Exeter Manufacturing Co. v. Glass-Craft Boats, Inc.

173 A.2d 791, 103 N.H. 385, 1961 N.H. LEXIS 57
CourtSupreme Court of New Hampshire
DecidedSeptember 14, 1961
DocketNo. 4924
StatusPublished

This text of 173 A.2d 791 (Exeter Manufacturing Co. v. Glass-Craft Boats, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exeter Manufacturing Co. v. Glass-Craft Boats, Inc., 173 A.2d 791, 103 N.H. 385, 1961 N.H. LEXIS 57 (N.H. 1961).

Opinions

Blandin, J.

The vital questions submitted to the Court and which it has answered in the affirmative subject to the plaintiff’s exception as to the second one, are:

(a) “Did Exeter Manufacturing Company . . . believe and intend that it was selling goods to the U. S. Government?

(b) “Did Glass-Craft Boats, Inc. purchase without notice of the fraudulent intent of their immediate creditor or the fraud of the grantor?”

While the Court in answer to the first question posed by counsel found that the plaintiff had an intent to sell the goods to the United States Government, it found by its verdict and by its specific ruling that a voidable title passed under applicable New York law, that the plaintiff’s primary intent in making the sale was to pass title to National Procurement. Phelps v. McQuade, 220 N. Y. 232.

These findings are not inconsistent. As correctly stated in the plaintiff’s brief, in such situations as the present where fraud is’ instrumental in obtaining goods, the seller “intends several things” and since “all these intents cannot be effected,” the question becomes one of the seller’s primary intent. 3 Williston, Sales (Rev. ed.) s. 635. This is to be determined upon the facts of each case. Phelps v. McQuade, supra. Therefore the issue before us is whether the record supports the Trial Court’s finding that the plaintiff’s primary intent was to pass title to Charles E. Leggett, duly registered in New York State as doing business under the trade name of National Procurement.

[389]*389It appears that J. Eleveld, who apparently conferred the title of Colonel upon himself and concerning whose authority to act for National Procurement no serious question is raised, negotiated by telephone with a representative of the plaintiff for the cloth goods in question and signed the purchase order to the plaintiff for National Procurement. Here Eleveld, although not transformed into a gentleman or officer by an act of God, Congress or otherwise, represented an admittedly existing concern operating under the trade name of National Procurement. With this concern, through its agent Eleveld, the plaintiff dealt directly by telephone. The law is settled that where one deals with another face to face and purports to sell goods to him, a voidable title passes even though fraud, such as existed here, is instrumental in obtaining the property. Phelps v. McQuade, supra; Restatement, Contracts, s. 475, ill. 6; 3 Williston, Sales (Rev. ed.) s. 635 When the means of communicating is by telephone it has been authoritatively stated that the transaction is to be treated as though the dealings were face to face. Restatement, Contracts, s. 65. We hold this rule to be applicable here.

In all the circumstances, it appears the Court’s finding that the plaintiff’s primary intent was to pass title to National Procurement, even though the latter was a different sort of organization from what the plaintiff believed it to be, is sustainable.

This case differs from authorities cited by the plaintiff, such as Collins v. Ralli, 20 Hun 246 (N. Y.). There a broker falsely represented to the seller that he was authorized to purchase for certain concerns, and he bought goods purportedly for these concerns. Actually he had no contact with them and they knew nothing about the transaction. Here the concerns got no title because they never agreed to buy, and the broker got none because the sellers never agreed to sell to him. The Court properly ruled to this effect.

From what has been said, it follows that National Procurement got a voidable title to the goods and the plaintiff’s exception to the Court’s so holding is overruled. Phelps v. McQuade, supra; 3 Williston, Sales (Rev. ed) s. 635.

A further question posed in the words of the plaintiff’s brief is whether defendant has proven a chain of title running to itself. The Court has ruled without exception that the burden of proving that it acquired title to the goods by a proper chain of transfer is upon the defendant and in order to determine if this ruling can be sustained, it is necessary to examine the facts in some detail.

[390]*390As previously stated, no question is presented as to the authority of J. Eleveld to represent Charles Leggett, d/b/a National Procurement. It appears that the alleged transfer from National Procurement to National Procurement Distributing Co. and from the latter to Dunwood, Agent, is evinced among other circumstances by an instrument which on its face is an “original invoice” bearing the date August 15, 1958. Payment in full is acknowledged by the stamp of National Procurement, reading: “National Procurement paid in full. September 15, 1958. Thank you.” On the same instrument beneath the printed word “Approved” is the signature of J. Eleveld and under this is printed “Director National Procurement and Distributing Corp.” Also in the center of the invoice are the typed words: “Total shipment delivered to Mr. Joseph Dunwood or his agent at McLane & Taylor warehouse Manchester, N. H. . . . 8/15/58.” At the bottom of the sheet, beneath a printed acknowledgment that “the merchandise . . . has been received & complies with our Specification ...” is the written signature of Joseph Dunwood.

The alleged transfer from Dunwood, Agent, to the defendant is evinced by a communication enclosing the warehouse receipt upon the letterhead of “Acme Ltd . . . Zurich, Switzerland,” addressed to McLane & Taylor and reading as follows: “Dear Sir: This letter with the inclosed warehouse receipt ... is your authority to release to Mr. E. A. Juzwik or his agent, the . . . cloth held under the aforesaid receipt. In the event the storage . . . goes beyond September 14, 1958, Mr. E. A. Juzwik will assume the additional storage cost. A copy of this letter under separate cover is being sent to you. The original copy along with the warehouse receipt will be forwarded to you by Mr. Juzwik together with his shipping instructions. Very truly yours, Acme Ltd. [Signed] Joseph Dunwood, Agent.”

In addition to this evidence, there is the testimony of Frank L. Juzwik, President of Glass-Craft and the brother of E. A. Juzwik mentioned in the letter, who was Vice-President of the company, of a fairly long previous course of dealing with Acme, Ltd. through Dunwood as alleged agent of Acme. The nature of these dealings had been that Leggett, d/b/a National Procurement, would contact E. A. Juzwik, who would buy the goods for the defendant from Acme, and then the defendant would reimburse him. On the present occasion, owing to the fact that E. A. Juzwik was away, Leggett dealt with Frank Juzwik, who had the orders for delivery run to his brother in accordance with past custom.

[391]*391The record also discloses that the relationship between Leggett, National Procurement Distributing Company and Dunwood, acting for Acme, was very close. Indeed, Eleveld, who negotiated for National Procurement in buying the cloth from the plaintiff and who signed the self-styled original invoice of National Procurement, worked with Leggett in such perfect harmony in consummating the several transfers and accepting the benefits therefrom, that they are both presently serving jail sentences for fraud as a reward for their efforts.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Phelps v. . McQuade
115 N.E. 441 (New York Court of Appeals, 1917)
Rodliff v. Dallinger
4 N.E. 805 (Massachusetts Supreme Judicial Court, 1886)

Cite This Page — Counsel Stack

Bluebook (online)
173 A.2d 791, 103 N.H. 385, 1961 N.H. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exeter-manufacturing-co-v-glass-craft-boats-inc-nh-1961.