Acme Brick Co. v. United States Zinc Co.

1929 OK 265, 278 P. 1083, 137 Okla. 212, 1929 Okla. LEXIS 434
CourtSupreme Court of Oklahoma
DecidedJuly 2, 1929
Docket19196
StatusPublished
Cited by1 cases

This text of 1929 OK 265 (Acme Brick Co. v. United States Zinc Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acme Brick Co. v. United States Zinc Co., 1929 OK 265, 278 P. 1083, 137 Okla. 212, 1929 Okla. LEXIS 434 (Okla. 1929).

Opinion

DIFFENDAFFER, C.

This appeal presents the question as to which of the parties hereto is entitled to certain overcharges in freight on certain fire clay sold by plaintiff in error, hereinafter referred, to as defendant, to defendant in error, hereinafter referred to as plaintiff, and shipped from the plant of defendant at Elgin, Tex., to plaintiff at Amarillo, Tex.

Plaintiff brought the action to recover the sum of $1,448.58, the amount of the alleged overcharge for freight paid by it and repaid, by the railroad company to defendant. The petition of plaintiff sets up two causes of actioñ.

Under the first cause of action, plaintiff claims the sum of $826.89 for rebates collected by defendant, growing out of certain shipments of fire clay under a written contract, entered into between the parties, running from June 30, 1923, to June 30, 1924, the material portion of which reads:

“The seller agrees to furnish a minimum of fifty (50) tons of Elgin Standard crude fire clay per month and a maximum of three hundred (300) to four hundred (400) tons per month during the life of this contraer, all material to be furnished in bulk.
“The buyer agrees to purchase a minimum of fifty (50) tons of Elgin Standard crude fire clay per month unless their plant should be shut down during any particular month. It is also agreed that the buyer ¡jhall purchase up to a maximum of four hundred (400) tons monthly in case Elgin Standard crude fire clay is found to be satisfactory for the manufacture of zinc retorts.
“Price is to be six dollars and sixty cents per net ton ($6.60) which price is f. o. b. Butler Spur. Tex., present existing freight charges allowed to Amarillo. Tex., any increase in present freight rate to be added— any decrease to be deducted.”

It pleads mutual mistake in the contract, in that both parties understood and be’ieved that the then existing legal freight rate upon the fire clay of the class sold, from defendant’s plant to Amarillo, was $4.10 per ton, and that the true intent of the parties and! their mutual understanding was that the *213 price of $6.60 per ton mentioned in the contract was made up of and arrived at upon a basis of $2.50 per ton to defendant at its plant, plus freight at $4.10 per ton, which was believed by both parties, and represented by defendant, to be the existing legal freight rate at the time, and that thereafter, and after the freight had been paid by plaintiff upon the basis, a change in the classification or reduction in the rate has been procured and the correct rate ascertained to be $2.90 per ton instead of $4.10; that defendant had collected from the railroads freight, which had been paid by plaintiff, on said fire clay, the sum of $826.89, representing the difference between the rate of $4.10, believed by both parties at the time the contract was executed to be the legal rate, and the rate of $2.90 per ton, which was afterwards ascertained to be the proper legal rate.

Plaintiff alleges that the true understanding was that the net price to defendant was to be $2.50 per ton at its plant at Elgin, Tex., and that such understanding was expressed in certain letters passing between the parties, which it attaches to its petition as part thereof as Exhibits “B” and “0.”

The first is a letter from defendant to plaintiff, and the second the reply of plaintiff thereto. The parts of the letters referring to fire clay are set out in full, as they are claimed to be the contract upon which the second cause of action is based. They read:

“Acme Brick Company, Manufacturers, “Fort Worth, Texas.
“Feb. 24, 1923.
“United States Zinc Company,
“Amarillo, Texas.
“Gentlemen:
“Attention, Mr. F. P. Lannon, Jr.
“General Superintendent.
“We are mighty sorry, Mr. Lannon, that our quotation was not in line. We might tell you frankly that we are extremely anxious to furnish material for your plant, but we hardly see how we can get down to $1.75 per ton on crude fire clay and make any money out of it.
“Our price to you was based on $2.50 at the plant, to which we added $4.10 per ton freight. This made a total delivered price to you of $6.60. Now, on fire clay out of the Missouri district, if you secure it for $1.75 per ton. you have $5.90 per ton freight to pay to Amarillo, so that your total delivered xirice would be $7.65 per ton, or considerably higher than the price as given you in our quotation. Likewise, the freight rate from Colorado producing points, according to information we have, is approximately 29c per ewt., or $5.60 per ton, which would mean that they would have to sell you clay at 80c per ton at their mines, to give you an equal delivered price with the figures given by us. * * * We trust that you will give this matter your good consideration again, and that you will allow us to furnish a trial car at least of our material so as to show you just what it will do in your work. We might say again that we are very anxious to ship material to your plant, and would like to have you give us frankly, your views on the subject.
“Very truly yours “Acme Brick Company “Geo. Puls.
“Assistant Sales Manager “Fire Brick Department.”
And:
“Feb. 28th, 1925. “The Acme Brick Company,
“Fort Worth, Texas.
“Gentlemen:
“Referring to your letter of the 24th, I regret very much that your quotation of January 3rd was misunderstood. This was read as a quotation f. o. b. plant but if I had read a little further, I would have found that you allowed freight to Amarillo and wish to advise that we will at least try out your Elgin clay at $6.60 f. o. b. Amarillo which is based upon $2.50 f. o. b. your plant.
“It will be a little later before we will be able to take clay shipments, but at the present time, we are using a few ears of crushed fire clay and we are handling this crushing at one of our other plants. If you are in position to furnish the crushed clay in, bulk, will you be kind enough to let us have your quotation?
“The rates which you quote on fire clay from other producing points seem to be correct, for the present freight rate, but for your information, we have been promised very much lower freight rates from the railroad companies and expect to have these matters straightened out in the future. These rates were based on promises made by the railroad companies before the plant was located at Amarillo, but possibly our traffic department will be able to do something in connection with a reduced rate from your point of shipment so as to keep your delivered price in line with prices which we will have from other producing points. Will you be kind enough to advise the shipping i>oint of your Elgin clay and would like to know the name of the railroad at point of origin.
“Yours very truly,
“E. P. Lannon. Jr.,

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Bluebook (online)
1929 OK 265, 278 P. 1083, 137 Okla. 212, 1929 Okla. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acme-brick-co-v-united-states-zinc-co-okla-1929.