Campbell v. Moran Bros.

97 F. 477, 38 C.C.A. 293, 1899 U.S. App. LEXIS 2620
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 3, 1899
DocketNo. 533
StatusPublished
Cited by2 cases

This text of 97 F. 477 (Campbell v. Moran Bros.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell v. Moran Bros., 97 F. 477, 38 C.C.A. 293, 1899 U.S. App. LEXIS 2620 (9th Cir. 1899).

Opinion

GILBERT, Circuit Judge.

The plaintiffs in error instituted an action in the circuit court to recover damages against the defendant in error for breach of contract. It was alleged in the complaint: That on November 22, 1897, the defendant, Moran Bros. Company, a corporation, entered into a contract with James P. Light by which the former agreed to construct two stern-wheel steamers, one stern-wheel towing steamer, and three barges, each of dimensions and according to specifications attached to the contract, and to deliver the same to said Light at St. Michaels, Alaska, or at the mouth of the Yukon river, “on or before the opening of navigation at the mouth of the river in the early summer of 1898,” delays “incident to the elements, or conditions over which the defendant had no control, alone excepted.” The payment for said vessels was to be made in the sum of $116,500 in installments as follows: First, $6,000 upon execution of the contract; second, $20,000 within 60 days after date of signing the contract; third, $20,000 within 120 days after the signing of the contract; the fourth and final payment of $70,500 “payable upon the delivery of the vessels as herein specified; all payments to be made at Seattle, Washington, or with exchange.” That on January 14, 1898, the said Light transferred and assigned to the Seattle & Yukon Steamship Company, a corporation, all his right, title, and interest in and to the said contract. That on February 22, 1898, the said steamship company and the defendant modified the contract, and agreed that the stern-wheel towing steamer be eliminated from the contract, and that another river steamer of the same dimensions and specifications as those provided for in the original contract be added at an additional cost of $20,500, making the total contract price $137,000, of which additional price $10,250 was to be paid on April 22, 1898; “the balance of total contract price, as modified above, to be paid on delivery of vessels at St. Michaels, as provided in original contract.” That thereafter the said Seattle & Yukon Steamship Company entered into a contract with D. R. Campbell & Sons, the plaintiffs,, whereby it was agreed that the latter should loan the said steamship company $50,000, a portion of which was to be paid to the defendant on account of the building of said steamers and barges, and a portion to the Progresso Steamship Company, a corporation, on account of a charter party whereby said Progresso Company chartered to the Seattle & Yukon Steamship Company the steamship Progresso. That said sum of $50,000 was to be advanced by plaintiffs at such times as the same might be necessary to meet the payments due or to become due to the defendant and the said Progresso Steamship Company. That to secure payment of said loan [479]*479the Seattle & Yukon Steamship Company, on January 14, 1898, sohl and assigned to the plaintiffs all its right, title, and interest in and to its said contract with the said James P. Tight. That the contract between said Light and the defendant was made with the intention of operating the boats and barges so to be constructed in the transportation of freight and passengers from St. Michaels, Alaska, to Dawson City, and to commence at the opening of navigation at the mouth of said river in the early summer of 1898, and that said river steamers and barges were to be used in connection with the boats and steamers to be operated at the same time by Light or his successors between Seattle, Wash., and St. Michaels, which the defendant well knew'. The complaint then alleged that damages were sustained by reason of the failure to deliver the said steamers at the mouth of the Yukon river on or before the opening of navigation in 1898, or at any time prior to August 4, 1898, in the sum of $5,000 for loss in expenses and demurrage, the sum of $5,000 for the loss of the use of said steamers and barges for that season, and the sum of $51,000, the moneys paid to the defendant on the contract. Issue was taken by the defendant upon the allegation that it had failed to comply with the contract or that plaintiff had sustained damage thereby. Upon the trial of the cause upon the close of the plaintiffs’ testimony the court instructed the jury to return a, verdict for the defendant. It is assigned that this instruction was error.

The facts of the case, as they appear in the bill of exceptions, are substantially these: After the contract had been entered into, and after it was modified by the agreement of February 22, 1898, the Seattle & Yukon Steamship Company, at some time in February or March, 1898, notified the defendant that it would not require the three barges which were provided for in the contract, and wrote that it did not know' what it would take in their place. Subsequently the defendant promised the steamship company that it would construct three smaller barges “if ten days’ notice -were given,” the price to depend upon the size and tonnage. On May 4, 1898, the notice was given, but the smaller barges were never constructed, for the reason that the notice came late in the season, and the defendant was very busy. The correspondence showed that the price of the three large barges originally contracted for was $10,500. With the exception of the barges, the defendant constructed ail the vessels provided for by the contract. The steamship company made its payments under the contract until the installment of $10,230, payable on April 22, 1898, fell due. That payment was not made, but shortly afterwards $5,000 was paid upon account. At about this time the Seattle & Yukon Steamship Company became financially involved, and probably insolvent. It informed the defendant that, unless some modification were made in the terms of payment provided for in the contract, it would be unable to comply therewith. Upon the trial of the action the steamship company admitted that at the time of the completion of the contract it was not in a position to accept and pay for the boats except upon the condition either that it be allowed to use the boats at St. Michaels on a trip from there to Dawson, and earn freight thereby, or that the plaintiffs Campbell & Sons would pay the [480]*480balance. The defendant in error refused to modify the terms of payment. About June 15, 1898, tbe Yrikon river became open for navigation. At that time the defendant did not have the steamers at St. Michaels, ready for delivery, nor had the Seattle & Yukon Steamship Company any representative there to receive them. Its representative did not arrive until July 13, 1898. He heard there a report that the vessels had been lost. He remained there 24 hours, and thereupon returned to Seattle. On July 26th the steamers arrived at St. Michaels, and were ready for delivery. The steamship company had no representative to receive them, and delivery was never made. It is admitted that neither the steamship company nor its representative who went to St. Michaels had available cash funds exceeding $5,000 with which to meet the $69,000 payment which was due on delivery of the steamers. Up to this time the defendant had no information or notice of the assignment from the steamship company to the plaintiffs. When the steamship company’s representative went to St. Michaels, he took with him two letters of instruction; one from the steamship company, the other from the attorney of the plaintiffs. The first was addressed to Kobert Moran, an officer of the defendant corporation, and is as follows:

“In view of the possibility of your refusal to deliver to us at St.

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Related

The Progreso
103 F. 504 (D. Washington, 1900)

Cite This Page — Counsel Stack

Bluebook (online)
97 F. 477, 38 C.C.A. 293, 1899 U.S. App. LEXIS 2620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-moran-bros-ca9-1899.