Caplan Grocery Co. v. Aron & Co.

6 Pa. D. & C. 623, 1925 Pa. Dist. & Cnty. Dec. LEXIS 337
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedFebruary 12, 1925
DocketNo. 78
StatusPublished

This text of 6 Pa. D. & C. 623 (Caplan Grocery Co. v. Aron & Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caplan Grocery Co. v. Aron & Co., 6 Pa. D. & C. 623, 1925 Pa. Dist. & Cnty. Dec. LEXIS 337 (Pa. Super. Ct. 1925).

Opinion

Carpenter, J.,

Under date Oct. 7, 1920, plaintiff caused a writ of foreign attachment to issue against defendant, and subsequently, by agreement of counsel, a bond in the sum of $5000 was filed and the attachment dissolved. Plaintiff filed an affidavit of cause of action, to which defendant filed an affidavit of defence raising questions of law. An amended affidavit was filed by plaintiff and a second affidavit of defence raising questions of law was filed. The cause came before the court in banc Sept. 8, 1924, and was submitted on briefs, in which the facts and questions of law are fully and fairly set forth. Clerical errors to which the attention of counsel was called were later corrected.

The amended affidavit of cause of action (plaintiff’s “statement of claim”) has attached thereto copies of four contracts, marked “A,” “G,” “H” and “K,” dated, respectively, May 3, 7 and 8 and June 4, 1920. The subject-matter of contracts “A” and “K” is “Bohemian Sugar Tablets;” of “G” and “H” “Java White Sugar,” all to be shipped from foreign ports to New York. Plaintiff alleges shortage in quantity in all deliveries and unmerchantable quality of forty-two cases of tablets purchased May 3rd — “A”— and avers that in ignorance of the facts, of which the foregoing is a summary, it overpaid the defendant $3749.03, giving an itemized statement of the alleged overpayments.

Defendant’s counsel contend that the statement of claim does not set forth a cause of action. Two questions are raised, the first relating to the eon-[624]*624tracts, the second to the legal consequences of certain facts pleaded. The contracts are in writing and the subsequent facts pleaded, saving only the alleged defective quality of sugar tablets (“A”), apply alike to all. It is not claimed that anything agreed upon by the parties was omitted from the written contracts; no misunderstanding is alleged.

It is contended by counsel for plaintiff that the several contracts are, and by counsel for the defendant that they are not, what is known in the commercial world as C. I. F. contracts. As the character of the contracts is, or may be, the pivotal point in the controversy, it is of first importance that the essential elements of such a contract, and the status of the contracts here involved, be clearly stated and determined.

Professor Williston (Williston on Sales (2nd ed.), vol. 1, page 605) says: “The initials (O. I. F.) stand for the words cost, insurance and freight, and mean that the price quoted and agreed upon covers not only the cost of the goods at the point of shipment, but their insurance and freight to the point of destination. That is, the seller undertakes to ship the goods, pay the freight and take out insurance upon them in return for a lump price.”

They have been in use in England for more than fifty years and are familiar in New York and other maritime states having ports of entry.

In Smith Co., Ltd., v. Marano, 267 Pa. 107, Mr. Chief Justice Brown says: “The letters C. I. F. are abbreviations of the words cost, insurance and freight, and, when used in connection with commercial quotations, signify that the price to be paid for goods will include all charges to the port of destination: 11 Corpus Juris, 765.”

Counsel agree as to what the letters indicate, but counsel for plaintiff contends that in the instant case, in the light of all the facts, they do not necessarily make the contracts involved C. I. F. contracts.

Counsel also agree that a C. I. F. contract is a contract for the sale, not of goods, but of documents. On this point there is no room for dispute. In Manbre Saccharine Co., Ltd., v. Corn Products Co., Ltd., 1 K. B. 202 (1919), McCardie, J., says: “All that the buyer can call for is a delivery of the customary documents. This represents the measure of the buyer’s right and the extent of the vendor’s duty. The buyer cannot refuse the documents and ask for actual goods, nor can the vendor withhold the documents and tender the goods they represent.”

The opinion cites a number of authorities and will be referred to later on another point suggested in defendant’s brief.

An interesting article on the subject of C. I. F. contracts is published in 32 Yale Law Journal, 711.

If a contract, when made, is a C. I. F. contract, failure of either party to comply with some of its provisions will not affect its status — it remains what it was when made. Whether subsequent events affect the rights and liabilities of the parties is a different question.

Plaintiff does not allege failure to insure, but failure to deliver or tender “ocean documents” which include insurance. Waiving, for the present, discussion of the effect of the provisions in the contracts which call for payment “net cash in New York ... on presentation of delivery order or ocean documents,” we come to the question: Did payment of the bills on receipt of delivery orders and invoices operate as a waiver of any rights or supposed right to insist upon the delivery of “ocean documents?” We are not now dealing with the question of purchaser’s rights where he is required to pay for goods before he has an opportunity to inspect them, but with the question [625]*625of the rights of the purchaser under the contracts pleaded, who, through its authorized agent, paid, on presentation of “delivery order” and invoices, without demanding “ocean documents.”

Taking up at this point the correspondence and contracts, copies of which are made part of plaintiff’s statement, we find that, under date June 2, 1920, defendant wrote plaintiff, saying: “We are pleased to advise you that the Bohemian Sugar Tablets which you have purchased from us have arrived in New York and we to-day tendered the Seaboard National Bank our delivery order for 485 cases, together with our draft for $13,178.38, which included duty, weighing and shipping expenses. As the bank had not received instructions from you authorizing them to pay these items, we are obliged to issue our guarantee for the overdraft of $298.88, being the difference between the amount of your letter of credit and invoice. Kindly advise the bank that our invoice is in order so that we may release our guarantee, to which matter we would thank you to give your prompt attention.”

The remainder of the letter refers to matters not here involved. Pursuant to instructions given by plaintiff, the sugar tablets were shipped to Haworth & Dewhurst for account plaintiff. Under date July 12, 1920, plaintiff wrote defendant, saying:

“According to certified weight sheet forwarded to us on 479 cases tablets sugar, shipped to Haworth & Dewhurst for our account the net weight was 50,614 pounds.
“We enclose our invoice for 2848 pounds short and request your voucher to cover immediately, as this was a cash outlay on our part.”

Under date Aug. 12, 1920, plaintiff again wrote defendant as follows: “On July 12th we billed you for 2848 pounds Tablets Sugar, short on your invoice of June 2nd, you having billed us for a weight of 53,462 pounds, whereas the certified weight sheet showed 50,164 pounds. If you will refer to your file on this transaction you will note that this car was shipped to Messrs. Haworth & Dewhurst of this city for our account. On unloading this car Messrs. Haworth & Dewhurst send us a weight sheet showing only 44,163 pounds received by them in the car. According to this, 9299 pounds were short delivered.

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Related

Willits & Patterson v. Abekobei & Co.
197 A.D. 528 (Appellate Division of the Supreme Court of New York, 1921)
Smith Co. v. Marano
110 A. 94 (Supreme Court of Pennsylvania, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
6 Pa. D. & C. 623, 1925 Pa. Dist. & Cnty. Dec. LEXIS 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caplan-grocery-co-v-aron-co-pactcomplallegh-1925.