La Grange Metal Products v. Pettibone Mulliken Corp.

436 N.E.2d 645, 106 Ill. App. 3d 1046, 62 Ill. Dec. 619, 1982 Ill. App. LEXIS 1939
CourtAppellate Court of Illinois
DecidedMay 20, 1982
Docket81-415
StatusPublished
Cited by37 cases

This text of 436 N.E.2d 645 (La Grange Metal Products v. Pettibone Mulliken Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
La Grange Metal Products v. Pettibone Mulliken Corp., 436 N.E.2d 645, 106 Ill. App. 3d 1046, 62 Ill. Dec. 619, 1982 Ill. App. LEXIS 1939 (Ill. Ct. App. 1982).

Opinion

PRESIDING JUSTICE JOHNSON

delivered the opinion of the court:

Defendant, Pettibone Mulliken Corporation (Pettibone), appeals a judgment in a contract action granting damages in the total amount of $130,522.12 to plaintiff, La Grange Metal Products (La Grange), on counts I, III and IV and the award of prejudgment interest to plaintiff on counts I and III. Plaintiff appeals the judgment for defendant on counts II and V and the denial of prejudgment interest on count IV. The following issues are raised for review: (1) whether the trial court abused its discretion in refusing to allow defendant to amend its answer; (2) whether the trial court erred in holding that the quotation letters were offers; (3) whether the judgment for plaintiff on counts I, III and IV is against the manifest weight of the evidence; (4) whether the trial court erred in entering judgment for defendant on counts II and V; (5) whether the evidence presented by plaintiff proved an account stated; and (6) whether the trial court properly awarded prejudgment interest.

We affirm.

La Grange is an Illinois corporation engaged in the business of producing and manufacturing metal products, including metal beams and castings. Pettibone is a foreign corporation doing business in Illinois. Plaintiff filed a complaint against defendant alleging as follows:

Count I. In a letter dated May 2, 1966, plaintiff quoted part number A-3543 beam at $295 for 100 to 200 pieces, and $108 for 200 to 300 pieces. In a purchase order dated May 12, 1966, defendant ordered 200 pieces. Its purchase order listed the unit price as $108. Plaintiff processed 150 pieces.
Count II. In a letter dated November 3, 1966, plaintiff quoted part number A-3542 beam at $380 for 100 to 200 pieces, and $135 for 200 to 300 pieces. In a purchase order dated November 15, 1966, defendant ordered 240 pieces. Defendant’s purchase order listed the unit price as $135. A line was drawn through the $135 and $115 was written underneath with the date May 9, 1967. Plaintiff processed 111 pieces.
Count III. In a letter dated May 2, 1966, plaintiff quoted part number AA-45255 castings at $904 for 51 to 100 pieces, $436 for 100 to 200 pieces, and $195 for 200 to 300 pieces. In a purchase order dated May 12, 1966, plaintiff ordered 200 pieces. Its order listed $195.50 as a tentative unit price. Plaintiff processed 62 pieces.
Count IV. In a letter dated May 2, 1966, plaintiff quoted part number A-3269 cover castings at $1,580 for 10 to 25 pieces. Defendant’s original purchase order was dated May 12, 1966, and 212 castings were ordered. The figure 182 was crossed out and the unit price of $239 was written under it. In a corrected order dated September 21,1966, defendant reduced the quantity to 15. Plaintiff processed 17 items.
Count V. In a letter dated February 17, 1967, plaintiff quoted part number A-3543 beam at $1,496 for 10 to 25 pieces, and $185 for 200 to 300 pieces. In a purchase order dated February 9, 1967, defendant ordered 240 pieces. Typed under “unit price” was “advise price.” Written underneath this was $185 ea., H.F.G. told A.G. $135.” Plaintiff processed 25 items.

In all counts, plaintiff alleged that defendant had failed to pay the amounts owing and prayed for damages plus interest.

In its answer, defendant admitted that plaintiff quoted certain prices but denied that the prices quoted were as alleged. Pettibone also admitted shipping certain items to La Grange but denied that the items were subject to the prices alleged. Defendant further alleged that it paid certain sums in full payment.

Testimony at trial established the following.

Frank Greene, president of La Grange, testified that in April 1966 he visited with officers of Pettibone, Mr. Cavender and Mr. Slokum. They knew that Greene had farmed out work to Madden Machine Company and they wanted him to secure parts machined for them by Madden. During this conversation, Greene called David Madden.

Three or four days after this meeting, Greene sent price quotations to Pettibone. At trial, Greene explained that the more parts machined, the less the price per part. Greene never received any objections to the price quotations. When asked about count II, Greene said that the $115 written underneath the unit price looked like his writing, but he was not positive that it was his handwriting. Greene also testified that during their relationship, Pettibone requested either more or less machining and that the unit price was either increased or reduced.

David Madden testified that he sent price quotations to La Grange on May 2, 1966. He performed the work for Pettibone through La Grange.

After the castings were machined but before they were shipped, they were checked by an inspector from Pettibone. Madden never received any complaints about the timeliness of delivery and never received any complaints about or rejections of the castings. In his opinion, the castings were machined properly. Madden rejected castings delivered to him for machining in a defective condition. On cross-examination, Madden said that Pettibone did not pick up castings which were not machined or not completely machined.

Thomas M. Cavender, a vice-president of Pettibone, did not recall receiving price quotations from Greene and did not recall what unit prices were discussed. He said that he had no discussion with Greene about pricing on a graduated basis. The discussion was to establish only one price on machining the castings.

Cavender said the parts furnished under count I were poor in quality and had to be returned. Plaintiff noted that there was no affirmative defense of nonperformance or failure to perform the contract. The trial court held that the only bone of contention was the rate to be charged and that plaintiff had proved an account stated. The defense made an offer to prove that plaintiff did not perform the contract, which the court denied on the grounds of surprise. The court also denied defendant’s motion to amend its pleadings to state that the parts were not machined properly.

With regard to count III, Cavender testified that the pieces were not machined properly; that as a consequence, Greene and Pettibone agreed to cut the price in half. Defendant introduced into evidence invoices purporting to show that Greene had accepted one-half of the total. They were signed “Frank Green.” Greene denied that the signatures were his.

Ronald P. McGovern, a certified public accountant, was controller for Pettibone from 1967 to 1976. He testified that he told Harvey Bass of La Grange in February 1970 that Pettibone owed no money to La Grange.

Wanda Larson testified for defendant. She had been employed by Greene from about 1968 or 1969 through 1970. In late 1968 or early 1969, she was asked to assemble documents of Pettibone that were in Greene’s files. Larson organized and copied the files which consisted of invoices from the Madden company which had been sent to Pettibone.

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436 N.E.2d 645, 106 Ill. App. 3d 1046, 62 Ill. Dec. 619, 1982 Ill. App. LEXIS 1939, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-grange-metal-products-v-pettibone-mulliken-corp-illappct-1982.