Cardone v. Consolidated Edison Co.

196 Misc. 44, 89 N.Y.S.2d 845
CourtCity of New York Municipal Court
DecidedJune 21, 1949
StatusPublished

This text of 196 Misc. 44 (Cardone v. Consolidated Edison Co.) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cardone v. Consolidated Edison Co., 196 Misc. 44, 89 N.Y.S.2d 845 (N.Y. Super. Ct. 1949).

Opinion

Quinn, J.

The plaintiff, as a consumer of the defendant, purchased from- the defendant and the defendant sold to the plaintiff a measured quantity of gas delivered between the dates December 23, 1948, and January 27, 1949, at 4190 Bronx-wood Avenue, The Bronx, New York City. By means of meter readings taken on each of the dates mentioned the quantity of gas delivered was determined to be 77,600 cubic feet. About midway in the period of delivery, that is, on January 9, 1949, the defendant increased the unit price or rate for the gas delivered to plaintiff. Plaintiff paid the defendant for the gas, according to the demand of the defendant, which included a quantity of gas delivered between January 9, 1949, and January 27, 1949, at the increased price. However, the number of units of gas delivered to plaintiff between January 9, 1949, and January 27,1949, for which defendant charged an increased unit price was not a measured quantity. It was a quantity only estimated by the defendant to have been delivered. This estimate was made arbitrarily, i.e., without reference to any fixed rule or standard.

Plaintiff now seeks to recover the excess in price • exacted of her by the defendant, resulting from the increment charged on the indeterminate quantity of gas which defendant merely speculates it delivered between January 9,1949, and January 27, 1949, amounting to $10.21.

Rejecting such surplus characterizations and conclusory statements of fact or law as the complaint may contain, yet indulging the pleader in every reasonable inference which her words may fairly import, the foregoing is a brief, unstilted paraphrase of the allegations upon which plaintiff relies.

These are the barebones of ultimate facts exposed by defendant’s motion to dismiss the complaint under subdivision 5 of' rule 106 of the Rules of Civil Practice. Examining them in the light of the statutory injunction laid upon this court that “ The allegations of a pleading must be liberally construed for the purpose of doing substantial justice between the parties ” (N. Y. City Mun. Ct. Code, § 93; L. 1915, ch. 279), the question is: Do they constitute the framework of a recognized cause of action?

The fact that the plaintiff is a “ consumer of gas of the defendant ” and that the defendant is a “ gas corporation ” within the definition of the Public Service Law does not obscure [46]*46the relationship between the parties as essentially that of buyer and seller; nor that the transaction between them was the familiar one of a sale of goods. Were the commodity dealt in grapes or grain, instead of gas, and the buyer alleged the delivery of the goods by the seller, the payment of the price by the buyer, based on the measured quantity or number of items delivered, the ignorance, misapprehension or mistake of the parties as to the exact quantity or number of goods delivered, an overcharge resulting from the ignorance, misapprehension" or mistake in quantity, then clearly the elements of an action by the buyer for a recovery of the amount of the overage in price would be sufficiently stated.

“It is an elementary principle of law, as well as of the plainest equity, that where money is erroneously paid by one person to another, in consequence of a mutual ignorance as to facts, which, if known, would have prevented the payment, the money so paid may be recovered back. (Burr v. Veeder, 3 Wend., 412.) An error of fact takes place, either when some fact which really exists is unknown, or some fact is supposed to exist which really does not exist. (Mowatt v. Wright, 1 id., 355, 360.) * * * This principle applies to every form of contract, express or implied, including an account stated * * (Calkins v. Griswold, 11 Hun 208, 210; see Roberts v. Ellwood, 116 N. Y. 651, 653.)

There is no essential distinction to be made here between the gas, in which the parties to this suit dealt, and any other merchandise such as more commonly is the subject of an action of this character.

The amount charged by the defendant, on a quantative computation, and paid by the plaintiff constitutes an implied representation that the price was based on known factors. It is alleged by the plaintiff that this representation was untrue. It is “ immaterial, whether the representation be willfully and designedly false, or ignorantly and negligently untrue.” (Doggett v. Emerson, 3 Story 700, 734.)

The defendant does not know the amount of gas delivered between January 9, 1949, and January 27, 1949, for which it charged an increase in rate over the unit price theretofore applicable. The plaintiff does not know the quantity of gas consumed between those dates for which she paid at the increased unit price. As to this very important factor of quantity there is mutual ignorance. The use of this unknown, indeterminate factor in arriving at the price paid by plaintiff creates that [47]*47element of mistake from which the law is wont to afford relief in money damages to one who thereby has been prejudiced. A cause of action sounding in this category is sufficiently alleged in the instant complaint.

Further objection is made by the defendant under subdivision 2 of rule 107 of the Buies of Civil Practice that this court does not have jurisdiction of - the subject matter of this action. For the purposes of this latter phase of defendant’s motion, only, the affidavits and exhibits of the parties have been considered.

The defendant is a “ gas corporation ” subject to the provisions of the Public Service Law and the regulatory powers therein conferred upon the Public Service Commission.

The price which defendant may charge for its gas is not a matter of private bargaining between defendant and each of its consumers. Because of the inherently monopolistic nature of defendant’s business in selling gas to large segments of the public, the reasonableness and fairness of the price and terms at which it sells are subject to review and control by the Public Service Commission. These terms of sale, including the price, become fixed and binding on the consumer when the defendant files the same which are known as “ schedules ” with the Public Service Commission and the Public Service Commission by official order approves them. By statutory definition the schedules ” embrace “ all rates and charges made, established or enforced or to be charged or enforced, all forms of contract or agreement and all rules and regulations relating to rates, charges or service used or to be used, and all general privileges and facilities granted or allowed by such gas corporation ” (Public Service Law, § 66, subd. 12).

Among the terms of sale under which the plaintiff bought gas from the defendant on December 23,1948, was the provision that the gas would be measured through meters belonging to the defendant and installed at the point of consumption.

The circumstances under which the metering of gas to the plaintiff might be dispensed with are expressly provided in the schedules on file with the approval of the Public Service Commission. But even in these special circumstances, none of which are present in this case, an estimate of the consumption of gas without reference to any meter or measuring device is permitted only “ when there is no change in the rates during the hilling period ”.

In December, 1948, the defendant made application to the Public Service Commission seeking an increase in the price of [48]*48gas and a change in the existing terms of sale.

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Hewitt v. New York, New Haven & Hartford Railroad
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Burr v. Veeder
3 Wend. 412 (New York Supreme Court, 1829)
Doggett v. Emerson
7 F. Cas. 804 (U.S. Circuit Court for the District of Maine, 1845)

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Bluebook (online)
196 Misc. 44, 89 N.Y.S.2d 845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cardone-v-consolidated-edison-co-nynyccityct-1949.