Just In-Material Designs, Ltd. v. I.T.A.D. Associates, Inc.

94 A.D.2d 103, 463 N.Y.S.2d 202, 1983 N.Y. App. Div. LEXIS 17955
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 7, 1983
StatusPublished
Cited by6 cases

This text of 94 A.D.2d 103 (Just In-Material Designs, Ltd. v. I.T.A.D. Associates, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Just In-Material Designs, Ltd. v. I.T.A.D. Associates, Inc., 94 A.D.2d 103, 463 N.Y.S.2d 202, 1983 N.Y. App. Div. LEXIS 17955 (N.Y. Ct. App. 1983).

Opinions

opinion of the court

Fein, J.

Defendant (I.T.A.D.) is an importer of greige (unfinished) textile fabrics. Plaintiff (Designs) is a textile converter which purchases unfinished goods and has them finished for resale. In late May or early June, 1981, Associated Textile Brokers Co. (Associated), a textile broker, negotiated a sale of piece goods by defendant to plaintiff. Each of the parties asserts the broker represented the other. On the face of the record it must be concluded that [104]*104the broker represented both. It is undisputed that neither party communicated directly with the other in negotiating the sale.

The dissent concludes that the broker only represented the defendant. This is contrary to the record. The moving affidavit of defendant’s president states: “Specifically, on or about June 4,1981, Designs [through its broker, Associated Textile Brokers Co. (Associated)] placed an order with ITAD for 20,000 yards of cotton/polyester voile textile fabric. Designs’ purchase was pursuant to written contract No. S-4037 signed by Associated and transmitted to both ITAD and Designs.” This is the sale note containing the arbitration clause. That this was the order of events is nowhere denied by plaintiff, not even in the portion of its president’s affidavit, relied on by the dissent, which consists merely of legal argument by a nonlawyer that the face of the note requires the conclusion that the broker was defendant’s agent. The fact that the sale note recites “Sold for account of” defendant does not make the broker the seller’s agent. It further recites “[w]e confirm sale to” plaintiff. This combination of terms plainly imports the conclusion that the broker acted for both.

On June 4, 1981 the broker issued a sale note, designated “Contract No. S4037”, to both parties. This “memorandum sale note”, confirming a sale by defendant to plaintiff, provided space for the signature of the broker only. It bore the notation that it would be superseded by the seller’s own contract. Prominently set forth in this note was a broad arbitration clause. Thereafter, a “corrected salenote” was issued, bearing the same date and contract number, altering only the schedule for delivery of a portion of the goods. In all other respects this note was identical to the one issued previously. Once again the broker acted for both parties, there being no direct communication between them. Only then did defendant forward a contract to plaintiff, bearing the same date and a reference by the same contract number to the sale note evidencing the negotiation by the broker, named in the contract, which also contained a broad arbitration clause. Although it had space for signatures by the parties, it was never signed by either party.

[105]*105Thereafter, defendant commenced delivery of the goods, starting with sample material, in July, 1981, as required by the sale note, accompanied by invoices indicating delivery of over 192,000 yards of material between July, 1981 and January, 1982. Payments were made on some of these invoices, but when a dispute arose over quality of goods delivered, plaintiff brought this action for breach of warranty and fraudulent inducement, claiming compensatory damages of $240,000 on each of four counts, plus $500,000 in punitive damages. Defendant sought to stay this action and compel arbitration under the contract. Special Term denied defendant’s motion on the ground that it did not appear that plaintiff had agreed to arbitration because plaintiff had neither signed the memoranda (the contract or either of the two sale notes), nor shown any evidence of its acceptance of the goods.

Special Term apparently ignored the undisputed fact that there had been a delivery and acceptance of a large sample and a substantial quantity of the goods contracted for. Moreover, Special Term apparently overlooked a letter on plaintiff’s stationery, addressed to defendant on September 16, 1981, referring to the contract by number

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Bluebook (online)
94 A.D.2d 103, 463 N.Y.S.2d 202, 1983 N.Y. App. Div. LEXIS 17955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/just-in-material-designs-ltd-v-itad-associates-inc-nyappdiv-1983.