Hodges v. the Richmond Manufacturing Company

10 R.I. 91
CourtSupreme Court of Rhode Island
DecidedOctober 6, 1871
StatusPublished

This text of 10 R.I. 91 (Hodges v. the Richmond Manufacturing Company) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodges v. the Richmond Manufacturing Company, 10 R.I. 91 (R.I. 1871).

Opinion

Dtjreee, J.

This was an action to recover damages of the defendant corporation for refusing to fulfil an alleged verbal contract, the making of which was denied by the defendant. The plaintiff testified that the contract was made with him on behalf of the defendant corporation, in December,. 1868, by its then President, George M. Richmond, who died before the commencement of the action, and that, at the time, the plaintiff made a memorandum of the contract which he read over to the said George M. Richmond, who declared it to be correct. The memorandum was as follows : —

“ Memo of a contract entered into with G. M. Richmond, President of the Richmond Mfg Co to print and sell at cost the production of print cloths of my mill in Taunton, Mass., with the understanding I am to purchase goods of other makes of like quality they paying for the same at the market value sufficient to supply one printing machine about (1200) pieces per week.
*92 “ This agreement to continue two years or longer if necessary until I have made a net profit of ($50,000) this contract is to take the place of the one I had previously made to sell them production of my mill for four months at twenty cents per yard. Commencing January 1st, ending May 1st, 1866.”

The plaintiff offered in support of his claim and of the probability that the defendant corporation, or the said Geo. M. Richmond, acting in its behalf, would make such a contract, the price current published by Thomas J. Abbott, a cotton broker in the city of Providence, to show the value of gray goods during the four months beginning January 1, 1866, and ending May 1, 1866, which the court at first admitted de lene esse, but .subsequently, in the course of the trial, ruled out. To this latter ruling the plaintiff excepted, and now asks for a new trial upon the ground that he was entitled to the benefit of the testimony.

The plaintiff cites, in support of the admissibility of the testimony, the cases of Bradbury v. Dwight, 3 Met. 31, and Parker v. Coburn, 10 Allen, 82. In Bradbury v. Dwight the question was, whether, by the terms of a lost contract hi writing, the defendant sold the plaintiff all the wood on a certain lot for $300, as claimed by the defendant, or sold him $300 worth of'the wood on the lot for $1.25 per cord, as claimed by the plaintiff, and the court held that testimony that the wood was worth more than $1.25 per cord was admissible for the purpose of showing a probability that the agreement was for the sale of all the wood for $300, there being at $1.25 per cord less than $300 worth on the lot. In Parker v. Coburn, the controversy being as to the price agreed to be paid for land, the court admitted testimony tending to show that the value of the land was less than the sum claimed by the plaintiff as the agreed price. The cases simply show that where there is a controversy hi regard to the price of a thing sold, testimony is admissible to prove its value at the time of the sale. The cases do not decide that, where the making of the alleged contract of sale is in dispute, the then value of the thing alleged to be sold can be proved to show the making, and still less that the subsequent value thereof is provable for that purpose. If in December, 1865, the parties to this action were in negotiation with a view to a contract of the kind set up by the plaintiff, they were doubtless influenced by the prices of cotton and cotton cloth’s *93 then current, but they would not be influenced by the prices prevailing in the four months ensuing, for the reason that they could not know the prices which would then prevail. The plaintiff contends that testimony in regard to such subsequent prices is admissible because the parties contemplated the prospective value, and are presumed to estimate it correctly. We are not aware of any rule of law authorizing such a presumption, and it is notorious that, in point of fact, the anticipations of the shrewdest business men are often disastrously wide of the mark. We suppose that the late George M. Richmond, in December, 1865, could have anticipated, with more or less accuracy, the value of cotton cloths during the ensuing four months; but he would have formed his anticipations upon facts then existing or assumed by him as existing, and therefore we think the utmost the plaintiff could have required was, that the jury should, as far as possible, be put in his place by the proof of such'facts.

The second ground for a new trial is substantially the same as the first, and for the same reasons must be overruled.

The third ground is a third alleged erroneous ruling upon a question of evidence. It appeared on the trial that George M. Richmond had been for many years engaged in the business of printing print cloths; that he had taken his two sons into that business with him; and that after July, 1865, having obtained an act of incorporation, they had carried on the business as a corporation under the name of the Richmond Manufacturing Company, the said George holding 498 shares of the stock, and the two sons one each. The defendant corporation called as a witness one Stillwell, who had been clerk of the defendant corporation, and of said George M. Richmond, and George M. Richmond & Sons, and asked him whether to his knowledge the Richmond Manufacturing Company ever made a contract for the product of a mill for a definite time, at a definite price, unless the contract was in writing. The witness replied in the negative, and said it was the usual custom to have a bill of sale as a contract. In reply to the plaintiff, on cross-examination, the same witness stated the contracts made by George M. Richmond with plaintiff and others in regard to printing, for some five or six years previous to December, 1865, were in writing, whereupon he was asked to exhibit these contracts said to be in writing. The defendant then ob *94 jected to any inquiry for a contract prior to July, 1865, the date of the organization of the corporation, and the court sustained the objection. To this ruling the plaintiff excepted, and now claims a new trial upon the ground that it was erroneous.

The plaintiff was allowed to cross-examine the witness upon the subject upon which he had been examined in chief, —namely, the practice of the defendant corporation in regard to haying its contracts in writing, — but he claimed the right also to inquire into the practice of George M. Richmond and Geórge M. Richmond & Sons, inasmuch as George M. Richmond was, for all practical purposes, the corporation. The claim is not so much that the plaintiff was not permitted to cross-examine the witness to the extent to which he had been examined in chief, as that he was entitled and was not allowed to show by testimony elicited in his own behalf as to the practice of George M. Richmond, that there was no improbability that the contract set up by the plaintiff was made because it was not in writing. The objection taken to the testimony was, that the corporation was a legal entity distinct from George M. Richmond, and that therefore no inference against it could be drawn from his practice. We think the objection, under the peculiar circumstances of the case, savors more of form than of substance. But the question arises whether such testimony is not open to objection for irrelevancy.

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Bluebook (online)
10 R.I. 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodges-v-the-richmond-manufacturing-company-ri-1871.