J. Zimmern's Co. v. Granade

102 So. 210, 212 Ala. 172, 1924 Ala. LEXIS 189
CourtSupreme Court of Alabama
DecidedNovember 20, 1924
Docket1 Div. 299.
StatusPublished
Cited by7 cases

This text of 102 So. 210 (J. Zimmern's Co. v. Granade) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. Zimmern's Co. v. Granade, 102 So. 210, 212 Ala. 172, 1924 Ala. LEXIS 189 (Ala. 1924).

Opinion

SAYRE, J.

Plaintiff (appellant), a partnership, brought this suit against defendant stating its cause of action in two counts: (li 'The common count for money due by account. ’(2) Special assumpsit based on correspondence between the parties as follows: “On March 6, 1916,” it is alleged, “the plaintiffs wrote to defendant and stated that they did ■not care to make sales to the Chatom Mill •Company, unless the defendant would personally guarantee the account; that in reply to said letter said James N. Granade wrote-to plaintiffs stating that he would he personally responsible for the accounts of the ■ concern to plaintiffs.” A copy of the letter last referred to, and exhibited with the count as a part thereof, was as follows:

“March 10, 1916.
“J. Zimmern’s Company, Mobile, Alabama— ■Gentlemen: Your letter of the 6th instant is received, and, of course, if you will not ship the Chatom Mill Company, then the writer will stand personally responsible for the accounts of the concern to you, as it is not our custom to dodge behind any legal fictions. We will expect shipment of our next bill on the 10th instant, which will be as follows, to wit: 30 sacks cracked corn, 5 sacks bran. All shipments to go to the Chatom Mill Company, ■Chatom, Alabama, and no further shipments ■to be made to Loper, Alabama, shipments to ■come forward on the first, tenth and twentieth of each month.
“Very truly "yours,
“James N. Granade, President.”

The letter of March 6, 1916, was placed in -evidence and appeared in the following language:

“Mobile, Ala., March 6, 1916.
“Mr. James N. Granade, Chatom, Alabama— Dear Sir: We herewith inclose your invoices for all orders on hand. We have made the .shipments so as not to inconvenience you until we can get matters satisfactorily arranged. Now referring to your letter of the 3d regarding your guaranteeing the account of the ■ Chatom Mili Company over and above $250.00, •will state we find the Chatom Mill Company is an incorporated concern with authorized capital of $5,000.00, and with only $1,000.00 paid in. This is the report which we have, therefore, we do not care to make sales to a small corporation unless you would personally guarantee the account. Made out in one form. These are the only terms on which we can handle the account, unless subject to sight draft with bill of lading attached. We will give yon a personal line of credit of $500.00, but we do not care to give a line of credit to an incorporated concern.
“Awaiting your reply, we are
“Yours very truly, J. Zimmern’s Co.
“Die. LZ.
“Inclosures.”

There was a second count, but no question arises on it, and it has been omitted.

This correspondence evidenced the contract between the parties, it is unambiguous, and its construction and legal effect was a question of law' for the court’s determination. Holman v. Crane, 16 Ala. 580; Kidd v. Cronrwell, 17 Ala. 652; Scott v. Myatt, 24 Ala. 489, 60 Am. Dec. 485; Boykin v. Bank of Mobile, 72 Ala. 262, 47 Am. Rep. 40S; Davis v. Badders, 95 Ala. 34S, 10 So. 422.

The contract thus evidenced and construed was an original, direct, and not collateral, promise on the part of defendant to pay for merchandise thereafter to be shipped by plaintiff to the Chatom Mill Company. Plaintiff’s letter of March 6th shows a withdrawal of credit from the Chatom Mill Company and an offer .of credit to defendant, by him accepted. Bates v. Starr, 6 Ala. 697; Oliver v. Hire, 14 Ala. 590; Scott v. Myatt, 24 Ala. 489, 60 Am. Dec. 485; Jolley v. Walker, 26 Ala. 690; Sanford v. Howard, 29 Ala. 684, 68 Am. Dec. 101; Marx v. Bell, 48 Ala. 497; Hobbs v. State, 75 Ala. 6. Yn this connection, recourse might also be had to the principle that all instruments are to be taken “contra proferentem” — against him who gives, or undertakes, or enters into an obligation. Seay v. McCormick, 68 Ala. 550; Comer v. Bankhead, 70 Ala. 136; Ashley v. Cathcart, 159 Ala. 474, 49 So. 75.

