Berlowitz v. Standley

5 S.W.2d 963, 117 Tex. 362, 1928 Tex. LEXIS 73
CourtTexas Supreme Court
DecidedApril 18, 1928
DocketNo. 4216.
StatusPublished
Cited by29 cases

This text of 5 S.W.2d 963 (Berlowitz v. Standley) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berlowitz v. Standley, 5 S.W.2d 963, 117 Tex. 362, 1928 Tex. LEXIS 73 (Tex. 1928).

Opinion

Mr. Justice GREENWOOD

delivered the opinion of the court.

Certified question from the Court of Civil Appeals of the First Supreme Judicial District of Texas, in an appeal from Harris County.

The certificate of the Honorable Court of Civil Appeals reads as follows:

“J. O. Berlowitz brought this suit in the District Court of Harris County against John F. Standley, J. B. Standley, A. C. Standley, *364 O. W. Standley, D. F. Standley and W. W. Standley, parties doing business under the firm name of John F. Standley & Sons, all of whom were residents of counties other than Harris County. Plaintiff sued to recover the sum of $1,118.51, the alleged difference between the value of cotton purchased from defendants and the amount of drafts for the value of the cotton drawn on plaintiff by defendants and paid by him before receipt of the cotton.

“The defendants John F., D. F. and J. B. Standley filed their pleas of privilege to be sued in Walker County, the county of their residence, and where the business of the firm was conducted.

“The court sustained the pleas and ordered the cause transferred to the District Court of Walker County. From this order J. O. Berlowitz has appealed.

“Upon the issues joined by the parties upon the pleas of privilege it was shown that upon several dates between the 1st and 31st day of September, 1923, J. O. Berlowitz, who was engaged in the purchase and sale of cotton in the City of Houston, Harris County, Texas, and who was at Houston on the said several .dates, called John F. Standley, who was at the time in Huntsville, Walker County, over the telephone, and'by the telephone communication so.had the parties entered into several contracts by the terms of which Berlowitz agreed to purchase from Standley & Sons, and Standley & Sons agreed to sell to Berlowitz, several lots of cotton. It was agreed in said conversations over the telephone that Standley & Sons were to deliver to Berlowitz a certain number of bales of cotton at Houston, in Harris County, upon each of the several contracts at an agreed price per pound, on basis middling cotton, Houston class and weights to govern. It was also agreed that as the cotton was shipped, Standley & Sons might draw drafts for the value of the several shipments and attach the same to the bills of lading, and that Berlowitz would pay said drafts when presented to him before the actual receipt, weighing and classification of the cotton at Houston. After each of the contracts was so made over the telephone, Berlowitz sent to Standley & Sons a confirmation letter, as follows:

“ ‘September 1st, 1923.

John F. Standley & Sons,

Huntsville, Texas.

Dear Sir:

We confirm purchase from you today as follows:

Quantity: 65 B/C.

Quality: Basis middling, unculled as to staple.

*365 Price: 24/70 B/M landed.

Terms: Landed Houston. Houston class and weights guaranteed.

Delivery: Immediate shipment to Houston, through flat.

Reimbursement: Sight draft on us with original B/L attached.

Note: This confirmation in duplicate; please sign the duplicate and return.

Remarks: Settlement of claims, if any, to be made in Houston.

.Very truly yours,

J. O. Berlowitz Co.

Accepted:

By...............................

Date..............................

“These letters were received by Standley & Sons but were never signed by them, nor otherwise agreed to in writing, so far as shown by the record.

“In pursuance of these contracts the number of bales of cotton contracted for were shipped to Houston upon bills of lading by which the shipment was consigned to ‘Shipper’s order. Notify J. O. Berlowitz Co.’ There were a number of these shipments. Some of them were made in the name of appellees, but the bills of lading for many of them were, under the instructions of appellees, taken out in the name of the Huntsville Gin & Wharf Company, and endorsed by that company for appellees’ account. For each of these shipments appellees drew a draft on appellant and attached thereto the bill of lading for the shipment. These drafts were sent by a bank at the place of shipment to a bank at Houston for collection and were paid by appellant before the cotton wás received by him. Invoices were also sent by appellees to appellant for most of these shipments. These invoices were usually sent with the bills of lading and all contained a statement of the weight and number of each bale of cotton and the amount of the draft drawn for the shipment. All of these invoices, except one for five bales shipped by the Huntsville Gin & Wharf Company on September 11, also stated that .the cotton covered thereby was sold to J. O. Berlowitz and shipped ‘subject to Houston class and weight.’

“The five bales above mentioned were shipped under a contract for 65 bales and the invoices for the balance of the cotton shipped under this contract contained the statements above set out.

*366 “This five-bale shipment was the only one upon which a difference in the weight stated in the invoice and the actual weight at Houston was shown, and this difference was only six pounds.

“In every instance the number of bales contracted to be sold and shipped by Standley & Sons were in fact shipped and were received at Houston by Berlowitz, but when the cotton was classed and weighed at Houston, Berlowitz claimed that it was shown to be short in weight and class, and as a consequence the value placed upon it by Standley & Sons, which was paid by Berlowitz, exceeded the actual value ascertained by a calculation based upon Houston weights and classification and at the contract price in the amount before stated.

“As the members of this court entertain different views as to whether by the contracts made, including the invoices, drafts and bills of lading shown by the facts above stated, Standley & Sons, as a matter of law, were suable in Harris County for the excess paid them by J. O. Berlowitz upon the drafts shown to have been drawn by them, and as there seems to be no decision by the Supreme Court clearly establishing the rule to be applied in such cases, we deem it advisable to submit to Your Honors the following question:

“Upon the facts stated, was defendants’ plea of privilege properly sustained?”

Under the telephone contracts the cotton was sold on condition of payment of the sellers’ drafts. The sale would remain incomplete, with title in the sellers, until this condition was complied with. Lang v. Rickmers, 70 Texas, 110, 7 S. W., 527. The bills of lading and the sight drafts constituted written contracts on the part of the sellers to deliver at Houston, in Harris County, cotton of such weights and grades as would be worth, at the contract prices, the" amounts of the drafts. Marcus v. Armer, this day decided (117 Texas, 368, 5 S. W., 2d Series, 960); Callender v. Short, 34 Texas Civ. App., 364, 78 S. W., 367.

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5 S.W.2d 963, 117 Tex. 362, 1928 Tex. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berlowitz-v-standley-tex-1928.