bond, Sr., the plaintiff below. The question on appeal is whether *Page 366 summary judgment was appropriately granted.
The underlying facts are as follows: Robert Bond and Trim-Line, Inc., entered into a "Sales Distribution Agreement" on 5 March 1976. That agreement gave Bond a license to use the trade name "Trim-Line" in the operation of a distributorship. Bond's territory, as defined by that agreement, covered, roughly, the southern one-half of the State of Alabama, excluding Mobile, Alabama.
During the following several years, Bond sold portions of his business and Trim-Line extended to Bond's buyers the right to use the trade name "Trim-Line." New distributorships were thereby created. The practical effect of these sales was to carve areas out of Bond's "territory," as that was defined by his 1976 agreement with Trim-Line. As each new territory was created by these sales, it was given a name to distinguish it from Bond's territory (e.g. "Trim-Line of East Alabama," and "Trim-Line of Selma").
In January of 1981, Bond sold a portion of his business to Lee G. Stephens. In March of that year, Stephens was approved by Trim-Line as a distributor. Her distributorship was named "Trim-Line of South Alabama." Stephens operated that business until the following September, at which time she sold it back to Bond. Payment under the contract of sale was to be made in installments.
The events which transpired after Stephens's sale of her business to Bond are the subject of this controversy. Each party's version of those events will be set forth below. What is not controverted is that, on 5 November 1981, Lee Stephens changed the locks on the door of the business offices of Trim-Line of South Alabama, changed the utilities from Bond's name to hers, and "escrowed the cash, checks and accounts receivable."
Bond subsequently filed suit against Trim-Line and Stephens, alleging both defendants acted to convert the assets of his business, and that Trim-Line intentionally interfered with the contract of the sale of Stephens's business to Bond. Summary judgment was granted in favor of Trim-Line as to both issues. The allegations of Bond, Stephens, and Herb Berg (as Trim-Line's representative) are set forth below.
During that same month, a dispute arose concerning the ownership of "Trim-Line of Alabama," a Montgomery distributorship which Bond had formerly owned and had, allegedly, sold without informing Trim-Line. Bond contends that, on 25 September 1981, Berg suggested that, in light of the threat of litigation concerning that distributorship, Bond "might be wise not to own any distributorship of Trim-Line." He alleged he and Berg agreed that the distributorship called "Trim-Line of South Alabama" remain in Stephens's name, with the understanding that the paperwork would be completed and that Bond be officially named the distributor for that area when the dispute was resolved.
In support of his allegation that he was, in fact, recognized by Trim-Line as its distributor, Bond presents evidence that Berg corresponded with him at the business address of "Trim-Line of South Alabama" in September of 1981, and that he, Bond, placed orders with Trim-Line for materials which were shipped to the business after he had bought it back from Stephens.
Bond further contends that, at the time Lee Stephens entered the business offices of Trim-Line of South Alabama and confiscated the assets of the business, she represented to him that she was acting with the knowledge and authority of Herb Berg. Bond states, by affidavit, that Berg admitted to him, in a telephone conversation, on *Page 367 11 November 1981, that he directed Stephens's actions.
Where the rights of a third party are at stake, the terms of a contract are not the controlling or governing factors where they are in conflict with the actual facts and the way in which the contract was actually performed. Rust Engineering Co. v.State,
The test of whether a relationship is that of independent contractor as opposed to master and servant is whether the alleged master has the reserved right of control over the means and agencies by which the work was done or the result produced. Whether one is the agent of another is generally a question of fact; summary judgment is seldom appropriate as to that issue.Moses v. American Home Assurance Co.,
Because there is evidence that Stephens's actions were motivated by a conversation with Herb Berg, we cannot agree with the trial court that summary judgment in favor of Trim-Line was proper as to the issue of conversion. A factual issue remains as to the question of agency.
Neither can we say as a matter of law that Trim-Line could not be liable to Bond for the conversion of his property. Trim-Line has simply not, as to the conversion claim stated in count one, met its burden of showing the absence of any genuine issue as to all material facts under all applicable principles of substantive law. Bennett v. United Auto Parts, Inc.,
Bond has presented evidence that Trim-Line recognized him as its distributor for the area served by Trim-Line of South Alabama subsequent to Stephens's sale of the business back to him in September of 1981. Both Stephens and Bond state that Berg, as Trim-Line's representative, urged Stephens to get her distributorship back. There is evidence supporting Bond's allegation that Berg knew of the contract of sale between Bond and Stephens and encouraged Stephens to breach her contract of sale with Bond. There is no evidence any interference by Berg with Bond's rights under his contract with Stephens was justified. Because Bond has stated a cause of action against Trim-Line for intentional interference with contract and because there is evidence to support Bond's claim, the trial court erroneously granted summary judgment as to that count.
Therefore, for the above stated reasons, we must reverse the trial court's grant of summary judgment in favor of Trim-Line, Inc., and remand to that court for further proceedings consistent with this opinion.
REVERSED AND REMANDED.
TORBERT, C.J., and FAULKNER, ALMON and ADAMS, JJ., concur.
Reference
- Full Case Name
- Robert L. Bond, Sr. v. Trim-Line, Inc.
- Cited By
- 6 cases
- Status
- Published