Hyde & Everit v. Cookson

21 Barb. 92, 1855 N.Y. App. Div. LEXIS 146
CourtNew York Supreme Court
DecidedOctober 2, 1855
StatusPublished
Cited by17 cases

This text of 21 Barb. 92 (Hyde & Everit v. Cookson) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hyde & Everit v. Cookson, 21 Barb. 92, 1855 N.Y. App. Div. LEXIS 146 (N.Y. Super. Ct. 1855).

Opinion

By the Court, Brown, P. J.

The answer admits that the hides in controversy were furnished by the plaintiffs and received by John H. Osborn, the defendants’ assignor, to be tanned and manufactured into hemlock sole leather, under the contract of the 6th of October, 1853. There is one feature which distinguishes this contract from some of those of a 'similar kind which have been the subjects of litigation in the courts, and which goes, far to repel the idea of a sale. It is this: that the identical hides, after being tanned, and mamifactured into leather, were to be returned to the plaintiffs. It is marked by another feature having a like effect. Osborn did not undertake to pay for them. His responsibility was not that of a purchaser upon credit, but that of a bailee to manufacture. Had the property been lost or destroyed by any casualty whatever, not attributable to his negligence or want of care, he incurred no loss or responsibility beyond the loss of his labor in tanning and manufacturing, and the expenses of transportation. All other loss would have fallen upon the plaintiffs. He was not, therefore, a purchaser upon credit; for there is no express or implied promise to pay for the goods. The contract was not to purchase, but “to tan from 2000 to 3000 hides, to be worked the present fall, and to be furnished by Hyde & Everit.” Osborn undertook to “take the hides in Hew York, transport them to his tannery in Tioga county, to tan and manufacture them into sole leather, in a reasonable time and in a good workmanlike manner, and return the same to Hyde & Everit, in Hew York.” There is nothing in this language which indicates a design by the plaintiffs to sell, or by Osborn to purchase, but it indicates a clear intention to suffer the right of property to remain unchanged. These provisions contain the substance of the agreement in regard to furnishing the goods, and performing the work, and the duties and obligation of the parties in [102]*102relation thereto. Let us now examine whether in providing for the adjustment of compensation and profits, the parties have used expressions which manifest an intention to change the title to the property..

The hides were to be furnished by Hyde & Everit, on a commission of 5 per cent on cost and charges for buying, and 6 per cent commissions and guaranty for selling the leather. These provisions, and especially the commercial and ordinary signification of the word commissions, are relied upon as evidence of an intention that the hides- were to be purchased, and after they were converted into leather, sold for Osborn. In commercial parlance the word commissions certainly means the compensation which the merchant or factor takes for buying or selling goods for another. In ascertaining the intention of the parties, and determining the effect of the written instrument however, every part of it is to be considered, and if possible, to have effect, and not detached and isolated sentences. The plaintiffs were merchants, dealing in the article which is the subject in controversy. They either had purchased in the market or must of necessity purchase the property in order to furnish it to Osborn. They were also to insure it and receive it again and sell it, in its manufactured state. In adjusting the reward which Osborn was to receive for converting the raw material into leather,'it is but slight—if it is any—-evidence of an intention to change the title, that the purchase money and interest, money paid for insurance and commissions for buying and selling, should first be taken from the proceeds of the sales, a,nd the residue paid over to Osborn, as his compensation. So the provision guarantying the sales is simply a manifestation of the same general purpose, and is designed to assure to the manufacturer his reward, should the property be eventually sold to an irresponsible purchaser. The hides were to .be insured and charged to Osborn, and this also is thought to manifest an intent to sell. I do not see this provision in that light. Even the literal sense of the expression does not favor the defendants’ interpretation, for it is the hides that are to be charged, and not the price at which they were sold to Osborn, [103]*103or purchased for him. They were to be charged to him as evidence of their delivery for the purposes of the contract, and to insure their return, which is consistent with the idea that he received them as bailee and manufacturer, and not as purchaser and owner. The concluding sentence of the agreement is also significant to show the nature of Osborn’s interest. “When the leather is sold, the account is to be made up, and the net proceeds, after deducting the cost of hides, and expenses, commissions on hides and leather, interest, insurance and all other expenses, shall be the profit and loss to accrue to Mr. Osborn in full for tanning as above.” Thus the clear residuum was to be Osborn’s reward—not for the mercantile risk he had incurred by the investment of his money or his credit in the purchase of Orinoco and Augustura hides, but as a compensation for the labor ' and expense of converting them into hemlock sole leather. In the absence of words which express, or from which it may be implied, that the parties intended the right of property should pass to Osborn, the rule which determines the right will be found in the dissenting opinion of Oh. J. Bronson, delivered in Mallory v. Willis, (4 Comst. 76,) and recognized and approved in Foster v. Pettibone, (3 Selden, 433,) which is in these words: “When the identical thing delivered, .although in an altered form, is to be restored, the contract is .one of bailment, and the title to the property is not changed. But when there is no obligation to restore the specific article^ .and the receiver is at liberty to' return another thing of -equal value, he becomes a debtor to make the return, and the title to the property is changed. It is a. sale.” We have-seen that the contract provided for the return of the identical hides delivered, in the form of sole leather, and therefore I think the plaintiffs were entitled to recover,,

It appears that the labor and expenditure of Osborn upon the hides ,addéd $2000 to their value, after they came to his hands ; which sum, with $64.37 interest thereon, in addition to the value of the hides in their unmanufactured state, the plaintiffs were suffered to recover, under the charge .of the court. In applying the rule of damages, it must be remembered that [104]*104the defendants are not trespassers or wrongdoers. Although the action is in form ex delicto, it arises out of a contract, and involves the right to property which came lawfully into the possession of the defendants, and of Osborn, their assignor. Whatever has been done to change the property from its natural condition and to add to its value, has been done in good faith, with tie approbation of the owners, and in execution of Osborn’s contract with them. This has been broken, and it is in consequence of that breach that the plaintiffs are entitled to recover. When they have judgment for the full value of their interest in the subject of the contract, is not that a full satisfaction, without depriving the defendants of the entire value of the labor and expenditures put upon it in good faith ? It is true that in a different form of action the plaintiffs might have taken judgment for the specific property in dispute; but it is also true that, even in that case, had the contract been fully performed by Osborn, they would have been bound to account to him for the proceeds of the property in the manner specified in the contract.

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Bluebook (online)
21 Barb. 92, 1855 N.Y. App. Div. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyde-everit-v-cookson-nysupct-1855.