Harris Chemical Co. v. Tunnell & Co.

104 A. 398, 261 Pa. 72, 1918 Pa. LEXIS 689
CourtSupreme Court of Pennsylvania
DecidedApril 3, 1918
DocketAppeal, No. 211
StatusPublished
Cited by3 cases

This text of 104 A. 398 (Harris Chemical Co. v. Tunnell & Co.) 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
Harris Chemical Co. v. Tunnell & Co., 104 A. 398, 261 Pa. 72, 1918 Pa. LEXIS 689 (Pa. 1918).

Opinion

Opinion by

Mr. Justice Stewart,

The transaction out of which this controversy arises is evidenced by a written contract entered into March 29, 1915, under the terms of which the defendant company sold to- the plaintiff company three hundred tons of muriate of potash of a certain refined quality at the price of ,|200 per ton, to be delivered f. o. b. Penna. R. R. shipper’s works, Philadelphia, in carload lots of not less than fifteen tons, as ordered out by buyers. The contract contains the following provision “Buyers to give the seller reasonable notice of all shipments wanted. Final shipments under this contract to be completed by [75]*75May 30, 1915, and any balance unshipped on the latter date through failure of buyers to furnish instructions, may, at the option of the sellers, be either shipped on this contract or cancelled.” By supplemental contract dated May 21, 1915, the time for delivery of the potash was “extended until and completed by July 1, 1915, instead of May 30,1915, as given in the original contract.” On April 30th following the execution of the original contract, defendant shipped, upon order of the plaintiff, fifteen tons of the amount sold. Plaintiff never ordered further shipment until June 30th following, and none was meanwhile shipped. On the date last mentioned plaintiff notified the defendant by writing that it had disposed of the remaining two hundred eighty-five tons which it had agreed to take under contract of March 29th and the extension of May 21st, and had assigned all its interest therein to- Peters, White & Company. The writing thus concludes: “This will be handed to you by Mr. Ellis Jackson representing Peters, White & Company, who will make the necessary arrangements with you, either for shipping or for holding on storage for their account.” This communication was delivered by Mr. Jackson on the morning of the 30th of- June. Under same date, but not delivered until about four o’clock in the afternoon, this further communication was delivered to the defendant company, “Gentlemen: We learn from Mr. Ellis Jackson, the representative of Peters, White & Company, of New York, with considerable astonishment, that you have refused to recognizesthe assignment which we made to that firm of our contract with you, so far as the balance of 285 tons of muriate, under our contract of March 29, 1915, with you and the extension thereof, is concerned. We now notify you that in view of the fact that we have sold this product to Peters, White & Company, your refusal to deliver may result in a claim or suit against us for breach of contract and that if you persist in your refusal it is our intention to hold you to the repayment of any damage we may suffer [76]*76thereby. In order that there may be no misunderstanding we now give you notice, in which Mr. Jackson representing Peters, White & Company joins, to 'ship the balance of this material, 285 tons in accordance with the terms of the contract to Peters, White & Company, New York City, New York, who will take up the sight draft with bill of lading and certificate of analysis attached, in accordance with the terms of that contract. If you do not comply with this request we again call your attention to the fact that we will hold you strictly responsible for any loss that may accrue. You may, of course, have any reasonable time in which to make the shipment.” (Signed) Harris Chemical Company, by Edward J> Hasse, Treas., Ellis Jackson, Bepresenting Peters, White & Company. Under date of July 1, 1915, the defendant company replied to this communication as follows: Harris Chemical Company, Gentlemen: Your letter of the 30th ult., which is also signed by Ellis Jackson representing Peters, White & Co., was received by us between 4: 30 and 5 o’clock p. m. yesterday. Under the terms of the contract dated March 29,1915, and the supplement dated May 21,1915, it is our privilege to cancel it in so far as it .relates to any balance of muriate of potash unshipped by July 1st, because of the failure on your part to give us such notice as would reasonably enable us to ship by that date. Your letter was the first notice received by us that you desired shipments to be made of the balance of 285 tons of muriate of potash, and it cannot be considered as ‘reasonable notice of all shipments wanted’ as provided in the contract. We, therefore, exercise our option to cancel the contract for the balance of the 285 tons of muriate unshipped.” (Signed) F. W. Tunnell & Company, Inc. The present action ■ was brought 25th of August following, to recover from defendant $15,675, for alleged breach of contract, the plaintiff claiming this to be the difference between the contract price of the potash and the market price of the same at the time of the alleged breach, with interest [77]*77added. The trial resulted in a verdict for plaintiff in the sum $5,765.33. A motion was filed by defendant for a new trial, — since withdrawn — also for judgment non obstante on the whole record, which was refused, and judgment accordingly was entered on the verdict. The appeal brings nothing before us for our consideration but the refusal of the court to sustain the defendant’s fifth point which asked for binding instructions.

While the issue was single,- namely, whether the plaintiff gave defendant reasonable notice of the shipment it wanted — the delivery of 285 tons of the potash remaining unshipped — this inquiry can be met only as some unascertained facts are first determined. The first, and most important inquiry must be to ascertain just when the demand for shipment was made. The plaintiff averred in its statement of claim filed, that on the morning of the 30 th of June the use-plaintiffs notified the defendant company of the assignment, and demanded immediate shipment of 285 tons of muriate of potash, which the defendant refused to deliver; and that again during the afternoon of the 30th of June the use-plaintiff made another demand upon the defendant to deliver the said 285 tons which the defendant again refused to deliver. It seems to be conceded that plaintiff’s right to demand shipment continued until the expiration of June 30th, at midnight, '.conditioned, however, that there was left sufficient time between the hour when the demand was made and midnight of the same day to reasonably admit of a fulfillment by defendant of its contract obligation, which was to deliver f. o. b. in cars upon'the railroad sidings at its plant, 285 tons of muriate of potash consigned to the plaintiff. In view of the second question, which is yet to be considered, the practicability of making this delivery in the time intervening between the demand and the close of the last hour of the day, the importance of fixing definitely when the demand was first made becomes apparent. There was no disagreement as to the fact that in the afternoon of that day, between four and [78]*78five o’clock, a written demand for the shipment was made. Defendants insist that this was the first and only demand. In support of plaintiff’s averment that the demand was made during the morning of the 30th, plaintiff called to the stand Mr. Ellis P. Jackson, who, as their representative in the transaction, had visited the defendant company at its place of business, to negotiate with respect to- certain details, on the 29th as well as 30th of June. Whatever conversation occurred touching the shipment of the 285 tons, occurred between Jackson and one or other of defendant’s firm. Upon Jackson’s testimony, and that alone, plaintiff relied to show an order for shipment given during the morning of the 30th.

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Bluebook (online)
104 A. 398, 261 Pa. 72, 1918 Pa. LEXIS 689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-chemical-co-v-tunnell-co-pa-1918.