Commodity Credit Corporation v. Rosenberg Bros. & Co., Inc., a Corporation, Rosenberg Bros. & Co., Inc., a Corporation v. Commodity Credit Corporation

243 F.2d 504
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 13, 1957
Docket14884
StatusPublished
Cited by29 cases

This text of 243 F.2d 504 (Commodity Credit Corporation v. Rosenberg Bros. & Co., Inc., a Corporation, Rosenberg Bros. & Co., Inc., a Corporation v. Commodity Credit Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commodity Credit Corporation v. Rosenberg Bros. & Co., Inc., a Corporation, Rosenberg Bros. & Co., Inc., a Corporation v. Commodity Credit Corporation, 243 F.2d 504 (9th Cir. 1957).

Opinions

McALLISTER, Circuit Judge.

Rosenberg Bros. & Co., Inc., hereinafter called “Rosenberg,” sued the Commodity Credit Corporation, hereinafter called “Commodity” or “the government,” for breach of contract, and, on a trial before the district court, sitting without a jury, secured a judgment in its favor in the amount of $160,366.88. Both parties appeal, Rosenberg claiming that it is entitled to more; the Commodity Credit Corporation claiming that it is entitled to nothing.

The background of the case is as follows: On September 10, 1947, pursuant to a government program to support and stabilize the prices of dried fruits, the Secretary of the Department of Agriculture, who was also the Chairman of the Commodity Credit Corporation, asked for offers for the sale of 30,000 tons of raisins and various quantities of other dried fruits. Rosenberg, on September 19, offered to sell 10,000 tons of raisins to Commodity at prices ranging between $151 and $152 per ton, according to the kind of containers used. Rosenberg’s offer was accepted by Commodity on September 23. On September 24, a standard government contract was executed between Rosenberg and Commodity, by the terms of which Rosenberg agreed to deliver 10,000 tons of raisins to Commodity in the period October 1-Decem-ber 15, 1947, upon demand and at the prices set forth in the contract. These raisins were never delivered in accordance with the contract. Rosenberg, at the time it executed the contract, did not have the raisins on hand or available. It was selling them in the expectation that raisins would drop in price sufficiently to enable it to fulfill the contract without loss. On October 1, 1947, the Department of Agriculture asked for further bids for the sale of dried fruits, including 31,000 tons of raisins. A week later, on October 8, Rosenberg offered to sell Commodity 10,000 tons of raisins, and on October 13, Commodity accepted Rosenberg’s offer to the extent of 4,330 tons, priced at $149.40 per ton, and on the same day, a contract was executed for that quantity of raisins at the stated price.

On October 14, the Department of Agriculture announced further purchases, and asked for bids for an additional 60,000 tons of raisins. Rosenberg then requested cancellation of its contracts, but this request was denied.

On November 26, 1947, the purchasing program of raisins was modified by requiring all packers who thereafter sold Thompson seedless raisins (the kind here [507]*507in question) to certify that they had paid the grower not less than $135.00 per ton.

At the time of the execution of the contracts, Rosenberg, as has been mentioned, had not purchased and did not have available raisins to fill the government contracts. It was selling short in the hope that raisins would drop in price sufficiently to enable it to fulfill the government contracts without loss. However, the growers refused to sell at the lower prices offered, and Rosenberg purchased only 800 tons during the period from September 1, 1947, to November 3, 1947, during which time it had agreed, in the written contract,- to sell to the government a total of 14,330 tons of raisins.

After November 3, 1947, raisins were sold by growers in substantial quantities at prices ranging from $127.00 to $142.-00 per ton. Since Rosenberg’s normal processing and packing charges averaged $40.00 per ton, it was impossible for Rosenberg to purchase raisins from growers for sale to the government at $149.40 or $152.00 per ton, in compliance with its contracts, without suffering substantial loss.

The government continually demanded delivery of the raisins from Rosenberg; and Rosenberg continually refused to deliver, stating that it had no raisins available.

In January, 1948, the price of raisins dropped, and during that month, they were being sold by growers at prices ranging from $100.00 to $125.00 per ton. At that time, Rosenberg decided to make delivery to the government, since, at that price, it would be enabled to purchase raisins at the lower prices, and fulfill its government contracts.

On January 22, 1948, Rosenberg requested shipping instructions and asked for an amendment to the contract, relating, however, only to reinstating the tonnage and extending the delivery dates. The government agreed to an amendment reinstating the tonnage and extending the delivery dates, and further agreed not to hold Rosenberg for damages for nondelivery, or delay in delivery, in return for Rosenberg’s waiving all carrying charges. Delivery of the orders was then made by Rosenberg during February and March, 1948. Vouchers for the raisins delivered were submitted by Rosenberg and paid by the government. Thereafter, Rosenberg filed a claim against the government for damages for breach of an implied contract, on the theory that the government, through changes in its program of purchasing raisins, had obstructed Rosenberg in the performance of its contract, and, at the same time, had increased the cost of such performance. Upon the government’s rejection of its claim, Rosenberg brought the present action, and the district court, sitting without a jury, entered a judgment in favor of Rosenberg in the amount of $160,366.88, from which the government appeals.

It is the chief contention of the government that there was no implied contract with Rosenberg, and, consequently, no breach of such a contract.

Rosenberg claims that a “press release” issued by the Secretary of Agriculture at Albuquerque, New Mexico, on September 5, 1947,1 forms the basis of [508]*508the implied contract; and that, in effect, it became part of the contract when Rosenberg made an offer of sale of the raisins to the government based upon the terms of the press release, and upon which, the government accepted such offer. Rosenberg contends that the government breached its contract by purchases of raisins contrary to the terms of the press release and by subsequently imposing further conditions upon sales by Rosenberg which greatly increased the cost of Rosenberg’s performance of its contract.

The government submits that the press release in question was not intended to create private contractual rights, and that it created none; that it contained no representations of a contractual nature; and that it was merely a declaration of policy.

When, on September 10, 1947, the government invited orders for the sale of 30,000 tons of raisins to be delivered during the period October 1, 1947 to December 15, 1947, there was no mention of its announcement of the press release of September 5, 1947. Furthermore, when, on September 19, 1947, Rosenberg submitted an offer to sell 10,000 tons of raisins to the government at prices ranging between $151.00 and $152.00 per ton, no reference was made, in such offer, to the press release. Finally, on September 23, 1947, when the government accepted Rosenberg’s offer, and when, on the following day, a standard government contract was executed in which Rosenberg agreed to deliver 10,000 tons of raisins to the government during the period, October 1-Deeember 15, 1947, upon demand and at the prices stated therein, no reference was made to the press release, either in the government’s acceptance of Rosenberg’s bid or in the terms of the formal written contract; and the same is likewise true of Rosenberg’s sale to the government of 4,330 tons of raisins on October 13,1947.

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Cite This Page — Counsel Stack

Bluebook (online)
243 F.2d 504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commodity-credit-corporation-v-rosenberg-bros-co-inc-a-corporation-ca9-1957.