John N. Seaver, Jr. v. United States Plywood Corporation

273 F.2d 36
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 21, 1959
Docket16357_1
StatusPublished
Cited by5 cases

This text of 273 F.2d 36 (John N. Seaver, Jr. v. United States Plywood Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John N. Seaver, Jr. v. United States Plywood Corporation, 273 F.2d 36 (9th Cir. 1959).

Opinion

POPE, Circuit Judge.

In this action by appellant-plaintiff, a citizen of Oregon, against the appellee-defendant, a New York corporation, it was alleged that defendant had intentionally trespassed upon certain lands of plaintiff and wilfully cut and removed timber belonging to him. The prayer was for judgment for three times the damages suffered by the plaintiff. Upon the trial the court determined that the defendant owned all of the timber which it cut upon plaintiff’s land with the exception of five cedar trees. It awarded the plaintiff damages in the sum of $80, being double the value of the five cedar trees, and denied all other relief. Plaintiff has appealed.

The land now owned by the plaintiff was on May 4, 1942, owned by one War-lick and his wife. On that day the War-licks entered into a written agreement with Siuslaw Forest Products, Inc., here called Siuslaw, by the terms of which the Warlicks agreed to sell to Siuslaw “all of the merchantable old growth and second growth fir and hemlock timber either standing or down and now growing or located upon the following described real property”. Siuslaw agreed to purchase and remove the timber and it was stipulated that Siuslaw “shall have twenty years from the date hereof within which to commence the cutting and removal of said timber and such additional time as may be reasonably necessary not to exceed five years to complete the cutting and removal of the timber sold and purchased hereunder.” The total purchase price was $7000 payable $2000 down and the balance in annual installments of not less than $1000 each year thereafter until paid in full. Siuslaw was to pay all taxes or other assessments levied against the timber (exclusive of the land) throughout the life of the agreement and “until the timber purchased and sold hereunder shall have been cut and removed or the same abandoned by the vendee.”

In October, 1942, the Warlicks conveyed to G. E. Tucker and wife and S. W. Tucker and wife, the real property described in the contract except for the timber heretofore sold by the Warlicks under the contract mentioned; and in July, 1952, the Tuckers entered into a contract with plaintiff whereby the latter agreed to buy all of their interest in the land. Subsequently the Tuckers conveyed the real property subject to the exceptions mentioned to Seaver. 1 ******On May 1, 1953, the defendant acquired all of the assets and assumed all of the liabilities of Siuslaw. In 1949 Siuslaw began logging operations on the property described in the contract, and from that date to and including the year 1955, first Siuslaw, and then its successor, the defendant, cut and removed from that property 11,485,000 board feet of timber. Of this total 4,156,000 board feet were second growth Douglas fir. Eight thousand board feet represented the five cedar trees previously mentioned. Of the second growth fir 3,125,000 board feet was removed between January 1, 1953 and December 30,1955, which means that the greater portion thereof was removed during that latter period. 2

The main theory upon which the plaintiff’s action proceeded in the court below was that although the contract between *38 the Warlicks and Siuslaw provided for the sale to the latter of “all of the merchantable old growth and second growth fir and hemlock timber”, upon the described property, under the settled Oregon rule this must be taken to include only that timber which was merchantable on the date of the contract, namely, May 4, 1942. It was the plaintiff’s position that at that date none of the second growth timber on that land was then merchantable.

The plaintiff also took the position that some of the old growth timber was not merchantable, although how much of this old growth was in that category was not established. The principal contention therefore was that to the extent that defendant or its predecessor had cut second growth timber from the land, a trespass had been committed for which the plaintiff was entitled to recover three times the amount of his damages as provided by an Oregon statute, ORS § 105.810.

In rendering judgment for the defendant (except for the value of the five cedar trees), the court found as a fact that all of the fir and hemlock timber removed by defendant and Suislaw was in fact merchantable.

Upon this appeal the appellant makes two principal contentions. The first is that there was no competent evidence in the record or before the court to warrant the court’s finding that the timber cut was thus merchantable; and second, that by reason of the filing of certain affidavits in the assessor’s office stating that all timber had been cut on certain of these lands, the defendant had in any event abandoned any further interest in file timber, in consequence of which all timber cut thereafter had been taken unlawfully and without right.

Much of the controversy between the parties concerns the meaning of the words “all of the merchantable old growth and second growth fir and hemlock timber,” used in the contract. Apparently there is no dispute as to the proposition that “merchantable timber” as used in the contract, included only timber of the named species that was merchantable on the date of the contract. The key finding of the court assumes this for it states that the fir and hemlock removed by defendant and Siuslaw was in fact merchantable “on May 4, 1942”. The Oregon Supreme Court, resolving, in its words, “conflict * * * in the decisions of this court”, has held that “a grant of merchantable timber is a grant only of the merchantable timber on the land at the date of the contract.” Do-herty v. Harris Pine Mills, Inc., 211 Or. 378, 315 P.2d 566, 585-588, approving and quoting from Hughes v. Heppner Lumber Co., 205 Or. 11, 15, 283 P.2d 142, 144, 286 P.2d 126, and Rayburn v. Crawford, 187 Or. 386, 398, 211 P.2d 483. It seems equally clear that in the view of the Oregon court, timber may be “merchantable” although it does not appear that it can be utilized at a profit. Dahl v. Crain, 193 Or. 207, 237 P.2d 939 3 According to that court, all that is required is that it had commercial value, — “merchantable timber is ‘ “all timber * * * that had * * * a commercial value in that locality”.’ ” Hughes v. Heppner Lumber Co., on rehearing, 205 Or. 11, 286 P.2d 126, 127. 4

*39 It is appellant’s position that the meaning of “merchantable timber” is something fixed by Oregon law. He says: “Under the law of Oregon the words ‘merchantable timber’ are not ambiguous. They have a well-understood meaning of ‘timber which has a commercial value’ considering all the facts and surrounding circumstances.” Appellee, on the other hand, asserts that “merchantable timber” is a term which has no definite or fixed meaning.

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273 F.2d 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-n-seaver-jr-v-united-states-plywood-corporation-ca9-1959.