In re Belle-Moc, Inc.

182 F. Supp. 429, 1960 U.S. Dist. LEXIS 3731
CourtDistrict Court, D. Maine
DecidedMarch 30, 1960
DocketNo. 7-196
StatusPublished
Cited by4 cases

This text of 182 F. Supp. 429 (In re Belle-Moc, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Belle-Moc, Inc., 182 F. Supp. 429, 1960 U.S. Dist. LEXIS 3731 (D. Me. 1960).

Opinion

GIGNOUX, District Judge.

This matter is before the Court on the petition of the United Shoe Machinery Corporation to review an order of the Referee in Bankruptcy entered in proceedings to confirm a plan of arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. §§ 701 et seq., filed by Belle-Moc, Inc., a Maine shoe manufacturing corporation. By his [430]*430order the Referee disallowed a proof of claim filed by United in the amount of $6,016.14 for approximately 1,333 pairs of lasts1 sold to Belle-Moc by the United Last Company Division of United, and ordered judgment in the amount of $93,672.49 on a counterclaim filed by Belle-Moc against United for damages sustained by Belle-Moc in using these lasts to manufacture shoes which were rejected as defective by its customer. The Referee’s action followed from his finding of a breach of implied warranty by United in the sale of the lasts. No question has been raised concerning the summary jurisdiction of the Bankruptcy Court to hear and determine the ■ counterclaim.

Belle-Moc, Inc., of Lewiston, Maine, is engaged principally in the manufacture of shoes for women. The United Last Company Division of United is a last manufacturer, with which Belle-Moc had done business for 14 years. During the 12 years previous to the present controversy, United had sold Belle-Moc about 95 % of all the lasts purchased by the latter. Joyce, Inc., of Cincinnati, Ohio, itself a shoe manufacturer, became a new customer of Belle-Moc in 1956 and in September of that year placed an order with Belle-Moc for many thousands of pairs of “Suburban” shoes for delivery in December, 1956 and January, 1957. Contrary to the usual custom in the trade, Joyce demanded that it receive shoes of various test sizes for approval ahead of bulk shipments. To manufacture the “Suburban”, Belle-Moc first purchased sample lasts from the Sterling Last Company of Brooklyn, New York, but when difficulties were encountered with shoes manufactured on the Sterling last, Belle-Moc turned to United, undoubtedly because of their long prior association, for a solution to its problem.

In purchasing lasts, the shoe manufacturer basically relies upon the fit of the shoes made on a size 4B last. It is the key model because if the size 4B is satisfactory, all other sizes will fit well, provided the smaller and larger lasts are properly graded from the size 4B model by the last manufacturer. The size 4B shoes are therefore tested extensively by the shoe manufacturer for both fit and wear, and the results of this key test are always submitted to the manufacturer of the last.

Once the basic 4B model last has been approved, it is customary for the shoe manufacturer to obtain lasts of sizes 6B and 8B in order to check and grade the upper patterns. Shoes manufactured on these larger model lasts are examined by a brief “parade” test, which involves having women, selected from the employees in the factory, walk up and down a distance of some thirty feet, snapping the top lines and observing how the shoes look on their feet. The “parade” test is a test for fit only, and not for wear. A report of this test is not expected by the manufacturer of the lasts when the results of the 4B test are satisfactory.

In the present instance, after extended preliminary joint efforts to develop a proper 4B last for manufacture of the “Suburban”, a 4B model last was manufactured by United and shipped to Belle-Moc. Extensive tests by Belle-Moc, in the presence of a United salesman, who was also a last expert, on shoes manufactured on this sample last proved highly successful, and United was notified of the favorable results. Subsequently,. Belle-Moc made shoes on 6B and 8B sample lasts manufactured by United for • the purpose of checking the upper patterns. These shoes were given the “pa--rade” test, also in the presence of the same United representative, and found to be satisfactory. In accordance with the usual custom, an extensive wear test such as that conducted on the 4B was not performed.

Being satisfied with the results,. Belle-Moc on October 11, 1956 placed its order with United for 1,218 pairs of' lasts, which were mostly shipped by late October. On November 5 Belle-Moc placed a second order for 63 pairs of ' [431]*431lasts of varying sizes, which were shipped between November 9 and 21. On December 5 Belle-Moc gave a third order for 6 pairs of lasts, which were shipped on December 112 There is no contention by Belle-Moc, and indeed there is no evidence in the record, that the lasts shipped by United in fulfillment of the production orders varied in any way from the sample lasts supplied for testing purposes.

Before Belle-Moc gave any production orders, it had ordered some 47 pairs of sample lasts, covering a wide range of sizes and widths. Some of these were obtained to check and grade upper patterns; others were obtained to make sample shoes for Joyce’s approval as required in Joyce’s original order.3 When Belle-Moc placed its first production order on October 11, it had not as yet heard from Joyce as to the results of its tests of these sample shoes. A favorable report was received, however, on October 24, before any production lasts were delivered to Belle-Moc.

Production of the “Suburban” shoes on the United last began in early November. Bulk shipments were made to Joyce in December, 1956 and January, 1957, and by January 15 some 18,121 pairs of shoes had been received by Joyce. Before shipping these shoes to its customers, Joyce examined them carefully and found them to be satisfactory, with the exception of around 350 pairs, which were returned because of defects unrelated to the present controversy. But shortly after Christmas, reports were received from Joyce’s retail customers that the shoes in the larger sizes gapped along the top lines and thus did not fit properly. There was no problem with regard to the smaller sizes (fours, fives and sixes). When the problem could not be corrected, Joyce recalled the shoes for full credit and around the latter part of January disposed of them by selling them to Mosinger-Cohn, a dealer in job merchandise, for the relatively low price of $54,383.87. Before purchasing the shoes, an experienced representative of Mosin-ger-Cohn spent a full day at Joyce’s plant inspecting and testing them. Although he knew that they were rejected merchandise, he was unable to find any serious defect. Later, as in Joyce’s case, they were rejected by the retail customers because they gapped along the top lines.

While the counterclaim contained a count in negligence, Belle-Moc’s case before the Eeferee was based upon an alleged breach by United of implied warranties of fitness for a particular purpose and of merchantability under Sections 15 and 16 of the Uniform Sales Act.4 United denied liability on two [432]*432grounds, which are presently material: first, United contended that the gapping was not caused by any defect in the lasts manufactured by it, but by a combination of faults in the manufacture of the shoes by Belle-Moc; second, United argued that even if defects in its lasts were the cause of the gapping, there was no implied warranty, because Belle-Moc did not rely on United’s skill or judgment, as required by the Uniform Sales Act, but rather obtained model lasts of the larger sizes for testing purposes and found them to be satisfactory before placing its bulk order.

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182 F. Supp. 429, 1960 U.S. Dist. LEXIS 3731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-belle-moc-inc-med-1960.