Blossom Farm Products Co. v. Amtraco Commodity Corp.

64 F.R.D. 424, 1974 U.S. Dist. LEXIS 6767
CourtDistrict Court, S.D. New York
DecidedSeptember 13, 1974
DocketNo. 70 Civ. 4759 (DNE)
StatusPublished
Cited by5 cases

This text of 64 F.R.D. 424 (Blossom Farm Products Co. v. Amtraco Commodity Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blossom Farm Products Co. v. Amtraco Commodity Corp., 64 F.R.D. 424, 1974 U.S. Dist. LEXIS 6767 (S.D.N.Y. 1974).

Opinion

OPINION

EDELSTEIN, Chief Judge:

Defendant has moved pursuant to Fed.R.Civ.P. 15(a) for leave to amend its answer to assert the statute of frauds as an affirmative defense to the third and fourth causes of action pleaded in the complaint, and if such leave is granted for the court to declare the answer so amended. Additionally, if the answer is declared so amended defendant moves pursuant to Fed.R.Civ.P. 56(b) for summary judgment with respect to the third and fourth causes of action of the complaint. Federal jurisdiction is predicated upon 28 U.S.C. § 1332 (1970) because plaintiff and defendant are citizens of different states and the amount in controversy exceeds $10,000 exclusive of interest and costs.

The complaint alleges that plaintiff is “a food broker and agent engaged in procuring customers for food products processed or imported by others,” and [426]*426that defendant is “an importer and wholesaler of food products.” Plaintiff asserts that it was employed by defendant on or about January 9, 1970 to sell —as broker—substantial quantities of a “butter fat product” which defendant imported from Belgium and various other continental countries. It is further contended that defendant agreed to pay plaintiff a net commission of $.016 per pound of butter fat sold by plaintiff and that plaintiff was to receive the same rate of commission on all re-orders of defendant’s product by customers procured by plaintiff. Neither party disputes that there is no written instrument reflecting this alleged agreement.

Plaintiff further alleges that he procured a customer for defendant under this arrangement, namely Whitelawn Dairies, Inc. (Whitelawn or customer) of Brooklyn, New York, and that defendant entered into several transactions with this customer. The first cause of action asserts “that prior to January 20, 1970 the plaintiff, on behalf of the defendant, sold to Whitelawn Dairies, Inc. of Brooklyn, New York, 26 truckloads of approximately 38,500 pounds net each of butter fat products at a price of $.215 per pound.” Plaintiff acknowledges that he was paid his commission for 20 of the 26 truckloads of the butter fat product delivered by defendant to .the customer, but that defendant has failed to pay plaintiff its commission, after plaintiff has duly demanded payment, for the remaining six truckloads of the product delivered to. Whitelawn. This transaction is evidenced by a written contract between defendant and the customer, a copy of which is attached to the affidavit of Walter F. Browne, Vice President of defendant, which was made in support of the instant motion. The contract reveals that defendant was to pay a commission to plaintiff of “.02 lb. less actual freight costs pier or warehouse to buyer’s plant” on the 26 truckloads provided for in the sales agreement.

The second cause of action alleges that “plaintiff again sold to Whitelawn Dairies, Inc. and the latter re-ordered 15 truckloads of butter fat product, approximately 38,500 pounds each truckload at a price of $.2175 per pound, and the defendant agreed to pay the plaintiff a commission of $.0175 per pound less actual freight of approximately $.004 per pound, or a net commission of $.0135 per pound.” This transaction is also. evidenced by a written contract between defendant ' and the customer, a copy of which is attached to the Browne affidavit. Plaintiff contends that it was never paid a commission for this transaction.

As to the first and second causes of action there are written memoranda signed by defendant acknowledging that plaintiff is to be paid a commission for the transactions between defendant and Whitelawn. Accordingly, there is no valid statute of frauds defense to the first and second causes of action. The only dispute between the parties is whether defendant has fulfilled its obligation to plaintiff as set forth in the sales agreements. At oral argument counsel for defendant asserted that the phrase “actual freight costs pier or warehouse to buyer’s plant” contemplated that the freight costs from Europe to New York, in addition to local freight costs, would be deducted from plaintiff’s commission. This dispute raises an issue of fact to be determined at trial. In any event, defendant’s motion for summary judgment only pertains to the third and fourth causes of action alleged in the complaint.

The third cause of action asserts that “plaintiff was responsible for the sale to Whitelawn Dairies, Inc., of an additional six truckloads of butter fat product of 38,500 pounds each, at a price of $.2175 and that the defendant agreed to deliver such six truckloads and agreed to pay plaintiff $.0175 commission, less $.004 local freight, or a total of $.0135 per pound.” It is contended by plaintiff [427]*427that although duly demanded no part of its commission has been paid for this transaction.

The fourth cause of action states in pertinent part as follows: “By reason of the efforts of the plaintiff, Whitelawn Dairies, Inc. entered into a further contract with the defendant, for the delivery of an additional 10 truckloads of 38,500 pounds of butter fat product each, and upon information and belief such sale has been satisfied and confirmed by defendant . . . ’ ” Plaintiff asserts that it is entitled to “a commission of $.0175 per pound less $.004, or a total $.0135 on 385,000 pounds” no part of which has been received.

With respect to the third and fourth causes of action neither party has furnished the court with any written sales agreement between defendant and Whitelawn reflecting the transactions set forth in the complaint or indicating that plaintiff is entitled to a commission on these transactions. Although defendant denies any liability to plaintiff regarding these transactions, it admits that it sold “goods, wares and merchandise to Whitelawn.”

Leave to amend the answer to assert the statute of frauds as an affirmative defense was granted at oral argument. (Tr. at 18). In relevant part Rule 15(a) provides: “Otherwise a par-ty may amend his pleading only by leave of court or by written consent of the adverse party; and leave shall be freely given when justice so requires, (emphasis added) Addressing this provision in Foman v. Davis, 371 U.S. 178, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962), Mr. Justice Goldberg stated:

In the absence of any apparent or declared reason—such as undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.—the leave sought should, as the rules require, be “freely given.”

371 U.S. at 182, 83 S.Ct. at 230. See generally 3 J. Moore, Federal Practice ¶ 15.08 [2] (2d ed. 1964). Since the court believes that none of the factors militating against granting leave to amend as stated by Justice Goldberg are presented by the instant application, the court reaffirms its decision from the bench to allow the amendment. Although defendant has never formally filed or served an amended answeh, the court will deem the answer amended.

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Cite This Page — Counsel Stack

Bluebook (online)
64 F.R.D. 424, 1974 U.S. Dist. LEXIS 6767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blossom-farm-products-co-v-amtraco-commodity-corp-nysd-1974.