Genet v. President, Managers & Company of the Delaware & Hudson Canal Co.

24 Jones & S. 27
CourtThe Superior Court of New York City
DecidedMay 10, 1888
StatusPublished

This text of 24 Jones & S. 27 (Genet v. President, Managers & Company of the Delaware & Hudson Canal Co.) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Genet v. President, Managers & Company of the Delaware & Hudson Canal Co., 24 Jones & S. 27 (N.Y. Super. Ct. 1888).

Opinions

Henry E. Sickles, Referee.

The language of the lease or contract upon which this action is based, as to the duties imposed upon the defendant in the matter of mining coal, is so clear and unmistakable tha,t there can be no reasonable doubt as to its meaning. The defendant, the party of the second part, agrees, “to mine from said land, in the year one thousand eight hundred and sixty-four, not less than ten thousand tons of coal; in the year one thousand eight hundred and sixty-five, not less than ten thousand tons, and twenty thousand in each and every year thereafter. It being understood that the said party of the second part is to pay for ten thousand tons in each and every year, whether the same shall be actually taken out in such year or not, and that in case the maximum quantity of twenty thousand tons is not taken out in one thousand eight hundred and sixty-six or any subsequent year, interest at the rate of seven per centum per annum, shall be paid by the said party of the second part to the said parties of the first part, their heirs or assigns, upon such sums as the deficiency [31]*31shall amount to, said interest to be continued until the full quantity' agreed to be taken out as aforesaid shall be reached,” provided, “ that the said party of the second part shall have the privilege of taking out, without charge, at any time thereafter a quantity of coal equal in amount to the deficiency they may have paid for in any previous year or years.” •

Then, after providing for certain contingencies, which, if they arise, may terminate or modify the liability of defendant, the contract continues : “ And the said

party of the second part agrees to pay for the coal mined and taken out in pursuance of this agreement at the rate of twelve and a half (12') cents for every ton of (2240) twenty-two hundred and forty pounds of clear merchantable coal, exclusive of culm or mine waste, that will pass through a mesh of one half inch square.” .... “And it is further understood and agreed that if the said party of the second part elect to do so, they may increase the quantity beyond that stipulated to be mined in any one year, and, at their option may diminish the quantity for any succeeding year or years by an amount corresponding with such increase ; provided that the quantity mined shall not be less in the aggregate than as hereinbefore stipulated.”

No ingenuity of argument will change the meaning of this language. The defendant obligates itself to mine not less than ten thousand tons of coal for the first two years and not less than twenty thousand tons thereafter. If it fails so to do, provision is made for indemnity to the plaintiff for the breach. The defendant does not obligate itself to mine more under any circumstances, but, in precise and emphatic phrase, limits its liability to that amount. It has the privilege to mine more, but if it avails itself of that privilege, the excess is first to be applied to make up deficiencies, if any, for former years, and then, if there is still an excess, it has the option to diminish the quantity (i. e., to mine less than the prescribed quantity) “ for any succeed[32]*32ing year or years by an amount correspondent with such increase.” In other words the defendant has the privilege of mining more than an average amount of 20,000 tons per year (after the first two), which it absolutely agrees to mine, but carefully limits its liability to that amount. There are no words which expressly or by implication require the defendant to mine with reasonable diligence, and to import them into the contract would be to materially vary and modify it, and this may not be done however conclusively the plaintiff may be able to make it appear by parol evidence that defendant’s officers and agents did in fact agree to so mine.

The old common law rule, that parol evidence is inadmissible to vary or modify, to add to or take from the terms of a written contract, is still preserved in all its vigor in this state. There are very many cases which it is claimed have established exceptions to or modifications of the rule. But these exceptions and modifications are more apparent than real, they simply define its boundaries and exclude from it matters which are not included in its words.

Thus, if the language of a contract is ambiguous, resort may be had to the surrounding circumstances, and sometimes to the statements of the parties, not to vary the terms of the instrument, but to show in what sense the parties understood them. Where the words of a contract are plain, their meaning unmistakable, and they are conclusive as to the intent, no resort may be had to the circumstances or the statements to show that the parties really intended something else, except where a reformation of the contract is sought for because of mistake or fraud.

The question has been very frequently before the Court of Appeals of late, and without citing a long array of authorities, it will be sufficient perhaps to quote from the opinion of Andrews, J., in Corse v. Peck, decided in June last and not yet reported, to show the position of the court. He says, “ The rule that parol [33]*33evidence is inadmissible to add to or vary the terms of a written contract precludes evidence of the negotiations which preceded, or conversations which accompanied, the making of it, unless necessary to explain ambiguous provisions the meaning of which cannot be ascertained by an inspection of the wuitten instrument.” See also Snowdon v. Guion, 101 N. Y. 458, 462.

So, too, it has been held that the rule does not apply where the original contract was verbal and part only has been reduced to writing, or to collateral undertakings.

But where the written contract indicates that it was the intention and design to express therein the-whole contract between the parties, it is conclusive. As said by Finch, J., in Eighmie v. Taylor, 98 N. Y. 288, 294: If we may go outside of the instrument to prove that there was a stipulation not contained therein and so that only part was put in writing, and then because of that fact enforce the oral stipulation, there will be little of value left in the rule itself.”

It is claimed on the part of the plaintiff that at least so far as the testimony of what occurred between her agent and defendant’s president at the time of the delivery of the contract is concerned, it.is competent, and that defendant is bound thereby.

1st. That it was the interpretation put by the agents of the parties, who acted for them, upon the contract, and that the parties are thereby estopped from disputing it or claiming that the contract reads otherwise. In other words, the argument is that, however clear and unambiguous may be the language of a contract, it is proper to show that the parties in considering its terms orally agreed that it should mean something else, and that something else must take the place of the words of the contract, and thus an entirely different contract be established. When the courts go" thus far, from that moment the rule considered so important, so carefully laid down, ceases to exist.

[34]*342d. It is claimed that as the contract was delivered only in reliance upon the promise of defendant's agent that they would work the mine industriously, “work out the greatest quantity of coal,” that /this was enforceable as a separate and independent agreement. Such a parol agreement, to be enforceable, must be consistent with the terms of the written contract, not directly antagonistic to and subversive of it.

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Bluebook (online)
24 Jones & S. 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genet-v-president-managers-company-of-the-delaware-hudson-canal-co-nysuperctnyc-1888.