Gerber v. Ogle Coal Co.

218 N.W. 361, 195 Wis. 578, 57 A.L.R. 838, 1928 Wisc. LEXIS 125
CourtWisconsin Supreme Court
DecidedMay 8, 1928
StatusPublished
Cited by6 cases

This text of 218 N.W. 361 (Gerber v. Ogle Coal Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerber v. Ogle Coal Co., 218 N.W. 361, 195 Wis. 578, 57 A.L.R. 838, 1928 Wisc. LEXIS 125 (Wis. 1928).

Opinion

The following opinion was filed' March 6, 1928:

Rosenberry, J.

Both parties in the main accept the report of the referee as confirmed by the court. The defendant raises three principal questions in this court. It is not necessary to state all of the complicated facts connected with the entire transaction which were necessarily gone into before the referee in order to present the questions raised here. We shall therefore only state such of the facts as seem to us to be necessary to a consideration and determination of the questions raised. We shall hereafter in this opinion use the term “plaintiffs” as referring to the United Coal Mines, Inc., Coal Land Development Corporation, Edward F. Gerber and William S. Funston, Jr., and Finance Realty Corporation unless otherwise indicated, and we shall not distinguish between these parties whether they were parties to the original contract or assignees, and we shall treat the transaction as if it had been conducted by a single party.

The plaintiffs accepted orders from the defendant for coal as follows:

May 12, 1922, 30 cars at $2.95 per ton f.o.b. mines.
June 16, 1922, 50 cars at $3.00 “ “ “ “ •
June 20, 1922, 25 cars at $3.00 “ “ “
July 3, 1922, 100 cars at $3.50 “ “ “

The controversy herein relates principally to the contract dated July 3, 1922. The referee found that fifty-four cars were delivered and forty-six remained undelivered. The terms of this contract were : “Net cash on or before the 10th of the month for all shipments made during the preceding [582]*582month.” Deliveries were to be made during a period covered by a very serious strike in the coal industry and a strike on the railway lines serving the territory. There were a number of conferences, and letters and telegrams were exchanged having to do with the matter of more prompt delivery. On July 26, 1922, at a conference held in Cincinnati, there was an adjustment, and the plaintiffs promised to forward coal at the rate of ten cars a day for the next four days and to instruct the Borderland Coal Sales Company, from whom they were purchasing, to ship the defendant’s cars direct from the mine on the defendant’s orders. Two cars were shipped on July 26th, three on July 27th. The shipments then ceased. It appears that the defendant was advised by the plaintiffs that certain shipments had been made which had not in fact been made, due to the fact that parties from whom plaintiffs secured the coal did not fulfil their contract. On August 17, 1922, there was another conference, and it is claimed that there were misstatements made as to the number of cars shipped and in course of shipment. On August 23, 1922, four cars were shipped, three on August 24th, six on August 30th, and eight on September 8th. On September 12, 1922, the plaintiffs wrote the defendant inclosing invoices covering seven cars, stating that these invoices amounted to $2,466.20 and were payable on September 10th, concluding with “You will receive this letter on Wednesday, September 13th. We would like to have you wire us that you will send us a check on that date so we will have it in our office not later than September 14th.”

On September 13, 1922, plaintiffs wired the defendant as follows: “Wire if you will or will not send check for past-due account approximately twenty-five hundred dollars.”

The defendant wrote the plaintiffs on September 13, 1922, as follows:

“Your favor under date of September 12th requesting a remittance'in the amount of $2,466.20 and particularly call[583]*583ing for a wire on our part, has been received. We have also noted your wire of today which reads as follow's:
‘Wire if you will or will not send check for past-due account approximately twenty-five hundred dollars
“In accordance with a letter written by us to the United Coal Mines, Inc., of even date, you will find that there is a slight difficulty to be straightened out between ourselves before we can pass all the invoices. Your favor under date of September 13th also sets forth car PRR 702067, whereas up to the present writing we have no invoice of this car.
“From your past dealings with us you are keenly aware of the fact that we always pay promptly and that we do not seek in any way to evade our obligations. The matters indicated to you above must be straightened out between ourselves immediately.
“But there is a much more serious phase to the situation. We have been informed that you sold more coal under contracts than the mine from which we are receiving shipments is able to produce in the light of the present car supply, and that your contract with the producing company has only a short time to run. In view of our past dealings, we want to assure you that we shall pay you without question every dollar that is coming to you and pay you promptly, but we must have the certainty that we are going to get every ton of coal due us under our present.arrangement. We want to be enlightened by you, and at once, on this score, and just as soon as information has been furnished us by you satisfactory to us, you will be paid every penny due you.
“You can readily appreciate our position in this matter. Because of your not living up to the terms of our original contract and failing to deliver, we sustained a very serious loss in adjusting claims made against us by the people tp whom we had sold. We cannot afford to take further chances and we must protect ourselves as we go along.”

Replying to the defendant’s letter of September 13th, the plaintiffs 'on September 14, 1922, wrote the defendant as follows:

“We inclose you copy of letter received from your Mr. Cratty of Cincinnati.
“The shipments that our company made in August amounting to $2,466.20, past due, and we desire to serve [584]*584notice on you now that this is our last notification. Unless you send us a New York draft for the amount, also for shipments which have been made since September 1st and not invoiced. Our bill for $2,466.20 does not include PRR 702067.
“In reference to your company paying your accounts promptly, permit us to call your attention to the fact that you were slow in paying your June account and we notified you that we would stop shipments if settlement was not immediately forthcoming, and we finally got our pay about a week or ten days past due date.
“We inclose you copies of invoices making this $2,466.20.
“P.S. We have just today received weight on car PRR 702067, and we are inclosing invoice to cover.”

On September 15, 1922, the plaintiffs notified the defendant by telephone that by reason of defendant’s failure and refusal to pay they would terminate, and did terminate, the contract, and no further shipments were made except that four cars then in course of shipment were not stopped but proceeded to destination.

The first question presented is whether or not the plaintiffs were justified in terminating the contract by reason of the defendant’s failure to pay as stated in the letter of September 13, 1922. The contract was concededly a Pennsylvania contract and is governed by the Uniform Sales Act (sub. (2) of sec. 121.45, Wis. Stats.: § 19693, Pa.

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Bluebook (online)
218 N.W. 361, 195 Wis. 578, 57 A.L.R. 838, 1928 Wisc. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerber-v-ogle-coal-co-wis-1928.