Walnut Creek Pipe Distributors, Inc. v. Gates Rubber Co.

Defendant, Gates Rubber Company Sales Division, Inc., a Wyoming corporation, hereafter referred to as appellant or Gates, appeals from a portion of a judgment in favor of the plaintiff, Walnut Creek Pipe Distributors, Inc., hereafter referred to as respondent or Pipe Distributors. This action, originally brought by Pipe Distributors, a California corporation in the business of selling sprinklers, garden hose and plastic pipe to retailers and commercial customers, and its employee, William C: Brumfield, alleged several causes of action arising out of the appellant’s cancellation of contracts designating Pipe Distributors as the wholesaler-jobber-distributor for various products manufactured and sold by Gates.

This appeal is restricted to the portion of the judgment holding that the plastic pipe jobber-distributor contract between the parties contained an implied covenant obligating Gates to repurchase or give credit for $1,570.49, the purchase price of the unused stock of certain of Gates’ products that respondent had on hand at the time of the cancellation. Gates argues that this portion of the judgment must be reversed because: (1) the court erroneously admitted certain evidence…