Franklin Sugar Refining Co. v. Lipowicz

220 A.D. 160, 221 N.Y.S. 11, 1927 N.Y. App. Div. LEXIS 9255
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 23, 1927
StatusPublished
Cited by6 cases

This text of 220 A.D. 160 (Franklin Sugar Refining Co. v. Lipowicz) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York 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. Lipowicz, 220 A.D. 160, 221 N.Y.S. 11, 1927 N.Y. App. Div. LEXIS 9255 (N.Y. Ct. App. 1927).

Opinions

Clark, J.

This action as originally brought included the Union Liberty Wholesale Grocers, Inc., as one of the defendants, but the complaint was dismissed as to that defendant, and the action was continued against defendants Lipowicz and Union Liberty Company.

The case has been tried twice, the first trial resulting in a disagreement of the jury and on the second trial there was a judgment against the plaintiff in favor of each defendant for costs, the judgment being entered on a verdict directed by the court.

[162]*162The action was brought to recover damages for defendants’ breach of seven contracts, contained in seven sales memoranda for the purchase of refined sugar, said contracts having been entered into during the spring of 1920.

The plaintiff is a Pennsylvania corporation with its principal office located in the city of Philadelphia. The defendant Lipowicz resides in the city of Buffalo and the Union Liberty Company is an Illinois corporation.

These orders for sugar were given by Lipowicz in May and June, 1920, to R. H. Parker, who for many years had been a merchandise broker in Buffalo and had handled plaintiff’s sugar in that territory. This broker when desiring to obtain orders would call upon his customers either by telephone or personally, and if they wanted sugar he would make out an order in triplicate on blanks furnished by plaintiff, which recited the fact that the goods were sold through R. H. Parker, the broker. These orders consisted of a white original, and an orange and a blue carbon copy. The white and orange papers were sent by the broker to plaintiff at Philadelphia but he retained temporarily the blue copy. On receiving the orders it was the custom of plaintiff, if it accepted them, to indicate that fact by placing an order number on both the white and orange copies, retaining the white and returning the orange to the broker at Buffalo, who would copy plaintiff’s contract number onto the blue and then return it to the customer, in confirmation of the transaction.

Under the custom adopted by the parties, the orders when received by plaintiff from the broker were accepted by it at its place of business in Philadelphia. In signing the orders and transmitting them to plaintiff the broker was the agent of Lipowicz. ■ The minds of the parties finally met with reference to the transactions when the orders were accepted by plaintiff and the place of acceptance would determine the place of the contract upon the facts in this case. (Ohl & Company v. Standard Steel Sections, Inc., 179 App. Div. 637; Clark’s N. Y. Law of Contracts, 42; 9 Cyc. 670.)

These offers and acceptances provided that the sugar should be delivered f. o. b. Philadelphia,” and that the delivery should be complete on receipt of the goods by the carrier.

Under the circumstances we are of the opinion that the place of the making of the contracts and the place designated in the orders for their performance was in the State of Pennsylvania.

The orders provided for the delivery of the sugar in July and August, 1920, or as soon thereafter as plaintiff could make deliveries, the assortments to be furnished to the seller by the buyer, but [163]*163subject to such substitutions as the seller might find it necessary to make.

In October, 1920, Lipowicz sold his grocery business to defendant Union Liberty Company. By the terms of their agreement the Union Liberty Company assumed the liabilities of Lipowicz, including the contracts in question. Later Lipowicz endeavored to have plaintiff release him from liability under these contracts, which plaintiff refused to do.

Prior to this time, on several occasions in July and August, and also in October, 1920, Lipowicz either by letter or in personal interviews had with plaintiff at its office in Philadelphia, requested plaintiff to delay deliveries under the contract and these requests were granted.

On the 15th day of December, 1921, Lipowicz wrote plaintiff that he did not see what else he could do in this matter and advised plaintiff to proceed in accordance with its own judgment.

Plaintiff contends that there was then a repudiation of the contract on the part of Lipowicz, whereupon it brought this action for damages based on the difference between the basis price of sugar, twenty-two and five-tenths cents per pound as specified in the contracts, and the market price on that date, which was five and two-tenths cents per pound.

On the trial defendants urged that the contracts were not enforcible under the Statutes of Frauds of either New York or Pennsylvania, which statutes had been pleaded as a defense, and introduced the Statute of Frauds of Pennsylvania in evidence, together with certain decisions of the courts of that State construing it.

Defendant Lipowicz was not sworn as a witness on the present trial and no oral testimony was given in behalf of defendants. After the defense rested each side moved for the direction of a verdict, and the court, with the consent of the parties, discharged the jury, and after due deliberation directed a general verdict in favor of defendants. This procedure seems to have been agreed to by all parties with the understanding that the decision of the court on the motions for a directed verdict should be with the same force and effect as if the jury had rendered a verdict at that time.

The decision of the court was to the effect that the Statute of Frauds of Pennsylvania was controlling, and that inasmuch as the courts of that State had held that contracts similar to the ones in question were not enforcible in Pennsylvania, the decisions of the courts of that State would control the situation here and that plaintiff could not maintain the action.

Plaintiff contends that the Statute of Frauds contained in the [164]*164Uniform Sales Act, as adopted in Pennsylvania, is not controlling and that the decisions of the courts of Pennsylvania under the facts in this case are not binding on the courts of this State.

Plaintiff further contends that the contracts were definite and certain, and that there was sufficient evidence by way of memoranda with reference to the contracts to satisfy the Statutes of Frauds in both States.

For the reasons heretofore stated it is our opinion that these were Pennsylvania contracts, but it is also our opinion that the Pennsylvania Statute of Frauds will not preclude plaintiff from prosecuting the action in this State where defendant Lipowicz is a resident.

The Pennsylvania statute (Uniform Sales Act, § 4) provides: “A contract to sell or a sale of any goods or choses in action of the value of five hundred dollars or upwards shall not be enforceable by action unless the buyer shall accept part of the goods or choses in action so contracted to be sold or sold, and actually receive the same, or give something in earnest to bind the contract, or in part payment, or unless some note or memorandum in writing of the contract or sale be signed by the party to be charged or his agent in that behalf.”

It will thus be seen that the Pennsylvania statute does not say that contracts which do not comply with its terms are void, but merely that they shall not be enforcible by action, and that means by action in the courts of Pennsylvania. • (Daniels v. Rogers, 108 App. Div. 338.)

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

Related

State of New York v. Gordon
102 A.D.2d 990 (Appellate Division of the Supreme Court of New York, 1984)
William Carlson v. Chisholm-Moore Hoist Corporation
281 F.2d 766 (Second Circuit, 1960)
Callanan Road Improvement Co. v. Colonial Sand & Stone Co.
190 Misc. 418 (New York Supreme Court, 1947)
People v. Johnson
269 A.D. 120 (Appellate Division of the Supreme Court of New York, 1945)
Davis v. Ross
259 A.D. 577 (Appellate Division of the Supreme Court of New York, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
220 A.D. 160, 221 N.Y.S. 11, 1927 N.Y. App. Div. LEXIS 9255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-sugar-refining-co-v-lipowicz-nyappdiv-1927.