Delaware Marine Supply Manufacturing Co. v. Philadelphia Lamp Manufacturing Co.

95 A. 235, 28 Del. 524, 5 Boyce 524, 1915 Del. LEXIS 42
CourtSupreme Court of Delaware
DecidedJune 15, 1915
StatusPublished
Cited by4 cases

This text of 95 A. 235 (Delaware Marine Supply Manufacturing Co. v. Philadelphia Lamp Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delaware Marine Supply Manufacturing Co. v. Philadelphia Lamp Manufacturing Co., 95 A. 235, 28 Del. 524, 5 Boyce 524, 1915 Del. LEXIS 42 (Del. 1915).

Opinion

Rice, J.,

delivering the opinion of the court:

The plaintiff in error was the defendant below in an action of replevin brought by the Philadelphia Lamp Manufacturing Company, the defendant in error, to recover possession of certain tools, dies, etc., owned by it, and which at the time of the issuance of the writ were in the possession of the defendant below.

The assignments of error were three in number and are as follows:

1. That the court erred in ordering stricken from the record all the evidence given in cross-examination bearing upon the lack of warranty for the rescission of the contract then in evidence.

2. That the court erred in refusing to admit in evidence the testimony of George W. Pierson, George L. Bilderback and William W. Alcott, to show that, prior to the date on which the writ of replevin was issued and executed, the defendant had in all respects complied with the contract, and to show that the plaintiff had no legal right or justification to rescind the contract, and to show that the defendant was entitled to have a return of the property so that it might proceed with the manufacture of the lamp burners in compliance with the terms of the contract.

3. That the court erred in directing the'jury to return a verdict for the plaintiS.

The facts as disclosed by the record are: That the parties to the action on the twenty-eighth day of September entered into a contract in writing by which “The Delaware Marine Supply Manufacturing Company, the defendant below, was to manufacture and deliver to the Lamp Company, the plaintiff below, 100,000 lamp burners, the same to be in perfect condition as to workmanship and made of materials satisfactory to the Lamp Company.” The Supply Manufacturing Company was “to begin the manufacturing of the burners on or before October 15, 1910, and to complete ready for delivery to the said party of the second part (the plaintiff below) or to its order, said burners in perfect condition and ready for delivery to the said party of the second part.”

The plaintiff below agreed to and did deliver to the Supply Manufacturing Company “all necessary tools, set forth in the [526]*526schedule (attached to the contract) for the manufacturing and assembling of said burners.”

After some burners had been delivered to the Lamp Company, that company on the sixteenth day of May, 1911, sent a communication to the Supply Company which was duly received by that company. This communication in part stated:

“We greatly regret that you have utterly failed either to make the lamps properly or to deliver them within the time agreed upon. Having given you repeated notices of what we would be obliged to do, and having given you all the assistance within our power, * * * you are notified that the contract has been, and is hereby rescinded, and you will please bring about the return to us, without delay * * * all tools and property, in your possession belonging to us.”

The Supply Manufacturing Company did not return the tools to the Lamp Company as directed, whereupon the Lamp Company had issued out of the Superior Court, a writ of replevin for their recovery.

At the trial below counsel for the defendant below by his cross-examination of the plaintiff’s witnesses attempted to show that the Supply Manufacturing Company had fully complied with the terms of the contract, claiming that if such was the case the plaintiff below would not be entitled to a recovery in the action of replevin. The court below first admitting this line of testimony later ordered it stricken out, ruling that under the contract it was immaterial in the present action whether the Lamp Company was or was not justified in rescinding or repudiating the contract.

At the close of the plaintiff’s case, the Supply Manufacturing Company proffered evidence to show:

“That prior to the date on which the writ of replevin was issued and executed, the defendant had in all respects complied with the contract and that the plaintiff had no legal right or justification to rescind the contract, and that the defendant was entitled to have a return of the property (taken under the writ) so that it might proceed with the manufacturing of the lamp burners in compliance with the terms of the contract.”

The court below held that the testimony proffered was unimportant and immaterial and ruled against its admission.

The question presented to the court below and argued before this court, under the assignments of error, is whether the Lamp [527]*527Company after rescinding or repudiating the contract with or without reason, was entitled to the possession of the tools and dies owned by it and placed by the Lamp Company in the possession of the Supply Manufacturing Company, under the terms of the contract to be used by the Supply Company in the manufacturing and assembling of lamp burners.

Counsel for the defendant below concedes that after notice of repudiation of an executory contract, the injured party cannot ordinarily complete the contract, and recover the full contract price, or for any increased damages caused by his continuation to perform.

But counsel contends that this proposition of law pertains alone to the damages the injured party may recover, and that the injured party is not prevented from considering the contract a subsisting one, and proceed with the process of manufacture and complete the contract.

No case in replevin has been cited, nor have we been able to find one, passing upon the question raised in the present case. But the language of the courts in passing upon the question of damages in cases arising out of executory contracts similar to the present one, may have an important bearing upon what the same courts think of the right of the manufacturer to continue after repudiation.

In Danforth Co. v. Walker, 37 Vt. 239, the court said:

“While a contract is executory a party has the power to stop the performance on the other side, by an explicit direction to that effect by subjecting himself to such damages as will compensate the other party for being stopped in the performance on his part at that point or stage in the execution of the contract. The party thus forbidden cannot afterwards go on and thereby increase the damages of the other party.”

In Kingman & Co. v. Western Mfg. Co., 92 Fed. 486, 34 C. C. A. 489, it was said by the court:

“When on November 22, 1893, the defendant in error received notice from Kingman & Co., that the latter would not accept more implements under the contract, the manufacturing company was bound to refrain from adding to its own loss and that of the plaintiff in error by mating the implements it had not commenced to make; and if it did so, it cannot be permitted to recover the increased loss it thus voluntarily incurred."

[528]*528In Black v. Woodrow & Richardson, 39 Md. 194, the court used the following language:

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Bluebook (online)
95 A. 235, 28 Del. 524, 5 Boyce 524, 1915 Del. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delaware-marine-supply-manufacturing-co-v-philadelphia-lamp-manufacturing-del-1915.