Mississippi Valley Utilities Corp. v. Williams

143 So. 889, 164 Miss. 55, 1932 Miss. LEXIS 230
CourtMississippi Supreme Court
DecidedOctober 24, 1932
DocketNo. 30164.
StatusPublished

This text of 143 So. 889 (Mississippi Valley Utilities Corp. v. Williams) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mississippi Valley Utilities Corp. v. Williams, 143 So. 889, 164 Miss. 55, 1932 Miss. LEXIS 230 (Mich. 1932).

Opinion

*59 Anderson, J.,

delivered tlie opinion of the court.

Appellee filed his bill against appellant in the chancery court of Sharkey county seeking the specific performance of a contract, by the terms of which appellant agreed to sell to appellee for a five-year period beginning the 23rd of May, 1929, the output of its ice plants at Eolling Fork and Anguilla at five dollars per ton, and to recover damages for a breach of the contract; and an accounting in order to ascertain the amount of the damage, and to restrain appellant from selling the output of its said plants to anyone else during the life of the contract. A temporary injunction was issued in accordance with the prayer of the bill, and on final hearing on bill, answer, amended answer, and proofs a final decree was rendered perpetuating the injunction and awarding appellee damages for the breach of the contract in the sum of one thousand three hundred sixty-five dollars and forty-one cents. F*rom that decree appellant prosecutes this appeal.

On the 23rd day of May, 1929, appellant and appellee entered into a written contract to become effective the 31st day of May, 1929, and to terminate five years thereafter, the pertinent parts of which are substantially as follows: Appellant owned an ice plant at Eolling Fork and one at Anguilla and agreed to sell to appellee, and the latter agreed to buy, his entire requirements of ice for his ice business in that territory (appellee being engaged in the retail sale of ice) from the Eolling Fork and Anguilla plants at and for five dollars per ton. The contract provided further that appellant should sell its ice during the life of the contract exclusively to appellee and the latter agreed to take his full requirements from appellant. It was further stipulated that appellee’s services should be rendered in a satisfactory manner to appellant and the customers of the ice plants. The parties functioned under this contract until the latter part of May, 193.0, when appellee resigned as manager of the *60 two plants by agreement between the parties. Thereafter they continued to operate under the contract as so modified, appellee paying appellant five dollars a ton for his ice requirements until the 3rd day of April, 1931, at which time they agreed on the price of six dollars per ton.

Appellant’s contention is that this change in the contract was to continue only during the balance of the ice season of that year, and thereafter for the balance of its term the contract was canceled; while appellee’s contention is that there was no agreement to cancel the contract at the end of the ice season of that year, and that he agreed to pay six dollars per ton, instead of five dollars per ton as provided by the contract, in order to avoid a lawsuit.

At the end of the ice season of 1931, some time in October, appellant notified appellee that the contract was canceled and at an end. From the 3rd day of April up to that time appellee had paid appellant six dollars a ton-for his ice requirements, the difference between five dollars a ton and six dollars a ton amounting to one thousand three hundred sixty-five dollars and forty-one cents, which amount the final decree awarded appellee as damages for the breach of the contract by appellant.

Appellant contends that appellee breached the contract, in that his services were not satisfactory to appellant or. to the customers of the ice plants and that such dissatisfaction was caused by appellee’s drunkenness, and that therefore appellant had the right to put an end to the contract at the close of the ice season of 1931. Appellee contends that his services were not unsatisfactory, and that appellant attempted to put an end to the contract because appellant wanted a higher price for the output of its ice plants. The appellee as a witness in his own behalf admitted that on the 3rd day of April, 1931, he agreed to pay six dollars a ton for the balance of that ice season, but denied that he did it voluntarily. *61 He testified that he was driven to the agreement in order to avoid a lawsuit with appellant. The evidence on behalf of appellant tended to show that on the 3rd day of April, 1931, when appellee agreed to pay six dollars a ton for the balance of the ice season, there was a controversy between the parties as to their respective duties and obligations under the contract, appellant undertaking to maintain, as stated, that appellee’s services were not satisfactory either to it or to the customers of the ice plants. The evidence on the part of appellee tended to establish the contrary, that in truth and in fact there was no real controversy between the parties as to their respective rights and obligations to be compromised; that appellant’s claim that appellee’s services were not satisfactory to appellant and the customers of the plants was a mere pretense for the purpose of increasing the price of the ice to be paid by the appellee.

The chancellor in his decree necessarily found the material facts in favor of appellee, and there was ample evidence to sustain such finding. Certainly it cannot be said that the finding of the chancellor was contrary to the overwhelming weight of the evidence.

However, the decree is erroneous in so far as it awards appellee a money judgment in the sum of one thousand three hundred sixty-five dollars and forty-one cents. The evidence shows that this amount represents the difference between five dollars a ton and six dollars a ton for the ice bought by appellee during the balance of the season of the year 1931 after April 3rd of that year. The chancellor held that since the contract was breached by appellant and not by appellee the latter had the right to recover back this sum. As stated above, appellee admitted as a witness in his own behalf that he agreed to pay this additional price for the balance of that season, but insisted that there was no consideration for the agreement and that he was forced to make it in order to avoid a lawsuit with appellant. In other words, that there was *62 no real substantial controversy between the parties to compromise, and therefore his agreement to pay the additional price for the ice was without consideration. Tailing either horn of the dilemma, appellee was not entitled to recover this amount. If, on the 3rd day of April, 1931, there had been a binding compromise and modification of the contract entered into by the parties providing for the payment of six dollars a ton instead of five dollars a ton by the appellee for the balance of the ice season, the appellee would be precluded from recovering the difference in the price. Where there is a real substantial dispute between the parties to a contract .as to their respective rights and obligations, and such dispute is compromised and settled, such compromise and settlement is binding upon both parties, and a sufficient consideration for such a compromise is a promise for a promise. Fair Tie Co. v. Warrell, 147 Miss. 412, 112 So. 24; Leggett v. Vinson, 155 Miss. 411, 124 So. 472; Greener & Sons v. Cain & Sons, 137 Miss. 33, 101 So. 859.

If the compromise settlement was without consideration (as the chancellor necessarily held), as long as it was unexecuted it was unenforceable, but when executed, appellee, under the law, could not rescind and recover back the money paid under it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

D. L. Fair Tie Co. v. Warrell
112 So. 24 (Mississippi Supreme Court, 1927)
Leggett v. Vinson
124 So. 472 (Mississippi Supreme Court, 1929)
Clayton v. Clark
74 Miss. 499 (Mississippi Supreme Court, 1896)
Bell v. Oates
53 So. 491 (Mississippi Supreme Court, 1910)
Cragin v. Eaton
97 So. 532 (Mississippi Supreme Court, 1923)
A. Greener & Sons v. P. W. Cain & Sons
101 So. 859 (Mississippi Supreme Court, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
143 So. 889, 164 Miss. 55, 1932 Miss. LEXIS 230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-valley-utilities-corp-v-williams-miss-1932.