Finlay v. Swirsky

120 A. 561, 98 Conn. 666
CourtSupreme Court of Connecticut
DecidedApril 4, 1923
StatusPublished
Cited by26 cases

This text of 120 A. 561 (Finlay v. Swirsky) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Finlay v. Swirsky, 120 A. 561, 98 Conn. 666 (Colo. 1923).

Opinion

*670 Burpee, J.

The facts stated above are the material facts in this case and they are not disputed. The defendants concede also that their contracts were broken by their failure to establish the stipulated credits, and that the resulting losses amounted to the sum for which judgment was rendered. The court below has found that this breach was designed, and the defendants’ refusal to perform and their intention to repudiate their contracts were first definitely and unquestionably made known to the plaintiffs, when the defendants evaded and ignored the written demands that they open the required credits, and that all this occurred before the time had arrived when the plaintiffs had agreed to deliver any sugar under the contracts; and that the defendants formed their intention and attempted to make this breach because of the great decline in the market price of sugar after the contracts were executed and before the time for delivery. These facts the defendants desire to eliminate from the finding; but we think they were reasonable and proper deductions from the evidence and therefore should not be disturbed.

In this appeal the defendants contend, in the first place, that the plaintiffs, by using the word “rescind” in their notice served on the defendants on October 11th, 1920, then “finally put an end to both contracts as completely as if they had never existed.” They argue that the unqualified meaning of the word “rescind” in this connection is to wipe out or annihilate totally, so that the contracts could not thereafter be the basis of any action whatever. We do not agree that this is the proper meaning of that word or the effect of its use in the circumstances which surrounded the parties in this case. The word “rescind” does not always and necessarily mean strictly the same as revoke, annul, or blot out. It is often employed to convey *671 the idea of cutting off a contract and leaving the parties in the exact conditions then existing. This court has used the word with that meaning. In Trowbridge v. Jefferson Auto Co., 92 Conn. 569, 573, 103 Atl., 843, which, like this, was a suit to recover damages for breach of contract, it was said that the repudiation of the agreement by the defendant "authorized the plaintiff to rescind the contract upon his part and bring an action for his damages.” In Wetkopsky v. New Haven Gas Light Co., 90 Conn. 286, 290, 291, 96 Atl. 950, an action similar to this, we said that it was for the jury to determine whether one party had repudiated a contract under such circumstances as to justify the other party "in rescinding it”; and that, under the terms of our Sales Act, in the circumstances stated, "the vendor may elect to accept such repudiation as an anticipatory breach by rescinding the agreement.” In the present case the court was construing the language of the same statute, under which .the plaintiffs are suing and which the defendants are citing in support of their argument. Moreover, it is evident from the facts of this case that neither the plaintiffs nor the defendants reasonably could, or in fact did, use and understand this word in the sense which the appellants would now give to it. The notices served on the defendants on October 9th and 11th, followed immediately by the summons in this suit, and considered under the light of the antecedent facts, indicate plainly the fair interpretation of the words and conduct of the parties. Prom all the evidence before it the trier must determine what the intention was. Intention is an inference of fact, and the conclusion is not reviewable unless it was one which the trier could not reasonably make. McDermott v. McDermott, 97 Conn. 31, 34, 115 Atl. 638. Here the trial court has reached the conclusion that the plaintiffs did not intend, and that, the defendants did *672 not understand, that the contracts were extinguished by the use of the word "rescind" in the notice of October 11th, 1920, and that thereupon and consequently all claims for damages for their breach were abandoned. This conclusion is not questioned in this appeal. The purport and unmistakable effect of the language of the notices of October 9th and 11th was to make known to the defendants the plaintiffs’ election to accept their repudiation of the contracts as ending them, and to enforce their claims for damages for the breach thus made. This it was their right to do. Churchill Grain & Seed Co. v. Newton, 88 Conn. 130, 134, 89 Atl. 1121; Neuschtat v. Rosenthal, 87 Conn. 400, 404, 87 Atl. 741; Cherry Valley Iron Works v. Florence Iron River Co., 12 C. C. A. 306, 64 Fed. 569; Philadelphia, W. & B. R. Co. v. Howard, 54 U. S. (13 How.) 307, 340. An executory contract may be terminated at some stage in its performance, or may be abandoned as a live and enforceable obligation, while the party declaring its abandonment still retains the right "to look to the contract to determine the compensation he may be entitled to under its terms for the breach which gave him the right of abandonment.” Taft, J., in Hayes v. City of Nashville, 26 C. C. A. 59, 63, 80 Fed. 641. It seems to be the reasonable deduction from the decisions of the courts which have considered most logically and thoroughly ,the subject of the rescission of contracts, that the party not in default may, if he choose, accept the renunciation of the other party and annul the contract, so that it shall be as if it had never been made; or, if he prefer, may terminate and abandon the further performance of the contract, without retroactive effect, and leaving each party under the liabilities or with the rights and remedies which have arisen from the conditions existing at the time when the contract was thus cut off. *673 Which choice has been selected in any case must be determined by fair interpretation of the language used to indicate intention, and in the light of the conditions and circumstances present at the time the intention was distinctly and finally made known. In Hayes v. City of Nashville, 26 C. C. A. 59, 64, 80 Fed. 641, the court states the rule of construction thus: “Courts consider, not only the language of the party, but all the circumstances, including the effect of a complete rescission upon the rights of the parties, and the probability or improbability that the complaining party intended such a result, in reaching a conclusion as to the proper construction of the language used.” In Hurst v. Trow’s Printing & Bookbinding Co., 22 N. Y. Supp. 371, 375, the court said: “Obviously, a single word, like the word ‘rescind,’ cannot be wrenched from its context, and considered alone, in its unqualified, strict, and technical sense, in disregard of the surrounding circumstances.” We have recently held that the language of a deed creating a restrictive easement “must be read and construed in the light of the circumstances attending and surrounding the transaction.” Baker v. Lunde, 96 Conn. 530, 114 Atl. 673.

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Bluebook (online)
120 A. 561, 98 Conn. 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finlay-v-swirsky-conn-1923.