Hubbard v. Chapman

34 A.D. 252
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 1, 1898
StatusPublished
Cited by4 cases

This text of 34 A.D. 252 (Hubbard v. Chapman) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hubbard v. Chapman, 34 A.D. 252 (N.Y. Ct. App. 1898).

Opinion

Woodward, J.:

The plaintiff in this action constructed for one John W. Marshall a mill for crushing ores, called the Marshall Pneumatic Stamping Mill, and in the early winter of 1893 this mill was in the factory of the plaintiff.' About the 28th day of February, 1893, the said Marshall entered into an agreement with the. defendant in which it was provided that “ John W. Marshall agrees to deliver the Marshall Pneumatic Stamp Mill,’ now at Norman Hubbard’s Works, 93 Pearl street, Brooklyn, aside car or steamer F. O. B.” and. “ Henry T. Chapman, Jr., agrees to forward said mill to the Gold Bullion Mines, located near town of Clifton, Arizona, and to erect same thereon as expeditely as possible under supervision of E. P. Jones, all without expense to said Marshall.” It was also “ agreed and understood that the Gold Bullion Mining Co. are to have the privilege of running this mill thirty days, and same working satisfactorily the said Chapman is to pay Norman Hubbard, of 93 Pearl street, Brooklyn, the sum of twenty-five ■ hundred dollars ($2,500) .for this mill; unsatisfactorily, the Mining Company are to box and deliver the mill at the railroad station at Clifton, subject to the order of J. W. Marshall. It is agreed that the test of the mill shall be made by E. P. Jones.”

The answer puts most of the allegations of the complaint in issue, but the defendant offered no evidence at the trial, relying upon a question of law. At the close of the plaintiff’s case defendant’s counsel moved to dismiss the complaint on the g^Sund that “it alleges that a contract under which the defendant bound himself to pay for the mill in the event that it worked satisfactorily under a test to be made by Jones, and that the proof had failed in that respect.” Defendant’s counsel also asked that a verdict for the defendant be directed upon the same grounds. Both of these motions were denied, and the defendant excepted to the denial of [254]*254the first motion. On motion of the plaintiff a verdict for the plaintiff was directed, and from the judgment entered thereon appeal comes-to this department.

It was established on the part of the plaintiff that John W. Marshall delivered the mill in question as provided in the contract or memorandum of agreement; that it was shipped to Olifton, Arizona ; that it was taken to the mines of the Gold Bullion Mining' Company and erected under the supervision of E. P. Jones; that it was operated successfully for a period of thirty days after having been in the possession of the Gold Bxdlion Mining Company for more than one year, but it was not shown that the test was made by. the said E. P. Jones, he having been dismissed from the employ of the company before the test was made, and pursuant to' an agreement between the defendant and the plaintiff one James Smith was sent to Arizona and the test was made under his. supervision and pronounced satisfactory. This test was made in the summer of 1894, and the mill was retained by the Gold Bullion Mining Company until the summer of .1895, when it was seized and sold by the sheriff to satisfy certain claims of creditors. " The defendant now seeks to avoid payment upon the ground that the test was not made under the supervision of Mr. Jones, such test being, as he contends, a condition precedent to the right of the plaintiff to recover.

This question was practically disposed of iu the case of Krakauer v. Chapman (16 App. Div. 115), the defendant being the same as in the case at bar. In that case the defendant had authorized certain parties to ship goods to the Gold Bullion Mining Company assuring, them that E. P. Jones (evidently the same party involved in this transaction) was authorized to draw on him at thirty days’ sight for the amount of the bill. The parties, who resided in Texas, were not able to- fill the order at once, but sent a portion of the goods. Muñones drew a, draft upon the defendant at thirty days for $500, which draft was duly paid. In the meantime Mr. Jones left the employ of the Gold Bullion Mining Company, and when the remainder' of the goods arrived Mr. Jones had no authority to draw a second draft, or, if he had, he was out of the. reach of the plaintiff. Under these circumstances the defendant undertook to avoid payment on the ground that Mr. Jones, in the drawing of the draft for $500, had exhausted the authority, although the letter of [255]*255credit assured the parties shipping the goods that Mr. Jones was authorized “ to draw on me for the amount of your bill,” and the bill aggregated something over $1,000. ' Mr. Justice Hatch, writing the opinion of the court in that case, said : The purpose of this letter was to authorize the plaintiffs to deliver goods to Jones upon the credit of the defendant, and the latter prescribed a particular method of payment. This condition presupposed that Jones would draw the draft when the goods were delivered. If Jones had died before he was able to draw a draft, it would not be contended that the plaintiffs must' lose the purchase price of the goods. When Jones left the employment of the company he was beyond the reach ■of the ■ plaintiffs and they were unable to obtain any other draft. They did all that was left for them to do, notified* the defendant and requested payment of him. It may be conceded that if Jones had continued to occupy the relation which he occupied when the goods were delivered, the defendant might insist that he was only liable to pay Jones’ draft for the goods. But when that became an impossible or an impracticable condition, which neither party had the power or opportunity to produce, and the defendant was notified of it, we do not think that he could insist upon strict compliance in that respect and thereby destroy his liability. As the purpose of the instrument was to procure the delivery of the goods, and such purpose was accomplished, liability attached to pay in the manner prescribed if that were practicable and could be accomplished, if not, then to pay in some other manner. We think it must be held that the defendant contemplated the continued existence of Jones in such capacity as would enable him to draw for the goods, and, as this contingency failed, the particular method of payment failed, and the defendant became liable to pay for the goods, and could not thereafter insist that he .was only liable to pay upon a draft drawn by Jones.”

The reasoning is equally applicable to the case at bar. The object of the agreement between the defendant and Marshall was to procure the mill in question upon the credit of the defendant. Marshall performed his part of the agreement in delivering the mill at the point of shipment, and the liability of the defendant attached at the time of shipment. It is true that this liability was contingent upon the mill passing a satisfactory test, but the defendant having [256]*256appropriated the property to the uses of the company in which he was a director, and having elected, with the consent of tire plaintiff, to submit the test to another, ne cannot now be heard to. deny his liability for the amount of the purchase price. The plaintiff was not responsible for the discharge of Mr. Jones, and the defendant could not, by his own act, defeat the right of the plaintiff to compensation for the value of the property. John W. Marshall,-to whose rights the plaintiff succeeds, had performed all of the conditions of his contract.

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Bluebook (online)
34 A.D. 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubbard-v-chapman-nyappdiv-1898.