American Rattan & Reed Manufacturing Co. v. Cone

198 A.D. 843, 190 N.Y.S. 782, 1921 N.Y. App. Div. LEXIS 8192
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 25, 1921
StatusPublished
Cited by2 cases

This text of 198 A.D. 843 (American Rattan & Reed Manufacturing Co. v. Cone) 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
American Rattan & Reed Manufacturing Co. v. Cone, 198 A.D. 843, 190 N.Y.S. 782, 1921 N.Y. App. Div. LEXIS 8192 (N.Y. Ct. App. 1921).

Opinion

Kelly, J.:

The plaintiff asks judgment against the defendant for $3,177.18, with interest from October 18, 1916, and costs, and defendant asks that the action be dismissed with costs. The plaintiff’s claim is based upon a written guaranty signed by the defendant. The facts are as follows: In June and July, 1916, the plaintiff purchased quantities of rattan from a copartnership located at Macassar, in the island of [844]*844Celebes, Dutch East Indies, in the South Pacific, known as Handel-Maatschappij Moraux & Co. The defendant was the agent of the Macassar firm in the city of New York. The purchases were made by three separate written contracts in the form of letters addressed to the plaintiff and signed by the defendant, confirming the sale for account of the Macassar firm, and each letter contains an acceptance thereof by the plaintiff signed by its president. The first, Contract No. 36198,” was dated June 8, 1916, and the quantity therein sold was “ about 100 tons (of 2240 pounds),” to be shipped “ from Makassar, via Singapore, during the months óf June, July, 1916, at sellers’ option; ” the price, £43 /15 per ton (of 2240 pounds), cost and freight New York; ” the second, Contract No. E10,” was dated June 12, 1916, for about 75 tons (of 2240 pounds),” to be shipped from Makassar, via Singapore, during the months of June /July /August, 1916, at sellers’ option,” at the Price £43 /15- ton (of 2240 pounds) cost and freight New York; ” and the third, “ Contract No. Ell,” was dated July 15, 1916, for About 100 tons (of 2240 pounds),” Shipment prompt from Makassar, via Singapore,” at the price of “ £41 /- per ton (of 2240 pounds), cost and freight New York.” The method of payment was the same in each contract, viz.: Payment by four (4) months sight draft, in pounds sterling, under London Bankers Credit. Duty, if any, for buyers account.” Insurance to be covered by buyers, including war risk. Each of the three contracts also contained the following clauses.

Terms: In the event of any portion of the above goods not being shipped in terms hereof, the buyer may claim as to such portion and shall accept the portion shipped in accordance with contract. Any defect in quality or quantity of goods shall not invalidate contract, and failing an amicable arrangement, any dispute as to quality or quantity of goods or damage suffered, shall be settled by arbitration at New York, each side to appoint an-arbitrator with authority to appoint an Umpire, and their award to be final and binding on both parties, who are to equally bear the expense of arbitration. Buyers shall accept goods with such allowance or award as may be made. Each shipment to be considered a separate contract. This contract is contingent upon strikes, floods, [845]*845storms, fires, pestilence, riots, war, rebellion, force majeure, and .upon all casualties, delays and deviations beyond our control.

Any claims must be made within ten days from landing of goods on Dock, ten per cent, of original unopened packages must be available in the event of dispute regarding quality, etc. In default of the production of such per centum of original packages no claim shall be made or allowed.”

The plaintiff’s claim in this controversy is based upon a letter dated June 8, 1916, signed by the defendant, as follows:

Fred H. Cone, 176 Front St., N. Y.
June 8, 1916.
“ American Rattan & Reed Mfg. Co.,
Cor. Norman & Kingsland Aye’s.,
“ Brooklyn, N. Y.
Gentlemen.— Referring to contract No. 36198 I beg to advise that we guarantee the carrying out of any arbitration award that may be made under this contract.
Very truly yours,
“FHC/RB FRED H. CONE.”

It will be noted that this guaranty refers only to contract No. 36198, and bears date prior to the date of the subsequent contracts.

On or about June 21, 1916, in pursuance of contracts 36198 and E10, the Macassar firm delivered to the plaintiff documents covering 181 tons of rattan, without specification as to which of said 181 tons was delivered pursuant to contract No. 36198, and which under contract E10. The first contract covered about 100 tons,” the second about 75 tons.” On or about July 17, 1916, documents were delivered to plaintiff covering “ about 98 tons ” of the material in pursuance of the third contract, Ell, which was for “ about 100 tons.” Delivery of the documents in each case was made prior to the arrival of the merchandise in New York, and payment was made by plaintiff on receipt of the documents.

Thereafter the steamship Muncaster Castle arrived at New York and discharged 181 tons of rattan in due course to apply on contracts No. 36198 and No. E10, but no appropriation of rattans to either contract was made by the vendor and shipper, the Macassar firm, or by the plaintiff, and said [846]*846181 tons were regarded as applying on the two contracts without specification. And later on the arrival of the steamship St. Bede, 98 tons of rattan were discharged to apply on contract No. Ell.

The plaintiff upon examining some of the rattan discharged claimed in a letter to defendant dated October 3, 1916, that it was defective in quality and that it did not come up to sample, that there were considerable worm eaten sticks,” and plaintiff, anticipating that upon opening the additional bundles additional defects would be discovered, demanded an arbitration of the dispute as provided in each of the three contracts.

The defendant answered by a letter dated October 4, 1916, in which he acknowledged the demand for arbitration and appointed one Warnecke to act for the vendor, suggesting that plaintiff remove the rattan to plaintiff’s warehouse to facilitate examination. On October 9, 1916, the plaintiff appointed Mr. Miltenberg to represent it on the arbitration.

The arbitrators met, and it appears that they agreed that an allowance should be made to plaintiff; Mr. Warnecke for the vendors fixing ten per cent as a proper allowance, while Mr. Miltenberg for the plaintiff purchaser fixed the allowance at fifteen per cent. Being unable to agree as to the amount to be allowed, the arbitrators, pursuant to the three contracts, appointed Mr. William E. Murphy as the umpire “ to decide between the 10% allowance conceded by Mr. Warnecke or the 15% claimed by Mr. Miltenberg.”

Thereafter Mr. Murphy went to the pier where the rattans were, and inspected them by examining accessible bundles, and on October seventeenth he decided that an allowance of fifteen per cent should be made to the plaintiff.

It is agreed that this allowance of fifteen per cent, if applied to the purchase price of the rattans covered by the contract No. 36198, would amount to £656, 5s., or $3,117.18. On October 18, 1916, the plaintiff .demanded payment of this sum, but neither the defendant nor the defendant’s principal, the Macassar firm, has made payment.

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Cite This Page — Counsel Stack

Bluebook (online)
198 A.D. 843, 190 N.Y.S. 782, 1921 N.Y. App. Div. LEXIS 8192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-rattan-reed-manufacturing-co-v-cone-nyappdiv-1921.