Consumers' Ice Co. v. E. Webster, Son & Co.

79 N.Y.S. 385

This text of 79 N.Y.S. 385 (Consumers' Ice Co. v. E. Webster, Son & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consumers' Ice Co. v. E. Webster, Son & Co., 79 N.Y.S. 385 (N.Y. Ct. App. 1903).

Opinion

McLENNAN, J.

The contract which is the subject of dispute is in the words and figures following, to wit:

“For and in consideration of the sum of one ($1.00) dollar to us, the undersigned, E. Webster, Son & Company, a corporation created and existing under and by virtue of the laws of the state of New York, and doing business in the city of Buffalo, N. Y., in hand paid by the Consumers’ Ice Company of Buffalo, the receipt of which is hereby acknowledged, we do hereby agree [386]*386to and with said Consumers’ Ice Company to furnish and deliver to them, at the price of one dollar and twenty ($1.20) per ton, a sufficient quantity of ice as the said Consumers’ Ice Co. may demand and require for its retail trade in the city of Buffalo, up to the first day of March, 1897. The delivery of such ice to be made by us at our Alabama street station in said city. It being understood that this agreement is intended by us to furnish the said Consumers’ Ice Company a sufficient quantity of ice for their retail trade only when said Consumers’ Ice Co. has no ice on track in the city of Buffalo; and it is further agreed that strict and prompt fulfillment of the foregoing agreements are of the essence of this contract. Witness the signature of the treasurer of the said E. Webster, Son & Company, and its corporate seal hereto affixed, this 3d day of July, 1896.
“E. Webster, Son & Company,
“[Corporate Seal.] Ber E. H. Webster.”

The plaintiff was incorporated on the 3d day of July, 1896, under the corporate name of the Consumers’ Ice Company of Buffalo, and engaged in conducting a wholesale and. retail ice business in that city. The defendant was also, at all the times mentioned, engaged' in the same business. The contract in question was negotiated by Mr. John Wollenberg, who was president of the plaintiff, on its behalf, and Mr. E. H. Webster, treasurer of the defendant, acting for it. For some time prior to the execution of the contract, John Wollenberg and N. Preston Taft, as copartners, had conducted a wholesale and retail ice business in the city of Buffalo under the firm name and style of the Consumers’ Ice Company of Buffalo, being precisely the same name as that adopted by the plaintiff corporation. As such copartners, and prior to the execution of the contract, they had been furnishing ice, as a part of their wholesale trade, to one Neumann, to Harley & Randall, and to one Staley, all of whom were ice dealers in the city of Buffalo. The defendant was acquainted with the retail trade of Wollenberg & Taft, knew its extent, and also knew the character and extent of the trade and business of the other dealers referred to. When the plaintiff corporation was formed, Neumann, Harley & Randall, and Staley were taken into it, the business of those concerns becoming the business of the plaintiff corporation; and the plaintiff immediately demanded that the defendant furnish'ice. under the contract to supply its retail trade, which included not only the trade of Wollenberg & Taft, under the copartnership name and style of the Consumers’ Ice Company, but also the retail business of Neumann, Harley & Randall, and Staley. The defendant refused to supply ice to the plaintiff, or to perform the "terms of the contract executed by it, upon the ground, among others, that the contract was in fact made with Wollenberg & Taft, doing business under the firm name and style of the Consumers’ Ice Company, to supply their retail trade when they had no ice upon track; ‘ that it never entered into contract with the plaintiff corporation; and further that, if the agreement was with the plaintiff, the subject of the contract was the retail trade of Wollenberg & Taft, and in no manner included the trade of Neumann, Harley & Randall, and Staley.

Upon a former trial of this case, a judgment was recovered by the plaintiff, and upon appeal to this court was reversed. It then appeared the defendant offered to prove that, during the negotiations which resulted in the contract, it was expressly stated by the ..plaintiff’s presi[387]*387dent that the contract was for the benefit of the old firm of Wollenberg & Taft, which evidence was excluded, and an exception duly taken. The ruling was held to constitute reversible error. The court said (32 App. Div. 592, 53 N. Y. Supp. 56):

“In case a party to an executory contract for the future sale and delivery of property is led to believe, by the person who negotiates the contract in behalf of the vendee, that he is acting for a particular firm, and it turns out that he was contracting for a corporation engaged in the same business, under the same name, the existence of which corporation was unknown to the vendor, he may repudiate the contract on discovering that the vendee is a corporation, instead of the firm with which he understood he was contracting. One who enters into an executory contract for the future sale and delivery of property has the absolute right to know with whom he is contracting. In case the jury should find that the existence of the plaintiff corporation was unknown to the officers of the defendant, and that they were led to believe that they were contracting with the firm having the same name of the plaintiff corporation, the minds of the parties never met, and there was no contract; and if, as the defendant offered to prove, it was represented by the person negotiating the contract for the plaintiff that he was making it for the firm, it was a misrepresentation, and there was no contract, and, in ease ice had been delivered under it without knowledge of the facts, title to the ice would not have passed to the plaintiff. Ice Co. v. Potter, 123 Mass. 28, 25 Am. Rep. 9; Arkansas Val. Smelting Co. v. Belden Min. Co., 127 U. S. 379, 387, 8 Sup. Ct. 1308, 32 L. Ed. 246; Winchester v. Howard, 97 Mass. 303, 93 Am. Dec. 93; Hardman v. Booth, 1 Hurl. & C. 803; Cundy v. Lindsay, 3 App. Cas. 459; Iron Co. v. Elliott, 34 N. J. Law, 184; 1 Pars. Cont. (8th Ed.) 581; Leake, Cont. 32 et seq.: 1 Benj. Sales (2d Eng. Ed.) 167 et seq.; Pol. Cont. (4th Eng. Ed.) 420 et seq.”

So far as applicable to the facts now before us, the rule thus laid down must be regarded as the law of this case. Upon this appeal,, however, Wollenberg testified that when he negotiated the contract in question he informed the defendant that the plaintiff was a corporation, and that the business of himself and partner had become incorporated ; in short, that he informed the defendant of the corporate, character of the plaintiff, the vendee named in the contract. That testimony was contradicted by the treasurer of the defendant, and by two or three other witnesses, each of whom testified that when the contract was negotiated no reference was made to a corporation, or that the Consumers’ Ice Company was any other than the copartnership composed of Wollenberg & Taft. While we think the evidence very decidedly preponderates in favor of the defendant’s contention, when taken together, it is of such a character as to present a question of fact for the jury. The evidence shows that at the time when the contract bears date the plaintiff was not in fact incorporated, or at least that its incorporation had not been completed; the certificate not having been filed in the office of th'e clerk of Erie county until 4:33 in the afternoon of the 3d day of July, and the contract in question was executed at an earlier hour of the day on which it was executed. Mr.

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Arkansas Valley Smelting Co. v. Belden Mining Co.
127 U.S. 379 (Supreme Court, 1888)
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Gillet v. . Bank of America
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Consumers Ice Co. v. Webster, Son & Co.
32 A.D. 592 (Appellate Division of the Supreme Court of New York, 1898)
Winchester v. Howard
97 Mass. 303 (Massachusetts Supreme Judicial Court, 1867)
Boston Ice Co. v. Potter
123 Mass. 28 (Massachusetts Supreme Judicial Court, 1877)

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Bluebook (online)
79 N.Y.S. 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumers-ice-co-v-e-webster-son-co-nyappdiv-1903.