A. Sidney Davison Coal Co. v. Weston, Dodson & Co.

209 A.D. 514, 205 N.Y.S. 49, 1924 N.Y. App. Div. LEXIS 8670
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 6, 1924
StatusPublished
Cited by9 cases

This text of 209 A.D. 514 (A. Sidney Davison Coal Co. v. Weston, Dodson & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. Sidney Davison Coal Co. v. Weston, Dodson & Co., 209 A.D. 514, 205 N.Y.S. 49, 1924 N.Y. App. Div. LEXIS 8670 (N.Y. Ct. App. 1924).

Opinion

McAvoy, J.:

In 1920 the plaintiff, A. Sidney Davison Coal Co., Inc., had an office in New York city, where it was engaged in the business of jobbing coal. It had no mines of its own, but bought from the operators and others, and sold where it could at a profit. The defendant, Weston, Dodson & Co., -Inc., was also in the coal business, with a main office in Bethlehem, Penn.

The parties in this action made an oral agreement, which later the plaintiff confirmed in a letter of May 28, 1920. On June first they signed and exchanged copies of a so-called Weston, Dodson Bituminous Order ” form, by which the defendant ordered the plaintiff to ship to the Tidewater Coal Exchange, Pool 31, Canton Piers, Baltimore, 10,000 tons of Youghiogheny run-of-mine gas coal, “ minimum tonnage 300 tons per day, maximum tonnage about 1,000 tons per day.” “ Youghiogheny ” was not the name of any specific mine, but of a region in western Pennsylvania in which the product of any mine would fulfill the requirements. The price of seven dollars and twenty-five cents was typewritten in the form under the printed caption Cost price net ton F. O. B. Mine.” The order did not provide that an embargo would excuse shipments, but that if the piers should be embargoed, “ line shipments ” should be furnished, which means that other shipping destinations along the railroad lines [516]*516as distinguished from the tidewater terminals were to be provided. The order form was silent as to when shipments were to begin, but the plaintiff’s letter of May twenty-eighth, confirming the oral sale, said: “ Shipments to be started early next week.”

If shipments had been started the following week and had been maintained at even the minimum rate of 300 tons daily, the full 10,000 tons would have been delivered in thirty-four working days, certainly long before August thirty-first. In fact, during this period the market price of the coal, according to the proof, “ went sky high,” as the plaintiff’s witness Mr. Cunningham termed it; and by the plaintiff’s count only 80 tons were delivered before August thirty-first. These, so the plaintiff claims, were shipped on June ninth to Baltimore, but the defendant denies their receipt. According to the plaintiff’s witnesses the reason why they shipped no more than 80 tons during these three months was that the defendant failed to provide cars to receive the coal.

Around the first of September, no other shipments having been in the meantime made, one of plaintiff’s representatives asked Knepper, defendant’s agent, for further shipping instructions, and he told them he would issue an “ open order ” for shipments to Ashtabula, Ohio, with the right to have the shipments apply on the old 10,000-ton order. This “ open order ” No. 4215 was issued on September fourth. It was superseded on September twenty-third by another “ open order,” which is practically the same except for the name of the defendant's customer. The uncontradicted testimony was that in the coal trade ■“ open order ” means an order subject to cancellation at any time without notice, and -under which the buyer is liable only for shipments made before cancellation. Shortly after the second of these orders was issued, the coal market began to decline rapidly. At the same time the plaintiff began to make heavy shipments, which reached a total of 6,370 tons in the week beginning October twenty-first. According to the plaintiff’s shipping notices to the defendant, sixty-two cars, or about 3,000 tons, were shipped on October twenty-sixth alone.

On October twenty-seventh the defendant sent the following telegram to the plaintiff, referring by number to the last “ open order:” “Hold shipment our order four six naught eight the Ore & Coal Exchange.” This was confirmed by a memorandum reading: “ As wire to-day, hold shipments this order till further advised.” On October twenty-eighth the plaintiff acknowledged receipt of this telegram and said: “Please advise promptly' when to resume.”

Plaintiff’s testimony shows that no cars were shipped after October twenty-seventh; but the original car loading records from [517]*517two mines show that shipments • continued until November first, and that in violation of the order to hold, seventeen cars were shipped in the five days following October twenty-seventh. All of these cars were paid for by the defendant, in ignorance of their true shipping date, except the two cars, B. & 0. Nos. 135,763 and 133,729, which were not paid for and which give rise to the plaintiff’s first cause of action.

On January twenty-first and twenty-eighth and on February tenth the plaintiff wrote the defendant demanding payment of a balance of $899.36, said to be then due, which as reduced to $664.46 is apparently the subject-matter of the first cause of action; but these letters did not mention any claim for damages for cancellation of the June contract.

Judgment has been rendered here for over $11,000 damages based on defendant’s alleged unwarranted cancellation of its contract of purchase and its refusal to take and pay for the commodity ordered. The plaintiff claimed that its time for delivery was extended by oral agreement to December 1, 1920. Defendant asserts error in the court’s permitting the jury to give effect to the alleged oral extension of the time for performance.

The law question which arose on the trial and is now urged is whether, where parties have entered into a written contract of sale, required to be in writting under the Statute of Frauds (Pers. Prop. Law, § 85, as added by Laws of 1911, chap. 571), the time for performance stated in the writing may be extended by proof of an alleged oral agreement entered into after the- original time has expired against a plea of the statute. The extension of time, which founds the plaintiff’s cause, rests on parol. There is an obvious danger of rendering the statute of no force, if a party, after failing to perform his written contract on time, can wait for a favorable turn of the market and then prove an extension of the time by oral agreement. The general rule is that the Statute of Frauds forbids oral changes of the time for performance as well as of any of the other terms of a contract which it requires to be in writing.

Williston on Sales (§ 122) says with respect to time of performance: “ No distinction is taken in the cases between large changes from the original agreement and slight ones, such as the extension for a brief period of the time for performance. The validity of such a distinction has been explicitly denied. ‘ Every part of the contract in regard to which the parties are stipulating must be taken to be material.’ (Per Parke, B., Marshall v. Lynn, 6 M. & W. 116, 117).” (See, also, Hill v. Blake, 97 N. Y. 216; Clark v. Fey, 121 id. 470.)

Allowance of an oral change in the original time for delivery [518]*518of this commodity of fluctuating value has brought about a basis of a very substantial claim, which, if the statute were rigidly adhered to, would be frustrated, as was the purpose of its adoption.

Judge Cardozo, in Imperator Realty Co. v. Tull (228 N. Y. 447) shows the doctrine has not been abandoned. He said: “ I think it is the law that where contracts are subject to the statute, changes are governed by the same requirements of form as original provisions. * * * Some courts have drawn a distinction between the formation of the contract and the regulation of performance. * * * The distinction has been rejected in many jurisdictions.

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Bluebook (online)
209 A.D. 514, 205 N.Y.S. 49, 1924 N.Y. App. Div. LEXIS 8670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-sidney-davison-coal-co-v-weston-dodson-co-nyappdiv-1924.