H. O. Wilbur & Sons, Inc. v. Lamborn

120 A. 478, 276 Pa. 479, 27 A.L.R. 160, 1923 Pa. LEXIS 617
CourtSupreme Court of Pennsylvania
DecidedFebruary 19, 1923
DocketAppeal, No. 236
StatusPublished
Cited by10 cases

This text of 120 A. 478 (H. O. Wilbur & Sons, Inc. v. Lamborn) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. O. Wilbur & Sons, Inc. v. Lamborn, 120 A. 478, 276 Pa. 479, 27 A.L.R. 160, 1923 Pa. LEXIS 617 (Pa. 1923).

Opinion

Opinion by

Mr. Justice Schaffer,

This action was brought by plaintiff to recover the sum of $71,344, being the amount of two irrevocable letters of credit established by it in defendants’ favor at the Philadelphia National Bank, which the latter collected, and which represented the price of 1,500 bags of sugar purchased by plaintiff from defendants and shipped by them from Java. At trial, the court directed a verdict for defendants; from the resulting judgment, plaintiff appeals.

The dispute between the parties centers in the interpretation of two contracts covering the sale and shipment of the sugar from Java to its port of delivery, Philadelphia. After reciting that defendants had sold to plaintiff the quantity of sugar named, the price and terms of payment, the contracts provide: “Shipment to be made during August-September, 1920, at option of the sellers from Java by steamer or steamers to Philadelphia, Pa. Names of such steamer or steamers to be declared later. Should steamer or steamers declared against this contract fail to arrive at port of destination for any cause, sellers are relieved of responsibility under this contract. In case of damage to the sugars on steamer in transit to Philadelphia, Pa., preventing seller from making full delivery, sellers will deliver under this con[482]*482tract to each of the purchasers of the sugars aboard said steamer a proportionate part of the sound packages. ....; .Should any unforeseen circumstances......prevent shipment within the time specified above, the buyer has t'he option of cancelling such portion of this contract affected by such delay or taking the sugar so affected for later shipment, without claiming damages, and buyer’s decision is to be given immediately on advice from sellers that delay has occurred. In the event of such cancellation by the buyer, the seller shall be under no further obligation to the buyer under this contract.”

In accord with the terms of the writings, defendants made declarations in two letters to plaintiff, dated August 30,1920, saying, “We hereby declare that the steamships ‘Chifuku Maru’ and ‘Washington Haru’ or substitutes will carry the [in one instance] 500 [in the other] 1,000 bags of Java Sugars purchased by you under contract dated [giving the respective dates].”

The purchasing agent of plaintiff testified, that shortly after the receipt of these letters he had a conversation with one of the defendant firm, in which he called attention to the two steamers declared “and asked for a definite declaration. I told him we were interested and wanted a definite declaration.” Nothing was done by appellees in response to this, but three weeks later they wrote appellant they had received advices that the steamship “Chifuku Maru carrying your Javas......sailed from Java on August 22d and is due to arrive the latter part of October.” Plaintiff would have this letter taken as a definite and unalterable declaration, but we cannot so regard it'; it simply conveyed information. The original declaration stood as the only one made, with the right reserved therein to name “substitutes.” If appellant wished to eliminate this privilege, it should have notified defendants to that effect in order that they might act as they deemed wise under the circumstances. It had not, in the first instance, made objection to a substitutionary declaration and did not, after receiving the letter [483]*483containing the information that the sugar was on the Cbifuku Maru, indicate in any way that it considered tbis a final one.

Subsequently defendants advised plaintiff that tbe Cbifuku Maru was not expected to arrive before tbe last half of November, and on December 13th, “that tbe steamer ‘Cbifuku Maru,’ previously declared......has been unavoidably delayed, owing to accident to ber machinery, making it necessary to stop at Port Said, and at tbis writing we have received no definite information as to tbe sailing date, from that port. In consideration of the above-mentioned circumstances, we hereby declare tbe steamer ‘West Cheswald,’ carrying tbe same quality sugars and having made tbe same shipments from Java, in fulfillment of your contract, which steamer is expected to arrive in Philadelphia tbis week.” Tbe testimony disclosed that tbe last-named steamer was at that time in tbe vicinity of Bermuda bound for New York. She was diverted in ber voyage from that port to Philadelphia by wireless. It is admitted tbe sugar she carried was identical in kind and quality with that on tbe Cbifuku Maru. On December 14th, plaintiff wrote defendants, acknowledging receipt of their previous day’s letter, and stating they bad “definitely declared our......Java white sugars......as shipped per steamship ‘Cbifuku Maru.’ We can accept no alterations, further declarations or tenders under these contracts.” Two days later, appellees advised appellant that tbe West Cheswald was in tbe port of Philadelphia, with- sugars to apply against tbe contracts, and, on December 21st, tbe latter notified tbe former that it would refuse acceptance. On receipt of tbis notice, appellees proceeded to collect tbe amount covered by tbe letters of credit. Tbe Cbifuku Maru arrived at Philadelphia with ber cargo on February 4, 1921.

Appellant, conceding that tbe facts are undisputed, and that tbe trial judge properly treated tbe question as one involving tbe construction of tbe contracts, thus [484]*484sums up the controversy: “The question involved is whether the appellees* having made a declaration of one vessel in accordance with the provision in the contracts requiring the declaration of the steamer or steamers carrying the appellant’s sugars, werei at liberty t'o declare at any time before delivery another vessel carrying shipments originally destined to another port, and tender delivery from the latter vessel.”

There has been a wealth of research and learning brought to bear on the controversy by counsel who presented their respective sides. All of the American and English cases throwing any light on it, and there are not a few of them, have been called to our attention. Appellant contends that the declaration of the steamer is a material stipulation in the contracts, and performance of this stipulation, by the seller, in accordance with its terms, is a condition precedent to a completed sale and delivery. The major proposition of appellee is, that the provision in the contract as to declaration of the steamer is for the sellers’ benefit alone, in order to absolve them from liability, in the event of the loss of the shipment. Authority can be found for this position and the question is a very interesting onq, but, under the circumstances disclosed by the record, it is not essential to so hold, in order to sustain the position of the trial judge in directing a verdict' for defendant, which we think was proper.

The language of the contracts as to the declaration of the steamer differs from that in any other case to which we have been referred. Here, the time for declaration was indefinite. The contract says, “names of such steamer or steamers to be declared later.” In all the other cases involving a declaration of the vessel, there was a time limit fixed as to when the declaration should be made. In Steinhardt v. Bingham, 182 N. Y. 326, the declaration has to be within five days after bill of lading received; in Norrington v. Wright, 115 U. S. 188, “as soon as known by” the sellers; in Graves v. Legg, 9 Exch. 709, [485]*485as soon as the wools were shipped; in Reuter v. Sala, 48 L. J. C. P.

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Bluebook (online)
120 A. 478, 276 Pa. 479, 27 A.L.R. 160, 1923 Pa. LEXIS 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-o-wilbur-sons-inc-v-lamborn-pa-1923.