Opinion ID: 2353522
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Heading: PVI's Appeal

Text: PVI contends that the justice erred in directing a verdict for GW. PVI argues that there is a genuine issue of fact as to whether the agreement granted PVI an exclusive right to sell spare parts and whether GW breached that agreement. An agreement providing an exclusive right to sell prevents GW from selling the spare parts. Under an agreement providing an exclusive agency, GW may not appoint another dealer to sell the spare parts line. Stahlman v. National Lead Co., 318 F.2d 388, 393 (5th Cir.1963); Dallas Electric Supply Co. v. Branum Co., 143 Tex. 366, 370-73, 185 S.W.2d 427, 430-31 (1945). [T]he presiding Justice should direct a verdict only sparingly, as the exception rather than the rule. Only if the correctness of directing a verdict appears so clear to the presiding Justice that all reasonable doubts of possible error or uncertainty have been removed in his mind should he grant it. Moore v. Fenton, 289 A.2d 698, 700 n. 1 (Me.1972), quoted in, 2 Field, McKusick & Wroth, Maine Civil Practice § 50.1 at 313 (2d ed. Supp.1981). In addition to that policy, GW has the heavy burden of establishing that no reasonable view of the evidence, including every justifiable inference most favorable to PVI, could sustain a jury verdict for PVI. See Emerson v. Ham, 411 A.2d 687, 689 (Me.1980); Boetsch v. Rockland Jaycees, 288 A.2d 102, 104 (Me.1972). GW first asserts that the interpretation of an unambiguous contract is a question of law for the Court. GW argues that a franchise agreement which provides that GW will not appoint another dealer to be primarily responsible for selling spare parts so long as PVI's services remain satisfactory cannot reasonably be interpreted as granting PVI an exclusive right to sell spare parts. The issue of whether contract language is ambiguous is a question of law for the Court. See Eskimo Pie Corp. v. Whitelawn Dairies, Inc., 284 F.Supp. 987, 995 (S.D.N.Y.1968); see also Clayman v. Goodman Properties, Inc., 518 F.2d 1026, 1034 (D.C.Cir.1973). The interpretation of an unambiguous written contract is a question of law for the Court; the interpretation of ambiguous language is a question for the factfinder. Zamore v. Whitten, 395 A.2d 435, 440 (Me.1978); T-M Oil Co. v. Pasquale, 388 A.2d 82, 85 (Me.1978). The interpretation of an unambiguous writing must be determined from the plain meaning of the language used and from the four corners of the instrument without resort to extrinsic evidence. See City of Augusta v. Quirion, 436 A.2d 388, 392 (Me.1981); T-M Oil Co., 388 A.2d at 85; see also Ames v. Hilton, 70 Me. 36, 43 (1879). Once an ambiguity is found then extrinsic evidence may be admitted and considered to show the intention of the parties. Palmer v. Nissen, 256 F.Supp. 497, 503 (D.Me.1966) (quoting Ames, 70 Me. at 43); T-M Oil Co., 388 A.2d at 85. Contract language is ambiguous when it is reasonably susceptible of different interpretations. Lee v. Flintkote Co., 593 F.2d 1275, 1282 (D.C.Cir.1979); accord Barham v. Barham, 33 Cal.2d 416, 422-424, 202 P.2d 289, 293 (1949); Martindell v. Lake Shore National Bank, 15 Ill.2d 272, 282-284, 154 N.E.2d 683, 689 (1958); Universal C.I.T. Credit Corp. v. Daniel, 150 Tex. 513, 516-518, 243 S.W.2d 154, 157 (1951); Young v. Schriner, 190 Va. 374, 378-379, 57 S.E.2d 33, 35 (1950). The contract granted PVI a franchise to sell ball valve spare parts in accordance with GW's drawings. GW covenanted that it would not appoint another dealer to be primarily responsible for selling spare parts so long as PVI's performance remained satisfactory. GW also promised to supply PVI with its drawings of the spare parts line. PVI promised that because the drawings were the exclusive proprietary property of GW, it would retain all copies of the drawings in confidence. PVI covenanted that it understood that the continuance of the agreement depended upon its satisfactory performance and that performance would be considered unsatisfactory if there were recurring complaints from customers. [2] Under the miscellaneous provisions, PVI agreed to pay GW $5,000 for the use of the drawings and to buy readily saleable, nonobsolete inventory. The agreement also contained an integration clause which provided that: This agreement constitutes the entire understanding and agreement between Rockwood and Dealer and supercedes and terminates all other prior arrangements, understandings and agreements, verbal or written, between them with respect to the subject matter of this agreement. . . . Finally, the contract read that GW could terminate the agreement upon thirty days notice to PVI. [3] We determine that this contract language is not ambiguous as to the creation in PVI of any exclusive right to sell the spare parts. Under the terms of the contract, it is clear that GW promised not to appoint another dealer to be primarily responsible if PVI performed satisfactorily as defined in the contract. It is equally clear that such contract language in no way limited GW's right to sell the parts. That language at most may imply that the contract created an exclusive agency not an exclusive right to sell. [4] The contract was completely silent as to providing PVI with an exclusive right to sell spare parts. The plain language of the contract cannot be stretched or tortured to provide meaning sufficient to make [PVI's] theory of interpretation of the language workable. Quirion, 436 A.2d at 394; see also Lee, 593 F.2d at 1285 (language cannot be strained to connote grant of exclusive agency). In addition, the contract contained an integration clause which read that this agreement supercedes and terminates all other prior arrangements, understandings and agreements between the parties. [5] The complete lack of any contract language preventing GW from selling spare parts combined with the integration clause necessarily leads to the conclusion that the unambiguous contract language did not create in PVI any exclusive right to sell spare parts. Moreover, courts should not rewrite contracts, particularly agreements between two corporations acting at arms length. See Aroostook Valley Railroad Co. v. Bangor & Aroostook Railroad Co., 455 A.2d 431, 433 (Me.1983). We are skeptical, too, that so important a feature [as exclusive selling rights] of the franchise agreement would be so infelicitously phrased by those as astute as businessmen generally are. Lee, 593 F.2d at 1282. In the absence of any express language or of any ambiguous language, which would permit the admission of relevant extrinsic evidence, reasonably indicating such a restrictive intent, the court will not lightly import meaning into the contract. Stahlman, 318 F.2d at 394; Dallas Electric Supply Co., 143 Tex. at 372-373, 185 S.W.2d at 431; see also Swinny v. Cities Service Oil Co., 197 So.2d 795, 797 (Miss. 1967) (seeking exclusive agency); Dahath Electric Co. v. Suburban Electric Development Co., 332 Pa. 129, 130-134, 2 A.2d 765, 767-68 (1938) (seeking exclusive agency). We hold that the contract is unambiguous, that extrinsic evidence was not admissible to aid in the interpretation of the contract language, and that the contract did not provide PVI with an exclusive right to sell spare parts. [6] The determination of the trial court, even if based upon improper reasoning, will be upheld if it is the correct result. See Allstate Insurance Co. v. Lyons, 400 A.2d 349, 352 (Me.1979); Laferriere v. Paradis, 293 A.2d 526, 529 (Me.1972). Because our analysis supports the judgment of the Superior Court which was based upon the directed verdict entered in favor of GW, we affirm that judgment.