E. I. Du Pont de Nemours & Co. v. Capital City Oil Co.

84 So. 31, 146 La. 720, 1920 La. LEXIS 1783
CourtSupreme Court of Louisiana
DecidedMarch 1, 1920
DocketNo. 22521
StatusPublished
Cited by2 cases

This text of 84 So. 31 (E. I. Du Pont de Nemours & Co. v. Capital City Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E. I. Du Pont de Nemours & Co. v. Capital City Oil Co., 84 So. 31, 146 La. 720, 1920 La. LEXIS 1783 (La. 1920).

Opinion

SOMMERVILLE, J.

Plaintiff sues for damages ex contractu in the sum of $6,875, with interest from judicial demand, because of the violation of a written contract entered into Between it and the defendant company for 500 bales of linters at 3 cents per pound, [721]*721to be delivered during tbe months of October, .1915, to February, 1916; tbe contract being dated June 29, 1915, and it was entered into with J. W. Yogler tbe alleged manager, duly authorized, of tbe defendant company.

Tbe defendant company answered, admitting tbe execution of the contract referred to in plaintiff’s petition, “signed by Capital City Oil Company, J. W. Yogler, Manager”; but defendant specially denied that said Yogler was authorized in any manner to bind defendant by such an agreement, or that same constituted a contract valid and binding on the company. It also admitted that plaintiff had made demand for the fulfillment of the contract and that defendant refused to comply therewith. Further answering, defendant—

“admits the correctness of the mathematical computation with reference to the alleged loss of defendant in paragraph 7 of plaintiff’s petition.”

Further answering, defendant alleged:

“That this suit is based upon an alleged contract represented by plaintiff to have been entered into between the E. I. Dn Pont de Nemours Powder Company on the one'part, and defendant company, represented by J. W. Vog-ler, manager, on the other, whereby defendant sold to the said first party 500 bales of lintors at 3 cents per pound, to be delivered for shipment in lots of 50 bales each during the months of October1, 1915, to February, 1916. Now, defendant represents that the said Yogler had no authority or power whatsoever, either expressed or implied, to represent this company in such transaction, or to bind the company to the performance of such alleged contract.
“Defendant, further answering, represents that on the said 29th day of June, 1915, this company was operating under the provision of Act No. 267 of the Legislature of the state of Louisiana for the year 1914, commonly known as the ‘Uniform Corporation Law’; that section 15 of said act, among other provisions, contains the following: ‘They [i. e. the directors] may appoint other agents and employes, who shall, respectively, have such power and perform such duties as may be prescribed by the by-laws, and who may be removed at the pleasure of the directors ;’ that neither prior to the passage of said act nor since has this company by its bylaws prescribed the powers or duties of its manager, and the manager of this company was therefore without express authority to bind this company by any contract, and particularly a contract such as plaintiff seeks to enforce by this suit. * * *
“Defendant further -represents, however, that said Yogler did not possess even implied authority to bind this company by said transaction. Defendant company is not a speculative, but a manufacturing, company, authorized only to sell its manufactured products. The pretended contract was not only out of the usual and normal course of the business of this company, but was extraordinary in itself, highly speculative, and attempted to be made at a time when abnormal conditions existed and the market rendered hazardous and extremely unsafe by a general European war, which unsettled conditions throughout the world. The contract purported to bind this company, months in advance of the company’s business season, to the sale and delivery of a commodity to the extent of more than double the season’s output of defendant’s mill; a contract to fill which would have necessitated this company, at a ruinous loss, to go out upon a speculative market largely, if not wholly, controlled by the plaintiff and associated companies, and buy the commodity called for in this contract in excess of the output of its mill. The business of this company, as shown by its charter, is the manufacturing of cotton seed products and the marketing of same after they have been produced and are ready for market; and the E. I. Du Pont de Nemours Powder Company had no right to assume that the manager of the defendant company, in negotiating such a contract, was acting within the authoritative scope of his duties. * * *
“Defendant further represents that had this company ‘entered into said contract, which it denies, such contract would have been ultra vires, null, and void, as beyond the competency of the board of directors to bind it,” etc.

Tbe answer was sworn to by tbe president of tbe defendant company, and on tbe trial he testified in support of tbe allegations therein contained, and there was judgment in favor of the defendant, rejecting plaintiff’s demand at its costs. Plaintiff appealed.

The defendant company was organized to—

“own and operate mills for the manufacture of cotton seed oil and for the manufacture of cotton seed into all of its various commercial products, to manufacture fertilizer and to feed cattle, to acquire and operate gins, and to do [723]*723everything pertinent to the conduct of such business as the needs and purposes of said corporation may require.”

It manufactured and sold cotton seed meal, oil, cates, and linters. Linters were the subject of the contract sued upon. In the season of 1912-13 there were manufactured and sold by defendant 258 bales; in the season of 1913-14, 417 bales; in the season of 1914-15, 398 bales; and in the season of 1915-16, 207 bales. Por the year preceding the date of the contract the defendant company had manufactured and sold 398 bales of linters, and during the season before that 417 bales; and it was not unreasonable on the part of the general manager to suppose that during the season of 1915-16 the mill would manufacture the 500 bales which defendant had contracted to deliver to plaintiff. The contract therefore had not the appearance of being speculative, or out of the usual and ordinary course of the business of the defendant company; nor can it be said to have been extraordinary, and made at a time when abnormal conditions existed because of the European war. The number of bales was.not, as related in defendant’s answer, double that season’s output of its mill. It was altogether reasonable for the general manager to suppose that the mill would do better during the season then approaching than it had done theretofore. And he testified that he expected the mill to produce more linters than it had done in previous years.

The record shows that Vogler was the vice president of the defendant company; that he was elected manager of defendant’s mill; that he was placed in charge of the plant in Baton Rouge, at the domicile of defendant; that he transacted the business of the company; and that the duties of the manager were not defined by the board of directors. Vogler received and opened the mail addressed to defendant, made all contracts, and managed the business ■ generally. He was in full charge of the mill of defendant, and defendant held him out to the world as its representative and general manager.

The proposition of plaintiff to buy 500 bales of linters was contained in a letter addressed to the Capital City Oil Company at Baton Rouge, which letter was opened and answered by Vogler.

The contract is in writing on the letter paper of the “Capital City Oil Company,” with J. W. Vogler named at the head vice president and manager of the company.

The evidence shows that Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
84 So. 31, 146 La. 720, 1920 La. LEXIS 1783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-i-du-pont-de-nemours-co-v-capital-city-oil-co-la-1920.