Manhattan Overseas Co. v. Camden County Beverage Co.

15 A.2d 217, 125 N.J.L. 239, 1940 N.J. Sup. Ct. LEXIS 87
CourtSupreme Court of New Jersey
DecidedSeptember 12, 1940
StatusPublished
Cited by8 cases

This text of 15 A.2d 217 (Manhattan Overseas Co. v. Camden County Beverage Co.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manhattan Overseas Co. v. Camden County Beverage Co., 15 A.2d 217, 125 N.J.L. 239, 1940 N.J. Sup. Ct. LEXIS 87 (N.J. 1940).

Opinion

The opinion of the court was delivered by

Perskie, J.

This is an action at law for breach of contract. Plaintiff sued to recover the damages it sustained as a result of the alleged wrongful refusal on the part of the defendant fully to carry out its contract to purchase from plaintiff twenty-five bales of prime Polish hops, 1936 crop.

Plaintiff is a corporation of the State of New York with its principal place of business in the city of New York. It is engaged in the business of selling malt and hops.

Through the acknowledged effort of its commission broker, Peter Lust, while he was attending a convention of brew-masters in Philadelphia, plaintiff, on October 6th, 1936, received, through the mail, at its New York office, a written order from the defendant for the purchase of “twenty-five *241 bales of prime .Polish hops, 1936 crop,” f.o.b. Philadelphia docks. The price was fixed at fifty-eight cents a pound, twenty-four cents of which covered the import tax. Two of the twenty-five bales so ordered were to be shipped immediately. If the two bales so shipped were unsatisfactory, the remaining twenty-three bales were to be subject to cancellation. If satisfactory, the remaining twenty-three bales were to be shipped “at the disposal of Mr. Martin,” an officer of defendant. The day after the receipt of this order (October 7th, 1936), plaintiff, in writing, notified defendant of its acceptance thereof. It was agreed that plaintiff would draw a sight draft, with bill of lading attached, for each shipment made and that defendant would, in turn, pay each draft so drawn.

In pursuance of calls finally made for shipments (some were the result of much correspondence and many conferences between the parties), plaintiff made the following deliveries: October lltli, 1936, two bales; January 13th, 1937, five bales; February 23d, 1937, six bales, and October 11th, 1937, two bales. Defendant accepted and paid for the fifteen bales so delivered — the last payment being made on March 15th, 1938. Notwithstanding the fact that under the custom of the brewing trade defendant was obliged to call for the entire shipment before October 1st, 1937, defendant refused to call for the remaining ten bales. That refusal, generally stated, was based on the claims that the hops of the last two shipments were of an inferior quality to those originally ordered and were not delivered from the same lot as the first two shipments. Defendant, therefore, took the position that it was no longer obliged either to call for the delivery of the remaining ten bales or to pay for same.

Plaintiff's claim, on the other hand, was that it had fully complied with its contractual undertaking with defendant. Plaintiff had set aside the ten bales for defendant and on June 18th, 1938, drew a sight draft on defendant for the balance of the contract price. Defendant refused to honor it, and plaintiff, (hereafter, on June 29th, 1938, instituted this suit. Plaintiff abided an available market for the resale of the ten bales of hops and on its appearance in August of 1939 it sold same for export to Antwerp, Belgium, at two and one- *242 half cents a pound. Plaintiff then sought, as its amended complaint discloses, to recover from defendant the difference between the contract price (less the import tax) and the sale price.

The trial judge denied defendant’s motions to nonsuit and to direct a verdict in its favor. On the merits of the issue involved he-properly submitted the case to the jury with a comprehensive and fair charge, free from any reversible error. The jury returned a verdict of $2,093.53 plus $77.62 costs, in favor of the plaintiff. It is the propriety of the judgment based upon that verdict that is here challenged. Seventeen grounds are set down in support of that challenge. Some are abandoned; none is meritorious and but few require discussion.

1. Defendant argues that the trial judge erred in refusing to grant its motion for a nonsuit and to direct a verdict in its favor. The argument is based upon the following grounds:

(A) . Since plaintiff is a foreign corporation which eoncededly did not qualify to transact business in this state (B. 8. 14:15-3), it could not maintain this action because the contract in issue was made and completed in this state. B. 8. 14:15-4. This argument finds no support in the proofs. Assuming, without so deciding, that Peter Lust, plaintiff’s broker, while attending the convention of brewmasters in Philadelphia, had the authority to make the contract for the order in issue (plaintiff’s proof was that his contract for orders were subject to its approval), there is no proof that the contract was made and completed in New Jersey. The most favorable inference is that Lust obtained defendant’s order in Philadelphia. When, as here, defendant’s written order was signed in this state, transmitted to New York for acceptance, and there accepted by letter addressed to defendant in New Jersey, it is well settled that the contract was completed in New York and not in this state. The Stevens-Davis Co. v. Peerless Service Laundry, 112 N. J. L. 304, 306; 170 Atl. Rep. 169. There is no merit to this branch of the argument.

(B) . Defendant argues that the remaining and undelivered bales were not part of the lot from which the first and *243 second shipments were made. Assuming that to be so, we fail to see its relevancy. Both lots unquestionably consisted of “prime Polish hops, 1936 crop.” That was the kind of hops which were the subject-matter of the contract between the parties irrespective as to the particular lot from which they chanced to come. That was the kind of hops which defendant approved and that was the kind of hops with which, under the conflicting proofs, it was open to the jury to find, as it apparently did, that plaintiff supplied defendant. There is no merit to this branch of the argument.

(C). Defendant argues that the plaintiff failed to sell the ten remaining bales in the open market at the time of defendant’s breach, in order to minimize the damages. This argument is based upon the claim that if defendant was obliged fully to carry out its undertaking with plaintiff before October 1st, 1937, and failed to do so, then the breach of the contract occurred on October 1st, 1937, and it became the duty of the plaintiff then to sell the hops in the open market in order properly to minimize defendant’s damages. This argument begs the issue. The onus of proving that damages might have been minimized rests upon the party who was guilty of the breach of the contract. The Stevens-Davis Co. v. Peerless Service Laundry, supra (at p. 308). Thus, the question was: which party breached the contract?

It is conceded that defendant did not fully carry out its contractual undertaking with plaintiff. Its defense, as we have seen, was that it was not obliged, under the circumstances, to do so. It is interesting to observe that throughout the correspondence between the parties, defendant made no mention of its subsequent claim of the alleged inferiority of the quality of the last two shipments of the hops.

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Bluebook (online)
15 A.2d 217, 125 N.J.L. 239, 1940 N.J. Sup. Ct. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manhattan-overseas-co-v-camden-county-beverage-co-nj-1940.