Hurley Gasoline Co. v. Johnson Oil Ref. Co.

1926 OK 279, 246 P. 438, 118 Okla. 26, 1926 Okla. LEXIS 818
CourtSupreme Court of Oklahoma
DecidedMarch 23, 1926
Docket16433
StatusPublished
Cited by4 cases

This text of 1926 OK 279 (Hurley Gasoline Co. v. Johnson Oil Ref. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hurley Gasoline Co. v. Johnson Oil Ref. Co., 1926 OK 279, 246 P. 438, 118 Okla. 26, 1926 Okla. LEXIS 818 (Okla. 1926).

Opinion

Opinion by

RUTH, C.

Parties will be here referred to as they appeared in the trial court.

The plaintiff placed the following order with defendant:

“5 tank ears — -78-82 gravity, water white, sweet odor, absorption gasoline, 350 end *27 point or lower, 10 lbs. vapor tension or under 85-00 recovery.”
“Price 1114 per gallon £. •&. b. group 3 Okla. Terms 1%-10 das^s.”
“Outage, color and gravity guaranteed at destination.”

The destination was Waiverly Oil Works, Pittsburgh, Pa. This order was accepted by defendant under the terms of the order. Plaintiff alleges defendant delivered two cars according to contract, but failed to deliver the balance of the order, being three tank cars, but did deliver three ears of gasoline of a different character from that specified in the order; that plaintiff revised to accept the same and demanded gasoline of the character ordered; that the defendant took the three tank cars and disposed of the gasoline according to contract, and plaintiff was compelled to and did purchase three tank cars of gasoline of the required grade; that between the time of ordering from defendant and the time of the purchase elsewhere of the three cars by plaintiff, there was a difference or raise in price, and plaintiff was compelled to and did pay 2% cents per gallon more for the gasoline than the contract called for, amounting to $562.50 on the three cars, for which sum plaintiff prays judgment.

It appears from the record, though not in plaintiff’s petition, that plaintiff, for the purpose of getting one per cent, off, paid for all five cars of gasoline within ten days from shipment from “group 3 Oklahoma,” and while the cars were in transit, and when plaintiff refused to accept the three cars of off color, or “yellow” gasoline, it demanded and received repayment on the three cars; and defendant, answering, saysi all the gasoline W'as according to agreement, and plaintiff received and paid for same and afterwards rescinded the contract as to the three ears, and defendant repaid plaintiff $2,708.37, which plaintiff accepted in full settlement as to all differences arising between these parties, and the claim has been fully settled and paid.

A jury was w7aived and the cause tried to the court, and the court found from the evidence that the gasoline in the three tank ears in controversy was not of the. grade provided, for in the contract; that the plaintiff did not intend to effect a rescission of the contract, but requested its fulfillment and w’aited a reasonable time for defendant to comply with the request, and upon being notified of the defendant’s refusal to comxfiy with the terms of the contract, plaintiff purchased three cars of gasoline in open market, and was compelled to and did pay two cents more per gallon than the contract with defendant called for, and the court rendered judgment in favor of the plaintiff in the sum of $480, and the defendant appeals and presents its appeal under five propositions, which wdll be considered in their order. Defendant first contends that:

“The court erred in its finding of fact that the destination, instead of group 3 Oklahoma, was the place of delivery, and its further finding of fact that plaintiff had paid the purchase price of the gasoline in advance, and thereby further erred in its conclusion of law that the delivery of gasoline of a different quality than that contracted for in legal effect constituted nondelivery.’ ”

In this contention we cannot concur. It is conceded that delivery was to be at group 3 Oklahoma and we are in accord with the rule that:

“Ordinarily, a delivery of merchandise to a carrier is a delivery to the consignee, unless there has been an agreement to the contrary) or circumstances showing an intention of the parties to be otherwise.” Pabst Brewing Co. v. Smith, 39 Okla. 403, 135 Pac. 381, 23 R. C. L. Sales, 248, 308, 316, and this rule is fortified by the citation of numerous authorities in defendant’s brief.

The rule presupposes, however, that the delivery is completed, “that the goods are of the kind and quality ordered” (35 Oyc 317), and this is particularly true where the goods purchased are not manufactured and are unascertained and unidentified at the time of making the contract or delivery to the carrier. If the goods in this case had been lost or destroyed in transit, the rule would apply, but in the instant case, outage, color and gravity were guaranteed by defendant at point of destination, which was at Waiverly Oil Works, Pittsburgh, and if, upon their arrival at point of destination, they were not of the quality guaranteed, plaintiff was not obliged to accept the same, but might, as it did, insist repeatedly upon three cars of gasoline of the quality contracted for. In 24 R. C. L. 46, the following rule, which is supported by abun-dent authorities and appears to be universal, is announced:

“Where the purchaser reserves the right of inspection at another point than the place of shipment, the articles to be shipped f. 0. b. at the latter place, the title to the subject-matter passes only conditionally, on delivery to the carrier, and is subject.to the buyer’s right to reject the articles if they do not conform to the contract.” See BowerWenus Grain Co. v. Norman Milling & Grain Co., 86 Okla. 152, 207 Pac. 297.

*28 This, for all .practical purposes, is what the trial court found, to wit: That at the point of destination it was found upon inspection that the gasoline was not of ' the quality contracted for.

Defendant insists the court erred in finding this a “nondelivery." We find no error in this conclusion of law. The defendant guaranted the gasoline at point of destination to he “water white,” and it was “yellow,” and no obligation rested upon the plaintiff to accept the same. If one orders white paint and the seller delivers yellow paint, it is true the yellow paint may cover as much surface of the house or barn, but it is not what the buyer ordered, and delivery wholly failed, and the buyer is not compelled to accept and use the yellow paint, and sue for1 the difference between the price of the two colors of paint. The one is wholly unfit for his purpose, and he may reject it and insist on a literal compliance with the terms of the contract.

The points here argued appear to be parallel with Pope v. Allis, 115 U. S. 363, 29 L.Ed. 393, which involved a contract for delivery of 300 tons of No. 1 extra Glengarnock (Scotch) pig iron, and 500 tons American iron, the American iron to be delivered at the furnace at Coplay, Pa., and the Scotch iron at defendant’s yards in New York. The iron was shipped by water from Elizabeth-port, N. J., and upon its arrival at Milwaukee. AVis., the 500 tons of Amerirnn iron was rejected at Milwaukee. Defendant contended that as the iron was delivered at Coplay or Elizabethport, the sale was completed thereby, and the only remedy of plaintiff was by a suit upon the warranty. Mr. Justice AVoods delivered the, opinion of the court and said:

“It did not appear that at the date of the contract the iron had been manufactured, and it was shown by the record that no par-fcular iron was segregated and appropriated to the contract.

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Bluebook (online)
1926 OK 279, 246 P. 438, 118 Okla. 26, 1926 Okla. LEXIS 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hurley-gasoline-co-v-johnson-oil-ref-co-okla-1926.