Kingsville Cotton Oil Co. v. Dallas Waste Mills

210 S.W. 832, 1919 Tex. App. LEXIS 459
CourtCourt of Appeals of Texas
DecidedMarch 12, 1919
DocketNo. 1492
StatusPublished
Cited by18 cases

This text of 210 S.W. 832 (Kingsville Cotton Oil Co. v. Dallas Waste Mills) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kingsville Cotton Oil Co. v. Dallas Waste Mills, 210 S.W. 832, 1919 Tex. App. LEXIS 459 (Tex. Ct. App. 1919).

Opinion

HALL, J.

On August 28, 1915, J. G. Lea-veil Company, brokers, negotiated a contract between 'the parties to this suit, whereby appellant sold appellee—

“200 bales of cotton linters, mill run, free from trash, being seller’s make, at 3⅛ cents per pound, f. o. b. cars Kingsville, Texas.”
“Shipment. Beginning October, and shipped in car lots as fast as made.”

Only 25 bales were delivered under the contract, and appellee sued appellant for damages on account of the breach, alleging, in substance, that by the terms of the contract appellant was obligated to begin shipping cotton linters in October, 1915, and continue to ship in carload lots as fast as made until the contract was fulfilled; that the average bale of cotton linters was 500 pounds, and that it was so intended by the parties to said contract; that appellant had delivered to plaintiff under said contract 25 bales, but failed and refused to deliver any more; that after due notice, on January 25, 1916, appellee bought 175 bales of linters at 5¾ cents per pound, f. o. b. Texas common points, which was the lowest price at which said linters could be bought; that at said price the difference between the contract price and the market price of said'linters was $2,296.87; that appellant had had a reasonable time and more in which to perform the contract before January 27, 1916, but had failed and refused to do so; that, if it should be held that appellant was entitled to have until the end of the cotton season in which to fulfill the contract, then in such event plaintiff’s damages amounted to $4,000, for the reason that at the end of the season the difference between the contract price and the market price was 2% cents per pound.

Appellant demurred-generally and specially, pleaded the general issue, and specially, in substance, that the contract sued upon was a contract of manufacture and sale; that it was contemplated by both parties that the linters should be manufactured by appellant and shipped to appellee, beginning with the month of October, 1915, and thereafter as fast as made; that in compliance with said contract apjjlllant shipped to appellee, in the month of October, 25 bales, and was prevented from further shipments by circumstances ever which it had no control, to wit, that the electrical power company, which at that time, and for a long time prior thereto, had furnished the power to operate appellant’s mill, and which had been a dependable source of power, broke down suddenly and without [833]*833warning, and ceased furnishing power to appellant; that said power plant could not be repaired until late in January, 1916, and that by said last-named date the cotton oil mill season had practically ended, and seed could not be obtained for making linters of the grade and quality required; that on August 16, 1916, an unprecedented tropical hurricane struck and demolished the mill of appellant, and that appellant exercised due diligence to rebuild its mill; that during the season of 1916 and 1917 no cotton was raised within the territory occupied by said mill, and appellant manufactured no linters except during the month of February, 1917, when it manufactured 35 bales, which it shipped to appellee to apply on the contract sued upon, at the contract price of 3⅛ cents per pound; that said shipment was accepted by appellee without prejudice to the rights of either party; that except said 35 bales appellant had neither manufactured nor sold any linters since October, 1915. Appellant pleads certain items of credit, aggregating $579.94, and prays that in the event appellant should recover that it have credit for said sum. By supplemental petition appellee alleged that appellant had authorized the J. G. Leavell Company, brokers of Houston, Tex., to sell said 200 bales of linters; that at said time appellant’s mill was in operation, and it had cotton seed on hand from which to manufacture said iinters; that appellant expressly and impliedly represented to Lea-vell Company, its agents and broker, and Leavell Company expressly and impliedly represented to appellee, that appellant had the seed on hand from which to make the linters and had its mill in operation and was able to perform the contract; that appellee relied on said representation of fact being true, and entered into the contract; that ap-pellee had sold the linters to its customers, and in order to keep its contract was compelled to buy from other sources, at an advanced price, the linters which appellant had agreed to furnish. A trial to the court resulted in a judgment in appellee’s favor for $1,S62.90, with interest and costs.

The first assignment is that the court erred in not sustaining appellant’s general demurrer to the plaintiff’s first amended original petition. Appellant’s general demurrer was not urged until after the first supplemental petition was filed. If the original and supplemental petitions, considered together, state a cause of action, the court did not err in its ruling on the demurrer. We think the plaintiff’s pleadings, taken together, show its right to recover. The contention under this assignment is that because the plaintiff’s original petition shows that by the terms of the contract the linters were to be delivered as soon as they were made, and does not by further allegation show that appellant ever made any more than the 25 bales delivered in October, the petition is insufficient; that appellant’s obligation to deliver the remaining 175 bales rested upon the condition that it thereafter made that number.

[1] In our opinion, the contract cannot he construed as a conditional one. The recitation is the sale of “two hundred bales of cotton linters, mill run, * ⅜ * being seller’s make, at 3⅛ cents per pound, f. o. b. cars, Kingsville, Texas.” We may infer from this recital that appellant expected to manufacture at its own mill at least 200 bales of linters during that season. The recital, “Shipment. Beginning October, and shipped in car lots as fast as made,” was not a condition limiting or in any manner modifying the obligation of appellant to ship fully 200 bales mentioned in the contract, but was simply a stipulation fixing the time when appellant should commence shipping, and binding it to continue shipments in carload lots as rapidly as it could make them. That term was inserted for the benefit of appellee, and, since no date was fixed when the last carload should be shipped, appellant was bound to make the linters and complete the shipment within a. reasonable time. The words, “as fast as made,” relate only to the time when the several shipments should be billed out, and should not be construed to be a condition upon the performance of which, appellant’s obligation rested. To hold that the making of the linters by appellant was a condition precedent to its duty to ship would, in effect, relieve it, at its option, of any obligation to comply. Such a construction would render the contract unilateral and void for want of mutuality. We are convinced of the soundness of our holding by a consideration of the facts set up by appellant by which it sought to justify its failure to fulfill the contract.

[2] It is alleged that it failed to make the linters during the season because a certain electrical power company, from which it obtained the power to operate its mill, broke down and could not furnish it power. The failure of the electrical power company was the condition which caused the breach — a ■ condition not mentioned in the contract, and not within the contemplation of the parties at the time it was executed, but which arose thereafter. Such a condition will not excuse the breach.

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Bluebook (online)
210 S.W. 832, 1919 Tex. App. LEXIS 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kingsville-cotton-oil-co-v-dallas-waste-mills-texapp-1919.