Gallaspy v. A. J. Ingersoll & Co.

84 So. 510, 147 La. 102, 1920 La. LEXIS 1836
CourtSupreme Court of Louisiana
DecidedMay 3, 1920
DocketNo. 22631
StatusPublished
Cited by8 cases

This text of 84 So. 510 (Gallaspy v. A. J. Ingersoll & Co.) 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
Gallaspy v. A. J. Ingersoll & Co., 84 So. 510, 147 La. 102, 1920 La. LEXIS 1836 (La. 1920).

Opinion

SOMMERVILLE, J.

Plaintiff brought suit, alleging that he had shipped and delivered to defendant a lot of cotton which the defendant had sold for his account and had collected the proceeds, and refused to pay same to him after demand.

Defendant admitted the shipment by plaintiff of a number of bales and their sale, and averred that the proceeds of such sales had been credited to plaintiff’s account, under a conventional- agreement with plaintiff.

Defendant then set up two contracts between plaintiff and defendant, under each of which the defendant bought from plaintiff 100 bales of cotton, to be delivered between certain dates, at certain fixed prices, and averred repeated demands upon its part that plaintiff comply with his contracts, and claimed of plaintiff, in reconvention, the difference between the contract price of said cotton and its market price on the last date on which delivery could be made under the agreements.

There was judgment rejecting plaintiff’s demands; and awarding judgment to defendant, on its reconventional demand, for the difference between the sales price of the cotton shipped by plaintiff to defendant and the amount of damages due the defendant by reason of plaintiff’s refusal to comply with his two contracts of sale. Plaintiff appeals.

[1] As plaintiff resides in Natchitoches parish, and defendant in Caddo, the latter had the right to sue in reconvention for damages, although the damages claimed were not connected with or incidental to the main demand. C. P. art. 375.

The contracts set out by defendant, upon which the reconventional demand is based, are in writing. The first reads as follows:

“Shreveport, La., April 26, 1916.
“A. J. Ingersoll & Go. have this day bought of F. G. Gallaspy, one hundred (100) bales of spot cotton, nothing below middling in grade, and nothing below seven-eighths (%ths) inch staple, to weigh about 51,500 pounds; at eleven and one-half (11%) cents per pound basis middling, with the prevailing differences on and off middling at the time of delivery, tare not to exceed twenty-four (24) pounds per bale; to be delivered at the Columbia Compress in Shreveport, Louisiana, at any time from September 1st, to December 1, 1916, inclusive.
“Stanley Evans,
“Per pro A. J. Ingersoll & Co.
“F. G. Gallaspy.
“Attest:
“A. B. Costley,
“F. W. Ferdmenges.”

The second contract is like the first, except that the date is May 8, and the price is 12% cents per pound.

The evidence shows that repeated demands were made by defendant upon plaintiff between the dates of his contracts and November 30, 1916, to make delivery. And it was also shown that there was an understanding between Gallaspy and the defendant that all of the money to his credit on account of the sale of cotton shipped by him to Ingersoll [105]*105& Co. should be left in their hands until he should have complied with his contracts for the sale of the 200 bales of cotton. It is further shown that letters were mailed on the dates they bear, and that on November 17, 1916, defendant wrote to plaintiff:

“It is understood that whatever balance to your credit is to be left with us until completion of your contracts for fall delivery is made.”

And on November 29, 1916, after presentation of a draft by plaintiff on defendant, payment of which was refused, defendant wrote to plaintiff as follows:

“Your draft for $4,526.21 was presented today, and we refused to honor it for the reason that it was understood and agreed between us at the time the purchase of the last 200 bales was made on November 17th, that the balance to your credit was to be left in our hands until you completed your contract for the delivery of 200 bales of cotton; 10O bales sold at 11% cents and 10O bales sold at 12% cents, basis middling, delivered Shreveport.
“As the market now stands, there is a loss on these 200 bales of over $8,000.00, and we expect you to deliver the 200 bales in full before any settlement is made between us.”

Although repeated demands were made upon Gallaspy to comply with his contracts and deliver the two lots of cotton, and, as Gallaspy had confessed that he would be unable to comply with his contracts, and agreed to leave such proceeds on hand as security for the payment to Ingersoll & Co. for the loss on the contracts on which he subsequently defaulted, plaintiff contends that there was not a proper putting in default, not that the mode of putting .in default was improper, but that Gallaspy was not put in default at the proper time.

Plaintiff appears to say that the repeated demands made upon him prior to December 1 amounted to nothing in law, and that the written demand he received on the day prior to the termination of the period of delivery was without legal effect, and that in order that there could be any recovery for a breach of the contracts, it was necessary for Ingersoll & Go. to go through the ceremony of putting in default on December 1, or subsequent thereto.

[2] The statement of this contention is its own refutation.

“To put in default is nothing else than to demand of the debtor that he carry out the contract. The Code expressly says so. * * *
“Laurent * * * says: ‘To put in default is a purely technical expression, meaning that the debtor is tardy in the fulfillment of his obligation, and that he is liable for the damages which the delay may occasion to the creditor.’ ’ * *
“In Taylor v. Chase, 18 La. 91, this court-said: ‘A putting in default * * * is when the party claiming the performance of the contract demands of the other party to carry it into effect.’ * * *
“Putting in default is not a thing invented by the framers of our Code. It was taken by them from the civil law. * * * We there find that putting in default means nothing more, and has no other function than as has been just stated,” Watson v. Feibel, 139 La. 375, 71 South. 585.

In Hafner Mfg. Co. v. Lieber Lbr. & Shingle Co., 127 La. 348, 53 South. 646, the demand for the delivery of the lumber was, as here, made prior to the termination of the period within which the defendant had the right to deliver, and a similar contention was there raised; the court answered:

“The object of putting in default is to let the obligor know that the obligee desires that the contract should be fulfilled at the time prescribed.”

The jurisprudence is uniform to the effect that where the party acknowledges in advance his inability to perform, or expresses his intention not to perform, no putting in default is necessary.

Such, in substance, was the admission of Gallaspy when he agreed to leave the proceeds of the cash sales in the hands of Ingersoll & Co. to be offset against the dam[107]*107ages which would accrue from his failure to comply with his contracts of sale.

[3] But it is unnecessary to resort to this, since it was only by giving notice prior to the termination of the period of delivery that Ingersoll & Co.

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Bluebook (online)
84 So. 510, 147 La. 102, 1920 La. LEXIS 1836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gallaspy-v-a-j-ingersoll-co-la-1920.