Lyon v. Watson

67 N.W. 512, 109 Mich. 390, 1896 Mich. LEXIS 866
CourtMichigan Supreme Court
DecidedMay 26, 1896
StatusPublished
Cited by1 cases

This text of 67 N.W. 512 (Lyon v. Watson) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyon v. Watson, 67 N.W. 512, 109 Mich. 390, 1896 Mich. LEXIS 866 (Mich. 1896).

Opinion

Moore, J.

Plaintiffs sued to recover the sum of $11,-089.77, which they claimed was due them from the defendants,—$10,010.29 upon a promissory note, and the [391]*391balance upon an unpaid saw bill. The sum of $10,010.29 was the amount yet unpaid on a note given by defendants to plaintiff Lyon for $90,000, for part of the purchase price of the timber on half a section of land, which note was indorsed at the date thereof by Mr. Lyon to the plaintiffs in this case. Payments had been made upon the note, from time to time, until all had been paid except $10,010.29. The defendants, on the same day they bought the timber of Mr. Lyon, assumed a contract previously made between Mr. Lyon, Agent, and the Butters & Peters Salt & Lumber Company, wherein the company was to log the timber on said land. At the same time Lyon agreed with defendants that, as often as they paid $10,000 on the note and contract, he would consent to their cutting 1,000,000 feet of timber, and no more. On the same day Mr. Lyon, Agent, made a contract with defendants, agreeing to saw all of said timber in a good and workmanlike manner, at his mills, for $1.75 per 1,000, Scott’s tally. The defendants agreed ‘to pay Lyon, Agent, on the 10th of each month, tor all the lumber sawed the. preceding month, on an [estimate made by H. A. Scott or J. S. Woodruff. It is claimed by defendants that Lyon, in all these contracts, was acting for all the plaintiffs, and that all three agreements were contemporaneous, and together formed but one transaction. It was claimed by way of defense that plaintiffs did not manufacture the lumber in a good and workmanlike manner, and that as a result the logs did not produce as much merchantable lumber as they ought, and that the lumber manufactured was of much less value than it would have been if properly manufactured; and defendants claimed damages, by way of recoupment, to the amount of $35,901.25. In the notice attached to their plea, defendants claimed a set-off of $6,500 for 1,000 logs, but that claim was abandoned in court. At the close of putting in the proof, it was admitted in open court by the attorney for defendants that there was due plaintiffs upon the note, and for the balance of the [392]*392unpaid saw bill, the sum of $11,089.77, except as the amount was reduced or extinguished by the damages defendants had suffered by way of recoupment. Defendants claimed that they should have a verdict for $24,000, stated in round numbers.

Plaintiffs’ claim in relation to the manufacture of the lumber was that it was properly manufactured; that one Allport, an experienced lumber inspector, was placed by defendants at plaintiffs’ mills to see that the logs were cut to suit defendants; that Mr. Field, a member of defendants’ firm, was at the mills in June, July, and September, while the lumber was in the process of manufacture, and after more than 6,000,000 of feet of it had been cut, and made no complaint to any of the plaintiffs until all of the lumber was manufactured and shipped. Plaintiffs also claim that estimates were made each month by either Scott or Wood-ruff, as provided in the contract, and that each month’s saw bill was paid by defendants. Plaintiffs also claim that during this business transaction a large amount of correspondence was had, and 69 letters were put in evidence, written by defendants to plaintiffs, the last of which was written nearly a year after the lumber had been sawed, and that no complaint was made of the manner in which the lumber was sawed until in the last letter; that, in view of all this, the defendants must be deemed to have waived any defect in the manufacture of the lumber, if any existed. They also claim that defendants had opportunities of knowing all about the manufacture of the lumber when these things were done by them, and that they were bound to use their opportunities. The defendants answer these claims by saying that plaintiffs had agreed to manufacture this lumber in a good and workmanlike manner, and must perform their contract; that, while Mr. Allport was at the mill, he was there only a part of the time; that Mr. Field visited the mill but a few times; that none of the defendants had knowledge of the extent of the defects until long after the lumber had been manufactured; that they can[393]*393not be deemed to have waived the defects of which they had no knowledge; that, in relation to the monthly estimates, what they did was simply to make payments, but not settlements; and that they are not concluded from recovering damages by anything they have done. Testimony in detail was offered by both sides to support these various contentions. No errors are assigned by appellants, except as to the charge of the trial judge.

It is insisted by the appellants that the trial judge spoke of the monthly payments as being settlements, and did not leave it to the jury to determine whether they were settlements or only payments. The record discloses that estimates were sent each month, as provided in the contract, and that some of those monthly estimates were paid in full. The charge in relation to that feature of the case was as follows :

“The evidence shows here, beyond any question, that the plaintiffs here, at the end of the months of June and July and August,—perhaps at other times,—sent statements to the defendants as to the amounts that they claimed that they had sawed, on an estimate, according to contract. And it is claimed on the part of the plaintiffs that the defendants settled for these various amounts; that at that time they had knowledge, or ought to have had knowledge, if they had been diligent, as to just how this lumber was manufactured,'—-all about it. In that respect, I will say, gentlemen, that the defendants had a right to waive any defects with reference to the manufacture of this lumber, if defects actually existed; and if you should find that at the end of these different months they,—having full knowledge of the manner in which the lumber was manufactured,—that they made full and complete payments, as to the amounts claimed the different months, with a view of waiving and accepting the fulfillment of the contract on the part of the plaintiffs as they had fulfilled it up to that time, having a knowledge of the manner of the manufacture, it would be a waiver, and they would be estopped from claiming that the contract was not fulfilled on the part of the plaintiffs after that, as far as they had settled. That would be true with reference to the settlement, or claimed [394]*394settlement, that was made in June, in July, in August, or at any other time. If the defendants here made payments of the exact amounts claimed on the part of the plaintiffs at that time, having full knowledge as to how the lumber was manufactured, with a view of waiving any defects,—any defect with reference to the manufacture,—they would not be entitled to complain after they made that waiver. It will be for you, gentlemen, to determine, taking into consideration all the circumstances surrounding the case, as to whether they in fact did, or whether they intended, when they made those different payments, to make a waiver.”

We think the charge left it to the jury to determine whether what was done were simply payments, or whether they amounted to settlements, and that the assignment of error was not well taken.

The other assignments of error necessary to be considered relate to that portion of the charge of the court which referred to the amount the jury might find to be due the plaintiffs. The trial judge charged the jury:

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Related

Moody v. Township of Shelby
68 N.W. 259 (Michigan Supreme Court, 1896)

Cite This Page — Counsel Stack

Bluebook (online)
67 N.W. 512, 109 Mich. 390, 1896 Mich. LEXIS 866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyon-v-watson-mich-1896.