Opinion ID: 1806918
Heading Depth: 1
Heading Rank: 2

Heading: Information on sales.

Text: The trial court found that the plaintiff did not furnish to the individual growers prompt, itemized information as to the sales of potatoes, as provided in the contract; that such failure constituted a breach of contract and was material. We agree that failure to supply the itemized information to the growers as to sales constituted a breach of the contract; however, we do not consider it a material breach in this case. Paragraph 6 of the contract provided: 6. Second Party agrees in all dealings hereunder to conform to the provisions of the Perishable Agricultural Commodities Act as amended and all regulations issued thereunder. It is furthermore understood by the First and Second Parties that all terms of this Agreement supplement but in no way supersede the terms of the Second Party's regular Grower Agent Contract issued to First Party on each individual load, all Producers being made familiar with terms of said Growers Agent Contracts by First Party. The PACA regulations classify produce sales representatives as brokers or growers' agents and provide different accounting and reporting requirements for the two classifications. Sec. 46.28 (b), PACA provides: .... When the broker authorized to sell, invoice the buyer, collect and remit to his principal, he shall render an itemized accounting to the principal promptly on receipt of payment, showing the true gross selling price, all brokerage fees deducted, any auction charges and any other expenses incurred in connection with the sale of the shipment. The failure to account truly and correctly and make full payment promptly is a violation of the act. Sec. 46.32 (b), PACA, describing the duties of growers' agents provides: .... Unless there is a specific agreement with the growers to pool all various growers' produce, the accounting to each of the growers shall itemize the actual expenses incurred for the various operations conducted by the agent and all the details of the disposition of the produce received from each grower including all sales, adjustments, rejections, details of consigned or jointed shipments and sales through brokers, auctions, and status of all claims filed with or collected from the carriers.... The trial court found plaintiff to be a broker. We do not consider it material whether plaintiff was a broker or a growers' agent as set forth by the PACA requirements. On appeal, both parties practically concede the immateriality of this issue. The sales information reported by the plaintiff did not comply with either the broker or growers' agent requirements of the PACA. The fact is that the parties operated under the provisions of the PACA in 1963, 1964 and 1965. Although there is a slight conflict in the testimony, the great preponderance of the evidence indicates that no significant objection was made by the defendant or the individual growers about plaintiff's reporting of sales until after defendant gave notice of its intent to terminate the contract. Having acquiesced in the reporting methods used by the plaintiff for three years prior to the termination of the contract, the defendant cannot now assert the plaintiff's failure to comply with the PACA regulations is a material breach of the contract. Baierl v. Riesenecker (1930), 201 Wis. 454, 461, 227 N. W. 9, 230 N. W. 605. Therefore, the breach of failure to report information on sales, as required by the contract, does not constitute a material breach under the facts of this case. The plaintiff raises several other issues, on appeal, which we have considered and we conclude they are not determinative of this case. Since the term of the contract has expired, on appeal the plaintiff asks judgment providing for an accounting and damages pursuant to the contract wherein plaintiff is entitled to a fee on all potatoes sold by the defendant. Since we affirm the judgment of the trial court finding that the plaintiff had materially breached the contract and the defendant was, therefore, justified in terminating it, we do not reach this question. The plaintiff also asserts that the trial court neglected to award costs. December 30, 1966, the trial court sustained the demurrer of the plaintiff to the second, third, fourth and fifth causes of action in defendant's counterclaim and stated that any costs involved would be determined at the conclusion of the case. The plaintiff does not contest the portion of the judgment awarding defendant damages in the amount of $3,712.05 on its first counterclaim. In the judgment entered December 20, 1968, costs were taxed against the plaintiff in the principal case in the amount of $333.66 and against the plaintiff on defendant's counterclaim in the amount of $100. We consider costs were properly taxed at the time judgment was entered in the trial court. By the Court. Judgment affirmed.