Kullman, Salz & Co. v. Sugar Apparatus Mfg. Co.

96 P. 369, 153 Cal. 725, 1908 Cal. LEXIS 522
CourtCalifornia Supreme Court
DecidedJune 10, 1908
DocketS.F. No. 4351.
StatusPublished
Cited by17 cases

This text of 96 P. 369 (Kullman, Salz & Co. v. Sugar Apparatus Mfg. Co.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kullman, Salz & Co. v. Sugar Apparatus Mfg. Co., 96 P. 369, 153 Cal. 725, 1908 Cal. LEXIS 522 (Cal. 1908).

Opinion

*726 HENSHAW, J.

Plaintiff sued to rescind a contract for the purchase of a “Lillie triple-effect evaporator,” and for the recovery of such part of the purchase price as it had paid, because of the failure of the machine to meet the requirements of a warranty expressed in the written contract between the parties. Judgment was given for plaintiff, and from the judgment and order denying its motion for a new trial defendant appeals.

Plaintiff is a California corporation engaged in the business of tanning hides. Defendant is a corporation engaged in the manufacture of machinery in the state of Pennsylvania. As a branch of its business, it manufactures evaporating apparatuses and machines, one of which is, by its trade name, designated a “Lillie triple-effect evaporator.” In plaintiff’s process of tanning, the hides are successively dipped in tannic solutions of constantly increasing strength. These solutions are obtained by running water over the tanbark and leaching the tannin therefrom. The first and weakest solution to which the hides were subjected was one of eighteen or twenty degrees barkometer, and the solutions were gradually increased in strength to forty-five or fifty degrees barkometer. When there was a failure of the water to extract as high as eighteen or twenty per cent from the tanbark, the result was a solution unsuitable for tanning uses, and thus a waste product. Plaintiff conceived the idea that it might be able to employ an evaporating and condensing apparatus whereby the percentage of tannin in these low solutions could be so increased as to make them available for use. Plaintiff then came into communication Avith Mr. Lillie, president of the defendant company, Avho inspected the tannin solutions, and thought, and so stated, that the apparatus manufactured by his company would do the desired Avork. Plaintiff desired defendant to lend it one of its machines for experimental purposes, not only to see whether the machine would perform the desired Avork, but as well to learn whether its use would be consistent Avith the method of tanning employed by the company. Mr. Lillie declined to lend the machine, for the very obvious reason that, if not purchased, it would be returned Avithout compensation, depreciated in value as a second-hand outfit. The conversations and negotiations be *727 tween the parties resulted in the following agreement, which is pleaded in the complaint, and became, without doubt or dispute, the original contract between the parties:— "Gentlemen:

“I beg hereby to affirm the proffer made by me verbally to Mr. Kullman this morning, which was:
“To sell to you the Lillie triple-effect evaporator with condenser (jet not surface) vacuum pump and engine referred to in our letter to you of the 13th inst. for the sum of four thousand and four hundred ($1,400.00) f. o. b. Philadelphia, payable as follows, viz.: $750.00 on acceptance of this proposition, $750.00 on shipment of the plant, and $2,900 ninety days after arrival of said shipment in San Francisco, you however to have the option of returning the apparatus (i. e., triple-effect, condenser, engine and vacuum pump, with all fittings and connections furnished therewith by us) at the end of the said ninety (90) days after the arrival of the shipment in San Francisco in lieu of making the said payment of $2,900.00. Shipment of same to be by rail to The Sugar Apparatus Mfg. Co., Philadelphia, Pa., freight prepaid by you.
“ It is to be understood that the return of the apparatus by you will give you no claim upon any part of the $1,500.00 paid to us on account of it, and also that the apparatus is to be shipped, if returned to us, properly packed, and in as good condition as is consistent with sixty days use of it with average care.
“This triple effect is shown on the accompanying blue print 167A and will be delivered to you as shown on that print, with the addition of an engine for driving and circulating pumps and a vacuum pump and jet condenser in the place of the condenser shown on the print.
“With the usual supply of water to the condenser to maintain vacuum of 26 inches in the third effect, you will be able to evaporate three hundred (300) gallons of water per hour from your tannin solutions if the triple-effect is operated according to the written instructions which will be given to you in detail.”

Some delay followed in shipping the machine and in placing it in plaintiff’s tannery. When so placed it worked unsatisfactorily. An expert of defendant came to the coast, *728 labored upon the machine, and finally reported it as being in a satisfactory condition and doing the work; whereupon, and because of the delay and the past unsatisfactory performance of the machine, a written modification of the original contract was entered into between the parties as follows:—

“It is agreed between Kullman, Salz & Company and The Sugar Manufacturing Company that this agreement is to-substitute one dated June 20th, 1900, regarding price, although all other conditions referring to the efficiency of apparatus, etc., are still to remain in force as per original contract.
“It is hereby agreed that in consideration of one thousand dollars ($1,000.00) paid by Kullman, Salz & Co., to The-Sugar Apparatus Manufacturing Company, the receipt of which is hereby acknowledged, that the final and full payment of the triple-effect machine referred to in the original contract is to be $2,000, which when paid at the expiration of ninety days from this date, is to be payment in full for apparatus complete, including freight and all incidental expenses.”

From this date plaintiff continued to operate the machine-until, just before the limitation of the ninety days, which the parties seemed to agree was to run from June 14, 1901 (the date of the modification of the original agreement),. plaintiff gave notice of rescission. Thereafter plaintiff commenced this, action for rescission and the recovery of the-portion of the purchase price which it had paid. Defendant, answered, joining issue upon these matters, and by counterclaim sought a recovery of the unpaid portion of the purchase price.

The allegations of the complaint as to the breach of contract are as follows:—

“That the said apparatus mentioned in said written contract was warranted to be able to evaporate three hundred (300) gallons of water per hour, as specified therein, but that the apparatus delivered to said plaintiff under said contract was not able under the conditions specified, all of which were observed fully by plaintiff, to evaporate three hundred gallons of water under the conditions as specified in said contract, but failed very largely to accomplish the= work required thereof.
*729 “That plaintiff believed the representations of said defendant and entered into said contract solely by reason of' said representations and the said warranty therein contained and said plaintiff was unable to ascertain the truth or falsity of said representations before entering into said contract. . . .

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Bluebook (online)
96 P. 369, 153 Cal. 725, 1908 Cal. LEXIS 522, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kullman-salz-co-v-sugar-apparatus-mfg-co-cal-1908.