L. J. Mueller Furnace Co. v. Cascade Foundry Co.

145 F. 596, 76 C.C.A. 286, 1906 U.S. App. LEXIS 4009
CourtCourt of Appeals for the Third Circuit
DecidedMay 15, 1906
DocketNo. 8
StatusPublished
Cited by8 cases

This text of 145 F. 596 (L. J. Mueller Furnace Co. v. Cascade Foundry Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L. J. Mueller Furnace Co. v. Cascade Foundry Co., 145 F. 596, 76 C.C.A. 286, 1906 U.S. App. LEXIS 4009 (3d Cir. 1906).

Opinion

GRAY, Circuit Judge.

The plaintiff in error and defendant below (hereinafter called the defendant) is a corporation of the state of Wisconsin, located in Milwaukee, engaged in the manufacture and sale of heating furnaces. Having no foundry connected with its factory, it purchased such castings as it required in the manufacture of the furnaces, from outside foundry companies. For a number of jmars prior to the contract out of which this suit arose, it purchased its castings from the Walworth Run Foundry Company, oí Cleveland, Ohio. On January 20, 1903, it entered into a written contract with the Cascade Foundry Company, a corporation of the state of Pennsylvania, defendant in error and plaintiff below (hereinafter called the plaintiff) for the manufacture of a certain number of furnaces,' — that is, for the castings to be used in their construction. The contract covered a period of five years, and provided for the different styles of furnaces that were to be constructed under it, and for the regulation of price. This price was so much per pound, depending upon the fluctuation of the cost of iron up or down, but the weight of the parts that were to be manufactured was to be determined by taking the weights of the patterns of the different parts manufactured (these patterns being themselves castings) and adding 6 per cent, to one class of pattern weights and 8 per cent, to another class. Upon the weights thus determined, the price of the castings to be furnished by the plaintiff was to he calculated.

After some delay, the plaintiff company entered upon the active performance of its contract in May, 1903, and having manufactured a number of these castings, some time in the latter part of June, 1903, claimed the right to rescind the contract, on the ground that the method for ascertaining the weight of the castings, by adding 6 and 8 per cent, to the pattern weights, as provided for in the contract, re-[598]*598suited in plaintiff’s furnishing to the defendant much greater weight than was paid for under the terms of the contract, the excess of the weight of the castings over the pattern weight being alleged as 15 to 25 per cent, instead of 6 to 8 per cent., and that plaintiff was induced to enter into the contract, providing for this method of settling the weight, by the false representations knowingly made by the defendant company, that this mode of ascertaining weights was a just one, and would fully protect the plaintiff company, and amount to as much as the actual weights, the defendant company “being then and there in the exclusive possession of the facts from which the truth or falsity of the statement in relation to weights could be ascertained.”

With this statement of the ground of liability^ the plaintiff sets forth in its declaration the damages suffered bj it, by reason of its attempt to perform said contract, and of its preparation for the same in the purchase of material, flasks and other appliances necessary for the execution of its contract.

The representations complained of in the declaration, which the testimony adduced by plaintiff tended to show had been made by the agent of the defendant to the plaintiff, substantially as stated, were:

“That ail equitable, just and true method of ascertaining the weights of the castings required to be made under the contract aforesaid, was, by computing the same from the pattern weights, to wit, al least double radiator furnaces to be figured at eight per cent, above pattern weights, and all other furnaces at six per cent, above pattern weights; that such means of ascertaining weights was a just means, would fully protect the Cascade Foundry Company and amount to as much as actual weights; that eight and six per cent, above the pattern weights respectively, would be equal to the actual weight of the eastings made, which they then and there knew to be false, the actual weight over and above the pattern weights being not less than twenty-five per cent.”

At the close of the testimony, the case was submitted to the jury by the learned trial judge, and resulted in a verdict for the plaintiff. The writ of error sued out by the defendant, brings before us, as assignments of error, the refusal of the trial judge to give binding instructions in favor of the defendant, and the refusal to give certain specific instructions to the jury. The principal question raised by these assignments is founded upon the proposition, that no sufficient evidence had been offered to justify the jury in finding that the defendant company, or its officers or agents, made am false representations, inducing the plaintiff to enter into the contract mads between the plaintiff and defendant, which warranted plaintiff in rescinding the said contract. '

The contention of the defendant is, that the representations alleged and proved were merely expressions of opinion by the agent of defendant, that the addition of G and 8 per cent, to the pattern weights would be a fair method of arriving at the actual weight of the castings, and that the actual weight would not exceed the result thus arrived at, and were not representations of existing facts.

An action grounded upon alleged injury, occasioned to plaintiff by false representations of defendant, is an action in the nature of an action for deceit. Nothing is better settled then, that to be actionable, [599]*599such represent a lions must be as to past or existing facts, and not merely promises or expressions of opinion as to future events: although the stare of mind or intent of the defendant may, under certain circumstances, be regarded as a fact existing at the time the representation is made in regard to it. But the general rule is, that false representations, inducing conduct on the part of the plaintiff to his injury, to be actionable, must'relate to past or existing facts, and not be mere promises or expressions of judgment cr opinion.

The plaintiff in error and defendant below complains here, that the court below did not undertake to decide for itself as to the character of these representations, instead of submitting to the jury the question, whether they were mere expressions of opinion, or assertions as to an existing fact. In submitting the case to the jury, the court below' correctly stated to them the distinction to be observed between representations as to past or existing facts, and mere promises or expressions of opinion, or judgment, charging them that if the representations complained of were of the latter character, the plaintiff could not recover. There was some conflict of testimony between the witnesses for plaintiff and defendant, as to the precise character of the statements made and language used by the agent of the defendant, in regard to the method suggested by him, and finally incorporated in the contract for determining' the weight of the castings as a basis for payment of the same, and the true question in the case may, as a whole, be viewed as one of intent. Was it the intent of the defendant to be understood as expressing an opinion on the one hand, or as stating an existing fact upon the other, in order to influence the conduct of the plaintiff, provided always that it has been shown that plaintiff acted upon such representation in the sense intended by the defendant. As a question of intent, it was peculiarly a question for the jury. This was practically, if not expressly, the question submitted, and we think properly submitted, to the jury; and we cannot say, after a careful reading of the record, that there was nothing in the facts or circumstances proved in the case, to warrant the jury in determining it as they did.

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Cite This Page — Counsel Stack

Bluebook (online)
145 F. 596, 76 C.C.A. 286, 1906 U.S. App. LEXIS 4009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-j-mueller-furnace-co-v-cascade-foundry-co-ca3-1906.