Lande v. A. G. Hyde & Sons

66 Misc. 259
New York Supreme Court·Decided February 15, 1910·Published

Opinion

Wheeler, J.

The plaintiff is a manufacturer of women’s skirts, located in the city of Buffalo. The defendant is a commercial house, located in the city of Hew York, and known as converters and jobbers in certain grades of cotton goods called taffetas, used in the manufacture of skirts and other garments. Tt- designates the different grades of these goods by trade-names, to wit, the “ Azalia,” the “ Arbutus,” the “ Thistle ” .and the “ Mignon ” brands, each grade differing slightly from the other grades, and each being sold at a different price to the trade. All these different grades are known and designated to the trade as “ Hydegrade ” goods. The house has a high commercial standing, and the goods marked as “ Hydegrade ” fabrics have a reputation in the trade and are apparently in demand as excellent fabrics.

To.facilitate .the sale of the defendant’s goods of this class, the defendant has been accustomed to supply to the manufacturer buying these goods labels, marked “ Hydegrade,” which the manufacturer is accustomed to attach to the garments manufactured to facilitate their sale.

There- are other houses and concerns in Hew York also manufacturing the same class, of goods and of substantially the -same quality as the defendant.

By correspondence the parties made a contract by which the defendant agreed to sell the plaintiff 300 pieces of the “ Azalia ” cloth, at nine and one-half cents per yard. At the time "the .-sale was made, the defendant-knew the .plaintiff was amanufacturer of skirts and selling the manufactured product to the trade; and the cloth in question was ordered for that purpose. The defendant was unable to deliver any of the “ Azalia ” brand, or keep its contract in that respect, and notified the plaintiff to that effect. On the -suggestion of the defendant, fifty pieces of “ Arbutus ” cloth was substituted for .a part .of the order; but the plaintiff testified that, when skirts from the cloth were made up, they were rejected by his customers. Belying on obtaining the “ Azalia ” cloth, the plaintiff had, through his traveling agents, obtained orders for skirts to be manufactured from “ Azalia ” cloth sufficient to use up the 300 pieces agreed to be.delivered. The “Arbutus ” cloth proving unsatisfactory to his customers, the [261]*261plaintiff repeatedly demanded delivery of the “ Azalian goods; and, the defendant being unable to comply, the plaintiff wrote the defendant that he would use as a substitute the “ Mignon ” goods which he had on hand and had previously purchased from the defendant at fifteen and one-half cents per yard, and would charge the defendant with the difference in price between the two grades. Before using the “ Mignon ” cloth, the plaintiff testified he endeavored to purchase in the market the “ Azalia ” cloth and was unable to obtain it.

It is undisputed that when the defendant discovered it was unable to fill the accepted order for “Azalia ” cloth, it offered to supply and substitute for it the grade of goods known as the “ Thistle ” brand, which is a brand of exactly the same grade and quality, except that in the process of manufacture it receives an additional treatment, making it, as claimed, a trifle better in finish, by reason of which it sold for a slightly higher price. The plaintiff, however, declined to use the “ Thistle ” brand, claiming he ought not to be required to experiment, or run the danger of having his manufactured skirts turned back on his hands by those who had ordered skirts from the “Azalia ” goods; and he did use as a substitute the Mignon ” cloth, the difference in price amounting to some $500, and upwards, which he sought in this action to recover.

The court, in substance, instructed the jury that, when the defendant failed to fulfill its contract, it became the duty of the plaintiff to so conduct himself as to make the damages flowing from the breach as small as possible; that he had no right to act arbitrarily and substitute for the “Azalia ” goods any goods he saw fit to select, but that he should have acted prudently and reasonably in view of the circumstances of the case; that he had the right to substitute other goods for the purpose of filling his orders, but, in making the substitution, he owed it as a duty to the defendant to use such goods and of such a quality as would reasonably meet the requirements and demands of those who had contracted with him for “Azalia ” skirts; that, if the jury found that the “ Thistle ” grade of goods which the defendant offered to supply would have met those require[262]*262nvents, and would not have resulted in the manufactured skirts being turned back on the plaintiff’s hands, then the plaintiff could only recover nominal damages, otherwise he would be entitled to recover substantial damages, to be assessed by the jury.

The jury, in fact, returned a verdict for $130. Just how the jury arrived at this sum the court is unable to determine. Nevertheless, the plaintiff is not now complaining of the amount, or demanding a new trial; but the defendant is claiming the trial court erred in permitting the jury to return any verdict for more than nominal damages.

It is true that, ordinarily, the rule of damages for breach of contract to sell is the difference between the agreed price and what the goods can be purchased for in the market. In this case, however, no “ Hydegrade ” fabrics could be purchased in the market except from the defendant, and the plaintiff had agreed with his customers to supply them with “ Hydegrade ” skirts of the “ Azalia ” brand. They had a right to insist on his furnishing “ Hydegrade ” skirts. The defendant knew the cloth was to be.furnished for this .very purpose, to enable the plaintiff to fulfill contracts for that kind of skirts. At least, it was left to the jury to say whether or not such was the fact. If a party agrees to sell and deliver goods, knowing they are intended to enable the .purchaser to fulfill contracts on his part, then for a breach of the contract the seller -renders himself liable for such special 'damages as are the proximate and natural results of his ¡failure. Parsons v. Sutton, 66 N. Y. 92. More v. Knox, 52 App. Div. 154; Delafield v. Armsby, 131 id. 572. In the above case of More v. Knox, the court said: “In the case of Parsons v. Sutton (66 H. Y. 92) the correct rule, as we understand it, is stated in the head note as follows: ‘ The

measure of damages for breach of a contract to sell and de- . liver an article of merchandise at a time and place specified, 'when a purchaser can go into the market and buy the article, is limited to the difference in value between the contract price and the market price at the time and place of delivery. If .there is no market, and the article cannot be had there with reasonable diligence, and the vendee has suffered special dam[263]*263ages because of, and which are the proximate and natural results of, the vendor’s failure, such damages may be recovered. The special damage in such case must be alleged and set forth in the pleadings of the party.’ ”

In the English case of Hinde v. Liddell, L. R. (10 Q. B.) 265, the defendant contracted to supply the plaintiff 2,000 pieces of gray shirtings at so much per piece, but informed the plaintiff he would be unable to complete his contract by the specified time; on which the plaintiff endeavored to get the shirting elsewhere, but there was no market • in England for it.

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Lande v. A. G. Hyde & Sons, 66 Misc. 259 (N.Y. Super. Ct. 1910).

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Related

Parsons v. . Sutton
66 N.Y. 92 (New York Court of Appeals, 1876)
More v. Knox
52 A.D. 145 (Appellate Division of the Supreme Court of New York, 1900)
Delafield v. J. K. Armsby Co.
131 A.D. 572 (Appellate Division of the Supreme Court of New York, 1909)
Den Bleyker v. Gaston
56 N.W. 763 (Michigan Supreme Court, 1893)