Gravenhorst v. Turner

215 A.D. 617, 213 N.Y.S. 468, 1926 N.Y. App. Div. LEXIS 11023
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 22, 1926
StatusPublished
Cited by3 cases

This text of 215 A.D. 617 (Gravenhorst v. Turner) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gravenhorst v. Turner, 215 A.D. 617, 213 N.Y.S. 468, 1926 N.Y. App. Div. LEXIS 11023 (N.Y. Ct. App. 1926).

Opinion

Jaycox, J.

The theory of the plaintiffs’ cause of action is that the defendants, as brokers, have failed in their duty toward the plaintiffs by whom they were employed, and thus occasioned the plaintiffs damage. The plaintiffs are commission merchants, with offices in the city of New York, and the defendants are duly licensed sugar brokers, with offices and places of business in the city of New York and the city of Philadelphia. On the 19th of May, 1920, plaintiffs received a cablegram from Antwerp offering them 600 tons of granulated sugar for shipment June, July and August at twenty-four and one-fourth cents per pound. The plaintiffs then offered the sugar for sale through a broker named Francis H. Goecker. Goecker met the defendant Joseph B. Turner, Jr., the same day and offered him, on behalf of the plaintiffs, said 600 tons of Belgian granulated sugar for shipment over a period of three months, June, July and August, at a price of twenty-four dollars and eighty cents per 100 pounds, c. i. f., New York. Within the course of an hour he heard from Turner, who told him that the offer was accepted. Goecker then reported to his principals, the plaintiffs. He further says that the above quoted terms are the only terms quoted by him to Turner', and that he did not say “ ex-dock.” After this lapse of time he is unable to say whether he said anything about an irrevocable letter of credit or not. That such a letter of credit, however, was mentioned is shown by the office memorandum of Turner Brothers, made before any other communication with them, which recites: “ Irrevocable letter of credit to be established upon signing of contract.”

In an action brought later in Philadelphia, Joseph B. Turner, Jr., testified as to the receipt of the offer of the 600 tons of Belgian granulated sugar; that he communicated that offer to the Phil a[619]*619delphia office, and after he heard from the Philadelphia office he reported to the plaintiffs that they had a buyer for the offering which the plaintiffs had made to them, with the name and other details of the transaction, as the offer was made to them. Upon receipt of this information one of the plaintiffs communicated with Mr. Turner, Jr., and also went to his office. In that interview Turner stated that he had sold the 600 tons of granulated sugar, 200 tons June shipment, 200 tons July shipment, and 200 tons August shipment, c. i. f., terms letter of credit basis; that he had sold it to the Breyer Ice Cream Company of Philadelphia, and the price was twenty-foúr and eight-tenths cents per pound. Gravenhorst then returned to his office; looked up the credit of the Breyer Ice Cream Company, to see if it was good for the amount and could open the necessary letter of credit, and prepared a confirmation, which he took to the office of the defendants. This confirmation was signed by the defendants, and a portion of the first sentence of the confirmation reads as follows: “ We herewith confirm having to-day sold you through Messrs. Turner Bros., New York, six hundred (600) tons of 2,240 lbs. Belgian Granulated Sugar, packed in bags * * Leaving this paper with the defendants to be sent to the Breyer Ice Cream Company, Gravenhorst returned to his office and cabled to Antwerp accepting the 600 tons of sugar. The deal with the Breyer Ice Cream Company fell through. It declined to take the sugar. The plaintiffs then endeavored to secure a release from their contract with the sellers in Antwerp. This was refused. The plaintiffs then went on and sold the sugar. The first shipment they sold at a profit; the second shipment at a loss, and the market was such that the third shipment was not made at all, but the sugar was sold in Antwerp for the account of the plaintiffs and resulted in a loss. There is no controversy as to these transactions, except that the defendants insist that the sugar could have been sold in New York without incurring any loss, and the plaintiffs insist that only sugar for immediate or prompt delivery could be sold at the then market price; that the situation was extraordinary and that sugar for future delivery could not be sold.

After the sugar had been disposed of, as above related, the plaintiffs brought an action against the Breyer Ice Cream Company upon the theory that the Breyer Ice Cream Company had contracted with the plaintiffs to purchase this sugar; that the Breyer Ice Cream Company had defaulted upon its contract and thereby occasioned damage to the plaintiffs, and sought in that action to recover their damages. The Breyer Ice Cream Company answered and denied the contract. The defendants were inter[620]*620viewed in relation to that action and they did not inform the plaintiffs that no contract was made with the Breyer Ice Cream Company, but offered the plaintiffs every aid in their power. Upon the trial of that action the defendant therein proved that no sale to the defendant was made, and the defendants in this action, through their manager, admitted that no sale was made. It is uncontradicted here that during the time the action against the Breyer Ice Cream Company was pending, and before its trial, the plaintiffs, through their attorney, informed these defendants that the only question involved in that action was as to whether Turner Brothers, as brokers, had made the proper entry in their books, so as to take the sale out of the Statute of Frauds, that having been pleaded as a defense. The defendants informed him that the note would be found in the Philadelphia office. The Philadelphia office furnished the plaintiffs’ attorney with an office entry reciting a sale to the Breyer Ice Cream Company. Upon the trial the action was dismissed and the defendants’ attorneys claim that the dismissal was under the Statute of Frauds, and the plaintiffs’ attorney contends that the dismissal was on the ground that no contract was proven. As the expenses of that litigation are made the subject of the second cause of action which was dismissed by the learned referee, and as it is not in any way involved in the first cause of action, the propriety of the referee’s action may be determined without relation to the findings which were subsequently made. The testimony in that action was, so far as quoted in this action, entirely to the effect that no contract was made. This being so, the dismissal, it seems to me, must necessarily have been upon the ground that no contract was made.

As to the first cause of action (the loss upon the sale of the sugar) we have this situation: The plaintiffs employed the defendants as brokers to sell 600 tons of sugar. The defendants reported that they had sold the sugar. This was not true. No sale had been made. The plaintiffs relied on the defendants’ representation that they had sold the sugar and completed their purchase from the Antwerp concern which had the sugar for sale. Under these circumstances a cause of action would accrue in favor of the plaintiffs for the loss, if any, which accrued to them by reason of the failure of defendants to truthfully report in relation to the sale. We are, therefore, called upon to decide, did the testimony of the plaintiffs show such a state of facts as to relieve the defendants from this liability. In determining that question the plaintiffs insist that they are entitled to have adopted the construction [621]*621of the testimony most favorable to them, and that they are also entitled to the benefit of all the inferences favorable to them which may be drawn from the testimony. The rule which they state, I think, has no application to a case tried before the court without a jury.

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Related

Becker v. Wells
78 N.E.2d 609 (New York Court of Appeals, 1948)
Cooke v. Cortright
39 N.E.2d 210 (Ohio Court of Appeals, 1941)
In re the Estate of Miller
162 Misc. 563 (New York Surrogate's Court, 1937)

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Bluebook (online)
215 A.D. 617, 213 N.Y.S. 468, 1926 N.Y. App. Div. LEXIS 11023, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gravenhorst-v-turner-nyappdiv-1926.