Gonzalez v. Texas Feed & Grain Co.

328 S.W.2d 923
Court of Appeals of Texas·Decided October 23, 1959·No. No. 16036·Published·Cited by 2 cases

Opinion

MASSEY, Chief Justice.

This is a suit for breach of contract to take grain contracted to be delivered by one party and to be accepted by the other. In addition to the ordinary damages occasioned by the breach, the seller sought to recoup certain demurrage charges occasioned at a time when the seller was causing a delay in transit, because of the purchaser’s request and so that the purchaser could be afforded time to try to get certain permits requisite to using American • railroad cars in the transport of grain into Mexico.

The plaintiff (seller) was the Texas Feed & Grain Co., Inc., and the defendant (purchaser) was T. P. Gonzalez, trading in the name of Gonzalez & Blanco.

Judgment for plaintiff was based upon answers returned by the jury to special issues submitted, and from said judgment the defendant appealed.

Judgment affirmed.

The parties will be styled as they were in the trial court. Defendant insists that there is evidence in the record that plaintiff elected to sell the grain for defendant’s account rather than to “treat it as its own”, [925] and that therefore plaintiff should be confined to a measure of damages which would be the difference between the contract price and the amount for which plaintiff resold the grain after defendant’s breach. On the appeal no question is presented relative to breach and breach will be treated as established. Alternatively, it is contended by defendant that even if the plaintiff’s measure of damages should not be so calculated, he should have been permitted to elicit testimony showing the amount for which the plaintiff resold the grain to other purchasers after defendant’s breach, as having a bearing upon the measure of damages for which plaintiff contended.

The measure of damages defendant claims to be applicable under the circumstances of the case was not that for which the plaintiff sued, nor which was the foundation of the judgment. The defendant was not permitted to prove the amounts for which the grain was resold after his breach.

The theory upon which the plaintiff plead and proved its case was the ordinary measure of damages, or “ * * * the ordinary measure of which is the difference between the contract price and the value of the goods at the time of the repudiation. * * * if he (the seller) does not care to pursue one of the other remedies * 37-A Texjur., p. 613, “Sales”, ch. XVI, “Remedies of Seller”, sub. G., “Recovery of Damages”, sec. 300, “Availability of Remedy Generally”.

The defendant did not plead affirmatively in any respect, contenting himself with a general denial.

In the latter part of 1957 and first part of 1958 there was a shortage of grain in Mexico. The defendant desired to acquire it in the United States, as delivered at Laredo, Texas, from which he would cause it to be shipped on into the interior of Mexico where he would market it at an expected profit. He planned to use the same railroad cars in which the grain arrived at Laredo in the accomplishment of his purpose, and to leave the grain on the cars and send all on to the points where he expected to market it. It is apparent that others were doing substantially th'e same thing and a great many American railroad cars were in Mexico. The railroads were encountering some trouble in getting their railroad cars returned to the United States, and in consequence anyone who wanted to move other cars into Mexico were running into difficulties. In order to so move other cars permits were required. The defendant in the instant case could not get the necessary permits to accomplish the purpose he had in mind when he contracted with the plaintiff to take the grain. While the grain was in transit he was doing all he could to get permits which would enable him to avoid a condition where the grain would sit on the tracks at Laredo, upon arrival at that point, and perhaps spoil. He requested that the plaintiff delay grain in transit, even incurring demurrage charges, in preventing delivery at Laredo before he could secure the necessary permits to accomplish his purpose. Plaintiff complied with the request. Apparently the defendant never did obtain these permits. In consequence, he did not desire to accept the grain.

There were three contracts in all, but substantially the same terms were in each, other than the delivery dates.

A breach of one of the contracts occurred on February 15, 1958. Obviously, plaintiff did not desire to treat it as a breach. Three days thereafter, the plaintiff stated in a wire to the defendant, “ * * * therefore contracts (are) still in force and corn (is) being held for your account we must now insist that you arrange for handling of corn on track else same will have to be sold for your account.”

A few days later, on March 5, 1958, plaintiff wrote the defendant that twenty-four cars of corn had been ordered to a grain elevator in Fort Worth for storage and to get same off the tracks so as to stop heavy demurrage. In the letter the de-[926] murrage charges and elevation charges were noted as considered properly charged to defendant’s account. Previous demur-rage charges were stated and referred to along with identification thereof and the statement was made that plaintiff was drawing a draft on the defendant to bring the latter’s account up-to-date. The amount thereof was $2,662.37. It seems clear to us that up to this .time the plaintiff was waiving any right to treat the contract as having been breached by the defendant and was insisting on performance as contracted. By letter dated March 10, 1958, the defendant wrote plaintiff and stated “We cannot accept your charges of $2,662.37, as'they are-not for our account.” Further, in the same communication, the defendant made it plain that he considered the contracts with the plaintiff to have expired without tender of the “deliveries at Laredo”. From and after such time the plaintiff did treat the contracts as having been breached. There is no question but what the contracts were breached.

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Gonzalez v. Texas Feed & Grain Co., 328 S.W.2d 923 (Tex. Ct. App. 1959).

328 S.W.2d 923 (Gonzalez v. Texas Feed & Grain Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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