Erhardt v. Ballin

150 F. 529, 80 C.C.A. 271, 1906 U.S. App. LEXIS 4551
CourtCourt of Appeals for the Second Circuit
DecidedNovember 2, 1906
DocketNo. 12 (15,248)
StatusPublished
Cited by6 cases

This text of 150 F. 529 (Erhardt v. Ballin) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Erhardt v. Ballin, 150 F. 529, 80 C.C.A. 271, 1906 U.S. App. LEXIS 4551 (2d Cir. 1906).

Opinion

LACOMBE, Circuit Judge.

There is no question as to classification of the imported articles, but only as to their valuation; and the single point raised is whether the merchant appraiser who, together with a general appraiser, reappraised the goods, possessed the statutory qualifications. The importation occurred prior to the passage of the customs administrative act in 1890, which created the Board of General Appraisers, and the reappraisement was had under section 2930, U. S. Rev. St. That section provides that the “collector shall select one discreet and experienced merchant to be associated with one of the gen[530]*530eral appraisers wherever practicable, or two discreet and experienced merchants, citizens of'-the-United States, familiar with the character and value of ,the goods in question, to examine and appraise,” etc. The value with which the appraiser is to be familiar is the current market value or wholesale price of similar articles in the principal markets of the country from which the merchandise has been imported,, since that is the value which is to be appraised. U. S. Rev. St., §§ 2905, 2906, 2907 [U. S. Comp. St. 1901, p. 1923]. The provisions of section 2930 are very plainly expressed, and hardly require any -exposition. The merchant appraiser must be familiar with the character and value of the goods in question; that is, with goods “of similar description,” goods of the same class and grade and value, not goods dissimilar to those imported. Moreover, he must have such personal knowledge of their character and value as will fairly warrant the conclusion that he is familiar therewith. How such familiarity is to be acquired, however,’is not prescribed by the statute. This section has been several times before the courts. In Oelberman v. Merritt, 123 U. S. 356, 8 Sup. Ct. 151, 31 L. Ed. 164, the Circuit Court had refused to allow the merchant appraiser to testify what familiarity he-had with silk velvets at the time he was appointed. This was held to be error; the court saying:

“In regard to the question whether [the merchant appraiser] was a competent witness to prove that he was not familiar with the character and value of silk velvets we are of the opinion that his evidence on that subject was admissible. As the question of his familiarity with the article and with its value necessarily depended upon the nature and, to some degree at least, upon the extent of his experience in connection with the article, no one could know What that experience was so well as himself. If he is to be excluded as a witness on the subject, the court and the jury and the parties would be deprived of the best testimony within reach.”

In Magone v. Origet, 70 Fed. 778, 17 C. C. A. 363, this court sustained the Circuit Court in directing a verdict in favor of the importer, where the merchant appraiser himself testified to facts from which the court reached the conclusion that he was not familiar with the character and value of the goods in question. Both sides asked for the direction of a verdict, and neither side asked to go to the jury. The facts testified to by Ballin (the merchant appraiser in that case) are not set forth in the- report above cited; but counsel for defendant in error, who has examined the record, states them as follows :

“Origet imported cloths cut into lengths suitable for making overcoats; * * * and intended for sale to merchant tailors * * * high-priced woolens. * * * Ballin dealt in a very different class of goods — low class goods for the wholesale clothing trade.’’

This court said:-

“The question is purely one of fact, which, when submitted to the jury, would naturally be accompanied by some instructions from the court; but, if it is left by both parties to the court, neither can complain if his opinion is justified by any of the testimony.”

In Megroz v. Erhardt, tried in the Circuit Court, Southern District of New York, Novernber 14, 1892 (not reported, but quoted from in the brief of defendant in error), it appeared that the -merchant ap[531]*531praiser, a manufacturer of the same goods as those in suit, there testified that:

“He examined the invoices of merchants who dealt in such goods in order to inform himself as to their value only when he was being appointed appraiser. When that employment ceased, he ceased inquiry; his own business not requiring him to possess special knowledge on that subject.”

The court held he was not qualified, because the statute required an appraiser whose knowledge as to the value of the goods came not solely from a special examination of the elements which entered into their cost on the other side, but whose knowledge as to their value on the other side “was acquired in the transaction of his own business by trafficking in the goods.”

In the case at bar the goods were imported in 1889 and action begun the same year, but it was not brought on for trial until 1904. Meanwhile the merchant appraiser, Leahy, died (in 1898), so that the witness who best knew what familiarity he had with the character and value of similar goods was not called to testify. The main evidence on that part of the case is that of his partner, Van Ingen. It is the official duty of the collector to select an appraiser possessing the statutory qualifications; and at the outset it is to be assumed that the public officer performed his duty in that regard. Nat. Acc. Soc. v. Spiro, 94 Fed. 750, 37 C. C. A. 388. The burden, therefore, is with the plaintiff to overcome that presumption by sufficient affirmative proof. In the case at bar we are of the opinion that the proof is insufficient to accomplish that result. Keyser, who was custom house examiner of Fnglish woolens for five years prior to 1889, testified that the firm of E. H. Van Ingen & Co. dealt generally in the high-priced goods and not in low class goods, that he examined or passed all their goods at that time, and that “a majority of their goods were high-priced goods.” To the question whether or not they imported woolen cloths of the value of three shillings a y^ard for 56-inch goods — which are the goods in controversy — he replied:

“They may have. I could not say positively. It is 16 years ago, and I don’t remember that long,”

The plaintiff described the difference between the goods he dealt in exclusively and the finer goods which the Van Ingen firm handled and asserted that they never imported the cheap goods which plaintiffs firm brought over, but on cross-examination he frankly admitted that this assertion was only an inference, because he never met any competition, that he didn’t know all the worsteds they bought. This evidence is certainly insufficient to establish the proposition that the Van Ingen firm did not deal in goods of the character and value of those in suit sufficiently to become familiar with them.

The only other witness called also by the plaintiff was E. H. Van Ingen, the senior partner, who testified that in 1889 the firm consisted of himself and Leahy. When shown the invoices of the goods in controversy, he said that his firm dealt (at the time) in worsted coatings of such prices and such weights, and had a separate department for the wholesale clothing trade for which such goods were imported. The fact that the majority—or even the large majority—of their im[532]*532portations were of a higher grade, does not alter the situation.

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Bluebook (online)
150 F. 529, 80 C.C.A. 271, 1906 U.S. App. LEXIS 4551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/erhardt-v-ballin-ca2-1906.