Lawson v. M. Longo Fruit Co.

287 S.W. 796, 220 Mo. App. 556, 1926 Mo. App. LEXIS 105
CourtMissouri Court of Appeals
DecidedJuly 6, 1926
StatusPublished

This text of 287 S.W. 796 (Lawson v. M. Longo Fruit Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lawson v. M. Longo Fruit Co., 287 S.W. 796, 220 Mo. App. 556, 1926 Mo. App. LEXIS 105 (Mo. Ct. App. 1926).

Opinion

*558 BECKER, J.

— On October 19, 1922, plaintiffs and defendant entered into a written contract whereby plaintiffs agreed to sell defendant a carload of Concord grapes, to be shipped to St. Louis, at the price of $70. per ton, f. o. b. New York. The sale was made by telegram dated October 18, 1922, and afterwards confirmed by what is known in the State of New York as the “Standard Confirmation of Sale,” which agreement makes the standard rules and definitions of trade terms for the produce and vegetable- industry appearing up^ii the reverse side of the said confirmation of sale a part of the contract.

*559 The ear was shipped from Brocton, New York, on the 18th of October, 1922, under a bill of lading by which plaintiffs consigned the shipment to themselves at St. Louis, with the notation to notify defendant. The bill of lading, with a draft for the price of the shipment, was sent to the Franklin Bank, St. Louis. There was no instruction given to the railroad over which the shipment was made, or to any connecting carrier giving defendant the right to inspect the car before payment of the draft or the taking up of the bill of lading.

The car arrived in St. Louis on October 24, 1922, and as soon as defendant was notified on that day of the arrival of the shipment it attempted to inspect the same, but inspection was refused by the railroad company. Defendant then called upon plaintiffs’ brokers who had sold the car to it, and informed them that it had not been permitted to inspect the shipment. The brokers agreed to get the right of inspection for defendant immediately, but no notice was received on that day or the day following.

On October 24th the plaintiffs’ brokers telegraphed plaintiffs to allow inspection quick, but received no answer to this telegram.

On October 25th the plaintiffs’ brokers wired the plaintiffs: “If you don’t instruct Cloverleaf Railroad allow Longo inspection tonight or in the morning he will refuse car.”

On October 27th the brokers wired plaintiffs: “Long'o rejects car grapes, could not inspect until late yesterday. ’ ’

On the 26th of October plaintiffs telegraphed their brokers as follows:

“Car sold f. o. b. Brocton, no inspection promised at sale. Putting-matters for collection. Wire shows inspecfioin before car arrived.”

On October 28th the brokerage firm wired plaintiffs:

“Longo won’t take car. Says had car sold; but could not see the grapes for several days. His customer would not wait and bought elsewhere. Wire what shall do.”

Before the arrival of the ear defendant had sold it to a customer, one Paul Poedeshi, of Kincaid, Illinois, at $80, ton f. o. b. shipping-point, which would have yielded defendant a profit of $10 a ton on the shipment. This customer had come to St. Louis and refused to accept the car because of inability to inspect its contents, but waited over for three days in the hopes of being permitted to inspect it, and not being given such opportunity, refused to go on with his contract.

On October 24, 1922, plaintiffs wired to the agent of the Nickle Plate Railroad, St. Louis, Missouri, to allow inspection of the ear, but defendant was not notified, and at that time the car had been delivered to .the Terminal Railroad Association, and it was not until about 3:30 o’clock p. m., October 26, 1922, that defendant was notified that the ’contents of the car might be inspected. By this time *560 it had already lost the sale of the ear to Poedeshi, and they thereupon rejected the shipment.

Plaintiffs sued for the damages alleged to have been sustained by them on account of the failure of defendant to accept the shipment, and defendant, by its counterclaim, sought to recover its damages because of the failure of the plaintiffs to permit an inspection and thereby enable defendant to make the sale to its customer.

At the close of plaintiffs’ evidence defendant asked a peremptory instruction that the plaintiffs were not entitled to recover on their cause of action, which request was denied by the trial court.

The jury returned a verdict for plaintiffs on their cause of action and also on defendant’s counterclaim, and this appeal is from the judgment'rendered upon said verdict.

Granting that plaintiffs adduced testimony tending to prove that under the agreement in writing entitled, “Standard Confirmation of Sale,” the phrase, terms net cash payable, “regular” meant and was understood by the well established use and custom existing at the time of the execution of said agreement and of which both parties had knowledge at the time said agreement was entered into, that the sale was made for cash, the goods to be 'shipped f. o. b. car at Brocton, New York, on a bill of lading issued by the carrier to the order of plaintiffs at St. Louis, Missouri, notify M. Longo Fruit Company, and attached to sight draft for the purchase price drawn on defendant at St. Louis as is alleged in plaintiffs’ petition so that assuming 'without deciding that plaintiffs complied with the contract in shipping the ear of grapes under shipper’s order, notify bill of lading, yet nowhere in said, “Standard Confirmation of Sale” do we find anything that can be construed as a waiver on the part of the dedendant of its right to inspect before receiving and accepting said shipment, .and plaintiffs in their printed agreement concede that, ‘‘absent the contract of sale (Standard Confirmation of Sale) the consignee was entitled to - inspection before being required to take up the draft.” Noy does plaintiffs’ amended petition allege any customs under said, “Standard Confirmation of Sale” to the effect that such right of inspection on the part of the purchaser is waived. In this situation. plaintiffs were not entitled to adduce any testimony with reference to a- custom that where goods are shipped as here under a bill of lading to shipper’s ordeiy notify, the purchaser had no right of inspection unless specifically contracted for in the agreement of purchase and sale.

Absent any pleading and proof of a custom that no inspection is to be allowed unless specifically contracted for in the written agreement of purchase and sale, the defendant clearly, under the decisions in this State and elsewhere was entitled to inspection beforb acceptance.

*561 Plaintiffs concede that they did not mark on the shipper’s order notify bill of lading directions to the railroad company to permit inspection on the part of the defendant, and further concede that without such written notification upon the bill of lading the carrier would not permit and did not in fact permit defendant to inspect. We have in mind also that plaintiffs adduced abundant proof- that right at the time that the shipment of grapes in question arrived in St. Louis there was a rapidly declining market and yet the defendant for three consecutive days and up to 'the moment of its rejection was denied the right of inspection.

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Bluebook (online)
287 S.W. 796, 220 Mo. App. 556, 1926 Mo. App. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawson-v-m-longo-fruit-co-moctapp-1926.