Ludlow Cooperative Elevator Co. v. Burkland

87 N.E.2d 238, 338 Ill. App. 255, 1949 Ill. App. LEXIS 332
CourtAppellate Court of Illinois
DecidedMay 26, 1949
DocketGen. No. 9,643
StatusPublished
Cited by1 cases

This text of 87 N.E.2d 238 (Ludlow Cooperative Elevator Co. v. Burkland) 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
Ludlow Cooperative Elevator Co. v. Burkland, 87 N.E.2d 238, 338 Ill. App. 255, 1949 Ill. App. LEXIS 332 (Ill. Ct. App. 1949).

Opinion

Mr. Presiding Justice Dady

delivered the opinion of the court.

Plaintiff appellant, Ludlow Cooperative Elevator Company, an Illinois corporation, brought this suit for damages alleged to have arisen out of the breach by defendants appellees, Norris Burkland and A. B. Scoffield, of an oral contract for the sale and delivery of corn by defendants to plaintiff.

The case was tried by the court without a jury. The trial court entered judgment for defendants. Plaintiff appeals from such judgment.

Plaintiff has its office and elevator at Ludlow, Illinois. Defendant Burkland is a farmer, and defendant Scoffield is his landlord. Their farm is located about four miles from Ludlow.

On February 12, 1947, by means of a telephone conversation between Burkland and Adrian Johnson, as an agent of plaintiff, Burkland, for himself and Scoffield, agreed to sell and deliver to plaintiff, and plaintiff agreed to buy, 2500 bushels of shelled corn at $1.25 per bushel.

The only dispute as to the terms of such contract is with reference to when delivery was to be made, — plaintiff contending that the agreement called for delivery within 30 to 60 days, and defendants contending that delivery was to be made within 30 days. For the purpose of this opinion we will assume that plaintiff’s contention as to the time of delivery is correct.

On April 4, 1947, plaintiff wrote defendants:' “We can now accept delivery” of the corn. Delivery was not made.

Defendants, as a defense, have pleaded section 4 of our Sales Act, ch. 121½, Ill. Rev. Stat. 1947 [Jones Ill. Stats. Ann. 121.08], and contend that by reason of such section the plaintiff is barred from maintaining this action.

Section 4 of the Sales Act, so far as is material, reads as follows:

“Statute of frauds.) Sec. 4. (1) A contract to sell or a sale of any goods ... of the value of five hundred dollars or upwards shall not be enforceable by action unless the buyer shall accept part of the goods . . . so contracted to be sold or sold, and actually receive the same, or give something in earnest to bind the contract, or in part payment, or unless some note or memorandum in writing of the contract or sale be signed by the party to be charged or his agent in that behalf.
“(2) The provisions of this section apply to every such contract or sale, notwithstanding that the goods may be intended to be delivered at some future time. . . .
“(3) There is an acceptance of goods within the meaning of this section when the buyer, either before or after delivery of the goods, expresses by words or conduct his assent to becoming the owner of those specific goods.”

Plaintiff contends that by reason of the fact that defendants intended and agreed to sell and deliver to plaintiff, and plaintiff intended and agreed to purchase the corn, and the fact that within the 60 days provided by the agreement plaintiff notified defendants to deliver the corn, plaintiff thereby accepted and became' the actual owner of the corn, and defendants became bailees thereof, with a lien thereon for the payment of the purchase price on delivery. In support of such contention plaintiff calls attention to subparagraph 3 above quoted and other sections of the Sales Act, and cites such cases as Barrow v. Window, 71 Ill. 214, which hold that under the common law delivery is not a condition precedent to the passage of title to personal property, and that an agreement to sell an article by weight or measure, when the article is identified and the price agreed upon, may be a complete sale if the parties intended it as such, although the article sold is not weighed or measured, and Commonwealth Title Insurance & Trust Co. v. Gregson, 303 Ill. 458, wherein it is said that our Sales Act has not changed the common law in this respect.

Plaintiff then contends that by reason of such facts it follows that the contract in question was either not within the statute of frauds or that the statute of frauds was satisfied. No authority is cited in support of such last contention. The undisputed facts show that plaintiff never did “actually receive” any part of the corn and did not give anything “in earnest or bind the contract, or in part payment,” and that no “note or memorandum in writing of the contract or sale” was ever signed by either party or any agent of either party, — as specifically required by the statute. It is our opinion that such contention of plaintiff is without merit for the reason that the first paragraph of section 4 above quoted, in clear unmistakable language expressly states that not only a “contract to sell” but a “sale” under the admitted facts, at hand, “shall not be enforcible.” (See West v. Kenney, 220 Ill. App. 49; Chicago Metal Refining Co. v. Jerome Trading Co., 218 Ill. App. 333; Illinois Meat Co. v. American Malt & Grain Co., 229 Ill. App. 311; Johnston Mfg. Co. v. Hamilton Glass Co., 261 Ill. App. 308.)

Plaintiff next contends that defendants are estopped from setting up the statute of frauds as a defense because the effect would be to perpetrate a fraud on plaintiff.

That one may be estopped under certain circumstances from asserting the statute of frauds as a defense is clearly established in this State. (Cross v. Weare Commission Co., 153 Ill. 499, 516.) The burden of establishing an estoppel is on the one who asserts it. (Svalina v. Saravana, 341 Ill. 236.) The moral wrong of refusing to be bound by an agreement because such agreement does not comply with the statute of frauds does not authorize the application of the doctrine of equitable estoppel. (Lowenberg v. Booth, 330 Ill. 548, 557.) “If it were, the statute would be rendered entirely nugatory.” (Uden v. Patterson, 252 Ill. 335, 339.)

The fact that, until after this suit was commenced, defendants failed to assert the Statute of Frauds as their reason for nonperformance does not estop them from doing so. “The party sought to be charged on an oral contract is under no obligation to raise the question of want of writing until the other party seeks the aid of a court to enforce the contract. ’’ (Stein v. McKinney, 313 Ill. 84, 91.)

In Lowenberg v. Booth, 330 Ill. 548, 555, the court said: “In order to invoke the principle of equitable estoppel six elements must appear: (1) Words or conduct by the party against whom the estoppel is alleged amounting to a misrepresentation or concealment of material facts; (2) the party against whom the estoppel is alleged must have knowledge, either actual or implied, at the time the representations were made, that they were untrue; (3) the truth respecting the representations so made must be unknown to the party claiming the benefit of the estoppel at the time they were made and at the time they were acted on by him; (4) the party estopped must intend or expect that his conduct or representations will be acted on by the party asserting the estoppel or by the public generally; (5) the representations or conduct must have been relied and acted on by the party claiming the benefit of the estoppel; and (6) the party claiming the benefit of the estoppel must have so acted, because of such representations or conduct, that he would be prejudiced if the first party is permitted to deny the truth thereof. ’ ’

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Bluebook (online)
87 N.E.2d 238, 338 Ill. App. 255, 1949 Ill. App. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ludlow-cooperative-elevator-co-v-burkland-illappct-1949.