Pitts v. Mcgraw-Edison Co.

326 F.2d 412 (6th Cir. 1964)

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Nature of the Case

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Facts

P was a manufacturer's representative in Memphis, Tennessee, for twenty-five years. P sold the products of the D's predecessor and D, on a commission basis in an assigned territory comprising several southern states. P was an independent businessman, hiring and firing his own employees, paying his own expenses and overhead, and managing his business as he saw fit. P had no written contract with D and D had no obligation to him except to compensate him on a commission basis for sales made in the assigned territory. P was not D’s employee. The agreement was terminable at will without notice. P could handle competitor's products as well. On his own volition and without any requirement by D, he discontinued his representation of other manufacturers in 1954. In April 1955, P was 67 years of age. P was told by D that D was making arrangements for P to retire and for another to take over P's territory, with P receiving an overwrite commission of 1% from D on all sales made in that territory. D reaffirmed the deal made with a letter in July. P received a check each month regularly from July 1955 through June 1960 covering the 1% Commission on sales in the specified territory. D wrote another letter in July 23, 1960, terminating the payments. P sued D. The district court dismissed P's action.