Alden Speare's Sons Co. v. Hubinger

129 F. 538, 64 C.C.A. 68, 1904 U.S. App. LEXIS 4065
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 28, 1904
DocketNo. 1,978
StatusPublished
Cited by2 cases

This text of 129 F. 538 (Alden Speare's Sons Co. v. Hubinger) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alden Speare's Sons Co. v. Hubinger, 129 F. 538, 64 C.C.A. 68, 1904 U.S. App. LEXIS 4065 (8th Cir. 1904).

Opinion

THAYER, Circuit Judge,

after stating the case as above, delivered the opinion of the court.

It will be observed that the complaint on which the case was tried failed to show the market value of the starch at the time and place of delivery. Neither did it contain an allegation that there had been a decline in the market value of the commodity intermediate the sale and the time of delivery, nor an express allegation that the plaintiff had sustained damage. The action seems to have been brought on the theory that it was sufficient to allege that at the sale made in Boston in March, 1901, nearly nine months after the time of delivery specified in the contract, the starch did not bring as much as the contract price, and that this allegation alone entitled the plaintiff to recover the difference between the contract price and the price for which it had been sold. Counsel for the plaintiff in error concede that the damages recoverable for the breach of a contract of sale is the difference between the contract price and the actual market value of the commodity at the time and place of delivery. They contend, however, that when a contract of sale is broken the vendor may sell the article for the purpose of establishing its market valué; that the market value may be proven in this way as well as by the testimony of witnesses, and that the sum bid for the starch at the public sale in Boston in March, 1901, was prima facie evidence of its value when the contract was broken, and that it showed a decline in the market value, and consequent damage.

Assuming, without deciding, that there might have been a recovery of substantial damages although it was not expressly alleged that the market value of the starch at the time and place of delivery was less [540]*540than the contract price, and although it was not expressly alleged that the plaintiff had sustained damage; and assuming farther that a vendor of merchandise, if the vendee declines to accept it, may cause the same to be sold for the purpose of establishing its market value — still, when property is thus sold by the vendor to establish its market value, the sale must be made within a reasonable period after the vendee has broken his contract, and in making the sale the vendor must exercise good faith, and do whatever may be done in the exercise of reasonable diligence to make the property sold bring the best price. Moore v. Potter, 155 N. Y. 481, 487, 50 N. E. 271, 63 Am. St. Rep. 692; Tripp v. Forsaith Mach. Co., 69 N. H. 233, 45 Atl. 746; Brownlee v. Bolton, 44 Mich. 221, 6 N. W. 657; McCombs v. McKennan, 2 Watts & S. 216, 37 Am. Dec. 505; Mechem on Sales, § 1650. In the case in hand it was the function of the jury to decide whether the starch in question was sold by the plaintiff company within such a reasonable period of time after July 1, 1900, and under such circumstances, as would warrant them in finding that the price bid at the sale was the fair market price of the starch at that time and nine months previously — that is to say, when the contract was broken. This question was in fact submitted to the jury. With reference to this phase of the case the trial court charged the jury as follows:

“Now, then, what is a reasonable time, so far as this case is concerned, is at least a question of fact for you, gentlemen. Here is a starch manufactured, it seems, from flour; possibly some other ingredients; I do not know as to that. They must offer it upon the markets if it is already manufactured. They must use diligence to sell it at the best possible advantage, and, if they intend to make a public outcry, and if it is sold at such a sale as that, within a reasonable time, they must give Mr. Hubinger notice that they intend to hold him for the difference between the contract price and what it sells for, so that he can do what to him seems proper to protect himself. The evidence is without conflict that there was no notice given until some time the next March. Now, that is a question for you to say, under all the circumstances, was that within a reasonable time? And, if not, then this auction sale in this building in the city of Boston would in no wise be binding upon Mr. Hubinger. The fact that he had some one there representing him will not be an acquiescence in it, because he would have a right to see what was going on; and if you find that that was an unreasonably long time after this contract had been canceled, then that auction sale would in no wise be binding upon Mr. Hubinger in fixing the amount of damages.”

This instruction is criticised as having been erroneous. It is said that, if the sale of the starch was made within a reasonable time after the defendant had declined to accept it, the price which it brought was conclusive evidence of its market value at the time of the breach, and that, although the vendor may have suffered an unreasonable time to elapse before exposing it to public sale, yet the price bid for it at the sale was at least prima facie evidence of its value during the preceding nine months, and that the trial court erred in not instructing the jury to that effect. We are unable to assent to that view. If a vendor resorts to the expedient of selling property which the vendee has declined to accept, for the purpose of establishing its market value and the amount of his damages, he should do so within a reasonable period after the contract is broken. When the vendor retains the property sold for months after the vendee has declined to accept it, and then exposes it to sale, the law will hardly indulge in the presumption that [541]*541the value of the article has remained stationary in the meantime, and that the price realized is a fair test of the value of the article at the time of the breach. We are of opinion, therefore, that the trial court was right in directing the jury that the price which was bid for the starch in Boston in 1901 would not be binding on the defendant in fixing the amount of the damages, provided the jury found that the sale was not made within a reasonable time after July 1, 1900. The plaintiff company made no attempt to show that it had sustained damage otherwise than by proving that at the public sale in March, 1901, the starch had been sold to the highest bidder at 4 cents per pound, which was ij/2 cents per pound less than the contract price. It seems to have relied for a recovery exclusively upon this evidence, and as the jury, acting under the instruction above quoted, most likely found that the sale was not made within a reasonable period, and was not binding upon the defendant for the purpose of fixing the amount of the plaintiff’s damages, there was in fact no evidence before the jury which would have warranted them in finding that the plaintiff company had sustained any substantial damage such as could be recovered from the defendant.

The pleadings in the case presented another issue of fact, namely, whether the contract for the sale of the starch was made by Hubinger individually or with the J. C. Hubinger Company, and it is claimed that the trial court practically withdrew this issue from the jury by directing them that the contract was made with the company, and not with Hubinger. The record discloses that the order for the starch was first communicated over the telephone by Hubinger in person to the plaintiff’s agent in Chicago, 111., on January 5 or 6, 1900. At the conclusion of the message there was some difficulty with the wires, but Hubinger was understood to say that he would write to the agent that night. A letter was written that night or the following morning, and mailed at Keokuk, Iowa, where Hubinger resided, and where the J. C. Hubinger Company was also located and engaged in business.

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Cite This Page — Counsel Stack

Bluebook (online)
129 F. 538, 64 C.C.A. 68, 1904 U.S. App. LEXIS 4065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alden-speares-sons-co-v-hubinger-ca8-1904.