J. D. Hughes Lumber Co. v. Knuckles

142 S.W. 1052, 146 Ky. 472, 1912 Ky. LEXIS 105
CourtCourt of Appeals of Kentucky
DecidedJanuary 30, 1912
StatusPublished
Cited by2 cases

This text of 142 S.W. 1052 (J. D. Hughes Lumber Co. v. Knuckles) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. D. Hughes Lumber Co. v. Knuckles, 142 S.W. 1052, 146 Ky. 472, 1912 Ky. LEXIS 105 (Ky. Ct. App. 1912).

Opinion

OPINION of the Court by

Judge Nunn

Affirming.

Appellant was at one time a corporation owned by four persons, and E. Carnaban, wbo drafted tbe contract hereinafter copied, owned one-fourtb of its stock. Tbe corporation was dissolved, however, before tbe contract was entered into but tbe same four persons still owned tbe property as partners, each owning a fourth interest. On January 15, 1904, Gr. M. Knuckles, representing himself and his brother, and E. Carnaban, representing himself and partners, entered into a written contract which is as follows:

“This contract made and entered into, between G. M. and J. B. Knuckles, of Knuckles, Ky., party of tbe first part and The J. D. Hughes Lumber Company, of High Bridge, Ky., of tbe second part.

Witnesseth:

“That for and in consideration of covenants hereinafter expressed and payments to be made as herein set forth. ■ ■
“Tbe party of tbe first part has this day sold to second party five to ten thousand poplar, ash, cucumber and linn saw logs 14 in. and up, said logs to be put in on Eed Bird Greek or its tributaries and delivered below J. S. Bowling Bar.
“Second party agrees to pay first party ($15.00) Fifteen Dollars per thousand feet.for all tbe poplar, ash [474]*474and cucumber logs that are 20 inches and up that are reasonably smooth classed as a No. 1 log, and ($10.00) Ten Dollars per M. feet for all No. 2 logs of above kind that are over 20 inches and all logs under 20 inches down to 14 inches and ($8.50) Eight and 50-100 dollars per m. feet for the linn.
“Second party agrees to make measurement after logs are put on floating water or in good splash dams as often as may be necessary from Oct. 1st, 1904, to March 1,1905, and pay 60 per cent, of total price after they are measured and branded and pay balance on such logs as have been delivered below J. S. Bowling Bar, below Little Creek, by July 1,1905. And all logs not delivered below said bar by that time, first party is to be chargeable with a discount of 10 per cent, on all poplar logs undelivered to said point of delivery and all logs not delivered to point of delivery by July, 1905, they shall be charged back to first party and second party’s release■ brand to be put on them.
“First party agrees to paint the logs with 3 H on each end and furnish men to brand said logs with ham-mér brand.
“All logs sold under this contract are to be cut from green, sound standing timber and all doty, hollow and wind-shaken logs are to be measured only for the merchantable lumber contained in such logs.
“This January 15,1904.
“G. M. KNUCKLES,
“J. B. KNUCKLES,
“THE J. D. HUGHES LUMBER CO.,
“By R. CARNAHAN, JR.”

It is agreed that the parties had the terms of this contract under consideration for some time before it was reduced to writing.

Appellees’ testimony tends to show that before the contract was reduced to writing, they had contracted for more than enough virgin forest timber above the mouth of Upper Bear Creek, on Red Bird Creek and its tributaries, to fill the contract; that after the contract was reduced to writing they purchased cattle, wagons, chains and all other necessaries and hired men, other teams and wagons more than sufficient to cut, haul and place the timber in the creeks to be floated below J. S. Bowling Bar within the time named in the contract; that they had cut and caused to be cut from the lands mentioned, [475]*475over four thousand logs by the fall of 1904, and had placed two thousand or twenty-five hundred of them in Red Bird Creek and Phillips Pork, below a splash dam, ready to be measured and accepted by appellant, at which time, according to the contract, appellees were to receive 60 per cent, of the value of the logs accepted.

Oneida, the place of Carnahan’s then residence, was several miles (actual distance not given) from where the logs were, and appellees notified Carnahan two or three times that they were ready to deliver the two thousand or twenty-five hundred logs for his inspection and acceptance. The first notice was given about October 1, 1904, and the last one was given by registered letter, in answer to which Carnahan wrote G-. M. Knuckles, one' of appellees, the following letter:

“Oneida, Ky., Dec. 13,1904.
“Knuckles, Ky.
“Mr. Gr. M. Knuckles,
“Dear Sir:
“I am reliably informed, that at the time you made a contract for poplar logs with me, that you did not have the 1,500 acres of virgin forest, which you represented yourself to have, which was the foundation of our contract, but by mistake I failed to put in said contract that these logs were to be mostly cut off of your tract, consequently I will not measure any logs under that contract.
“If you will.come to Oneida, Ky., on the 26th in person, and we can agree on what logs you’have, I may be able to take them up for you.
Tours truly,
“R. CARNAHAN, JR.”

Carnahan never did go to see appellees or to investigate for himself the facts with reference to appellees’ conduct in getting the logs out, but it appears that he sent, some time prior to writing this letter, one Helton and it was from him and one or two other persons from whom J. B. Knuckles had contracted for some timber below the mouth of Upper Bear Creek, he received the information referred to in his letter. Appellant never did go to the point named to receive the logs or any part of them, and they claim they were excused from doing so because appellees violated the contract, first, in trying to deliver logs that were not cut from virgin forest but from forest which had been cut over; second, some [476]*476of the logs were cut from trees which had been blown down, and, third, the splash dam was not sufficient to float the logs out.

Appellees instituted this action January 17, 1907, to recover damages for the violation of the contract. They claim as damages the difference between the contract price they were to receive and the actual cost they would have incurred in fulfilling their part of the contract. Appellant answered and filed a counter-claim asking a reformation of the written contract. The case was transferred to equity on motion of appellant, for the purpose of having the court reform the contract. The lower court did reform the contract in two particulars; first, the trees were to be cut above the mouth of Upper Bear Creek; second, they should all be cut from virgin forest except a small amount which appellees were allowed to cut from around and near to their store. (Knuckles, &c. v. Hughes Lumber Co., 116 W., 1193.) The case was then transferred back to the ordinary docket to determine the other issues. Appellants alleged in their counterclaim that if appellees had carried out the contract, the logs that would have been delivered below J. S. Bowling Bar would have been worth something over $11,000 more than they had agreed to pay for them and that they were therefore damaged to that extent.

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Related

Hughes Lumber Co. v. Knuckles
181 S.W. 935 (Court of Appeals of Kentucky, 1916)
Ayer & Lord Tie Co. v. O. T. O'Bannon & Co.
174 S.W. 783 (Court of Appeals of Kentucky, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
142 S.W. 1052, 146 Ky. 472, 1912 Ky. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-d-hughes-lumber-co-v-knuckles-kyctapp-1912.