Erk v. Simpson

73 S.E. 1065, 137 Ga. 608, 1912 Ga. LEXIS 107
Supreme Court of Georgia·Decided February 16, 1912·Published·Cited by 11 cases

Opinion

Lumpkin, J.

The purchaser of certain peaches brought suit against the seller, under the contract set out in the statement of facts, to recover the balance of the $1,000 represented by the certi- ■ fied check, after deducting the purchase-price of the peaches received. The court directed a verdict for the defendant, and the plaintiff excepted.

1. Hnder the contract, the certified cheek for $1,000 was placed with the seller apparently to guarantee payment for the peaches purchased, or to be used in paying for the last of those delivered. They were to be paid for when accepted by the agent of the purchaser at Rome, and loaded in cars at that place, and the bill of lading delivered to the purchaser. The certified check was to be returned to the purchaser when all of the purchase-price was paid, provided that it might be used toward paying for the last cars de[612] livered. There is not a word in the contract indicating that such check was put up as a forfeit or as liquidated damages for a breach of contract. The seller was given no authority to cash the check, unless for the purpose of paying for the last cars of peaches agreed to be shipped. The contract to return the check negatived any right of the holder to cash it for other purposes, and so render himself unable to return it. There is no hint in the contract that the parties intended that the seller should cash the check at once, have the use of the $1,000 represented by it during the whole season, and require the purchaser to pay for the peaches as each car was delivered, and thus have in his hands, and subject to his use, both the $1,000 and the price of the peaches. When the seller, on the same day that he received this check (or draft, as it is also called), and before delivering'any peaches, cashed it (as was admitted), he violated the contract. It was argued in the brief of counsel for defendant in error that the purchaser waived this, because such purchaser “paid the draft.” The evidence did not disclose that the check or draft was drawn on the purchaser. If it was a check, it must have been drawn on a bank. Besides, it was a “ certified ” check or draft, and there is nothing in the record to show that the purchaser could have stopped payment.

2. Four days after delivering the first car-load of peaches, the seller delivered to the buyer, through its agent at Borne, a second, which the agent inspected and accepted. After this delivery, the seller’s agent learned that the draft given by the buyer’s agent on his principal for the price of the first car-load 'had not been paid; and thereupon the seller diverted the second car-load, which was in transit, sent it to Ohio, had it sold, and charged to the buyer the difference between the agreed price and what was received under the sale. What right the seller liad to do this is not apparent. The contract provided for delivery of the peaches “ f. o. b.” Borne, Ga.,” upon approval and acceptance by the buyer’s agent there, and delivery to the purchaser of the bill of lading. The second car was inspected, accepted, and delivered. While the shipper may have a right of stoppage in transitu, when the vendee becomes insolvent before he obtains actual possession (Civil Code, 1910, § 2739), we know of no law which authorized the seller to take the car-load of peaches away from the purchaser, after such a delivery, because the purchaser had not paid the draft for the first car-load, and [613] deal with the second car-load as if refused. There was no evidence that the purchaser had then become insolvent. The seller had $1,000 of the purchaser’s money in his hands. This was more than the price of both car-loads of peaches. He was in no danger whatever of loss on those two cars. He could not at the game time break the contract and insist on its performance by the other party.

There was some evidence, not in entire accord, as to whether the agent of the seller actually tendered or offered other peaches to the agent of the purchaser, or whether he only said he could get up eight car-loads in addition to the first two, by getting his neighbors to join with him; and also as to whether such peaches would have been of the quality called for by the contract. But aside from this, when the seller cashed the cheek, and, after delivering a second car-load of peaches to the defendant at Borne, took it away by diverting it and selling it elsewhere because a draft for the first carload had not been paid, the buyer was not compelled to receive further car-loads. The purchaser was entitled to have restored to it the $1,000, after deducting the amount due for the car-load of peaches which it received and failed to pay for. And the purchaser having become bankrupt pending the case, the trustee in bankruptcy, who was made a party, could recover.

3. Some parts of the defendant’s answer were demurrable; but inasmuch as the same grounds of demurrer covered some allegations which were good and some which were bad, and as the ruling made above deals with the merits of the defenses, it is unnecessary to discuss the grounds of demurrer in detail. ■

4. Proof of market price in certain markets necessarily involves a hearsay element, and is not subject to the same strictness of rule as proof of a physical fact or occurrence. The fourth headnote requires no elaboration. Central Railroad Co. v. Skellie, 86 Ga. 686 (4), 692 (12 S. E. 1017); Armour & Co. v. Ross & Barfield, 110 Ga. 403, 412 (35 S. E. 787).

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Erk v. Simpson, 73 S.E. 1065, 137 Ga. 608, 1912 Ga. LEXIS 107 (Ga. 1912).

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