Crown Embroidery Works v. Gordon

190 A.D. 472, 180 N.Y.S. 158, 1920 N.Y. App. Div. LEXIS 4179
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 16, 1920
StatusPublished
Cited by11 cases

This text of 190 A.D. 472 (Crown Embroidery Works v. Gordon) 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
Crown Embroidery Works v. Gordon, 190 A.D. 472, 180 N.Y.S. 158, 1920 N.Y. App. Div. LEXIS 4179 (N.Y. Ct. App. 1920).

Opinion

Laughlin, J.:

The hearing on the demurrer was brought on by a motion by plaintiff. Certain affidavits, evidently used on a motion for an attachment, are incorporated in the record and it is recited in the order that they were considered on the motion. That manifestly was improper and they must be disregarded.

■ The plaintiff alleges that it was engaged in manufacturing dresses in the borough of Manhattan, New York; that defendants were engaged in manufacturing knitted dress cloth at East Boston, Mass.; that on the 21st of May, 1918, plaintiff placed an order with defendants for 10,000 yards of different colored cloth, according to a sample submitted by defendants, at two dollars and fifty-five cents per yard, to be delivered at the plaintiff’s place of business in the months of June, July and August, 1918;” that defendants delivered 4,1073^ yards of the goods pursuant to the contract and plaintiff paid therefor, but that defendants failed and refused to deliver the remainder; that the market price at the place of delivery and when delivery should have been made was four dollars per yard, and judgment is demanded for the difference between the market and contract prices. It is fairly to be inferred from the allegations of the complaint and the written contract thereto annexed, that this was an order for the manufacture of goods according to samples and not for the purchase of goods already manufactured. There was no agreement to deliver a specified quantity in any month and there is no allegation with respect to when the deliveries were made, or to the effect that defendants were in default- prior to the last day for deliveries, specified in the contract. It must [474]*474be assumed, therefore, that defendants had until the last day of August to deliver the remainder.

The answer joins issue on some of the allegations of the complaint and for a first defense pleads a cancellation of the contract by plaintiff. In the second defense the defendants have attempted to plead inability to perform or impossibility of performance by operation of law, in that performance would have been illegal and would have subjected defendants to prosecution and fine and imprisonment, owing to lawful action by the Federal authorities incident to the war, in which the United States was then engaged. If sufficiently pleaded, that is a good defense. (Jones v. Judd, 4 N. Y. 411; Heine v. Meyer, 61 id. 171.) Since the defendants had until the last day of August to perform, if they have sufficiently shown that performance by them on that day was lawfully forbidden and would have been illegal, their defense must be deemed well pleaded, for they cannot be held Hable for a breach of their contract on the theory that they might lawfully have performed before the time they contracted to perform. In the defense to which the demurrer was interposed, the defendants allege that the contract was for the manufacture, sale and defivery of the cloth by them; that it is manufactured by spinning woolen or worsted yarn; that when the contract was made they had adequate, subsisting contracts with various yarn mills for the yarn that would be required in manufacturing the cloth; that they proceeded to manufacture the cloth and manufactured and defivered approximately 4,700 yards; that it was expressly provided in the contract, among other things, as follows: “It is provided that we shall not be Hable for deHvery in case of quarantine, floods, fires, strikes, or from any cause beyond our control; ” that before the time for the defendants to complete performance had arrived and before the remainder of the cloth could be manufactured and defivered and by reason of causes beyond the control of the defendants and without fault on their part, the manufacture thereof and further performance on their part became impossible and was excused and postponed in consequence of lawful regulations duly made by the War Industries Board, a government agency, created under the act of Congress of June 3, 1916, known as the National Defense Act (39 U. S. Stat. at [475]*475Large, 166, chap. 134), and acts amendatory thereof, by which the delivery of such yarn to the defendants by the yarn mills under contractual obligation with defendants therefor or by another yarn mill or source of yarn supply in the United States was prohibited owing to the fact that the defendants had no contract for the manufacture of cloth for the government and that said Board also by virtue of the powers conferred on it took possession of and controlled all of the yarn mills in the United States and their products and directed the distribution of all the woolen and worsted yarn within the United States and prohibited and prevented the delivery to defendants of the yam which was then being manufactured for them as aforesaid or any other yarn during the period of the National Emergency and until the requirements of the Government of the United States and of those performing contracts with it were satisfied. The defendants then allege that they remained ready, able and willing to complete performance as soon as said prohibition ceased or was removed; and that before the time for complete performance arrived and within a reasonable time — evidently meaning after the removal of the prohibition — tendered full performance, which was refused.

It is thus broadly alleged, in effect, not only that defendants had taken the precaution to order the manufacture of the yarn they would require, but that if it had not been for the said action of the Federal authorities, it would have been delivered to them in ample time; and that while there yet remained time for them to manufacture the cloth, there was no market open or available to them for buying the yarn at home or abroad inasmuch as the delivery of such yarn to them by anybody was forbidden.

The learned counsel for the respondent contends that no facts showing the right of the government thus, in effect, to commandeer the yarn are pleaded. It is not necessary to plead the acts of Congress or the proclamations of the President. If the President was authorized to do the things it is, in effect, alleged he caused to be done through said Board, it was sufficient to allege that he thus caused them to be done. By section 120 of the act of Congress of June 3, 1916, the President was authorized in time of war or when [476]*476war was imminent, to commandeer manufacturing plants and material where the owner or those in charge refused or failed to accept and give preference to government orders and authority was conferred upon him to place such orders for any war necessity. Said section 120 also authorized the President to appoint a Board on Mobilization of Industries Essential for Military Preparedness. (39 U. S. Stat. at Large, 213, 214, § 120.) The act of Congress of August 10, 1917, chapter 53, section 10, authorized the President to requisition any supplies required for the maintenance of the army or navy or any other public use connected with the common defense, and by section 12 of that act he was authorized for any like purpose to take over and operate manufacturing plants. (40 U. S. Stat. at Large, 279, chap. 53, §§ 10, 12.) Under those statutes he could have seized and operated plants for the manufacture of yarn and all the yarn in the country or that came into the country and, since the greater includes the lesser, he could through a government agency duly created, as is here alleged, control its use.

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Bluebook (online)
190 A.D. 472, 180 N.Y.S. 158, 1920 N.Y. App. Div. LEXIS 4179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-embroidery-works-v-gordon-nyappdiv-1920.