Such being the effect of the contract, its nature was, of course, not changed by the fact that the merchandise bargained for was to -be delivered, and was delivered, to the Chatom Mill Company. Pake v. Wilson. 127 Ala. 242, 28 So. 665; Smith v. Miller, 152 Ala. 488, 44 So. 399.

Nor, in the presence of these writings, does the fact that the merchandise was charged on plaintiff’s hooks against the Chat-om Mill Company, as the evidence showed, change the legal effect of the contract in writing betw-een the parties. Scott v. Myatt, and Sanford v. Howard, supra. In Clark v. Jones, 87 Ala. 480, 6 So. 363, it was said:

“The mere fact that the goods were charged to the company [defendant’s corporation] on the books of plaintiffs, in the manner shown, is not conclusive that any credit was given to. the company.”

*174 But in that case the contract rested in parol and the testimony as to its terms was in. conflict. And in that ease a recovery on the common counts was allowed, and as to the propriety of this there can be no doubt.

The evidence went to show that goods were shipped and delivered by plaintiff to the Chatom Mill Company under the terms of the agreement set forth in the correspondence, supra, and that they had not been paid for. It was error, as we have stated in effect, for the court to leave the construction of the contract with the jury, as it did in its oral charge, and likewise error to charge the jury that there could be no recovery under count 1, the common count, thereby assuming that defendant’s contract was a collateral guaranty. Walker v. Forbes, 25 Ala. 139, 60 Am. D'ec. 498.

Defendant’s engagement, shown by his letter of March 10th, was continuing in its character. That much we think is clear, and under that contract, evidently, plaintiff continued for some time to ship goods to the Chatom Mill Company at Chatom. But after a while the company’s plant at Chatom was burned, and thereafter it began business at Winchester, Miss. Goods of the same character as before were shipped to that point, and payments made from time to time, so that, when subsequently the company was adjudicated a bankrupt, the only goods remaining unpaid for were goods that had been delivered at Winchester. Now the question is whether on the evidence plaintiff was entitled to have the jury instructed that such goods were furnished on the personal credit of defendant, or whether that was a question for the jury.

The controlling facts are undisputed. Whatever doubt there may be on the issue stated arises out of the fact that in defendant’s letter of March 10th he directed that “all shipments to go to the Chatom Mill Company, Chatom, Ala., and no further shipments to be made to Loper, Ala.,” whereas the goods for which compensation is sought were shipped to Winchester. When the letters constituting the contract between the parties were written, the company, as the record shows without dispute, had just ceased to do business at Loper and was starting up its mill at Chatom.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Monovis, Inc. v. Aquino
905 F. Supp. 1205 (W.D. New York, 1994)
Toles v. Cook Sons Lumber Co., Inc.
370 So. 2d 1047 (Court of Civil Appeals of Alabama, 1979)
Crawford-Whiting, Inc. v. General Electric Co.
162 So. 2d 628 (Supreme Court of Alabama, 1964)
United States Fidelity & Guaranty Co. v. Yeilding Bros.
143 So. 176 (Supreme Court of Alabama, 1932)
Manufacturers' Finance Acceptance Corp. v. Woods
132 So. 608 (Alabama Court of Appeals, 1930)
Martin v. Consolidated Cone Co.
114 So. 37 (Supreme Court of Alabama, 1927)
Edwards v. Bryan
108 So. 9 (Supreme Court of Alabama, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
102 So. 210, 212 Ala. 172, 1924 Ala. LEXIS 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-zimmerns-co-v-granade-ala-1924.