Lamis v. Des Moines Elevator & Grain Co.

229 N.W. 756, 210 Iowa 1069
CourtSupreme Court of Iowa
DecidedMarch 11, 1930
DocketNo. 40033.
StatusPublished
Cited by3 cases

This text of 229 N.W. 756 (Lamis v. Des Moines Elevator & Grain Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamis v. Des Moines Elevator & Grain Co., 229 N.W. 756, 210 Iowa 1069 (iowa 1930).

Opinion

Evans, J.

*1071 *1070 The transaction involved herein occurred in July, 1927. The plaintiff was a grain dealer at Chillicothe, Iowa. The defendant was a grain dealer at Des Moines. The parties *1071 were well acquainted, and had had similar transactions hitherto. On July 18th, the plaintiff wired the defendant for a quotation on No. 2 yellow corn. The defendant wired in reply that there was no No. 2 yellow corn, and quoted a price of $1.01% for No. 3 yellow corn. Thereupon, either on the same day or on the follow-the plaintiff called the defendant by telephone, whereby very brief conversation was had. The plaintiff testified that in that conversation the representative of the defendant at the telephone agreed to ship a carload of com on July 25th, of approximately 2,000 bushels, to Dudley, Iowa, at the price of $1.01%. Immediately following such conversation, the defendant wrote a letter and a formal confirmation of the sale, including the ordinary details of such a contract. The letter and confirmation were as follows: mg morning,

“Des Moines, Iowa
“July 19, 1927
“R. H. Lamis,
“Chillicothe, Iowa.
“Dear Sir:
‘ ‘ Confirming our telephone conversation with you today you will find inclosed confirmation for 110,000# car of bulk yellow corn at $1.01% track Dudley, Iowa, shipment to be loaded July 25th. We are making draft on you through the Bank at Chillicothe. We want to thank you, Mr. Lamis, for this trade and don’t forget to let us hear from you when you are in the market again.
“Yours truly, D. M. Elev. & Grain Co.
“J. C. Lake.”

The inclosure with the letter was the following:

“Confirmation of Sale
“Des Moines Elevator and Grain Company.
“To R. H. Lamis, No. 6522
“Chillicothe, Iowa
“Des Moines, Iowa, July 19, 1927.
“We confirm sale made to you today by - for-your account as follows: Bushels 110,000# car. Bulked or Sacked *1072 Bulk. Grain. & Grade 3 Yellow corn. Price 1.011/2. Basis Track Dudley, Iowa. Shipment Load July 25th. Shipping Instructions: To the order of D. M. Elev. & Grain Co. at Dudley, Iowa. Notify R. IT. Lamis at Dudley, Iowa. Routing. Terms. ' Settlement to be based on Des -Moines weights and Des Moines inspection, basis present freight rates. Demand Draft, Bill of Lading attached.
“Des Moines Elevator & Grain Co., Seller,
“By J. C. Lake.
“Read carefully, and if correct please sign and return carbon copy to us. If incorrect, wire us promptly.”

The plaintiff received this letter on the 20th of July, and apparently acquiesced therein, in that he made no objection or other response thereto. Pursuant thereto, the defendant loaded a car, and had the same regularly inspected by a licensed inspector, and caused the same to be shipped to the plaintiff at Dudley, Iowa. The car did not arrive at Dudley until the 30th, at which time the corn had become heated, and was in a greatly damaged condition. Before discovering its condition, the plaintiff had paid the sight draft drawn on him, and had thereby taken up the bill of lading. Because of the condition of the corn, he refused to accept it from the railway company. It was later sold by the railway company, and the proceeds accounted for to the plaintiff. The transaction resulted in severe loss to the plaintiff, and he brings his action to recover the same from the defendant.

The plaintiff purports to sue upon an oral contract, consisting of his conversation over the telephone, and perhaps aided by the preceding telegrams. He rejects the letter and the confirmation memorandum sent to him on July 19th by the defendant. His contention is that he had a complete and valid oral contract, and that the defendant could not change it by the subsequent writing. On the other hand, it is the contention of the defendant that there was no complete contract antedating the writing; that the oral conversation was within the statute of frauds, and unenforcible; and that it was indefinite and incomplete. The plaintiff denies that his alleged oral contract was within the statute of frauds. He contends that, with the aid of the telegrams, his oral contract is taken out of the statute of *1073 frauds. He purports to rely upon Section 9932, Code, 1927, which is in the Uniform Sales Act. This section does not, in our judgment, sustain his contention. "While it defines the form of a contract, it is not intended to avoid or to qualify the statute of frauds. If this were otherwise a doubtful question, it would be set at rest by Section 9933, which expressly recognizes the statute of frauds as applicable to the provisions of the Uniform Sales Act. The telegrams did not purport to be contractual. A price was quoted without reference to any place of delivery. To prove that a contract resulted, the plaintiff must rely wholly upon the telephone conversation. We deem it clear that such conversation, as testified to, was within the statute of frauds, and not provable orally, for that reason. The oral contract, as testified to by the plaintiff, was so lacking in the ordinary details important to be considered in such a transaction as to invite misunderstanding and dispute in the performance of the same. The course pursued by the defendant in incorporating into a writing the complete contract in all its details, and sending the same to the plaintiff as the contract which it proposed to perform, was a prudent and appropriate one, and was fairly calculated to avoid dispute and misunderstanding at the threshold of the transaction, and before either party had become involved in expense in relation thereto. These parties had had various transactions of this kind before, and this was the course which had been previously pursued. The plaintiff received the letter on the 20th, together with the confirmation, and made no reply thereto. He testified that he did not read the confirmation, because he supposed it was in conformity with their talk. It was in conformity with their talk in the sense that it was not inconsistent therewith. It differed from the talk only in the sense that it incorporated the details of the contract. It aimed to leave nothing open to mere implication and possible misunderstanding. The particular complaint of the plaintiff is directed to the fact that the confirmation provided for inspection at Des Moines. He contends that this detail had never been incorporated in any confirmation in their previous transactions.

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229 N.W. 756, 210 Iowa 1069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamis-v-des-moines-elevator-grain-co-iowa-1930.