Gile & Co. v. Lasselle

171 P. 741, 89 Or. 107, 1918 Ore. LEXIS 97
CourtOregon Supreme Court
DecidedMay 14, 1918
StatusPublished
Cited by5 cases

This text of 171 P. 741 (Gile & Co. v. Lasselle) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gile & Co. v. Lasselle, 171 P. 741, 89 Or. 107, 1918 Ore. LEXIS 97 (Or. 1918).

Opinion

BUBNETT, J. —

Both parties attempt to deraign title to the property from Bust. This is an action at law and not a suit in equity and the matter must be adjudicated by legal rules as distinguished from equitable maxims. The crux of the situation is found in the construction to be given to the admitted contract. It is said in Section 136, L. O. L.:

“All questions of law, including the admissibility of testimony, the facts- preliminary to such admission, and the construction of statutes and other writings, and other rules of evidence, are to be decided by the court. * * ”

It is also said in Section 717:

“For the proper construction of an instrument, the circumstances under which it was made, including the situation of the subject of the instrument, and of the parties to it, may also be shown, so that the judge be placed in the position of those whose language he is to interpret.”

1-5. The bill of exceptions discloses that the plaintiffs called Mr. Bust as a witness, and among other things, had him identify the contract between himself and the plaintiffs. On cross-examination the defendant’s counsel asked him: “What did you understand by this term of the contract, ‘Time is of the essence of the contract?’ ” Another question was as follows:

“Now, Mr. Bust, it states in this contract that the ‘said buyer agrees to pay for said crop at the price named, when delivery is completed, provided the seller delivers the same thoroughly and properly dried and cured, and free from burned or soft fruit, and in good marketable and merchantable condition.’ Now, what was your understanding in reference to whether any title passed to Gile until all this was done, or not?”

[114]*114. To these and similar questions the plaintiffs objected on the ground that they had a tendency to vary the terms of the written instrument which appear clearly upon its face and also that they were not proper on cross-examination. The court overruled this objection. This ruling was manifestly erroneous, because it allowed the witness to construe the contract, thus invading the function of the trial judge under the excerpts from the Code above set out. The view of the contract which we adopt, however, makes this error harmless because the result reached was in harmony with the true meaning of the instrument which ought to have been stated by the trial judge without hearing Bust’s construction.

The theory of the plaintiffs is that the legal effect of the agreement in question was to transfer the title to the property from Bust to them, if not at its date, at least at the moment when he had in his possession as the output of his drier, dried prunes which were suitable for filling the contract. The defendant maintains that at best it was an executory agreement which conveyed to the plaintiffs no present title or right of immediate possession without which they cannot maintain replevin. Putting ourselves in the position of the parties on June 27,1916, when the contract was made, as we are required to do by Section 717, L. O. L., we must know by the laws of nature and the fruit season in this country that there was then no present crop of prunes of the season of 1916, dried and ready for shipment, even if the seller had an orchard upon which potential property in such fruit could be predicated. The testimony shows without dispute that at that time Bust had no prunes of any kind and no orchard or contract by means of which he could expect to acquire them, , It is common sense that a man cannot pres[115]*115ently convey title to property which, is not in existence. It is true, that he may make a contract for future delivery, although he has no property of the kind on hand when the stipulation is made. The authorities, however, are practically unanimous that such a covenant is executory in its nature, notwithstanding it contains present words of selling and buying.

6-9. In the present instance the writing begins with the recital that the seller “has sold” and the buyer “has bought” the 1916 crop of prunes, the output of Rust’s drier. It is also said in the body of the instrument: “This contract is understood by both parties to constitute an absolute sale, but until the delivery has been completed the seller agrees to and does assume all risk of loss or damage. ’ ’ This language is no stronger than that above mentioned and adds nothing to its force. It does not amount, in effect, to any more than saying that when the terms of the writing have all been fulfilled, the result will be an absolute sale. When we consider the whole instrument together we find that in it there are dependent covenants, the performance of which must be synchronous and that neither party can put the other in default until he has himself fully performed or tendered performance of what he is to do on his part. This doctrine is illustrated in such,cases as Lewis v. Craft, 39 Or. 305 (64 Pac. 809); Longfellow v. Huffman, 49 Or. 486, 490 (90 Pac. 907). The principle that at law the seller cannot presently pass title to property which is not in existence, either actually or potentially, or which he must hereafter acquire, is enunciated in the cases of Fonville v. Casey, 5 N. C. 389 (4 Am. Dec. 559); Moody v. Wright, 13 Met. (54 Mass.) 17 (46 Am. Dec. 706); and Dickey v. Waldo, 97 Mich. 255 (56 N. W. 608, 23 L. R. A. 449, and notes). It is argued by the plaintiffs [116]*116that although title did not pass at the date of the contract on account of the property not being then in existence, yet afterward when the seller did acquire the fruit of the kind and quality prescribed by the agreement, the ownership then automatically passed to the plaintiffs in manner and form sufficient to support replevin. The rule supported by the authorities quoted, as well as by most other precedents, however, is that in order really to pass the title, as distinguished from rights under an executory contract, when the property has actually come into existence and possession of the seller, there must be some further act of the parties amounting to a performance in that feature of the covenant which hitherto has been executory. The plaintiffs and Eust entered into an agreement the working out of which was designed to pass the title to personal property from the latter to the former. The terms of that process are described in their writing. They expressly say that the “buyer agrees to pay for said crop at the price named when delivery is completed.” Without respect to the general property in the prunes, in whomsoever that may be, as against the action for mere possession of them Eust would be entitled to hold the property under this contract until plaintiffs had performed their concurrent covenant of paying at the time of delivery. This court has several times held that a claim under an executory ■contract will not support replevin by the buyer from the seller. This is taught in Hubler v. Gaston, 9 Or. 66 (42 Am. Rep. 794); Rosenthal Bros. v. Kahn Bros., 19 Or. 571, 573 (24 Pac. 989); Hamilton v. Gordon, 22 Or. 557, 558 (30 Pac. 495); Backhaus v. Buells, 43 Or. 558, 569 (72 Pac. 976, 73 Pac. 342), and other cases. The rigor of this rule of law is somewhat tempered under certain circumstances in equity, where chattels [117]*117are mortgaged in advance of their acquisition.

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Bluebook (online)
171 P. 741, 89 Or. 107, 1918 Ore. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gile-co-v-lasselle-or-1918.