Franklin Sugar Refining Co. v. Kane Milling & Grocery Co.

122 A. 231, 278 Pa. 105, 29 A.L.R. 1213, 1923 Pa. LEXIS 479
CourtSupreme Court of Pennsylvania
DecidedJune 23, 1923
DocketAppeal, No. 323
StatusPublished
Cited by12 cases

This text of 122 A. 231 (Franklin Sugar Refining Co. v. Kane Milling & Grocery Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin Sugar Refining Co. v. Kane Milling & Grocery Co., 122 A. 231, 278 Pa. 105, 29 A.L.R. 1213, 1923 Pa. LEXIS 479 (Pa. 1923).

Opinion

Opinion by

Mr. Justice Kephabt,

The court helow, in sustaining the demurrer to plaintiff’s statement of claim, relied on Franklin Sugar Refining Co. v. Howell, 274 Pa. 190. It is not necessary to restate what was there so lately decided; we will here merely point out what to us seems a sufficient barrier to plaintiff’s right to recover.

Plaintiff avers in its statement that the J. H. Huston Co., Inc., was a merchandise broker, “duly authorized by defendant, to the knowledge of plaintiff, to make on behalf of defendant the contracts hereinafter referred to,” and “duly authorized by plaintiff, to the knowledge of defendant, to make on behalf of plaintiff the contracts hereinafter referred to,” and that, “pursuant to said authority......broker, on or about the dates as follows, made and effected certain contracts......, and pursuant to said authority, broker, on or about said respective dates, made and executed on behalf of plaintiff and defendant certain sales memoranda evidencing the terms of said contracts.”

However, an examination of these sales memoranda shows they were only signed “Sold by J. H. Huston Co., Inc.” It thus appears, so far as the writing evidences, that Huston Company was the seller, or represented someone as seller. Nowhere did appellee, or any one for it, sign any of the memoranda on which plaintiff relies for recovery, yet this is essential under section 4 of the Sales Act. The fact that the broker signed for plaintiff vendor only is consistent with the papers themselves, and with no other conclusion.

If the words “Sold by J. H. Huston Co., Inc.,” etc., are intended to hold appellee, then appellee is the seller. The contracts not being signed by the buyer as required are fatally defective, and cannot be enforced. Plaintiff does not set up a “trade usage or custom” to avoid the [110]*110effect of the -writing just quoted, even if such an averment could legally have the effect stated. If it so averred, the conclusive answer would be that no “trade usage or custom” could overturn the express requirement of the statute that no such contract shall be enforceable unless a note or memorandum in writing shall be signed by or for the vendee. The letter from appellee is not sufficient to overcome this defect. It does not purport to ratify a signature that was not made in its behalf.

A most casual observer, examining these memoranda, would immediately conclude the sugar was sold by Huston Co., as it states, and not purchased by them, as it does not state. There is nothing unusual or technical in these words; the signature is for the seller only. Where brokers deal on behalf of both seller and purchaser*, and undertake a joint mission, it must appear, in this class of cases, and the memoranda must show they signed for the purchaser, or the contracts will not be binding. We might dismiss the appeal on this ground alone.

Plaintiff contends it may assert a trade usage or custom as amplifying, explaining and adding to the memoranda, — the averment will be found in the statement of facts, — and this is so if it is meant simply to show the meaning, in the trade, of the words actually used in the contract. While there is a marked distinction between a usage and a custom, courts have for a long time used custom as. a term coordinate with usage, and it will, in this opinion,, be so regarded.

It is not clear to us, under the present memoranda, how, by custom or trade usage, the words “basis 22.50” can be enlarged to the extent required to enable plaintiff to recover. We do not deny its right to amplify, explain or refer as part thereof to any business method, schedule or scale of prices contained in a separate document, where the memorandum itself contains all the necessary requirements of an express contract; but when it falls short of it, and fails by proper reference to include as part thereof the separate paper or writing desired, the [111]*111addition 'cannot be considered as completing or making perfect under the statute what is otherwise imperfect.

It will be apparent, when other paragraphs of the statement are examined, the base price of sugar went down to 12.74 cents three months after the contracts were made; the differentials for the other grades were less; it is stated they were “not higher than those set forth in paragraph 13” being the differentials supposed to exist when the memoranda were made. How much lower, plaintiff does not aver. It says the price of any grade of sugar is determined “by adding to or subtracting from said price the amount of the now existing standard trade differential applicable to such other grade or package.” From the use of the word “now” and from the paragraphs specifying the price of sugar in August and September, it is conclusive there is no fixed differential [price], and it is not, or could not be, contended for, but it is one that shifts from time to time. It is necessary therefore to go to some other paper which changes from time to time, which has no fixed standard in the trade for its determination, so that any one might or could know or ascertain by some rule, equation or known variation, per cent or otherwise, what the prices were or would be; this could be learned only as promulgated by those in control. The differential, quoad differential, containing prices fixed by others, varying in different localities, might be a method of conducting business, but, considered as a custom or trade usage to toll the operation of the statute, it necessitates much consideration.

As stated in Albus v. Toomey, 273 Pa. 303, 306, a ens-tom, in order to be binding, must be certain, continuous, uniform and notorious. It must be so fixed that those engaged in the business may know what to meet. A custom that depends for its life on the act or will of a business house, that changes as circumstances and its business requirements demand, could scarcely in law be called a custom. For illustration, “a custom to pay two pence an acre in lieu of tithes is good; but a custom to [112]*112pay sometimes two pence and sometimes three pence as the occupier of the land chooses is bad on account of its uncertainty”: 17 C. J. 451. A usage among factors was held inadmissible because it left each factor to determine for himself the grade of goods subject to the operation of such usage: Wallace v. Morgan, 23 Ind. 399, 408.

“A loose and variable practice will not be allowed to control the rights of the parties, nor will an alleged usage which leaves some material element to the discretion of the individual”: 17 C. J. 453, notes 50 and 51. Thus, to establish by “constructive measurements, as made by the Bricklayers.’ Association,” a rule called a custom, controlling prices, “the percentage of which varies from twenty-five to three hundred per cent......from month to mpnth, almost from day to day, as prices of labor and material advance, this scale is advanced,” of which all contractors are aware, is not such rule, practice or arrangement as can be regarded as a usage or custom, though continued for a long period of time. This court, after quoting the rule as to a good custom or usage, says, “When a custom is so established, parties may be presumed to have acted with reference to it, and the law will in some instances write it into their contract. But, since the world began, the law never wrote into any man’s contract such a usage or custom as this. It has no element of certainty. In the language of plaintiff’s own witness, fit varies from month to month, almost from day to day”: Ambler v. Phillips, 132 Pa. 167, 173, 174.

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Bluebook (online)
122 A. 231, 278 Pa. 105, 29 A.L.R. 1213, 1923 Pa. LEXIS 479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-sugar-refining-co-v-kane-milling-grocery-co-pa-1923.