Meriwether Supply Co. v. E. J. Deas Co.

110 So. 419, 162 La. 271, 1926 La. LEXIS 2240
CourtSupreme Court of Louisiana
DecidedNovember 2, 1926
DocketNo. 27566.
StatusPublished

This text of 110 So. 419 (Meriwether Supply Co. v. E. J. Deas Co.) 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
Meriwether Supply Co. v. E. J. Deas Co., 110 So. 419, 162 La. 271, 1926 La. LEXIS 2240 (La. 1926).

Opinion

BRUNOT, J.

This is a suit against the E. J. Deas Company, Inc., and its surety, the United States Fidelity & Guaranty Company, for the alleged balance due the plaintiff for sewer pipe sold and delivered to E. J. Deas Company, Inc., for use in the construction, under a contract with the city of Shreveport, of a line of sewer fqr that city.

The petition alleges that the purchase price of the pipe sold and delivered was $23,-734.87; that the E. J. Deas Company was credited With $9,779.64 paid thereon; and that the balance, or $13,955.25, was past-due and unpaid. The prayer is for a judgment against - the defendants, in solido, for that sum.

The defendants filed a joint answer in which they deny any indebtedness whatever to the plaintiff and in which the E. J. Deas Company, Inc., reconvenes and prays for a judgment, in reconvention against the plain tiff, for $14,821.19 for this, to wit: 3,076.5 feet of 24" pipe and 226 feet of 30" pipe, the purchase price of which was $6,312.98 and $1,307.76, respectively, which was rejected by the supervising engineers in charge of the *273 work; 227 feet of 24" pipe wliicli was partially rejected by said engineers and classed as No. 2 pipe, but the use of which was allowed by the city at a valuation of $1.25 per foot, or $2S3.75, when the invoice price thereof is $465.80; $2,191.53, the price E. J. Deas Company had to pay in the open market for pipe to replace the rejected 24" pipe, in excess of the contract price of said pipe, and $83.05 freight charges for the transportation of the pipe thus purchased; $155.22 for 30" pipe purchased in the same manner and for the same reason, in excess of the contract price thereof, plus $6.05 freight charges thereon; $S3S.12 drayage charges for removing the pipe which was subsequently rejected, from the railroad station at Ardis to the location of the sewer work; $1,208.89 freight charges paid on the pipe delivered by plaintiff under tlie contract; and $1,239.38, the value of 582 feet of 24" pipe and 12 feet of 30" pipe which was consigned to defendant and delivered at Ardis but which plaintiff retook possession of and hauled away; $8,102.94 for labor expense caused by the nonshipment of pipe promptly; $4,042.50 for office salaries made necessary by the delays in the delivery of pipe; $2,083.33 depreciation of machinery while idle from said cause; and $2,400, the penalty of $20 per day for 120 days, as fixed in the contract for the sewer work, for the failure of E. J. Deas Company, Inc., by reason of the delays in the shipment of pipe and the failure of plaintiff to replace the rejected pipe, to complete the contract within the time limit fixed therein.

On these issues the case was tried, and from a judgment in favor of plaintiff and against the defendants, in solido, for the full amount prayed for in the petition, and legal interest thereon, less a credit of $35.91, entered as a remittitur, and rejecting all of the items of the reeonventional demand of E. J. Deas Company, Inc., both defendants appealed.

The contract between- the E. J. Deas Company, Inc., and the Meriwether Supply Company, Inc., consists merely of a letter from the former company authorizing the latter company to order for the account of E. J. Deas Company, Inc., 14.730 feet of terra cotta pipe, .double-strength, for use in constructing a sewer according to the plans and specifications of the J. N. Chester Engineers, and a letter from the Meriwether Supply Comiwny. Inc., accepting the order. The two letters follow:

“Shreveport, La., Aug. 21, 1924.
“Meriwether Supply Company, City — Gentlemen: This is to authorize you to order for our account the following quantities of terra cotta pipe for use in constructing the Bayou Pierre sewer contract according to plans and specifications of the J. N. Chester Engineers: 13,750 lin. ft. 24" double-strength. 980 lin. ft. 30" double-strength.
“It is understood in accepting your price for this material that the 24" pipe will be shipped from Texarkana, Texas, and billed to us at Ar-dis, La.; that the thirty-inch pipe will be shipped from St. Louis, Mo., and billed to us at Shreveport. All shipments to be routed to arrive by T. & P. Railway (T. S. & N. Branch). That you will issue credit memorandum to us for any breakage and handle claims for same through your office.
“In addition to the above we will need one only sixteenth bend special, size twenty-four inches.
“We ask that you have shipments start Holiday, August 25tli, at the rate of two cars per day until further notice.
“Please acknowledge receipt.
“Very truly yours,
“E. J. Deas Company, Inc.”
“Shreveport, La., Aug. 30, 1924.
“E. J. Deas Company, 234 Ward Building, City — Gentlemen: We thank you for your order placed with us recently covering your sewer pipe requirements for use in constructing the Bayou Pierre sewer award. We wish to confirm prices as follows:
“13,750 lin. ft. 24" double-strength Yit. sewer pipe No. 1 $2.052.
“980 lin. ft. 30" double-strength Vit. sewer pipe No. 1 $3.76.
“The above prices carry a discount of 5% for payment of invoice within ten (10) days and are f. o. b. Ardis and Shreveport, Louisiana, respectively. We have not as yet received prices covering one 24"-%8 bend.
*275 “We note you wish us to file claims with the railroad covering any damaged pipe received by you, and knowing the attitude railroads assume in handling claims, we will agree to handle matter as you suggest provided you take responsibility-of having railroad company make proper notation of damages or shortage on freight bills covering car affected. We will then file claim in accordance with notation, on freight bill, and will credit your account immediately upon receipt of payment of claim by railroad company.
“We were led to believe that shipment of 24" sewer pipe was to be made from Texarkana, Texas, but learned after order had been placed sewer pipe shipment would come from Deep-water, Mo.
“We have had matter up with Texarkana Pipe Works, on several occasions to rush shipments all possible, and they tell us they are doing everything in their power to have pipe shipped promptly.
“We again thank you for placing order with us, and assure you that we will use our best endeavors to handle it to your entire satisfaction.
“Tours very truly,
Meriwether Supply Co., Inc.
“By W. E. Webb, Sales Manager.”

The plaintiff company is domiciled and conducts its business in the city of Shreveport. The pipe purchased through plaintiff was to be used for certain sewerage purposes of that city. The answer alleges, and the proof, as a whole, is strongly persuasive of the fact, that plaintiff had full knowledge of the plans and specifications governing the contract award to defendant for the construction of the sewer. The contract between the plaintiff and the É. J.

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Bluebook (online)
110 So. 419, 162 La. 271, 1926 La. LEXIS 2240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meriwether-supply-co-v-e-j-deas-co-la-1926.