Compañia Importadora Materiales Industriales y De Construccion Sociedad De Responsabilidad Limitada v. Caldwell & Co.

185 Misc. 902, 58 N.Y.S.2d 745, 1945 N.Y. Misc. LEXIS 2516
New York Supreme Court·Decided November 19, 1945·Published·Cited by 6 cases

Opinion

Walter, J.

A corporation which, in the course of trade or business, purchased substantial quantities of hot-rolled iron or steel strip known as BWG- No. 18 and paid therefor a price which it alleges was, unknown to it, in excess of the ceiling price for such commodity established by the Price Administrator pursuant to the Emergency Price Control Act of 1942 (U. S. [904] Code, tit. 50, Appendix, § 901 et seq.), here sues its vendor to recover such excess, and this motion by defendant to dismiss the complaint as insufficient presents the question whether such a buyer has a cause of action for the recovery of such excess.

The statute provides, in subdivision (a) of section 4 (TJ. S. Code, tit. 50, Appendix, § 904, subd [a]): “It shall be unlawful * * * for any person to sell or deliver any commodity, or in the course of trade or business to buy or receive any commodity * * * in violation of any regulation or order under section 2, or of any price schedule effective in accordance with the provisions of section 206 * *

It further provides, in subdivision (e) of section 205 (U. S. Code, tit. 50,• Appendix, § 925, subd. [e]): “If any person selling a commodity violates a regulation, order, or price schedule prescribing a maximum price or maximum prices, the person-who buys such commodity' for use or consumption other than in the course of trade or business may bring an action either for $50 or for treble the amount by which the consideration exceeded the applicable maximum price, whichever is the greater, plus reasonable attorney’s fees and costs as determined by the court. * * * if- * * * the buyer is not entitled to bring suit or action under this subsection, the Administrator may. bring such action under this subsection on behalf of the United States.”

By the Stabilization Extension Act of 1944 (U. S. Code, tit. 50, Appendix, § 925, subd. [e]) that provision was amended to read as follows: “If any person selling a commodity violates a regulation, order, or price schedule prescribing a maximum price or maximum prices, the person who buys such commodity * * * other than in the course of trade or business may, within one year from the date of the occurrence of the violation, except as hereinafter provided, bring an action against the seller on account of the overcharge. In such action, the seller shall be liable for reasonable attorney’s fees and costs as determined by the court, plus whichever of the following sums is greater: (1) Such amount not more than three times the amount of the overcharge, or the overcharges, upon which the action is based as the court in its discretion may determine, or (2) an amount not less than $25 nor more than $50, as the court in its discretion ihay determine * * *. If * * * the buyer either fails to institute an action under this subsection within thirty days from the date of the occurrence of the violation or is not entitled for any reason to bring the action, the [905] Administrator may institute such action on behalf of the United States within such one-year period.”

Any person who willfully violates any provision of section 4 of the Act is subject, upon conviction thereof, to fine and imprisonment (Act, § 205, subd. [b]; U. S. Code, tit. 50, Appendix, § 925, subd. [b]).

It is settled, at least for this court, that, as plaintiff bought in the course of trade or business, and not for use or consumption, it may not maintain the action for penalty or treble damages provided for in subdivision (e) of section 205 (Lightbody v. Russell, 293 N. Y. 492). (See, also, Bowles v. Curtiss Candy Co., 55 F. Supp. 527; Bowles v. Joseph Denunzio Fruit Co., 55 F. Supp. 9; Bowles v. Rock, 55 F. Supp. 865.) But that does not answer, or even touch, the question here presented whether a buyer in the course of trade or business from whom a seller has exacted an excess over the ceiling price may recover such excess despite the'absence from the statute of any provision expressly conferring such right.

It is a general and long-settled rule that where a statute commands or prohibits a thing, a person injured by another’s failure to do the thing commanded or by his doing the thing prohibited, has a cause of action against the violator of the statute for the ensuing damage (Texas & Pacific Ry. v. Rigsby, 241 U. S. 33, 39; Kelley v. N. Y. State Railways, 207 N. Y. 342; Amberg v. Kinley, 214 N. Y. 531, 535; Lang v. N. Y. Central R. R. Co., 227 N. Y. 507; Martin v. Herzog, 228 N. Y. 164, 168; Ward v. Erie R. R. Co., 230 N. Y. 230; DiCaprio v. N. Y. C. R. R. Co., 231 N. Y. 94; Shepard Co. v. Taylor Publishing Co., 234 N. Y. 465; Schmidt v. Merchants Despatch Trans. Co., 270 N. Y. 287, 305 ; 50 Am. Jur., Statutes, § 584, pp. 579, 580; Salmond on the Law of Torts [9th ed.], p. 497; 1 Street on Foundations of Legal Liability, p. 172).

If it clearly appear that the statute had a specific purpose, civil liability for its violation is not extended beyond that purpose (DiCaprio v. N. Y. C. R. R. Co., supra); and sometimes the rule is stated as if a violation of a statute never gives a right of action to anyone other than one of a particular class or group for whose special benefit the statute was enacted ; but a more accurate statement is that, although whether or not civil liability results from a violation of a statute depends, in great measure, upon whether the duty is imposed for the special benefit of a particular group or class of persons (Schmidt v. Merchants Despatch Trans. Co., supra, p. 305), the ultimate test is whether a consideration, not only of the scope and mean[906] ing of the statute, but also of the evil at which it was aimed, or, in other words, its object as well as its purport, fairly leads to the conclusion that such was within the intent of the Legislature (Schmidt v. Merchants Despatch Trans. Co., supra; Amberg v. Kinley, supra, pp. 535-536; E. P. Thayer on Public Wrong and Private Action, 27 Harv. L. Rev., pp. 319, 320; 50 Am. Jur., Statutes, §§ 584, 585, pp. 579-4581; Salmond on the Law of Torts [9th ed.], p. 497; and see Martin v. Herzog, 228 N. Y. 164, 168).

The objects and purposes of the Emergency Price Control Act are so broad and extensive (see Act, § 1, U. S. Code, tit. 50, Appendix, § 901; International Spangles Corp. v. Marrow Mfg. Corp., 294 N. Y. 295, 297) that it hardly would be accurate to say that it was enacted for the special benefit of the class or group of which the plaintiff is one; but it seems indisputable to me that buyers such as plaintiff are among the classes or groups for whose benefit and protection the statute was enacted.

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Compañia Importadora Materiales Industriales y De Construccion Sociedad De Responsabilidad Limitada v. Caldwell & Co., 185 Misc. 902, 58 N.Y.S.2d 745, 1945 N.Y. Misc. LEXIS 2516 (N.Y. Super. Ct. 1945).

185 Misc. 902 (Compañia Importadora Materiales Industriales y De Construccion Sociedad De Responsabilidad Limitada v. Caldwell & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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