Lyons Milling Co. v. Cusimano

108 So. 414, 161 La. 198, 1926 La. LEXIS 2035
CourtSupreme Court of Louisiana
DecidedMarch 29, 1926
DocketNo. 27723.
StatusPublished
Cited by10 cases

This text of 108 So. 414 (Lyons Milling Co. v. Cusimano) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyons Milling Co. v. Cusimano, 108 So. 414, 161 La. 198, 1926 La. LEXIS 2035 (La. 1926).

Opinion

O’NIELL, C. J.

This suit is to recover a loss alleged to have been suffered by the plaintiff’s having to sell on the open market a carload of flour shipped to-the defendant and rejected by him on the ground that it was not what he had ordered. The civil district court rejected the plaintiff’s demand. The court of appeal reversed the judgment, and gave the plaintiff judgment for the amount sued for. The case is before .us on a writ of review.

The only question is whether the defendant’s refusal to accept the shipment was justified by the fact that the flour was the product of a mill in Hudson, Kan., instead of being, as the defendant expected it to be, the product of the plaintiff’s mill in Lyons, Kan.

The defendant is an extensive manufacturer of macaroni, in New Orleans. It requires a very high-grade flour — what the experts call “strong” flour — from hard wheat, and having' a high gluten content, to make macaroni. The defendant had no use for any other kind of flour, and would buy no other. He had bought such flour from the plaintiff’s sales representative, J. S. Waterman & Co., in New Orleans, the flour being known as the Lyons Milling Company’s “Telegram” brand, manufactured at the plaintiff’s mill at Lyons, Kan., which had given great satisfaction. J. S. Waterman & Co. had also sold to the defendant a brand of flour represented to be of the same grade as the “Telegram” flour, but branded “Rosebud,” which was shipped from Hudson, Kan., and, which proved to be .unfit for the manufacture of macaroni. Therefore, when the defendant gave J. S. Waterman & Co. the order for the carload of “Telegram” flour, which is the subject of this lawsuit, he specified, and the seller agreed, that the flour should come from the Lyons Milling Company’s mill at Lyons, Kan., and not from any other place. The defendant and the members of the firm of J; S. Waterman & Co. believed, and so testified — and there is no evidence contradicting their testimony— that the process of milling flour fit for making macaroni was better in some than in other mills, and that the wheát grown in some parts of Kansas was better in that respect than the wheat grown in other parts of Kansas. At all events, the defendant and J. S. Waterman & Co.' knew that the “Telegram” flour made at the Lyons Milling Company’s mill at Lyons, Kan., was desirable for making macaroni, and the defendant was *201 not willing to take a chance on any brand oí flour milled elsewhere. For that reason, the agreement was — as testified by the defendant and admitted by the members of the firm of J. S. Waterman & Co. — that the flour ordered by the defendant was to come from the Lyons Milling Company’s mill at Lyons, Kan.

J. S. Waterman & Co. forwarded the order by wire to the Lyons Milling Co. for approval, and the latter confirmed the sale by letter addressed to the defendant. The telegram was not offered in evidence. The letter of confirmation, on a printed form, is' as follows, as far as it is pertinent, viz:

“We confirm sale to you by wire from J. S. Waterman & Co. and have entered order for shipment of: 310 barrels Telegram flour at $11.10 basis 98 pound Cottons per barrel f. o. b. Lyons, freight allowed, basis rate effective above date.
“Terms: Arrival Draft.
“Time of Shipment: Immediate. * * *
“It is understood that there are no conditions, representations, or warranties, verbal or otherwise, and that there shall be no assignment or cancellation of this contract, except as herein stated, and no agent or representative has authority to modify the printed terms of this contract.”

The defendant and the members of the firm of J. S. Waterman & Co. testified that they interpreted' the expression in the letter of confirmation, “f. o. b. Lyons, freight allowed,” to mean that the flour would be shipped from Lyons, and that1 the shipper would pay the freight to New Orleans. Another merchant in ¡New Orleans testified that any intelligent flour buyer would understand the stipulation, f. o. b. a given point, to mean that the flour would be milled at and shipped from that point; and an experienced railroad freight agent testified that, in railroad parlance, f. o. b. a given point meant the point of origin of the shipment. It appears, therefore, that, whether right or wrong, the, defendant’s and J. S. Waterman & Co.’s interpretation of the expression in the letter of confirmation, “f. o. b. Lyons, freight allowed,” was not an unreasonable interpretation, particularly as the letter of confirmation was not the origin of the contract but merely a confirmation of a verbal contract in which it was stipulated that the flour would come from Lyons, Kansas.

When the shipment arrived in New Orleans, and the defendant received a “freight notice” from the railroad company, he observed on the notice that the car was “waybilled from Hudson, Kan.” He immediately notified J. S. Waterman & Co. that he would not accept the flour, because it was not shipped from the Lyons Mill, as stipulated in the contract. J. S. Waterman & Co. acknowledged that the flour was not what the defendant had bought; and they wired the Lyons Milling Co. that he would not accept the flour, for the reason stated. The Lyons Milling Co. replied that the flour was of the same quality as the “Telegram” flour milled at their Lyons Mill, and that the contract did not require them to ship the flour from Lyons. The defendant then offered to accept the flour, if the plaintiff would allow samples of it to be tested, and if it showed the gluten content required for making macaroni; but the plaintiff refused to allow the tests to be made. The defendant then proposed that, if the plaintiff would ship a carload of “Telegram” flour from the plaintiff’s mill at Lyons, Kan., he would accept it without test or inspection, at the price stated in the contract, notwithstanding the market price had declined. The plaintiff refused that offer, and insisted upon the defendant’s accepting the flour from Hudson, Kan., without inspection. The defendant refused, and the plaintiff sold the flour on the open market for $460.56 less than the contract price. A firm in Kansas City bought the flour, and afterwards sold it to J. S. Waterman & Co. They tested the flour for its gluten content or “strength,” and fitness for making macaroni, and found *203 it to be, as they said, “very soft and weak,” of low gluten content, and unfit for making macaroni. It was therefore not as high-grade flour as the “Telegram” brand, milled at Lyons, Kan. X S. Waterman & Oo. sold the flour at a loss to bread bakers, and had complaints about the quality of it.

The plaintiff did not own a mill at Hudson. The flour that was shipped to the defendant from Hudson was milled at the plant of the Stafford County Flour Mills Company. The plaintiff claims to have operated the Stafford Company’s mill when this flour was manufactured, but there is some doubt whether the plaintiff really operated the mill or merely bought the output for three months "during which this flour was turned out by the Stafford mill. That, however, is of little or no importance beside the fact that the flour was not shipped from the plaintiff’s mill at Lyons, Kan., and was therefore not what the defendant had ordered.

The Court of Appeal rested its decision upon the opinion that the expression “f. o. b.

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Bluebook (online)
108 So. 414, 161 La. 198, 1926 La. LEXIS 2035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyons-milling-co-v-cusimano-la-1926.