A.A. Murphy, Inc. v. Banfield

1 The agents of Frank Banfield, dba Banfield Sales, approached Mr. and Mrs. Bogard in an effort to solicit their participation in an "economy food plan". The selling point, as outlined by the agents, was that Banfield could substantially reduce Bogards living expenses by undertaking to supply, at wholesale prices, their usual household needs for meats and vegetables over a period of two years. For the storage of these provisions which were to be frozen and delivered in sizeable lots, Banfield offered to sell Bogards a freezer unit on a time basis. Banfield represented that the difference between the cost of the food computed at retail and the price Banfield proposed to charge therefor would accomplish a saving sufficient in amount to in effect pay the installments on the freezer box; that during the term of this "plan", Bogards were told, they could thus acquire the freezer without ever increasing their existing cost of living. In reliance on these representations Bogards agreed to join the "plan" and were induced to execute two blank notes and a chattel mortgage. One of the notes was to cover the supplies of frozen food; the other, to be secured by a chattel mortgage on the freezer, was to represent the purchase price of that appliance. The instruments, as outlined, were transferred by Banfield to A.A. Murphy Finance Company. When Bogards refused to make payments on either note, the finance company instituted this action against Bogards and Banfield to recover on the two notes and to foreclose the chattel mortgage on the freezer. A trial by jury resulted in a verdict for Bogards and judgment was entered in their favor. Murphy Finance Company has perfected this appeal after the lower court overruled its motion for a new trial. The record discloses that Banfield was never served with summons, filed no pleadings in the trial court, and is not a party to this appeal. Our reference to the parties before us will be by their designation below.