Colorado Milling & Elevator Co. v. Rapides Grocery Co.

142 So. 626, 1932 La. App. LEXIS 314
CourtLouisiana Court of Appeal
DecidedJune 15, 1932
DocketNo. 4273.
StatusPublished
Cited by6 cases

This text of 142 So. 626 (Colorado Milling & Elevator Co. v. Rapides Grocery Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colorado Milling & Elevator Co. v. Rapides Grocery Co., 142 So. 626, 1932 La. App. LEXIS 314 (La. Ct. App. 1932).

Opinion

DREW, J.

This is a suit for breach of contract. Plaintiff is a flour manufacturer, and defendant, a broker in the city of Alexandria, La.

On October 16, 1929, plaintiff and defendant entered into a contract whereby defendant purchased from plaintiff a certain quantity of flour to be shipped within 120 days, shipping instructions to be furnished by defendant. The price fixed for “Snowbird” brand was $7.35 per barrel, and for “Rocky Mountain” brand, $6.75. It was optional with defendant as to which brand it desired.

Under the clause in the contract, entitled, “Rights of the Seller,” we find the following:

“ * * * If the buyer shall fail to furnish shipping instructions and/or packages as herein provided, the seller may (1) cancel the contract; or (2) terminate the contract, the buyer to pay to the seller as. liquidated damages on wheat flour remaining unshipped by reason of buyer’s breach or default, the sum of:
“(a) One-third of one cent (⅛⅜ per day per barrel on flour, and one cent (1⅜ per day per ton on feeds, from the date of sale to the date of termination as the expense of carrying; plus
“(b) Twenty cents (20⅜ per barrel as the cost of selling; and
“(c) Plus or minus the difference between the market value of a bushel of cash wheat at mill on the date of sale and on the date of termination, multiplied by 4.6 times the number of barrels of flour. This amount is to be added if the price of cash wheat is lower, and subtracted if the price of cash wheat is higher, upon the date of termination.”

The contract further provides that, if the seller extends the contract 30 days, the buyer is to pay to the seller, as the expense of carrying, one-third of 1 cent per day per barrel. If, at the end of the extension of 30 days, the buyer is still in default as to shipping instructions, the seller may exercise options (1), (2), or (3).

Plaintiff received shipping instructions on 210 barrels of flour — Rocky Mountain brand —on February 7, 1930, and on February 24, 1930, shipped same to defendant. Defendant never gave shipping instructions on the remainder of the flour purchased. Plaintiff exercised its option under the contract, and extended the time for 30 days, until May 16, 1930, at which time it terminated the contract.

During the extension period, from March 16 to April 16, 1930, defendant gave shipping instructions on part of the remaining flour to be shipped on April 20, 1930, and, on April 14, 1930, before it was shipped, defendant countermanded the said order. After the termination of the contract by plaintiff on May 16, 1930, under its option in the contract, it filed this suit for damages in 4he sum of $420.50, as per amount of liquidated damages fixed by the contract, consisting of the following itemsi: (1) One-third of 1 cent per day per barrel of flour from the date of contract to May 16, 1930, the date of termination of the contract; (2) 20 cents per barrel as cost for selling; (3) the difference between the market value of a bushel of cash wheat at the mill on the date of sale, and May 16, 193Ó, date of the termination of contract, multiplied by 4.6 times the number of barrels of flour.

The defendant denies the indebtedness and urges three defenses: (1) That no specific quantity of flour was bought or sold, it not being indicated whether the contract called for 500 barrels, tons, or hundredweight; (2) that plaintiff, through its general ihanages, agreed to give defendant the benefit of any decline in price; and (3) that the flour shipped to defendant by plaintiff- was of. an inferior- quality, not up to grade; that defendant had to take back much of it from its trade, and hence was justified in its refusal to accept other flour from plaintiff.

The lower court rendered judgment for plaintiff, as prayed for, .and defendant has appealed.

The first defense is leveled at the contract itself. The contract, in the column headed, “Quantity, Bbl., Ton or Cwt.,” thera are the figures “500” and nothing to designate whether it is 500 barrels, 500 tons, or 500 hundredweight. However, the testimony is conclusive that the contract calls for 500 barrels. The contract is the same form on which orders for feedstuffs are taken, and the evidence shows that flour is always sold by the barrel. The price also indicates that it was barrels of flour that were sold. All that part of the contract heretofore quoted deals with “barrel.” It is also clear that defendant understood the contract to mean “barrel,” as is shown by his order and shipping instructions of February 7, 1930, for 210 barrels of flour, and his later order and shipping instructions for 210 barrels of flour, which order was countermanded.

Defendant failed to offer any evidence to show that it bought 500 hundredweight of. flour or 500 tons of flour, although its manager, who purchased the flour, was the principal witness for defendant. Defendant does not contend that it bought flour by any other measurement than by the barrel. The contract in itself, upon reading it entirely, clearly shows that 500 barrels of flour were sold, and there is no merit to defendant’s first de* fense.

*628 When testimony was offered on the second defense, namely, that the general manager of plaintiff agreed to give defendant the benefit of any decline in price, it was objected to by plaintiff for the reason that it was an attempt to change the written contract by parol evidence of statements made prior to the signing of the contract. The objection was properly sustained and the evidence excluded. Defendant complains of this ruling and contends that the allegations of the answer set out fraud and error, and the testimony should have been admitted. The allegations of fraud and error relied upon by defendant, are contained in paragraph III of its answer, and read as follows:

“Answering the allegations of Par. IY of plaintiff’s petition, it admits that it signed the written instrument which is annexed to plaintiff’s petition, but denies that it constitutes a contract of sale for the reason that no specific quantity of flour was purchased or sold. In the alternative and in the event the court should hold said document to be a valid contract, which is not admitted, but which is specifically denied, and in the alternative only, this 'defendant denies that the written instrument which is annexed to plaintiff’s petition, contains all of the promises and agreements, or in fact, the whole of the contract; it shows that while the said contract was signed on behalf of the plaintiff by L. W. Cotton, its agent, that as a matter of fact, the alleged sale was made and the contract was entered into after negotiations were had between the defendant and plaintiff, in which transaction the plaintiff was represented by •its General Manager, G. B. Irwin, who was present in Alexandria, Louisiana, and whose representations and promises, both oral and written, were material to the subject matter, and, in fact, induced the defendant to sign the contract.

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Bluebook (online)
142 So. 626, 1932 La. App. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colorado-milling-elevator-co-v-rapides-grocery-co-lactapp-1932.