Atlantic Steel & Iron Co. v. Pifer

12 Mass. App. Dec. 7
CourtMassachusetts District Court, Appellate Division
DecidedMay 21, 1956
DocketNo. 132947
StatusPublished

This text of 12 Mass. App. Dec. 7 (Atlantic Steel & Iron Co. v. Pifer) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Steel & Iron Co. v. Pifer, 12 Mass. App. Dec. 7 (Mass. Ct. App. 1956).

Opinion

Hobson, J.

This is an action of contract to recover damages for the defendants’ breach of a purchase order given by them to the plaintiff for the delivery of 7 crates of aluminum sheets. The plaintiff is a Massachusetts corporation with its principal place [2]*2of business in Springfield, Hampden County. The defendants are residents of the State of Indiana. The purchase order herein was given by the defendants to a salesman from the plaintiff’s office in Cleveland, Ohio, who in turn sent it to the main office at Springfield for shipment and billing.

This order was duly shipped to the defendants, on sight draft, as per the terms of the order, and a copy of the invoice mailed simultaneously to the defendants. Upon arrival at destination, the defendants were unable to pay the sight draft and made arrangements with the carrier to hold it for them. The carrier upon instructions by the defendants held the materials for four weeks. Then the market price of aluminum dropped, and the defendants instructed the carrier to return the shipment with consequent loss to the plaintiff of freight, handling and reduction in value.

The plaintiff instituted suit in the District Court of Springfield, claiming jurisdiction was conferred by the terms of sale contained in the invoice. In particular the plaintiff refers to the following terms of sale printed on the back of the invoice'.—

"Acceptance of these materials shall be construed as an agreement by buyers to be bound by all the terms and conditions contained herein. Retention for three days following delivery shall be construed as acceptance. This contract is consummated under and governed by the laws of the Commonwealth of Massachusetts.”
"All parties hereto consent that both the District Court of Springfield, and the Superior Court for Hampden County, which courts are held at Springfield, Massachusetts, shall have exclusive jurisdiction of any and all controversies or claims arising out of or relating to this contract; and each party further consents that any process or notices of motion or other application to either of said Courts, or to any Judge thereof may be served outside the Commonwealth by registered mad addressed to [3]*3their place of business, provided a reasonable time for appearance is allowed.”

The plaintiff filed a Request for Order of Notice to be served upon the defendants by registered mail. This request was denied by the trial judge, (Ehrlich, Sp. /.,) who reported his decision to the Appellate Division for review.

There is nothing in the report showing the reason why the trial judge denied the plaintiff’s request for an order of notice. It must be inferred that he did so because he found that the court had no jurisdiction of the case. He could reach this conclusion by finding that any contract made by the parties whereby the defendants agreed to submit any and all controversies or claims arising out of or relating to the contract to the jurisdiction of the District Court of Springfield was invalid and of no legal effect; or, by finding that no valid contract to that effect was ever made by the parties.

In view of the fact that no contract was ever made by the parties by the terms of which the defendants agreed to submit such controversies or claims to the jurisdiction of the District Court of Springfield, it becomes unnecessary to discuss whether or not such a contract, if made, was valid and binding upon the defendants.

It appears that the defendants, in Indiana, gave an order for the merchandise in question to a salesman of the plaintiff, who forwarded it to the main office of the plaintiff in Springfield. There is nothing whatever in the report to show that in the order given by the defendants there was any provision or agreement whereby they were to submit any controversies or claims to the District Court of Springfield. It further appears that the merchandise ordered was shipped to the defendants, on sight draft, as per terms of the order, and a copy of the invoice mailed simultaneously to the defendants.

When the plaintiff shipped the merchandise to the [4]*4defendants, as per terms of the order, it thereby accepted the offer or order of the defendants and a contract came into being, which contract could not be changed, modified or enlarged in any way except by consent and agreement of the parties.

The plaintiff attempted to make a change, modification and enlargement of the contract by forwarding to the defendants the invoice with the terms and conditions heretofore recited printed on the reverse side thereof.

This attempt was ineffectual for two reasons; First, there is nothing in the report to show that the defendants ever had actual notice of said terms and conditions on the reverse side of said invoice, which must be proven to bind them, and therefore there was no evidence that the defendants ever agreed to said terms and conditions so as to change, modify or enlarge the original contract. Second, there was never any acceptance by the defendants of the materials shipped, and as one of the terms provided that "acceptance of these materials shall be construed as an agreement by buyers to be bound by all the terms and conditions contained herein”, without such acceptance, there never was any contract between the parties whereby the defendants agreed to submit said controversies and claims to the jurisdiction of the District Court of Springfield.

With reference to the first reason above given, we would call attention to the fact that the invoice in question was no part of the original contract. No invoice had to be sent to make the contract a binding one. On its face it purported to be what, in commercial transactions an invoice is defined to be, namely, "a written account of the particulars of merchandise shipped or sent to a purchaser, consignee, factor, etc., with the value or prices and charges annexed.” Merchants Exch. Co. v. Weisman, (Mich) 93 N.W. 869, 870. On its face it did not purport to be an acceptance by the defendants of the [5]*5offer of the plaintiff to accept their order upon terms varying from those included in the original offer. The words "This invoice is subject to the terms and conditions on the reverse side hereof”, appearing on the bottom of the face of the invoice, do not make it such. Where an instrument, which on its face purports to set forth the terms of a contract, is given to a person, the latter, whether he reads it or not, by accepting it assents to its terms and is bound thereby in the absence of fraud; where, however, as in this case, the instrument given to a person is apparently an invoice, rather than a contract, such person is not bound by its terms unless they are actually known to him. Kergald v. Armstrong Transfer Express Co., 330 Mass. 254.

There being nothing to show that the defendants had actual notice of the terms and conditions on the reverse side of the invoice so as to be bound by its terms, we conclude that defendants never agreed to submit any controversies or claims to the jurisdiction of the District Court of Springfield.

With reference to the second reason above given, even if defendants did consent to the terms and conditions on the reverse side of the invoice

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Related

Kergald v. Armstrong Transfer Express Co.
113 N.E.2d 53 (Massachusetts Supreme Judicial Court, 1953)
Knight v. Mann
118 Mass. 143 (Massachusetts Supreme Judicial Court, 1875)
Safford v. McDonough
120 Mass. 290 (Massachusetts Supreme Judicial Court, 1876)
Remick v. Sandford
120 Mass. 309 (Massachusetts Supreme Judicial Court, 1876)
Rodgers v. Jones
129 Mass. 420 (Massachusetts Supreme Judicial Court, 1880)
Merchants' Exchange Co. v. Weisman
93 N.W. 869 (Michigan Supreme Court, 1903)

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Bluebook (online)
12 Mass. App. Dec. 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-steel-iron-co-v-pifer-massdistctapp-1956.