Dunlevie v. Spangenberg

66 Misc. 354, 121 N.Y.S. 299
CourtNew York Supreme Court
DecidedFebruary 15, 1910
StatusPublished

This text of 66 Misc. 354 (Dunlevie v. Spangenberg) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunlevie v. Spangenberg, 66 Misc. 354, 121 N.Y.S. 299 (N.Y. Super. Ct. 1910).

Opinion

Wheeler, J.

This action is instituted to recover damages for the breach of an alleged contract for the sale of certain logs. The contract was made at or near Cameron in the State of Pennsylvania, and related to logs then lying on the banks of the Sinnamahoning river.

The essential facts are undisputed. One W. R. Johnson had been operating in the lumbering business at the place designated. He had the right, by virtue of a certain lease which expired in 1903, to cut and remove from á tract of land the standing timber. He had cut a portion of this timber, and the logs so cut had been hauled, and lay at the river at the time the contract in question was made. The other timber remained to be cut. Johnson became financially involved and absconded. He left behind a large number of creditors. He has not since been heard from. The defendants, or the concerns in which they were financially interested, were large creditors of Johnson.

On or about May 1, 1902, the J. R. Droney Lumber Company, of which the defendant Droney was the president; the Warren Packard Company, of which the defendant Spangenberg was secretary and treasurer; Wilson Brothers, and E. V. Babcock Company, entered into an agreement for the purpose of avoiding litigation among themselves regarding the priority of their -respective liens on the Johnson property, which contract provided, in substance, that the defendants should take charge of Johnson’s property and affairs, and continue the operation of his business, and realize on his assets, and satisfy, as far as possible, the claims of said creditors therefrom.

In accordance with this arrangement, the defendants did [357]*357take charge of Johnson’s property and affairs, and proceeded to realize on his assets. They sent a communication to all parties ■ appearing as creditors upon Johnson’s books, requesting their consent that they, the defendants, should act as trustees in the interest of creditors; and, in response to such circular communication, informal consents were received from a majority of the creditors that the defendants should act in the capacity suggested.

The plaintiff, Ernest V. Dunlevie, had no knowledge of this agreement, and no knowledge of the alleged trusteeship, further than that they added the word “ trustees ” to their signatures to the letters which they wrote the plaintiff.

The defendants were not elected or appointed trustees of the Johnson property in any legal proceedings; and many of the consents of creditors of Johnson to the arrangement proposed to them were, in fact, given after the defendants had opened negotiations with the plaintiff for the sale of the timber in dispute.

After having taken possession of the Johnson property, including the logs and timber lands in question, the defendants met the plaintiff and negotiations were opened with him for the sale of the logs at the river and the timber to be cut. The preliminary negotiations resulted in the correspondence between them which followed, and which constitutes the contract between the parties, if one was made.

This correspondence opened with a letter addressed to the plaintiff, dated Hay 7, 1902.

The following is the correspondence which followed:

“ Office of “W. D. Johnson,
“ Manufacturer and Wholesale Dealer in Hemlock and Hardwood Lumber and Shingles —
“ General Merchandise.
“ Direct all correspondence to
Emporium, Pa., May 7, 1902.
E. V. Dunlevie, Esq., Buffalo, N. 7.:
Dear Sir.— We will sell you the logs which we have stocked to The Sinnamahoning Kiver for six dollars per M., [358]*358where they now lie, and will also sell yon those which we bring to the river the coining winter at same price.
“ Terms cash when scaled.
Respectfully,
“ J. W. Spangenberg,
J. R. Droney,
“ Trustees.
££ Estimated amount of timber about five million feet.
“ J. R. Droney.”
££E. V. Dunlevie,
££ Manufacturer & Wholesaler,
Hemlock and Hardwood Lumber, Lath and Shingles, “ Mills and Yards, Ellisburg, Pa.
<£ Prudential Bldg. Buffalo, H. Y., 5, 10, .02.
££ Mr. J. W. Spangenberg, Trustee, Emporium, Pa.:
Dear Sir.—• I beg to acknowledge receipt of letter dated March 7th signed by yourself and Mr. Droney, as Trustees of Mr. W. B. Johnson & Co., which letter confirms the conversation I had with Mr. Droney, in reference to the matter stated therein, and I herewith advise you that I accept your proposition for the purchase of the Logs in question.
My understanding of the matter being, that you sell me about Five million (5,000,000) feet of Hemlock, Pine and Oalc logs. That- you are to stock the same on the banks of the Sinnamahoning River. The logs that are already skidded to the River I am to take where they lay, but all of the logs covered by this contract are to be stocked as above, between this date and the spring of 1903.
“ Terms are to be cash when the logs are scaled, and the logs are to be scaled when they are stocked to the river as above. The Logs are to be scaled by two competent Log Scalers, one scaler to be furnished by you and one by me.
Yours very truly,
££ Diet. E. Y. D.
E. Y. Dunlevie, Pqr M. B.”
[359]*359“ Office of “ W. D. Johnson,
“ Manufacturer and Wholesale Dealer in “ Hemlock and Hardwood Lumber and Shingles —■
“ General Merchandise.
“ Direct all correspondence to
“ Emporium, Pa., May 13th, 1902.
“ E. V. Dunlevie, Esq.:
“ Dear Sir.—-.1 have your favor of the 10th inst, and note contents.
“ I wish to call your attention to the fact that the proposition does not specify any amount of logs to he furnished, but only covers such as we find it expedient to bring to the river, within the time specified. I call your attention to this fact because in my opinion the amount of logs that will come to the river will be much less than stated in your letter. I also understand that the logs now at the river are to be scaled and settled for soon.
“ Very truly,
“ J. W. Spangenberg,
“ Trustee.
“E. V. Dunlevie,
“Manufacturer & Wholesaler,
“ Hemlock and Hardwood Lumber, Lath and Shingles, “Mills and Yards, Ellisburg, Pa.

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Bluebook (online)
66 Misc. 354, 121 N.Y.S. 299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunlevie-v-spangenberg-nysupct-1910.