J. P. Hudson & Sons Co. v. Godchaux Co.

118 So. 81, 166 La. 912, 1928 La. LEXIS 1981
CourtSupreme Court of Louisiana
DecidedJune 4, 1928
DocketNo. 27070.
StatusPublished
Cited by4 cases

This text of 118 So. 81 (J. P. Hudson & Sons Co. v. Godchaux Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. P. Hudson & Sons Co. v. Godchaux Co., 118 So. 81, 166 La. 912, 1928 La. LEXIS 1981 (La. 1928).

Opinion

LAND, J.

On April 19, 1918, J. P. Hudson’s Sons .Company agreed to sell to the Godchaux Company all of. the sugar cane then growing on their lands in Pointe Coupee parish. Godchaux Company agreed to pay for the cane, per ton of 2,000 pounds, 95 cents per ton for each cent, and fraction thereof, in proportion of the weekly average price of prime yellow clarified sugar, as sold on the New Orleans sugar market during the week of delivery; the weekly average price to be established by the secretary of the Louisiana Sugar and Bice Exchange of that city.

It was further agreed between plaintiff and defendant companies that should the average test for the season of the cane, as established by' the average weekly tests as reported by the Elm Hall factory, be 10% per cent, sucrose or better, the price per ton should be $1 instead of 95 cents, for each cent and fraction thereof, in proportion of the weekly average price of prime yellow clarified sugar, sold on the New Orleans market; that the price to be paid was f. o. b. cars at the shipping point, Leavel Spur in Pointe Coupee parish; and that defendant company should pay the freight.

The cane sold to defendant company was to be sound in every respect and properly cut.

The delivery of the cane was to start not later than October 25, 1918, and was to be completed at the Elm Hall factory of defendant company not later than January 5, 1919.

Beginning with the week commencing October 26, 1918, and closing with the week ending November 16, 1918, plaintiff company delivered to defendant company 695.955 tons of cane.

After November 16, 1918, plaintiff company shipped to defendant company 3,690.-920 tons of cane, which were received by defendant company, and out of this last shipment 534.995 tons were rejected entirely, aft *915 er being ground, leaving a balance of 3,155.-925 tons.

In the present suit, plaintiff company demands of defendant company the payment of $15,119.12, with 5 per cent, interest thereon from February 1, 1919, until paid, in settlement of these cane shipments.

The items upon which plaintiff's demands are based are as follows:

(1) Wrongful deduction by defendant from N. O. market price of sugar, as fixed by the secretary of the Louisiana Sugar & Bice Exchange, of 0.1425 cents per ton on 695.955 tons of cane shipped before November 16, 1918, and of 0.19 cents per ton on 3,155.925 tons of cane shipped after November 16, 1918, and amounting to $698.79.

(2) Balance due plaintiff of $1, instead of 95 cents, for 10% per cent, sucrose content on average test of 2,878.765 tons of cane shipped before January 4, 1919:

(a) On 927.875 tons shipped before November 23, 1918, at .4312 cents per ton, average price of sugar on New Orleans market being 8.624 cents net per pound...........$ 400.10
(b) On 1,950.890 tons shipped after November 30; 1918, and before January 5, 1919, at . .4165 cents net per ton, average price of sugar on the New Orleans market being S.33 cents net per pound.................. 812.54
Total......................................$1,212.64
‘Less credit of amounts previously paid.. 1,184.78
Balance...................................$ 27.86
(c)Amount due plaintiff of $1, instead of 95 cents, for 10% per cent, sucrose content on average test of 973.115 tons shipped after January 5, 1919, but test not reported to plaintiff by defendant company, aver- ■ age price of sugar 'on New Orleans market being 8.33 cents net per pound...........$ 405.30

(3) The value of 534.995 tons of cane received by defendant company, passed through its mill and the juice ditched after grinding, average price of sugar on New Orleans márket being 8.33 cents net per pound, $4,456.51.

(4) For wrongful deduction of freight charged upon the 534.995 tons of cane which had been ditched, $506.91.

(5) For wrongful deduction of 15' per cent, of the value of 755.40 tons of cane delivered to defendant company, under a claim of damage to that extent by a freeze, $875.14.

(6) For wrongful deduction of 50 per cent, of the value of 21S.67 tons of cane delivered to defendant company, under a claim of damage to'that extent by a freeze, $844.39.

(7) For difference in value of 1,056.94 tons of cane, refused by defendant company after January 22, 1919, and sold by plaintiff to Wilbert’s Myrtle Grove Planting & Manufacturing Company at 95 cents, without 10% per cent, sucrose content differential, $440.22.

(8) For damage to 800 tons of cane lost by a freeze, under a claim that defendant company failed and refused to deliver cars properly racked to receive 160 tons per day, as required by contract between the parties, average price of sugar on New Orleans market being 8.33 cents net per pound, $6,664.

(9) For loss of wages of employees kept idle while waiting for necessary cars to load the cane at the rate of 160 tons per day, $200.

The lower court allowed plaintiff to recover amounts as follows:

'Item 1. Deductions made by defendant of broker’s commission from market price of sugar as fixed by the secretary of the Louisiana Sugar and Rice Exchange........................$ 698.79
Item 2 (c) Amount due plaintiff on account of 10% per cent, sucrose content of 973.115 tons of sugar shipped after January 5, 1919.............. 405.30
Item 3. Value of 534.995 tons of cane that was ditched ............................... 4,456.51
Item 4. Freight on above cane................ 506.91
Total ...................¡................. $6,067.51

1. The written contract between plaintiff and defendant expressly declares that the price to he paid for the cane delivered shall he:

“Ninety-five (95) cents per ton for each cent and fraction thereof in proportion, of the weekly average price of Prime Yellow Clarified sugar as sold on the New Orleans sugar market during the week of delivery; said weekly average price to be established by the- secretary of the Louisiana Sugar and Bice Exchange of New Orleans.”

The contract in the present case is identical with that in the case of Le Blanc v. Godchaux Co., Inc., 152 La. 405, 93 So. 201, in which it was held that, although it was permissible for a producer of sugar to pay a specified amount to dealers or brokers for its sale, such allowance was a mere commission; and not a reduction in price, and could not he deducted from the price stated in the cer *917 tificate issued by the secretary of the Louisiana Sugar and Rice Exchange of New Orleans.

This issue was thoroughly considered in the Le Blanc Case. We are still convinced of the correctness of that decision in refusing to permit the government price of sugar, fixed on exchange as a war measure, to be reduced by the brokerage commission allowed by the seller, and, as reduced, to be made the basis of the price to be paid the planters for cane.

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Bluebook (online)
118 So. 81, 166 La. 912, 1928 La. LEXIS 1981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-p-hudson-sons-co-v-godchaux-co-la-1928.