Independent Trading Co. v. E. Fougera & Co.

192 A.D. 686, 183 N.Y.S. 431, 1920 N.Y. App. Div. LEXIS 7535
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 2, 1920
StatusPublished
Cited by2 cases

This text of 192 A.D. 686 (Independent Trading Co. v. E. Fougera & Co.) 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
Independent Trading Co. v. E. Fougera & Co., 192 A.D. 686, 183 N.Y.S. 431, 1920 N.Y. App. Div. LEXIS 7535 (N.Y. Ct. App. 1920).

Opinions

Merrell, J. :

This action is brought to recover damages for the alleged breach of written contracts for the sale of 150 pounds of' potassium guaiacol sulphonate.

The complaint alleges that on or about July 18, 1917, the plaintiff purchased of the defendant 100 pounds of the chemical above mentioned, and on the nineteenth of July, an additional 50 pounds. The purchase price’was ten dollars and fifty cents per pound.

The defendant admits having made written contracts for the delivery o.f 150 pounds of potassium guaiacol sulphonate at the price aforesaid, but set up as a defense that it never understood that it was agreeing to deliver to the plaintiff the quality of potassium guaiacol sulphonate called for in the contract and which plaintiff claims the defendant agreed to deliver. The answer asserts that the word white ” was fraudulently inserted in the order by the plaintiff, and defendant asked for a reformation of the contract by strildng out that word. Upon the trial it was stipulated that there was no fraud on the part of the plaintiff, but that the sole question presented was of a mutual mistake respecting the identity of the article in suit. Upon this proposition it is claimed by the defendant, appellant, that there were two grades of potassium guaiacol sulphonate recognized by the trade. One. of these grades is claimed to be in powder form known as calcine, the other being a crystalline form of perfectly white [688]*688crystals. The calcine form was, at the time of the sale, of the value of about ten dollars a pound and the crystalline form, as testified to by defendant’s president, was of the value of about thirty dollars per pound. It was stipulated at the opening of the trial that the market price of the crystalline form, at the time in question, was thirty dollars per pound. The written orders upon which the action is based are respectively dated July 18, 1917, and July 19, 1917. The first calls for 100 pounds of “ potassium guaiacol sulphonate. C. P. White.” The second agreement calls for 50 pounds of the same article. The price, as aforesaid, was ten dollars and fifty cents per pound. It is admitted that the letters, “ C. P.,” mean “ Chemically Pure.”

Plaintiff’s president testified that there was but one standard article known as potassium guaiacol sulphonate upon the market, and that after the war began it was customary to designate the quality by the insertion of the word white ” in case the purchaser wished the perfectly fresh article; that potassium guaiacol sulphonate would turn slightly pink from age, and as much of the article upon the market at the time of the purchase in question was old stock, that the word white ” was inserted in the contract because the purchaser wished to obtain under these orders a perfectly fresh article.

Upon the part of the defendant it is claimed that another article was upon the market and had been for upwards of twenty-five years, known as thiocol, which contained the same chemical ingredients as potassium guaiacol sulphonate. Thiocol, however, was a trade name which had been adopted by the Hoffman-LaRoche Chemical Company, manufacturers. All of the experts, including an expert sworn by the defendant, testified that thiocol as put out by the Hoffman-LaRoche Company contained absolutely the same ingredients as the standard article known as potassium guaiacol sulphonate. It was understood in the trade that when thiocol was called for it meant the article as manufactured by the Hoffman-LaRoche Company.

On the part of the appellant it is claimed that when the term thiocol is used in an order it means crystalline potassium guaiacol sulphonate, which would be perfectly white in color. The contracts sued upon were made by the defendant, appellant, through an employee by the name qf Jacobs, On July 18, [689]*6891917, the plaintiff called ■ the defendant company on the telephone and Jacobs responded. What took place is testified to by one Morgenstern, the president of the plaintiff, and by Jacobs, the aforesaid employee of the defendant. Morgenstern says that on July 18, 1917, he called the defendant’s office and asked for a quotation on 100 pounds of potassium guaiacol sulphonate, c. p. white. Jacobs asked for about ten minutes time and said that he would call back. This he did and told Morgenstern that the price was ten dollars and fifty cents per pound, and that plaintiff’s president said to Jacobs that he would take 100 pounds, and that Jacobs said, “ Send around your contracts.” The plaintiff immediately sent over the contract sued upon in duplicate, both copies bearing Morgenstern’s signature, as president of plaintiff, and Jacobs admitted that he read the same and saw therein the terms, c. p. white.” The contract was at once returned by the defendant to plaintiff, with the acceptance of the defendant thereon in writing, as follows: “ Accepted, E. Fougera & Co., W. L. Jacobs.” Practically the same negotiations were had on the following day when the additional fifty pounds were ordered and agreed to be sold, Jacobs again asking for time before quoting price. Jacobs testified that while he read the contract and saw the words, “ c. p. white,” still he was of the opinion that the article called for by the contract was the calcine or powder form of potassium guaiacol sulphonate, which this witness says was then being sold as the commercial product. Jacobs testified that immediately upon receiving the telephone call from Morgenstern, in each instance he called up a concern known as the Lister Chemical Company, which claims to have been the only American manufacturer of the article at that time. He testified that the Lister Chemical Company told him that the defendant could have the article manufactured by it at ten dollars per pound. Jacobs then called up Morgenstern and told Morgenstern that the plaintiff could have 100 pounds at ten dollars and fifty cents a pound. It is admitted that the article sold by the Lister Chemical Company, a sample of which was sent to the plaintiff, was not potassium guaiacol sulphonate in the crystalline form. The day after making the last contract [690]*690the defendant sent a sample of the article manufactured by the Lister Chemical Company to the plaintiff with a letter stating that the article inclosed was a sample of the chemical which the defendant was going to deliver under the contracts of July eighteenth and nineteenth. No reason appears for sending the sample, as the sale was not by sample. Plaintiff immediately wrote the defendant, returning, at least, a part of the sample, and also a sample of the article which the plaintiff thought it had purchased, and' stating that the plaintiff would not accept the chemical, a sample of which the defendant had sent to the plaintiff, and that the sample did not conform at all to the article called for in the two agreements. One Edgar Gilbert, the general manager of the Lister Chemical Company, was sworn as a witness by the defendant, and he testified that the Lister Company manufactured both the calcine and crystalline forms of potassium guaiacol sulphonate; that the calcine or powder form was manufactured more cheaply than the other, but that both forms contained exactly the same chemicals and in the same proportions, the difference being that the cystalline form contained a greater percentage of water which was absorbed in the process of crystallization. The calcine form manufactured by the Lister Company, a sample of which was delivered to the plaintiff as aforesaid, had a brownish

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Bluebook (online)
192 A.D. 686, 183 N.Y.S. 431, 1920 N.Y. App. Div. LEXIS 7535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/independent-trading-co-v-e-fougera-co-nyappdiv-1920.