Alamo Cattle Co. v. Hall

220 F. 832, 136 C.C.A. 578, 1915 U.S. App. LEXIS 2529
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 15, 1915
DocketNo. 2451
StatusPublished

This text of 220 F. 832 (Alamo Cattle Co. v. Hall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alamo Cattle Co. v. Hall, 220 F. 832, 136 C.C.A. 578, 1915 U.S. App. LEXIS 2529 (9th Cir. 1915).

Opinion

ROSS, Circuit Judge.

The plaintiff in error was defendant in the court below to this action, there brought by the present defendant in error to recover damages for the alleged breach of this contract:

“This agreement, made and entered into this 16th day of January, 1913, between the Alamo Cattle Co., S. A., of Magdalena, Sonora, Mexico, hereinafter known as the seller, and Mr. E. W. Myers, of El Paso, Texas, hereinafter known as the buyer, witnesseth as follows:
“For and in consideration of the sum of:
“(Twenty-three) dollars U. S. Cy. for two year old steers;
“(Twenty-eight) dollars U. S. Cy. for four year old steers;
“-dollars U. S. Cy. for-;
“-dollars TJ. S. C'y. for-;
the seller agrees to sell and deliver f. o. b. cars at Nogales, Ariz., station, all duties and expenses paid; buyer to furnish cars four thousand to five thousand head of two year old steers and one thousand head of four year old steers as good or better than the Terassas cattle. Payment of these cattle is to be guaranteed in a maimer satisfactory to the First National Bank of Nogales, Ariz., before each shipment crosses the line; all to be of full ages at time of delivery.
“The seller also agrees to allow the buyer the privilege of cutting out and rejecting fifteen per cent, of said cattle after all runts, stags (unless otherwise specified), cripples, lump-jaws, sway-backs, blinds, cattle too thin to ship, or unmerchantable cattle have been cut out by the seller.
“Cattle to be branded <
“The seller hereby acknowledges receipt of (ten thousand) dollars U. S. Cy. in'hand paid this day by the buyer, who agrees to pay the balance of the purchase money when said cattle are delivered on board cars, and failing to do so he shall forfeit the amount or amounts advanced on this contract. The seller agrees to pay two dollars, in addition returning the forfeit, on each head he falls to deliver under this contract, which shall constitute entire claim for damages. Cattle to be cut Moraga or Destiladera; buyer to give fifteen days’ notice for each delivery in train load lots during April and May, 1913.
“Witness our hands this 16th day of January, 1913.
“Ed. W. Myers.
“Alamo Cattle Oo.
“W. Beckford Kibbey, Jr., Prest.”

The subsequent assignment of the contract by Myers, and of all of his rights and obligations thereunder, to the plaintiff, is admitted.

In addition to a denial of the alleged breach of the contract on its part, the amended answer of the defendant set up a “separate defense” and also a “counterclaim” against the plaintiff. The separate defense alleged was that at all times during the months of April and May, 1913, the defendant was ready, willing, and able to comply with all of the terms and conditions of the contract on its part, and did so until the [834]*834plaintiff failed and refused to perform its part of such terms -and conditions; that in the early part of April, 1913, the. defendant tendered the plaintiff 1,000 head of cattle of the kind and quality requited by the contract, which the plaintiff refused to accept, and that on May 9th of the same year the defendant duly tendered to the plaintiff, “from one thousand tzvelve hundred to one thousand five hundred head of cattle,” of the kind and quality it agreed to sell and deliver, and that on May 13th it duly tendered to the plaintiff 1,093 head of the kind and quality required by the contract, but that the plaintiff without right failed and refused—

"to select and accept any of the said cattle so offered and tendered by defendant to the said plaintiff, although the said cattle in every respect fulfilled each and all of the terms and conditions of the said contract relating thereto; and that plaintiff further failed to perform said contract, in that the said plaintiff had not then and there, or thereafter, supplied the cars necessary to receive the said cattle at Nogales, Ariz., in accordance with the terms of said contract. And defendant further alleges that plaintiff further failed to perform the said contract, in that plaintiff had made no arrangement satisfactory to the Hirst National Bank of Arizona for the payment of the purchase price of said cattle, in accordance with the terms of the said contract, and that plaintiff has wholly failed and neglected to pay the contract price for said cattle, although payment thereof has been duly demanded, and has wholly failed and neglected to perform the terms and conditions of said contract to be by him performed. Defendant further alleges that, at the time defendant entered into said contract with the said Myers, the subject of said contract, namely, the cattle therein specified, and the business connected therewith, was of a speculative character, and that the value and price of the cattle therein described and agreed to be furnished by the defendant to the said Myers was and still is of a fluctuating character; that the amount of damage which defendant might and could sustain by reason of a breach of said contract on the part of the said plaintiff and of a failure upon his part to perform the terms thereof was uncertain in amount and not readily ascertainable, or ascertainable at all, and that the said sum of ten thousand ($10,000.00) dollars mentioned in said contract was and is a reasonable and usual sum to be fixed upon and paid to the defendant as liquidated damages, and not as a penalty or forfeiture, for the breach of the said contract upon the part of the said plaintiff.”

For its counterclaim against the plaintiff the defendant made in its amended answer various allegations in respect to the purchase by it of a large amount of cattle in order to comply with its said contract, the alleged failure of the plaintiff to accept which cattle resulted in certain specified losses and damage to the defendant in the aggregate amount of $17,300, and that “defendant has received payment of no part thereof, except the sum of ten thousand ($10,000.00) dollars,” paid by the plaintiff at the time of the execution of the contract. And the prayer of the amended answer was that the plaintiff take nothing by its action, and that the defendant have judgment against the plaintiff on its counterclaim in the sum of $7,300, with interest and costs.

The clear meaning of the contract is that upon receipt of the required 15 days’ notice for each train load lot of the specified cattle the seller was to have gathered at Moraga or Destiladera a band of cattle of. sufficient number, from which it had cut all runts, stags, cripples, lump-jaws, sway-backs, blinds, .cattle too thin to ship, or otherwise unmerchantable, and from which remainder of the band the buyer was entitled to cut and reject 15 per cent, thereof before accept[835]*835ing the contract cattle. Before such tendered and accepted cattle crossed the line between the two countries, the buyer was required to be prepared to pay the contract price therefor in a manner satisfactory to the First National Bank of Nogales, and the seller was required to deliver, all- duties and expenses thereon paid, such cattle on board the cars at Nogales that the buyer was required to have there ready for that purpose.

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Bluebook (online)
220 F. 832, 136 C.C.A. 578, 1915 U.S. App. LEXIS 2529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alamo-cattle-co-v-hall-ca9-1915.