Chicago Copper and Chemical Company, a Corporation v. Apex Mining Company, Inc., a Corporation, and Raymond L. Govero

281 F.2d 530, 1960 U.S. App. LEXIS 3865
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 11, 1960
Docket16392
StatusPublished
Cited by4 cases

This text of 281 F.2d 530 (Chicago Copper and Chemical Company, a Corporation v. Apex Mining Company, Inc., a Corporation, and Raymond L. Govero) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago Copper and Chemical Company, a Corporation v. Apex Mining Company, Inc., a Corporation, and Raymond L. Govero, 281 F.2d 530, 1960 U.S. App. LEXIS 3865 (8th Cir. 1960).

Opinion

SANBORN, Circuit Judge.

This is an appeal from a judgment for the defendants (appellees), Apex Mining Company, Inc., and Raymond L. Govero, citizens of Missouri, in an action brought by Chicago Copper and Chemical Company, an Illinois corporation, on May 29, 1958, to recover damages for breach of contract. The claim stated in the complaint is that, on or about December 8,1956, the defendants entered into a written contract with the plaintiff, in which it agreed to buy from the defendants, and defendants agreed to sell and deliver to the plaintiff a minimum of 13,-000 tons and a maximum of 17,000 tons of crude barytes ore during the period December 10, 1956, to December 9, 1957, the ore to contain no more than 3% of ferric oxide and no less than 91% of barium sulfate, and the price per ton of such ore containing 94% of barium sulfate to be $15.50, with a premium of 7^ for each Uo of 1% above 94% of barium sulfate content, and a corresponding penalty if the content was below 94%; that the plaintiff was at all times ready, willing and able to accept and pay for the barytes ore it had contracted to purchase from the defendants; that the defendants wholly failed and refused to sell or deliver any ore of the quality contracted for; that as a result of the de *531 fendants’ breach of the contract the plaintiff was compelled to purchase from other sources less desirable substitute ore at a higher cost, and was put to other special expenses, all to its damage in the sum of $111,231.00.

The Apex Mining Company in its answer denied the material allegations of the complaint, but stated that if the plaintiff by written agreement had acquired a right to require Apex to deliver ore to it, the plaintiff forfeited its right by failing to pay for barytes ore delivered to it by Apex, and that the ores agreed to be sold by Apex to the plaintiff were sold in accordance with a previously furnished sample, and that all ores delivered by Apex to the plaintiff conformed to such sample.

For a counterclaim, Apex stated that between November 1 and December 25, 1956, it delivered to the plaintiff, at its request, 573,600 pounds of barytes ore at the agreed price, and of the reasonable value, of $15.50 per ton, but that the plaintiff had failed to pay for the ore. Apex asked for judgment against the plaintiff for $4,445.00.

The defendant Govero in his answer denied virtually everything in the complaint, and stated: “That if plaintiff is entitled unto any contract with this defendant for the purchase of any ores of any kind or quality, that plaintiff breached its contract and forfeited the rights thereunder by failing to pay for ores delivered to plaintiff after payment therefor had become due and demand had been made therefor.”

In its reply to the counterclaim of Apex, the plaintiff admitted that the defendants shipped 573,600 pounds of barytes ore, but denied that it was shipped at plaintiff’s request, denied that it was of the grade specified in the contract, denied that it was worth $15.50 per ton, denied that it was suitable for plaintiff’s use, and denied that plaintiff was obligated to pay for the ore. The plaintiff, in its reply to the counterclaim asserted that the ore referred to therein was unloaded at plaintiff’s plant as a service to the defendants and was held in storage pending an agreement as to its disposition.

The issues made by the pleadings, at the time of trial, appear to have been: 1. Was there any such written contract between the parties as was alleged in the complaint ? 2. If there was such a contract, had the defendants, by failing to sell and deliver to plaintiff the ore contracted for, breached the contract? 3. Had the plaintiff been ready, able and willing to pay for such ore if and when delivered? 4. Had the plaintiff, by failing to pay for seven carloads of ore shipped to it by the defendants, forfeited its right to recover damages?

The issues were tried to the court without a jury. The trial resulted in a judgment dismissing the plaintiff’s complaint and allowing the counterclaim of Apex in the sum of $3,522.35.

The facts were largely undisputed, and need not be stated in complete detail. It was conclusively proved at the trial that the parties entered into the written agreement alleged in the complaint; it was conclusively proved that the defendants did not perform, and that they shipped no ore of the quality they had agreed to sell and deliver. Concededly, they did ship seven carloads of ore, apparently at the plaintiff’s request but not pursuant to the contract in suit and not of the quality called for by the contract, such ore being low in barium sulfate and high in ferric oxide. Most of this ore was shipped before the formal written contract was signed, and none of it was accepted by the plaintiff as in compliance with the contract. The ore was later used by it in the manufacture of barium carbonate — apparently as an accommodation to the defendants. The undisputed evidence of the plaintiff showed the sources and the prices of all the crude barytes ore which the plaintiff purchased during the year 1957 to supply its needs.

As to the virtually undisputed evi-dentiary facts out of which this litigation arose, the record shows: That on November 16, 1956, J. B. McKoane, the plaintiff’s sales manager, called on Raymond Govero, of the Apex Mining Com *532 pany, about buying ore from the mine it was then operating in Washington County, Missouri, ore fields; that Mc-Koane took a sample of ore from the “drag chain” while in operation, and took the ore sample to Chicago for analysis; that the sample was evidently deemed typical of the crude ore the defendants were producing; that an analysis of the sample by the plaintiff showed 94.59% of barium sulfate and 1.82% of ferric oxide; that on November '23, 1956, in the morning, the plaintiff sent the following telegram:

“Apex Mining Company,
“Mineral Point, Missouri.
“Attention: Mr. Raymond Govero
“We offer for your entire productive output washed and jigged barytes minimum 13000 tons maximum 17000 tons December 10, 1956 to December 9, 1957, $15.50 per ton F. O. B. box cars Mineral Point, Missouri, or adjacent shipping point dry basis for 94% BaSO* — premium or penalty seven cents per ton per each one tenth percent BaSO* over or under 94% BaSO* maximum allowable Fe203 — 3%—mimimum allowable BaSOá 91% — cars to be loaded according to RR Tariffs to obtain minimum freight rate. RR weights to govern. Offer good only for telegraphic acceptance by you within one hour receipt this telegram by you or receipt your reply by noon, Central Standard Time, by us at Blue Island today whichever later. Also offer as alternative for one half of above quantities for six months beginning December 10, 1956. Other conditions same.
“Chicago Copper & Chemical Co.,
“Blue Island, Illinois”;

and that on the same day, in the afternoon, the defendants sent the following wire to the plaintiff:

“Western Union Telegram
“1956, Nov. 23, P.M. 12:26.
“Bonne Terre, Mo.
“Chicago Copper and Chemical Co.,
“Att'n J. B. McKoane Blue Island, Ill.

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Bluebook (online)
281 F.2d 530, 1960 U.S. App. LEXIS 3865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-copper-and-chemical-company-a-corporation-v-apex-mining-company-ca8-1960.