Amerine National Corporation, and Cross-Appellant v. Denver Feed Company, a Colorado Corporation, and Cross-Appellee

493 F.2d 1275, 14 U.C.C. Rep. Serv. (West) 885, 1974 U.S. App. LEXIS 10007
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 20, 1974
Docket73-1619, 73-1620
StatusPublished
Cited by8 cases

This text of 493 F.2d 1275 (Amerine National Corporation, and Cross-Appellant v. Denver Feed Company, a Colorado Corporation, and Cross-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amerine National Corporation, and Cross-Appellant v. Denver Feed Company, a Colorado Corporation, and Cross-Appellee, 493 F.2d 1275, 14 U.C.C. Rep. Serv. (West) 885, 1974 U.S. App. LEXIS 10007 (10th Cir. 1974).

Opinion

WILLIAM E. DOYLE, Circuit Judge.

This is a turkey case. The action in District Court was by Amerine National Corporation to recover from Denver Feed Company for the sale and delivery of 51,000 young turkeys (called poults). These poults were part of a larger order and the balance of the order was paid for. The poults in question were conceded to be “H & N” brand hens and “Amerine” brand toms. In a trial to the court judgment was entered in favor of the plaintiff for the full demand, that is, $22,763.40 plus interest provided in the contract. The defendant’s counterclaim in which it sought damages for losses arising from diseases was dismissed. The defendant appealed the judgment in favor of the plaintiff and the plaintiff cross-appealed, asserting inadequacy of the attorney’s fee. There had been a course of dealing over several years.

“H & N” is one brand of turkey and “Amerine” is another. It was defendant’s position that his preference had always been for the “Amerine” brand and that had been communicated to the plaintiff. Defendant also maintained that “H & N” was a less desirable brand, being less broad breasted than the “Amerine” brand.

The transaction in question commenced in November 1969, at which time defendant placed an order for 154,000 poults to be delivered during the 1970 season The poults were to have *1277 been delivered in 12 different shipments starting January 20, 1970 through July 28, 1970. On November 28, 1969, the defendant’s agent wrote to the plaintiff requesting confirmation of shipment dates. Following that, the plaintiff wrote defendant a letter dated December 23, 1969, enclosing a printed form contract of sale which he referred to as a confirmation. This contained the price and the delivery dates.

According to the defendant’s testimony he was not aware that “H & N” named poults had been included in the order and the plaintiff’s principal officer was not aware of it either until advised of the fact by the defendant’s manager. There followed a meeting in Denver. The plaintiff there took the position that “Amerine” meant a turkey sold by it rather than a particular kind of turkey. The other witnesses of the defendant testified that they were not aware of the presence of progeny of “H & N” hens until the middle of 1970. There was also testimony that there were negotiations with respect to this specific breed of turkey.

The trial court placed entire emphasis upon the “written - confirmation” and found from that that the contract permitted delivery of poults parented by “Amerine” and “H & N” turkeys. The court was impressed with the fact that the contract did not include the term “Amerine poults” and that the warranty merely declared that all poults and hatching eggs are from turkey breeding stock participating in the disease and selection phases of the National Turkey Improvement Plan as provided in the marketing agreement for poultry and turkey improvement in California as amended and as administered by the poultry improvement advisory board. Also, the court emphasized that stock, as defined in the National Turkey Improvement Plan, is a broad term which includes not only pure strains but strain crosses, breed crosses or any combination thereof. From this the judge concluded that there was a full compliance by the plaintiff with the express warranty and that any implied warranties were eliminated by the disclaimer clauses. The judge also thought that the defendant was precluded from recovering damages for nonconformity of the goods under the Commercial Code by not giving proper notice. The trial court continued that under the custom of the industry the order of a trade name product does not call for a specific breed; that the seller is not limited in his choice of sale stock to its own strain of turkeys but, rather, could breed crosses and sell the product or progeny under its company name. The court ruled out that there were any diseased poults transmitted from the plaintiff’s flock and did so because of the deficiency of proof. Review is not sought by the defendant of this ruling.

The points raised by the defendant on this appeal are:

1) That the so-called “written confirmation” contract materially altered the definition of ’ “Amerine” poults which had been previously agreed upon by the parties. It was contended that the trial court erred in refusing to recognize this.

2) That the trial court erred in finding that the defendant had not given prompt notice of non-conformity of tender.

3) On cross-appeal the plaintiff-appel-lee contends that the court erred in failing to award an adequate amount of attorney’s fees in accordance with the written contract which provided that

"customer shall pay costs of collection and in event of suit reasonable attorney’s fees.”

Examination of the record in this case leads to the conclusion that the decision of the trial court concerning defendant Denver Feed Company’s contract liability must be upheld. The findings of fact are adequately supported by the evidence of record and are determinative of the pivotal legal questions here involved.

Defendant’s appeal challenges the trial court’s finding that the written contract of sale, signed by defendant on December 23, 1969 (Plaintiff’s Exhibit 1), was *1278 intended by the parties as a final written expression of their agreement. Defendant asserts (1) that the December 23 document was instead a confirmatory memorandum of a previously reached oral agreement; (2) that the written document stated terms differing from the original agreement, in particular relating to the type of turkey which would be supplied under the contract; and (3) that this change constituted a material alteration of the pre-existing oral contract. Defendant argues that under C.R.S. § 155-2-207(2) (b) this change in the type of turkey to be supplied (cross-breed rather than “pure Amer-ine”) would not become an effective part of the sales contract.

Without questioning the trial court’s fact finding that the December 23 writing was intended to be the final contract between the parties, it is doubtful whether the appeal issue raised by defendant could result in a more favorable outcome to him. The contract between the parties, whether oral or written, was reached in the context of a well established course of dealing between the parties. Denver Feed Company had dealt with Amerine for at least ten years (R.183), specifically including the purchase of turkeys during the two to three years previous to the initiation of this dispute. 1 The record discloses that plaintiff had marketed as “Amerine” turkeys large numbers of cross-breed turkeys intended for commercial use for several years (R.138), including turkeys with H & N bloodlines since at least the mid-1960’s (R.255). Thus supplying cross-breed turkeys to its customers under the name “Amerine,” a practice clearly permissible under the written contract of sale and the National Turkey Improvement Plan which it incorporated, did not represent a sudden change in practice for Amerine. The evidence showed this to be the course of dealing Amerine had followed for several years with its customers, presumably including Denver Feed Company. It is the policy of the Uniform Commercial Code to consider previous course of dealing in determining the meaning of contract provisions. See

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493 F.2d 1275, 14 U.C.C. Rep. Serv. (West) 885, 1974 U.S. App. LEXIS 10007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amerine-national-corporation-and-cross-appellant-v-denver-feed-company-a-ca10-1974.