Frank I. Abbott Lumber Co. v. Home Ins.

72 So. 841, 140 La. 130, 1916 La. LEXIS 1856
CourtSupreme Court of Louisiana
DecidedApril 24, 1916
DocketNos. 20764, 20765
StatusPublished
Cited by2 cases

This text of 72 So. 841 (Frank I. Abbott Lumber Co. v. Home Ins.) 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
Frank I. Abbott Lumber Co. v. Home Ins., 72 So. 841, 140 La. 130, 1916 La. LEXIS 1856 (La. 1916).

Opinions

PROYOSTY, J.

These two consolidated suits are upon policies of fire insurance (quoting from policies):

“On stock of lumber, laths, shingles, posts and other timber products, their own or held by them in trust or on commission, or sold but not delivered, and for which assured may be legally liable; all while contained only in yard of the Red Cross Lumber Company situated at Red Cross on the Texas & Pacific Railroad, in the parish of Pointe Coupee, Louisiana.”

" The defense is that the plaintiff company did not “own” this property, nor “hold it in trust, or on commission,” nor “had sold but not delivered” it; and that, therefore, the policies cover an interest which the insured did not have, and are as a consequence null.

In the oral argument, the alternatives, “or held by them in trust or on commission, or sold but not delivered,” were stressed; but in the briefs they are not sought to be relied on. The case is pitched upon the sole ground of ownership, and we shall confine ourselves, in like manner, to that ground.

The said Red Cross Lumber Company and the plaintiff company entered into a contract which begins with the statement that the former shall “hereinafter be called the seller,” and the latter, “the purchaser,” and proceeds to declare as follows:

“The seller hereby agrees to sell and does sell to the said purchaser 1,000,000 feet of lumber,” and then “the purchaser hereby agrees to pay the following prices for the different grades and thicknesses herein set forth, f. o. b. cars, Melville, La.
1st & 2nd. Selects. 1 Shop. 1 Common.
1" $32.00 $28.00 $16.00 $11.00
1%" 33.00 . 29.00 21.00 11.00
2" 35.00 31.00 22.00 13.00
2%" 38.00 33.50 26.00 13.00
44.00 38.00 26.00 13.00
“On the first to the fifth day of each month beginning December 1, 1912, a joint estimate shall be made of the lumber on the yard of the seller and of the grades hereby purchased, and the purchaser agrees to advance to the seller $12.50 per 1,000 feet on all such stock. On the first to the fifth day of each month thereafter during the period this contract shall remain in force, the purchaser agrees to advance to the seller $12.50 per 1,000 feet on all stock cut during the preceding month on this contract which has been jointly taken up or estimated. Balance due on all lumber hereby sold is to be paid as' the lumber is shipped out, and invoice rendered purchaser.
“All lumber upon which advances are made shall be marked up to and become the property of the purchaser, and shall be held insured by the seller for the purchaser to the extent of all said advances, and the insurance so carried by the seller for the purchaser shall in no wise divest the title to the property from the purchaser.”

Then after provisions for prescribing the quantity of lumber which will have to be manufactured and stacked on the yard each month, and the time when it will have to be moved from the yard, and what description of lumber shall fall into each of the several classes, the contract proceeds:

“The lumber is to be graded by mutual inspection between the seller and the purchaser or their representatives. The Southern Cypress Manufacturer’s Association rules of November 24, 1911, to govern except where otherwise provided in this contract relative to tank, finish, and No. 1 Common.
“If it is found impossible for the representatives of the seller and the purchaser to agree on the inspection, a licensed inspector of the South[133]*133ern Cypress Manufacturer's Association shall be called. His inspection shall be final except where the rules permit a reinspection of the lumber when found necessary at destination.
“The final inspection and measurement shall in no wise be construed as affecting in any way the title 'of the property as vested in the purchaser, but merely as incidental to determine the quantity purchased has been delivered on contract.
“Eor $1 and other valuable considerations the seller hereby leases to the purchaser all ground on which the purchaser’s lumber is piled by the seller for'the full period of time covering the completion of this contract.”

It will be noted that the parties agreed that the lumber was to be graded by experts into four classes according to quality, and each of these four classes into five subclasses according to size, making a total of 20 classes, and agreed upon a price for each of these subclasses; but that they could not, and did not, know what quantity would fall into each or any one of these classes, and therefore could not, and did not, agree upon a price for the 1,000,000 feet as a whole.

Beforq this classification, which it was thus agreed should fix the price of the sale, could be made, the lumber was destroyed by fire; and the classification, and the consequent ascertainment of the price of the sale, became impossible.

The effect of this was to leave the sale without a fixed price; and therefore to destroy it, since, in the civil law, there cannot be a sale without a fixed price. O. C. arts. 2456, 2458, 2464; Tierman v. Martin, 2 Rob. 523; Kleinpeter v. Harrigan, 21 La. Ann. 196; Clark v. Comford, 45 La. Ann. 502, 12 South. 763; Werner Sawmill Co. v. O’Shee, 111 La. 817, 35 South. 919; Baudry-Lacantinerie, Sale (2d Ed.) vol. 17, p. 106.

The learned counsel for plaintiff cite common-law decisions in which under circumstances similar or analogous to those here presented, i. e., in the absence of a fixed price, the contract was held to be a sale. We have not deemed it necessary to read those decisions, as the common law and the civil law differ on this point of the necessity of the price of a sale being fixed and certain. Benjamin on Sales, c. 5, “Of the Price”; Blackburn on Sales (2d Ed.) p. 175; Williston on Sales, pars. 267, 268.

The learned counsel also contend that the “joint estimate” which was to be made each month for the purposes of the advance of $12.50 per 1,000 can take the place of the classification which it was agreed should be made by experts. But this was not the agreement of the parties, and the court can only enforce the contract they made; not make a new one for them.

Counsel also argue that the ownership of property may be transferred otherwise than by the contract of sale; and that if the said contract lacked one of the essential features of a sale and was not therefore a sale, this would be no reason why it should not have been translative of property; and that the parties having agreed that the lumber should become the property of plaintiff just as soon as advances were made upon it, this agreement is the law of the case, since there is nothing in it contrary to good morals or to prohibitory laws or public policy.

If the parties had so agreed, of course, the agreement would have to be enforced. But they did not so agree. The contract must be read as a whole, and, when so read, it shows very clearly that the so-called seller did not agree to transfer the property, and the so-called purchaser did not agree to acquire it, except at the price to be ascertained by the classification.

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Related

Kohler v. Huth Const. Co.
123 So. 588 (Supreme Court of Louisiana, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
72 So. 841, 140 La. 130, 1916 La. LEXIS 1856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-i-abbott-lumber-co-v-home-ins-la-1916.