Mott Equity Elevator v. Svihovec

236 N.W.2d 900, 18 U.C.C. Rep. Serv. (West) 388, 1975 N.D. LEXIS 150
CourtNorth Dakota Supreme Court
DecidedDecember 17, 1975
DocketCiv. 9126
StatusPublished
Cited by20 cases

This text of 236 N.W.2d 900 (Mott Equity Elevator v. Svihovec) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mott Equity Elevator v. Svihovec, 236 N.W.2d 900, 18 U.C.C. Rep. Serv. (West) 388, 1975 N.D. LEXIS 150 (N.D. 1975).

Opinion

VOGEL, Justice.

This appeal arose from an action to recover damages for failure of the defendant, Rudy Svihovec, to deliver 4,000 bushels of grain to the plaintiff, Mott Equity Elevator. The plaintiff elevator (buyer) appeals from a judgment in favor of the defendant farmer (seller). The judgment of the trial court is affirmed.

The parties entered into a contract dated October 24, 1972. Joe Munch, manager of the plaintiff corporation, acted as agent for the elevator. Under the terms of the contract, Svihovec agreed to sell to the elevator, and deliver in March, 4,000 bushels of spring wheat at $1.82 to $1.92 per bushel (the exact price to be based upon protein content).

The contract was on a printed form prepared by the buyer corporation and used by it in its business. The blanks in the form were filled in entirely in the handwriting of Joe Munch, except for the signature of the seller, Svihovec. The words “March Delivery” were handwritten by Munch on the face of the contract. The central controversy in this case is the dispute between the parties as to the meaning and effect of the contract term “March Delivery.” Svihovec asserts that he agreed to a delivery in March so as to clear his bins before spring planting and to obtain funds to repay a Government loan. The elevator claims that “March Delivery” meant only that delivery was to be made in March or such later time as the elevator called for delivery.

After the contract was signed, Svihovec and his wife went to California for the winter months. Upon their return on February 28, 1973, Svihovec immediately went to the elevator and told Munch that he was ready to deliver the wheat pursuant to the contract. Munch informed Svihovec that due to a shortage of boxcars the elevator was filled and could not accept delivery of the grain.

Several times a week throughout the month of March, Svihovec asked the employees of the elevator when he could make the delivery called for under his contract. Each time, he was told that the elevator *904 was filled. Svihovec testified that he continued to inquire about the delivery of his grain in the months of April and May and he was always given the same reply — that there was no room for the wheat because there were no boxcars.

Svihovec testified that at the end of May he noticed two grain trucks at the elevator and, assuming that the elevator was taking in wheat, he approached Joe Munch about the delivery of his grain. According to Svihovec, Munch told him that there was little or no space in the elevator, so Sviho-vec began to consider other markets for his grain. Munch recalls no May conversation such as Svihovec described. Instead, he asserts that he told Svihovec in April that he could haul in his grain, and that Sviho-vec said he was too busy. The trial court apparently accepted the Svihovec version. We find no error.

In early June, Svihovec contacted a local trucking firm, and within a few days his grain was trucked to the Farmers Union Grain Terminal Association in St. Paul and was sold there. The plaintiff in this case, Mott Equity Elevator, is an affiliate of the G.T.A. All of the seller’s grain was shipped directly to St. Paul in this manner and was sold at the Grain Terminal Association for the average price of $2.20 per bushel. After the grain was sold, Munch and his wife mentioned to Svihovec’s wife and daughter that the elevator would accept delivery. Svihovec made no response. In mid-September, when the price of wheat had risen to over $4 per bushel, Munch called Sviho-vec by telephone and told him that the elevator was then ready to accept delivery of the grain under the contract. Svihovec replied that he no longer was obligated to deliver because the elevator had breached the contract. He went on to say that he had consulted counsel and that he would not deliver four-dollar wheat against a two-dollar contract.

This case is one of the products of the combination of severe boxcar shortages that occurred in North Dakota in the spring of 1973 and the sharp rise in the market price of grain in the summer and fall of 1973. For other cases involving the same combination of circumstances, see Farmers Elevator Co. v. David, 234 N.W.2d 26 (N.D.1975); Tower City Grain Co. v. Richman, 232 N.W.2d 61 (N.D.1975); Sawyer Farmers Coop. Assn. v. Linke, 231 N.W.2d 791 (N.D.1975); Nelson v. Glasoe, 231 N.W.2d 766 (N.D.1975); Cargill, Inc. v. Kavanaugh, 228 N.W.2d 133 (N.D.1975); Farmers Union Grain Terminal Assn. v. Nelson, 223 N.W.2d 494 (N.D.1974).

In its complaint the elevator asserts that Svihovec did not deliver any grain between the dates of March 1973 and September 1973 and he did not indicate a refusal to deliver until a telephone conversation between Joe Munch and Svihovec in September 1973.

Svihovec’s answer generally denies the allegations in the complaint but specifically admits the existence of the contract. The defendant’s answer asserts that the seller stood prepared to deliver 4,000 bushels of wheat pursuant to the contract but that the buyer refused to accept delivery during the month of March as required in the contract, and by this refusal breached the contract.

MEANING OF THE TERM “MARCH DELIVERY”

The elevator argues that the term “March Delivery,” as used in the contract, was not intended as a date of delivery but that it referred only to the price that Sviho-vec would be paid if he held the grain until March 1973. The elevator contends that delivery of the grain could be demanded by the elevator at any time after the month of March when there was space available in the elevator.

Svihovec, however, argues that at the time he made the sale agreement, he contracted for a March delivery. He insists that not only was time of the essence of the *905 grain contract, but that the entire contract was premised upon the time for delivery. The testimony of Svihovec indicates that he entered into the contract with the elevator with the intention of delivering to the elevator the contents of one particular bin of grain which was subject to a Government loan. Svihovec testified that this fact was communicated to Munch at the time of the agreement. It was important to Svihovec to have a certain market for his Government wheat because he would need funds with which to pay off the Government lien on the grain. Other testimony indicates that the March delivery was of essential importance to the seller at the time of the contract: March was the month when he would have had time to haul the wheat from %e farm to the elevator before the beginning of spring work; furthermore, the grain bin was needed for storage of the anticipated 1973 crop.

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Bluebook (online)
236 N.W.2d 900, 18 U.C.C. Rep. Serv. (West) 388, 1975 N.D. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mott-equity-elevator-v-svihovec-nd-1975.