Braman, Dow & Co. v. Kennebec Gas & Fuel Co.

104 A. 3, 117 Me. 291, 1918 Me. LEXIS 64
CourtSupreme Judicial Court of Maine
DecidedJuly 3, 1918
StatusPublished
Cited by1 cases

This text of 104 A. 3 (Braman, Dow & Co. v. Kennebec Gas & Fuel Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Braman, Dow & Co. v. Kennebec Gas & Fuel Co., 104 A. 3, 117 Me. 291, 1918 Me. LEXIS 64 (Me. 1918).

Opinion

Morrill, J.

This is an action to recover damages for failure to accept certain quantities of pipe which plaintiffs claim that the defendant agreed to purchase of them and to accept and pay for, upon presentation at any bank in Waterville of sight drafts with bills of lading attached. The case is before us on report and it is agreed that if plaintiffs are entitled to recover, the damages shall be fixed at $1,048.30.

The position of defendant is thus stated in the brief of its counsel: “The contention of the defendant is that the goods were never purchased or contracted for by it and the shipment was made, in the way it was, without its consent. That the agreement made for thé purchase of the goods and shipment was made by a party not connected with the -defendant in any way as officer or agent, and whom it had never held out as authorized to act for it in the matter of the purchase" and shipment of the goods, and that it never ratified or confirmed any contract of purchase.”

The facts are not seriously in controversy. The transaction had its inception upon July 25, 1917, when one Morrill, a salesman of the plaintiffs, called at the office of the defendant corporation in Water-ville and asked the general manager of the defendant, one Colton, if they were in the market for anything in his line; inquiries by Mr. Colton for prices on certain amounts of 6 in., 4 in., 3 in. 'and 2 in. pipe followed; the prices quoted being apparently satisfactory, the salesman, in the presence of Mr. Colton, called by telephone the Boston office of the plaintiffs and ascertained by talking with Mr. Sheldon, one of the plaintiffs, that the firm had in stock the desired amount of 4 in., 3 in., and 2 in. pipe; by direction of Mr. Colton the order was placed by telephone with the assurance that copy would be forwarded that night. Mr. Colton then gave to Mr. Morrill a printed order blank of Kennebec Gas and Fuel Company and the latter then wrote the order and Mr. Colton signed it, “Kennebec Gas and Fuel Co. By Francis Colton, Superintendent.” This written order specified the terms of payment to be “60 das. net 2% 10 das.”, and the pipe was [293]*293to be “F. O. B. Waterville”; these details had not been communicated to Mr. Sheldon, but were inserted in the written order by the salesman.

The next day, July 26, 1917, upon receipt of the written order, plaintiffs wrote defendant as follows:

“In regard to your valued order and conversation over the telephone on Wednesday in regard to the shipment of material, we should want a guarantee for the payment from you from bank or else payment before shipping the material. We will be willing however, to ship the order with sight draft attached to the bill of lading if you will arrange with the bank in Waterville to pay each draft on arrival of each car.
We have the pipe at present in stock and can make shipment at once. There will probably be four car loads of it. Pipe is scarce and some sizes are about out of the market, and we wish you would advise us as soon as possible in regard to the above.”

On July 30th Mr. Colton wrote plaintiffs as follows:

' ‘Referring to your letter of July 26th and to our conversation on the telephone at a previous date,
‘ T have arranged to furnish you ample guarantee for the payment of pipe ordered from your office. Mr. Patrick Hirscli, President of the Constructive Utility Corporation, 149 Broadway, New York, who also represents A. B. Benesch & Co. of New York, will call upon you in your office Thursday and arrange to your satisfaction any payment guarantee necessary.
“In the meantime kindly consider the pipe purchased from this office sold to us. We wish this pipe could be delivered in Waterville as soon as possible.”
On the same day plaintiffs wrote the defendant asking, “if you can give us the information and security or guarantee that we desired, and if not, if you wish us to release this pipe on other orders. We have been holding it for you and it is extremely scarce in the market, particularly the 4 inch size. We have an inquiry to-day taking all that you specified; we cannot replace this for some little time and need to know whether or not we are to cancel your order before giving this party the final answer.”

And on the next day, July 31, plaintiffs wrote defendant as follows:

‘ ‘Replying to your letter of 30th inst.; we shall be glad to talk with your representative when he calls on Thursday, and, in the'meantime, [294]*294understanding that you wish the pipe covered by the original order we are holding the same and letting the other proposition go by as we cannot fill both.”

These letters with the order must be regarded as evidence of a completed contract for the sale and purchase of the pipe, in which the defendant by Mr. Colton acceded to the terms of the plaintiffs that satisfactory guarantee be furnished. We have quoted the correspondence at length, because counsel for defendant earnestly contends that the contract was not closed with Mr. Colton but with Mr. Hirsch on August 11, and in support of his position he relies on a letter from his client to the plaintiffs, dated August 7th, as showing that the matter was still open. That letter contains this sentence which is relied upon: “As he (Mr. Hirsch) stated to you we intend to purchase the pipe and if sufficient cash discount is allowed pay for same in this manner; i. e. after pipe has been received and quantity checked.” We do not construe this letter in accord with counsel’s views; it seems to have been written by Mr. Colton to reassure plaintiffs that the pipe would be taken- — a reassurance which might have been considered opportune on account of the failure of Mr. Hirsch to furnish the promised guarantee — and to advise plaintiffs that their suggestion of cash payment was under consideration.

Was Mr. Colton authorized to make this purchase and to arrange terms of payment or guarantee? Did defendant clothe him with such apparent authority that it must be held bound by his acts?

We have no doubt that Mr. Colton had such authority. He had been elected “general manager” of the defendant corporation; the by-laws of the defendant empower the directors “from time to time to provide for the management of the affairs of the company at home or abroad in such measure as they see fit, and in particular, from time to time to delegate any of the powers of the Board in the course of the current business of the company to any standing or special committee, or any officer or agent, and to appoint any person to be the agent of the company, with such powers, (including the power to sub-delegate) and upon such terms as may be thought fit, so far as it may legally do so.”

Mr. Colton was not only appointed by the Board of Directors “general manager of the company,” but so far as appears was the only executive officer of the company in the State; of the five directors of the company, four resided in New York and one in Waterville, but [295]*295the latter does not appear to have exercised any active duties in the management of the corporate affairs. Mr. Colton himself says, “My duties as general manager, as I understand them, are to conduct the local affairs of the company, and to buy materials and pay for materials as necessary in the operation of the plant.” While his duties and authority do not appear to have been defined by express vote of the directors, when Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bakersfield Hacienda, Inc. v. Superior Court
199 Cal. App. 2d 798 (California Court of Appeal, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
104 A. 3, 117 Me. 291, 1918 Me. LEXIS 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braman-dow-co-v-kennebec-gas-fuel-co-me-1918.