Home Guano Co. v. International Agr. Coprporation

85 So. 713, 204 Ala. 274, 1919 Ala. LEXIS 6
CourtSupreme Court of Alabama
DecidedNovember 27, 1919
Docket3 Div. 404.
StatusPublished
Cited by11 cases

This text of 85 So. 713 (Home Guano Co. v. International Agr. Coprporation) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Guano Co. v. International Agr. Coprporation, 85 So. 713, 204 Ala. 274, 1919 Ala. LEXIS 6 (Ala. 1919).

Opinion

THOMAS, J.

The suit is for the breach of contract.

Counts 5 and 6 are practically the same, and 7 and 8 are so in legal effect. Demurrers* were sustained to each count. Because of such adverse ruling plaintiff took a non-suit with leave to review the ruling on de *276 mnrrer on appeal. Code, § 3017; Schillinger v. Wickersham, 75 South. 11; 1 Herrmann v. Mobile County, 202 Ala. 274, 80 South. 112; Underwood Typewriter Co. v. Marengo Co. Bank (App.) 81 South. 543., The several counts set out the original contract, and .such of the correspondence of the parties as to enable this court to determine the merits of the controversy, as did the trial court in sustaining demurrers to the complaint. The reporter of' decisions will embrace in his statement of facts the written contract.

The contract was dated June 6, 1912, and by its terms the Home Guano Company purchased of the International Agricultural Corporation 21,600 tons of sulphuric acid, 5,600 tons to be delivered in approximately equal, monthly quantities from August 1, 1912, to February 1, 1913; 8,000 tons in approximately equal monthly quantities from August 1, 1913, to February 1, 1914; and 8,000 tons in approximately equal; monthly quantities from August 1, 1914, to February 1, 1915, at. $5.60 per "ton, f. o. b. Copperhill, Tenn. The seasons for which deliveries were originally contracted ran from the month of August' to January, inclusive, deliveries to be made “in approximately equal monthly quantities”; and the acid was purchased for consumption by plaintiff at its works at Dothan, Ala.

In counts 5 and 6 it is averred that after the expiration of the first two seasons and before the commencement of the shipping season of the last year of the contract defendant notified plaintiff in writing that during the last year of the contract it would require plaintiff to take the acid according to contract terms, and, failing as to this, would otherwise dispose of it. The letter dated March 21,1914, is as follows:

“We have your telegram of to-day reading as.follows: ‘Hold up shipments of sulphuric acid until we order more.’ We also note your letter of March 13th, in which you say, ‘Under our contract with you buyer has the option' of some additional quantity, and we will send you additional orders for shipment after the week ending March 21st.’ As I advisedvyou in my letter of March 19th, the six cars shipped you for the week ending March 21st will complete your contract for 8,000 tons. While it is true that your option carries a 10% more or less option clause, there is no option on our part to give you this 10%, because you did not order it shipped prior to the expiration date specified in the contract for deliveries. * * * I take this opportunity to call your attention to the fact that shipments of sulphuric acid on the third year of your contract commences August 1, 1914, and expires January 31, 1915, same to be taken at the rate of 1,333 tons per month. Heretofore we have been very lenient with you, allowing you to take sulphuric acid in any other month than specified in the contract. * * * Now that our sulphuric acid production is sold up and there is a positive shortage, it will be no longer possible for us to hold off shipments and then attempt to make up same to you later as you may require, as wé will find ourselves not having the acid to ship you. I wish to particularly emphasize to you at this time the fact that shipments on the third year of your contract are to commence in August, 1914, at the rate of 1,333 tons per month. * * ■* I also wish to call your attention at this time to the necessity of you notifying us before the expiration of your third year contract if you are going to exercise your option for the increased tonnage. I wish to assure you that it is our desire to co-operate with you and assist you in every way possible, and my only reason for writing this letter is, so that y.ou will know your position, and we may be relieved of any later embarrassment by not being able to accommodate you as we have heretofore.”

This letter is not exhibited, as á part of counts 7 and 8. After receipt of this notice, plaintiff’s executive officer had a personal conference with an officer of defendant, of the details of which plaintiff sent the confirmatory letter of September 5, 1914, to defendant, which is set out in each of said counts, and which is as follows:

“We confirm our call on you and our mutual agreement that instead of our selling some acid on contract that you will be glad to have some because of the shutdown at Copperhill. We will as agreed order out the acid as soon as we can which we outlined and you will ship us the same as last year when we kept taking it through October, November, December, January, February, and March and into April. As stated we will do a smaller business and therefore we won’t want over, say 6,500 tons acid based on the contract terms of more or less. Thanking you for favors and trusting conditions will grow better, we are,” etc.

This personal conference and confirmatory letter were in response to the notice from defendant to plaintiff that it would not deliver acid for the last season except as per contract terms; As to counts 5 and 6, in which the letter of March 21, 1914, is exhibited, the personal conference and the subsequent confirmatory letter averred must be construed in the light of this notice. As to counts 7 and 8, the purport of this conference, finding expression in the letter of September 5th, and subsequent communications of the parties (exhibited in said counts), is not elucidated by the letter or notice of March 21, 1914, which we have set out.

We may observe that after the letter of March 21, 1914, and before that of September 5th, there was correspondence looking to a reduction of the quantity of acid required by plaintiff to be taken under the original contract for the ensuing year, and in which defendant’s vice president stated that with suitable notice defendant would make an effort to dispose of the same elsewhere, to which plaintiff replied that it might wish to reduce that tonnage about 1,500 tons, and *277 that advice would be given “in person when the writer is in Atlanta during the middle of June.” No further correspondence is exhibited that related to a reduction of the quantity of acid to be ordered by plaintiff, until after the personal conference between officials of the respective companies, that is, the letter of September 5, 1914, containing the statement, “As stated, we will do a smaller business, and therefore we won’t want -over, say, 6,500 tons acid based on the contract terms of more or less.” This preliminary correspondence between the parties (preceding the letter of September 5th), looking to a reduction of the quantity of acid to be taken for the third season, from 8,000 tons to not exceeding 6,500 tons acid based on contract terms of more or less, is only exhibited in counts 5 and 6. Counts 7 and 8 take up the modification of the original contract by the terms of the letter of September 5, 1914, and recount the subsequent conduct and correspondence of the parties, as to deliveries, shipping instructions, demands for and receipts of sulphuric acid ■shipped thereunder to date of April 10, 1915. The immediately succeeding correspondence and conduct of the parties are shown by the exhibits and averments in counts 5 and 6, 7 .and 8.

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Bluebook (online)
85 So. 713, 204 Ala. 274, 1919 Ala. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-guano-co-v-international-agr-coprporation-ala-1919.