John A. Gauger & Co. v. Sawyer & Austin Lumber Co.

115 S.W. 157, 88 Ark. 422, 1908 Ark. LEXIS 221
Supreme Court of Arkansas·Decided December 14, 1908·Published·Cited by 12 cases

Opinion

Wood, J.,

(after stating the facts.) First. The burden of proof is upon the appellee to show that it is entitled to recover. Therefore it must show that it had complied with the terms of •the contract on its part in the particulars in which appellant ah leges that it violated the terms thereof, and it must further show that appellant breached the contract on its part, giving the appellee the right to treat the contract as rescinded, and to sue for the damages resultant. It will be observed that appellee seeks to recover only for amount alleged to be due for doors and sash furnished. It does not ask to recover for loss of profits. Appellant says in its brief “that it had ample excuse in fact and in law for not paying the draft, and it avers that in hardly any respect did the appellee comply with and fulfill its obligations to appellant under the terms of the contract.” But if there were any breaches of the contract on the part of appellee other than those mentioned in appellant’s cross complaint, it has failed to set them up, and has therefore waived same. Then the first question is, did appellee violate the terms of its contract in failing to fill the orders for the 46,300 windows and 7,862 doors ? The uncontroverted proof shows that these could not have been manufactured by appellee after they were ordered, in the usual course of trade, before the year 1904 had expired. It would have taken some five months to manufacture same, and these orders were sent and received after the first of December, 1904. The contract expired with the year 1904. The contract contemplated the manufacture of the sash and doors by appellee during the year 1904. Appellee manufactured the lumber products it sold. Appellant fully understood this, and must be held to have contracted with appellees accordingly. Therefore appellant could not insist on appellee’s filling orders that appellant delayed in sending until it was too late for same to be manufactured by appellee In the usual course of its business. Any other construction of the contract would be unreasonable. For if appellant could have delayed till the last day •of December, 1904, in sending in its orders for the doors and windows, it was possible for it to have kept appellee manufacturing same during the year 1905, as well as “during the year 1904.” The language of the letters evidencing the contract does not warrant such construction, and certain letters of appellant in the record, practically asking an extension of the contract of 1904 into the year 1905 on the same terms as .to the doors, show that appellant itself understood that the contract for filing its orders expired with the year 1904. So we are of the opinion that the evidence warranted the finding of the court that “the plaintiff (appellee) fully performed all things required of it by the contract.”

On the other hand, appellant, while urging with zeal that appellee fill its orders for sash, treated with apparent indifference the provision which bound it to take at least 7,500 doors during the year 1904. The contract called for the manufacture of both sash and doors. Appellant could not insist on the one and reject the other, yet the proof shows that as late as November 17, 1904, appellant had only ordered 1851 doors, and there was no acceleration of appellant’s movements in this particular until its request to be allowed to send in specifications for doors to be delivered in 1905 had been refused. The delay of appellant to send in the orders and specifications for doors until it was too late for them to be manufactured and delivered during the life of the contract was tantamount to a failure or refusal to take the number of doors appellant was bound to take. Although repeatedly urged to do so, appellant took no heed of the requirements of the contract on its part to order the doors in time, and this conduct on its part, it seems to us, was in violation of both the letter and spirit of the contract. It was very unequal and unfair to appellee. When we consider this fact in connection also with the fact that appellant, although urgently requested, neglected to meet its payments as the contract required, and allowed large amounts to become past due, we must conclude that appellant is not without fault. Certainly, appellant was in no attitude to.be insisting on the other party to the contract “giving bond for its good behavior,” so to speak, before appellant would do what the contract required on its part. But appellee agreed to waive these breaches and to fill appellant’s orders, notwithstanding the contract had expired, if appellant would pay the amount past due.

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John A. Gauger & Co. v. Sawyer & Austin Lumber Co., 115 S.W. 157, 88 Ark. 422, 1908 Ark. LEXIS 221 (Ark. 1908).

115 S.W. 157 (John A. Gauger & Co. v. Sawyer & Austin Lumber Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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