Arctic Ice & Coal Co. v. Southern Ice Co.

9 S.E.2d 38, 194 S.C. 60, 1940 S.C. LEXIS 94
CourtSupreme Court of South Carolina
DecidedMay 20, 1940
Docket15089
StatusPublished
Cited by2 cases

This text of 9 S.E.2d 38 (Arctic Ice & Coal Co. v. Southern Ice Co.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arctic Ice & Coal Co. v. Southern Ice Co., 9 S.E.2d 38, 194 S.C. 60, 1940 S.C. LEXIS 94 (S.C. 1940).

Opinion

The opinion of the Court was delivered by

Mr. Justice Baker.

This is an action seeking the recovery of actual damages in the sum of $11,386.46, and punitive damages in the sum of $5,000.00, and is predicated upon an alleged fraudulent misrepresentation as to the net tonnage of ice produced and sold by the appellant, Southern Ice Company, for the year 1931, said fraudulent misrepresentation allegedly having been made by the appellant, James B. Mahoney, the president of and acting for Southern Ice Company, to respondents, and thereby inducing respondents to enter into a contract for the lease of the plant and properties of the respondent Arctic Ice & Coal Company, on a tonnage payment basis rather than a contract whereby appellant Southern Ice Company would have paid a flat and fixed rental therefor of $9,000.00 per annum in monthly installments of $750.00 for the first five years, and if the lease was renewed for an additional five years, at the rate of $2,000.00 per annum during the extended period.

From the rental under either contract there was to be deducted monthly, over a period of time, a sufficient amount *62 to repay a loan, with interest, to be made by Southern Ice Company to Arctic Ice & Coal Company.

Paragraph 6 of the complaint follows :

“6. The general tenor and combined effect of the several papers constituting the said Agreement entered into was that Southern Ice Company loaned Six Thousand Dollars ($6,-000.00) to Plaintiffs upon promissory notes bearing interest; the Plaintiffs agreed not to engage in the ice business in Charleston County for a period of ten (10) years to expire 17th March, 1942, the land on which Arctic Ice & Coal Company’s plant was erected, together with the buildings, machinery and equipment, was leased to defendant, Southern Ice Company, for a period of Five (5) years, ending on the 31st day of March, 1937, at a rental of Two Flundred Dollars ($200.00) per month, with an option in Southern Ice Company to renew the lease for a further period of Five (5) years expiring 31st March, 1942, at the ■same rental, and Southern Ice Company was to pay the Plaintiffs each month an amount equivalent to ten per cent (10%) of the net ice tonnage of Southern Ice Company for the preceding month as defined in said Exhibit A, at the rate of Two & 50/100 Dollars ($2.50) per ton, deducting however from said amount the gross rentals provided for in the above lease and out of said rentals said Southern Ice Company was to deduct enough to repay to itself with interest the amount of the said loan of Six Thousand Dollars ($6,000.00) made by it to Plaintiffs, and Southern Ice Company allowed said W. H. A. Halsall to have the use of a portion of the property leased, to wit, the office, front platform and storage room to sell at retail on the platform ice to be sold to him for that purpose by Southern Ice Company at Three & 50/100 Dollars ($3.50) per ton, as will more fully and particularly appear from said Exhibits A, B, and C.”

The complaint further alleges that in order to determine if It was advisable to enter into the contract paying a fixed *63 amount as above indicated, or the one providing for the payment of $2.50 per ton upon 10% of the net output of Southern Ice Company, and lacking any basis upon which to calculate and reach a conclusion, respondents inquired of the appellant, James B. Mahoney, acting as president of said Southern Ice Company, as to what was the output of said ice company for the preceding year, 1931; that respondents were informed by Mr. Mahoney that the net tonnage was 50,000 tons, which was intended to and did induce them (Arctic Ice and Coal Company) to enter into the tonnage contract; that respondents long thereafter learned that' the net tonnage for the year 1931 was less than 45,000 tons, a fact known to appellants at the time when the parties to this action were negotiating as to the basis to pay under the rental contract.

Paragraphs 16, 18, 19 and 20 of the complaint read:

“16. That if Plaintiffs had known that the net tonnage stated and represented by Defendants was not truly stated but was less than as stated and represented, Plaintiffs would not have entered into said contract on the pra rata and contingent basis above mentioned, but instead would have accepted Defendants offer to pay the flat sum of Nine Thousand Dollars ($9,000.00) per year, which was absolute, fixed and certain and not subject to any diminution from fluctuations or contingencies- affecting the ice business.”
4= * *
“18. That the Defendants, in their dealings with Plaintiffs in the said transaction, further reported to Plaintiffs on occasions as the correct output of ice tonnage figures which were not the correct tonnage, as for instance in the statement of tonnage made by Defendants to Plaintiffs for the months of May, July, and August, 1936, the Defendants reported to Plaintiffs as the correct tonnage as follows:
1936 May .................5,601.33 tons
1936 July .................4;364.60 tons
1936 August ...............4,254.51 tons
whereas by an audit had at the instance of Plaintiffs about *64 June 2, 1939, it was revealed and Plaintiffs learned for the first time that the correct figures for said months were:
1936 May .................5,676.33 tons
•1936 July..................5,253.35 tons
1936 August ...............4,564.76 tons
exhibiting a difference or shortage as follows:
1936 May ............. 75.00 tons short
1936 July ..............888.75 tons short
1936 August ...........310.25 tons short
“Net shortage for three months 1,274.00 tons, upon which on the contract basis of $2.50 per ton on 10% of such tonnage, Plaintiffs were wrongfully deprived of Three Hundred and Eighteen & 50/100 Dollars ($318.50), which they would never have discovered but for such audit.
“19. In like manner in the invoice rendered Plaintiffs under date of August 31st, 193.5, of the amount charged Plaintiffs by Defendants for ice furnished to Plaintiffs under Exhibit ‘C’ above referred to, Plaintiffs were charged for 93.30 tons @ $3.50, $419.85, when the true amount was only $326.55, making an overcharge against Plaintiffs of $93.30.
“20. That by reason of the false and fraudulent misrepresentations of the Defendants these Plaintiffs have lost and been damaged in the sum of Eleven Thousand and Three Plundred and Eighty-six & 46/100 Dollars ($11,386.46) actual damages * * *

The appellants moved before the Honorable Wm. H.

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Thomas & Howard Co. v. Fowler
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46 S.E.2d 551 (Supreme Court of South Carolina, 1948)

Cite This Page — Counsel Stack

Bluebook (online)
9 S.E.2d 38, 194 S.C. 60, 1940 S.C. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arctic-ice-coal-co-v-southern-ice-co-sc-1940.