Houston Packing Co. v. Cuero Cotton Oil & Mfg. Co.

241 S.W. 502, 1922 Tex. App. LEXIS 849
CourtCourt of Appeals of Texas
DecidedApril 26, 1922
DocketNo. 8122.
StatusPublished
Cited by1 cases

This text of 241 S.W. 502 (Houston Packing Co. v. Cuero Cotton Oil & Mfg. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houston Packing Co. v. Cuero Cotton Oil & Mfg. Co., 241 S.W. 502, 1922 Tex. App. LEXIS 849 (Tex. Ct. App. 1922).

Opinion

DANE, J.

On the 27th day of September, 1919, the appellant, Houston Packing Company, hereinafter called the packing company, sold to the appellee, Cuero Cotton Oil & Manufacturing Company, hereinafter called the Cuero Company, one carload, of 160-barrel capacity, prime crude cotton seed oil.

The contract for the purchase’and sale of said oil contained, among other unimportant conditions, the following:

“Shipment to be made January, 1918.
“Price: Dollar thirteen cents per gallon, f. o. b. T. C. P.
“Terms: Demand draft * * * on Cuero Company for full amount of invoice without exchange.
“Shipment to be made in purchaser’s tank cars and routing to be upon purchaser’s directions."

The contract also contained the further provision as follows:

“The present rules of the Texas Cotton Seed Crushers’ Association regulating transactions in cotton seed products — modified by the foregoing specific terms and conditions — to be part of this contract and, subject to such modifica *503 tions, all differences which arise are to he settled in accordance with said rule.”

The parts of the rules referred to in the contract, relevant and material to matters under investigation, were, in substance as follows:

Rule 27 provides that, in case the ear to be furnished by the buyer for the shipment is disabled or lost, another shall be substituted by the buyer within 48 hours of receipt of information of such disability or loss; but delays consequent upon such disability or loss shall not impair or affect contracts where it can be shown that the buyers made such substitution; that when oil is sold f. o. b. common points in buyer’s ears, seller routing, the buyer must furnish seller with destination before seller is required to give location and routing.

“Declaration of destination of oil must be furnished the seller ten days previous to expiration of contract and seller must declare point of origin at same time; this ten-day clause applies to specified shipments only. Failure on part -«f either party to comply with this rule shall immediately give other party right to cancel or resell product as outlined in the Rules of the Association.”

Rule 28 provides that specific shipments of oil in buyer’s cars shall be made within the time specified in the contract, but it is Tin-derstood that for any such shipment of oil the cars shall be forwarded in such time that under the ordinary course of transportation they should reach the town from where, the shipment is to be made before the expiration of the contract, but, if shown that the car or cars were so forwarded and were delayed through no fault of buyer, then time of shipment shall be extended 48 hours from date car does arrive, and the seller shall load and ship in accordance with rule 32. The seller shall have 48 hours after the car arrives at the point of shipment, and after it is placed at his mill, in which to load and ship.

“Rule 29. Buyer shall notify seller when tank cars are forwarded, giving location of car, with number and names, * * * and follow up such notice with railroad receipt or bill of lading within five days from date of forwarding cars, except where railroads refuse to issue same. Railroad records shall determine date of forwarding.
“Rule 30. Failure on the part of buyer to forward tank cars, as required in rule 27, and give due notice of forwarding, shall entitle the seller, at his option, to cancel the contract at the expiration of the contract time, by giving the buyer telegraphic notice .of cancellation. * * ⅜ But in case of forwarding tank cars for specified shipment, when it is shown that the tank cars were forwarded in due time as above specified, and delayed en route, the seller must fill them, charging the buyer two dollars per day per tank car as above specified, and the buyer must accept them, under the contract. In case the seller elects to cancel, he must, after he has acquired the right to cancel any contract, or part thereof, immediately notify the buyer by wire of his intention to do so, it being understood that the contract is in force until such notice of cancellation has been given by the seller, and that the provisions of this rule apply to the movements of individual tank cars, and delay in regard to any number of tank ears embraced in one contract shall not influence action in regard to such tanks as may have been forwarded in proper time. Failure to give such notice shall operate as a renewal of the contract and shall extend the time of same as many days as seller allows to lapse before giving notice.”
“Rule 31. If, after the car has been placed at the mill from which the shipment is to be made, the seller fails to load the same within 48 hours after the expiration of the contract time of shipment, the buyer shall have the right to cancel the contract or to purchase the quantity of oil due on the contract for the account of the seller at the lowest obtainable price, through any cotton oil broker in good standing, holding the seller for loss sustained.
“Note. — It must be understood that this Rule is intended only for the protection of the buyer after his tank cars have arrived at the mill, and in no case shall be taken to extend the time limit or interfere with the measure of damages that may arise under the contract.”

On the 4th day of January, 1918, the Cuero Company, by letter of that date, notified the packing company that it had sold the car of oil in controversy to the Magnolia Provision Company of Houston, and requested the packing company to advise it where and when it should forward the empty car to take up same.

On January 7, 1918, evidently before it had received the letter above mentioned, the packing company wrote the Cuero Company a letter in which they referred to the car of oil, sold under the contract of September 27, 1917, and said:

“We tender you on this contract one tank prime crude, purchased from Farmers’ Cotton Oil Company, Winnsboro, Texas. We would request that you advise promptly where this oil is going so that we can give them instructions. They will draw on us for our purchase price from them and we will then make draft on you fpr the amount of our selling price to you.”

After the Cuero Company had purchased the car of oil in controversy from the packing company, the packing company purchased a car of oil from the Farmers’ Cotton Oil Company of Winnsboro to deliver to the Cu-ero Company in satisfaction of its purchase from the packing company, as is shown by its letter of the 7th day of January, 1918, above quoted. And after said purchase the Cuero Company sold a car of oil of like kind as that purchased by it from the packing company to the Magnolia Provision Company of Houston, and the Magnolia Company sold it to the Planters’ Oil Company of Wax-ahachie, who in turn sold it to Proctor & Gamble Company of Ohio,

*504 On the 23d day of January, 1918, the paekr ing company wrote a letter to the Farmers’ Cotton Oil Company of Winnsboro, a carbon copy of which was sent to the Cuero Company, which reads as follows:

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Related

Houston Packing Co. v. Cuero Cotton Oil & Mfg. Co.
255 S.W. 168 (Texas Commission of Appeals, 1923)

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Bluebook (online)
241 S.W. 502, 1922 Tex. App. LEXIS 849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houston-packing-co-v-cuero-cotton-oil-mfg-co-texapp-1922.