American Lumber & Mfg. Co v. Atlantic Mill & Lumber Co.

290 F. 632, 1923 U.S. App. LEXIS 1841
CourtCourt of Appeals for the Third Circuit
DecidedJune 23, 1923
DocketNo. 2997
StatusPublished
Cited by17 cases

This text of 290 F. 632 (American Lumber & Mfg. Co v. Atlantic Mill & Lumber Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Lumber & Mfg. Co v. Atlantic Mill & Lumber Co., 290 F. 632, 1923 U.S. App. LEXIS 1841 (3d Cir. 1923).

Opinion

WOOLLEY, Circuit Judge.

The judgment of the District Court brought here by this writ of error was entered for the plaintiff on a verdict in an action of assumpsit. The transaction out of which the controversy arose was as follows:

Speaking of the parties as they stood in the trial court, the defendant is.a corporation of the State of Pennsylvania engaged in the business of selling lumber and the plaintiff is a corporation of the State of Georgia engaged in the business of manufacturing lumber.

On April 22, 1916, the defendant ordered from the plaintiff on one of its printed order forms forty cars of yellow pine “roofers,” of size and kind described, at a named price, terms of payment— “Usual,” shipments to be made within a given time and to be consigned to the defendant in the care of a rail carrier at Cape Charles, Va.

[634]*634The plaintiff replied on a printed form of its own, stating: ■

“We acknowledge receipt of your order as listed above, which shall have, our careful attention, for which we thank you. Please examine and advise us promptly if not entered correctly.” '

This writing, purporting to be an acceptance contained as terms of payment “Cash less two per cent.,” named price f. o. b., and concluded with the statement that the defendant’s order “is accepted subject to [certain] conditions,” such as, claims to be made within five days of receipt of lumber; responsibility of the shipper to cease on the issuance of the bill of lading; shipments to be contingent upon delays by carrier, strikes, accidents, etc.; and lumber to be manufactured and graded according to the rules of the Southern Pine Association — all new matters and therefore not touched upon in the defendant’s order.

On April 29, 1916, the defendant gave the plaintiff an additional order for sixty cars of yellow pine roofers of one description at one price and forty cars of roofers of another description at another price, on the same order form and on substantially the same terms as in the first order. The plaintiff accepted this order on its regular acceptance form containing the printed conditions quoted — matters not included in the defendant’s order.

As the defendant made no reply to the plaintiff’s request that it be informed if the order was “not entered correctly,” the plaintiff at intervals shipped nine and one-half cars of roofers of one size and two and one-half cars of another size and the defendant accepted and paid for them according to the terms of the acceptances. For reasons appearing later the defendant directed the plaintiff to cancel all unfinished orders for roofers. On the plaintiff’s refusal to do so the defendant declined to accept and pay for further shipments. Whereupon the plaintiff brought this action for breach of the contracts.

The principal defense made by the defendant — first by affidavit of defense in the nature of a demurrer, and (after an adverse ruling) next by special traverse raising an issue submitted at the trial — was that no contracts such as were sued upon, existed. This defense was based upon the contention that the plaintiff’s acceptances of the defendant’s orders were conditional and were for that reason counteroffers and as such were rejections of the original orders, leaving the minds of the parties wholly apart. 1 Williston on Contracts, §■§ 61, 67, 72, 73; 13 Corpus Juris, §§■ 82, 86.

[1-4] If the defendant’s written orders and the plaintiff’s written acceptances were all there was in the case to indicate the meeting of the minds of the parties, there-would be substance in the defendant’s contention, for it is elementary law that to make a valid contract the minds of the parties must meet on the same terms in the same sense. H. & N. H. Co. v. Jackson, 24 Conn. 514, 517, 63 Am. Dec. 177. But the meeting of minds of contracting parties may occur — and be shown —not bv words alone but by conduct. Hudson v. Columbian Transfer Co., 137 Mich. 255, 100 N. W. 402, 109 Am. St. Rep. 679; Braun v. Hess & Co., 187 Ill. 283, 58 N. E. 371, 79 Am. St. Rep. 221. Such conduct may be .that of either party, or, indeed, of both' parties. In this case, however, the conduct was that of the defendant, raising the [635]*635question (as we regard it) whether the contracts sued upon were in existence, not because of the plaintiff’s conditional acceptances of the defendant’s offers, but because of the defendant’s assent to the conditions imposed by the plaintiff in accepting the defendant’s offers. Where one makes an offer and assents to an acceptance which is not responsive to the proposal, a contract is made and he is, of course, bóund by it. Iron Works v. Douglas, 49 Ark. 355, 5 S. W. 585; Baldwin v. Com., 11 Bush (Ky.) 417; Underhill v. North American K. G. L. Co., 36 Barb. (N. Y.) 354; Tilt v. La Salle Silk Mfg. Co., 5 Daly (N. Y.) 19; Treat v. Ullman, 34 Misc. Rep. 553, 69 N. Y. Supp. 974; Gray v. Foster, 10 Watts (Pa.) 280. The offeror’s assent to new terms imposed by the offeree in his acceptance may be inferred from the fact that the parties thereafter proceeded to conduct business under the conditional acceptance. McKell v. C. & O. Ry. Co., 175 Fed. 321, 99 C. C. A. 109, 20 Ann. Cas. 1097.

[5] Having in mind the defendant’s conduct in accepting and paying for twelve cars of lumber after the plaintiff had conditionally accepted its orders, the trial court submitted to the jury the question whether the defendant had, as evidenced by its conduct, assented to the plaintiff’s terms and thereby had brought their minds together. The defendant assigns this as error on the ground that the question of the existence of the contracts was one of law for the court to decide. In this, contention we do not concur for here the existence, not the construction, of the contracts was the point in issue. When the evidence is conflicting it is for the jury to determine whether a contract does in fact exist, and, if so, what are'its terms? 9 Cyc. 776 and cases. As the existence of the contracts was, on this issue, the only question involved and as it turned on evidence susceptible of opposite inferences, the trial court we think, did not commit error in submitting it to the jury.

During the contract deliveries the government placed an embargo on lumber shipped through the Cape Charles gateway destined for New -England states, thus closing that section of the country to the shipment of lumber except by permits. Permits, the defendant alleged, were difficult to obtain. Therefore, it requested the plaintiff to discontinue shipments. The plaintiff ignored the request. “Whereupon the defendant notified the plaintiff to cancel all unfinished orders for roofers.” Upon the plaintiff’s refusal to agree to a cancellation of the contracts, the defendant declined to receive more lumber. This suit followed.

[6, 7] The defendant avers by its pleading that in the negotiations for the purchase of roofers the plaintiff became aware of its intention to dispose of them in New England. In view of this knowledge the defendant maintained at the trial that even if the contracts sued upon were in existence, the conduct of the plaintiff in refusing to stop shipments justified it (the defendant) in rescinding the contracts. We are inclined against this contention for two reasons: First, because the contracts neither called for the delivery of roofers in New England, nor did they limit the defendant in the sale of roofers to that section of the country. Upon delivery f. o.

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Bluebook (online)
290 F. 632, 1923 U.S. App. LEXIS 1841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-lumber-mfg-co-v-atlantic-mill-lumber-co-ca3-1923.