Crossman v. Lurman

33 A.D. 422, 54 N.Y.S. 72
Appellate Division of the Supreme Court of the State of New York·Decided July 1, 1898·Published·Cited by 5 cases

Opinion

Rumsey, J. :

On the 17th of July, 1894, the firm of -which the plaintiffs are members sold to the defendants, who are partners in business in Baltimore, in the State of Maryland, 500 bags of coffee, to arrive in New York from Rio de Janeiro by the steamship Catania. By the terms' of the contract half of the coffee was to be of a grade equal in average to about standard No. 8, and the other half to be about equal in average to standard No. 9 of the Coffee Exchange of the city of New York. The manner in which the coffee was to be graded was prescribed in the contract, and it was further provided that if the grading by the selected graders should be unsatisfactory, the matter of grading should be submitted to-other persons, to be selected in tbe manner prescribed by contract. ■ The coffee arrived in New York as expected, and it was tendered by the seller to the buyer. The defendants claimed that about half of the coffee which, was claimed to be in grade No. 9 was artificially colored, and was, therefore, not salable coffee within the provisions of the Public Llealth Law of the State of New York, and because of this fact they required that graders should be selected under those [424] terms of the contract which provided for another grading in case that made by the selected graders was not satisfactory; The new • grading was had, and the arbitrator selected under the contract con- . eluded that although the coffee was artificially colored, yet that it practically complied with that provision of the contract which ■required that it should be about the standard grade No. 9. That conclusion having been reached by him, the plaintiffs tendered the coffee to the defendants, who expressed a willingness to accept so much of it as was uncolored,, but refused to accept the colored coffee for the reason which' they had! before given. Upon that refusal, the plaintiffs caused the coffee to be sold at auction, and they bring this action to recover the difference between the price of the coffee, pursuant to the bargain, and the amount received at the sale. The defense is that the coffee had been colored in such a way as to appear better than it really was and of greater value, in contravention of section 41 of the Public Health Law, which forbids the selling, or offering for sale, of any food adulterated in that way. It will thus be seen that, upon the trial, the issue between the parties was whether the coffee objected to was in fact adulterated within the provisions of the statute in such a way that it could not be legally sold within the State; because if it was, there can be no doubt that ■ the defendants were justified, in refusing to accept it, and that the plaintiffs cannot compel its acceptance .nor recover damages for the refusal of the defendants to take it. Upon , the trial this issue was presented to the jury, who found a verdict in favor of the plaintiffs for the amount of their damages. A motion was afterwards made for a new trial, which was denied, and judgment having been entered upon the verdict, this appeal is taken from the judgment and the order denying the new trial.

At the trial the plaintiffs objected, in the first place, to any examination of the question whether the coffee was in'fact adulterated; Their claim was that. as the contract provided for a regrading by arbitrators to be selected by the parties in case the original grading . was unsatisfactory, and as it appeared that this regrading was had and the arbitrators had graded the coffee in accordance with the contention of the plaintiffs, the award necessarily operated as a final determination by a selected tribunal that the coffee complied in all respects with the requirements of. the contract. It was urged that [425] such an award necessarily involved the proposition that the coffee was not adulterated, because if it was adulterated it could not comply with the terms of the contract. ' It is unnecessary to examine ■into the weight to be given to this contention. The same question was presented in another form to the General Term of the Supreme Court in the Matter of Lurman (90 Hun, 303), and in that case it was concluded that although the coffee was up to the grade, yet if ,it was adulterated it could not be made the subject of lawful delivery, and upon a suit brought to recover damages for a refusal to accept it, the adulteration would have been a good defense. That question was legitimately within the purview of the court in deciding that case, and it must be accepted as a conclusive adjudication upon that subject, and for that reason it is not necessary to further examine this question. It maybe said that the determination of the General Term in that case was affirmed by the Court of Appeals upon the opinion of the General Term. (149 N. Y. 588.)

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Crossman v. Lurman, 33 A.D. 422, 54 N.Y.S. 72 (N.Y. Ct. App. 1898).

33 A.D. 422 (Crossman v. Lurman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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46 A.D. 62 (Appellate Division of the Supreme Court of New York, 1899)
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34 A.D. 323 (Appellate Division of the Supreme Court of New York, 1898)