Caulfield v. Motor Specialties Co.

139 N.E. 502, 245 Mass. 420, 1923 Mass. LEXIS 1041
CourtMassachusetts Supreme Judicial Court
DecidedMay 25, 1923
StatusPublished
Cited by1 cases

This text of 139 N.E. 502 (Caulfield v. Motor Specialties Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caulfield v. Motor Specialties Co., 139 N.E. 502, 245 Mass. 420, 1923 Mass. LEXIS 1041 (Mass. 1923).

Opinion

Pierce, J.

This is an action of contract on an alleged oral agreement of the defendant to give to the plaintiffs sufficient orders for the manufacture of slugs or bullets at $6 per thousand bullets, and to furnish at its cost the material for the making of the same, to enable the plaintiffs from the profits to reimburse themselves for the cost of certain machinery, or for any loss which they might suffer in consequence of purchasing and installing the same, and give to them in addition a fair profit upon such orders, if the plaintiffs would purchase and install in their factory at Keene, New Hampshire, the necessary automatic and other machines for the manufacture of slugs, or armor piercing bullets, for the defendant for the use by it in making ammunition. The declaration alleged that the plaintiffs thereupon entered into the performance of such contract and purchased and installed such necessary automatic and other machinery, and were prepared and in condition to manufacture for the defendant all such orders contemplated by the said contract; that the defendant thereupon gave to the plaintiffs an order [423]*423to manufacture one million armor piercing bullets under said contract; that the plaintiffs proceeded thereunder and submitted sample slugs to the defendant; that the defendant instructed the plaintiffs to stop work until changes were made in the design of the bullet; that upon such changes being made, the defendant ordered the plaintiffs to proceed with the manufacture of two million bullets under said agreement; that the plaintiffs then proceeded with the execution of said contract and had manufactured a large quantity of said bullets and were fully equipped to perform the entire contract, when the defendant ordered and directed the plaintiffs to cease the manufacture thereof and terminated the contract. The answer was a general denial. There was a verdict for the plaintiffs for the sum of $4,992.34. The case comes before this court on exceptions by the defendant to the admission of evidence, to the refusal of the trial judge to take the case from the jury and to give instructions asked for by the defendant.

At the trial, subject to the exception of the defendant to all evidence of conversations with the defendant’s general manager (one Hersee) prior to the date of the written order (hereinafter referred to) for one million bullets, the plaintiff Caulfield testified that he Went to the defendant’s plant in Waltham with one Diefendorf, and one Sabin, an agent for the Cleveland Automatic Machine Company, and there saw Hersee, who had previously stated to Diefendorf, that if he (Diefendorf) could get some one to make bullets for him for the government he would furnish the work. At this meeting, the plaintiff testified, he was introduced to Hersee by Sabin as the man from Keene who would consider making bullets; ” that he asked what the work was and Hersee said it would require autoniatic screw machines; that he asked Hersee about the pay and Hersee said $5 per thousand bullets; that there was a lot of money in it at $5 per thousand; that he told Hersee that he could not buy the machines unless he could see a profit, as he had no other use for the machines and would have to borrow money with which to buy them; that he would buy them if Hersee would assure him of a contract which would give money enough [424]*424to pay for the machines, and Hersee assured him that there would be money enough for everybody; that he then learned from Sabin in Hersee’s presence that the machines would cost $8,000 or $9,000; that he then asked Hersee what the chances were of the contract being cancelled and the machines left on his hands, and Hersee replied there was plenty of business, that the government had adopted the bullet, and even if the armistice was signed there would be plenty of work as he had the inside track; that the government had advanced him $60,000 before he started manufacturing; that he told Hersee that if the latter would absolutely guarantee business enough so he could pay for the machines and make a profit he would take up the matter of raising the money; ” that he asked Hersee how large an order would be given him and Hersee said five million of which one million would be given at that time. On cross-examination Caulfield testified that Hersee told him, that if he (the plaintiff) would buy the machines he would give orders enough to pay for the machines and a handsome profit, and that he would keep on making bullets long after the war was over because the government had adopted that kind of bullet for small arms. He further testified that the matter of type of machines was talked over with Sabin at that time who advised the large type of machines; that Hersee said he thought the large machines did better work; that he (Hersee) would pay $6 per thousand for the labor and would furnish the material, that all the plaintiffs had to do was to manufacture, that the plaintiffs must keep strict account of butt ends and small waste as the defendant had to keep an account of the steel with the government, and that he would assist in getting the machines by helping to get a priority order from the government; that shortly after the interview above described, the plaintiff, Caulfield, and one ■Edgar N. Hunt, father of Caulfield’s partner, saw Hersee in Waltham, where Hunt told Hersee that unless the latter could assure him that the plaintiffs could make some money he did not care to go to the expense and trouble to buy new machines; that Hersee stated that he could guarantee enough orders to pay for the machines and pay the plaintiffs [425]*425a profit — the material to be furnished by the defendant — that he would give a contract for five million bullets and all the plaintiffs could make, he wanted to see if they could make them perfectly and would give an order for one million bullets at that time.

In regard to the conversation as to the size of the order and to the material, Diefendorf testified: “ Hersee said that he would give Caulfield an order large enough to pay for the machines, and would pay him over that; the amount of the order would depend upon the number of machines bought. The material was to be furnished by the defendant.” In cross-examination he testified that he understood from the conversation that the more machines Caulfield bought the larger would be the order for the bullets and that the decision as to the type of machines to be bought was left to Caulfield, that . . . nothing was' said as to who was to pay for . . . [the material].” Charles N. Sabin testified that Hersee said he would give Caulfield “ an order for a million bullets and would follow that by other orders to the extent of five or six million; Hersee was to furnish the material.” Edgar N. Hunt testified that Hersee said he could guarantee enough orders to pay for the machines and pay the plaintiffs a profit; that the material was to be furnished by the defendant.

In July, 1918, Caulfield saw Hersee and told him they had arranged for the money to buy the machines; and asked him to get a priority order for their manufacture or release by the Cleveland Automatic Machine Company of the machines. The defendant delivered to the plaintiffs a written and signed order dated July 25,1918, for “ 1,000,000 bullet cores as per attached specifications, price to be $6.00 per thousand.” The attached specifications set forth full provisions as to the time and rate of delivery, method of packing, the diameter and length of the cores to a thousandth of an inch, the terms of payment and data fully covering the manufacture, shipping and delivery of the cores.

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Cite This Page — Counsel Stack

Bluebook (online)
139 N.E. 502, 245 Mass. 420, 1923 Mass. LEXIS 1041, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caulfield-v-motor-specialties-co-mass-1923.