Niehoff-Schultze Grocer Co. v. Gross

205 A.D. 67, 199 N.Y.S. 196, 1923 N.Y. App. Div. LEXIS 4951
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 6, 1923
StatusPublished
Cited by12 cases

This text of 205 A.D. 67 (Niehoff-Schultze Grocer Co. v. Gross) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Niehoff-Schultze Grocer Co. v. Gross, 205 A.D. 67, 199 N.Y.S. 196, 1923 N.Y. App. Div. LEXIS 4951 (N.Y. Ct. App. 1923).

Opinion

McAvoy, J.:

The complaint asserts and the proof shows that during the month of April, 1917, S. M. Frank & Co., representing the defendants as broker, offered to sell to the plaintiff for seven cents per pound, to be paid to the defendants by the plaintiff, F. O. B. New York city, 400 bags of beans, which said beans the said S. M. Frank & Co., on behalf of the defendants, represented and warranted to be “ imported Roman Pinto beans,” each bag to contain 165 pounds of said beans.

On the 19th day of April, 1917, the defendants duly confirmed in writing and accepted the sale made by S. M. Frank & Co. to the plaintiff of 400 bags of imported Roman Pinto beans, of 165 pounds each, at the price of seven cents per pound, F. O. B. New York city, and agreed to ship and deliver to the plaintiff the 400 bags of beans which the defendants warranted to be Roman Pinto beans.

The plaintiff, relying on said warranty and representation, and believing the same to be true, was induced thereby to purchase and did purchase said 400 bags of beans, each bag containing 165 pounds of beans from said defendants, and paid to defendants therefor seven cents per pound, or the sum of $4,620. Said beans were not delivered and did not come into the hands of the plaintiff upon the purchase or when payment therefor was made, but were in the possession of or under the control of the defendants; and the bill of lading, entitling plaintiff to the delivery to it of the said beans, was attached to a sight draft for the sum of $4,620, which said sight draft the plaintiff was obliged to and did pay before, having an opportunity of examining the beans.

Before plaintiff paid the draft or the freight upon the shipment of beans, the defendants, by way of inducement to the plaintiff, executed in writing a guaranty to the plaintiff that the articles of foods or drugs manufactured, distributed or sold by them, were not adulterated or misbranded under the United States Food [69]*69and Drugs Act, June 30, 1906, and amendments thereto, nor under the food laws of any State of the United States, at the time of sale.

The plaintiff claims that, relying upon this guaranty and also relying upon said warranty and representations, and before the delivery of said beans to the plaintiff, on or about the 30th day of April, 1917, it paid the sight draft amounting to $4,620, which was the purchase price of the beans, and in addition thereto paid the freight charges upon the shipment of the beans, amounting to the sum of $243.54.

An inspection of the beans by the plaintiff, made immediately after the delivery thereof to the plaintiff, showed that the beans were not of the quality or kind warranted and agreed to by the defendants upon the sale; and it is alleged that they were not Roman Pinto beans.

Further plaintiff asserts that the beans did not conform to nor comply with the United States Food and Drug Act of June 30, 1906, and amendments thereto, but that they were adulterated and misbranded; that the said defendants failed to perform their agreement with the plaintiff; that the beans were of a very inferior kind and quality; that they contained ingredients which made them dangerous foodstuffs and detrimental to the public health; that the beans were unmerchantable and wholly unfit for use and of no value whatever; that plaintiff immediately on ascertaining that the beans were not of the kind or quality warranted and agreed, notified the defendants and caused them to be notified of the character and condition of the beans, and offered to return the same or to hold and dispose of the same as the defendants might elect, but the defendants refused to receive the beans or to return to the plaintiff the price therefor, which plaintiff demanded.

Upon these facts plaintiff claims damage in the sum of $4,863.54. The answer, after certain denials, alleges as a defense that during the month of April, 1917, the plaintiff and defendants entered into an agreement wherein and whereby and by the terms of which the defendants agreed to sell and deliver to the plaintiff, and the plaintiff agreed to purchase of and from the defendants, 400 bags of beans similar to a sample then and there exhibited and submitted to the plaintiff at seven cents per pound, F. O. B. New York city.

The plaintiff, at the time that the sample beans were exhibited and submitted to it by the defendants, approved of the same. Thereafter, and according to the contract, the defendants duly [70]*70delivered to the plaintiff 400 bags of beans in accordance with the sample exhibited to the plaintiff by the defendants and approved of by the plaintiff; and the plaintiff paid the purchase price therefor; that the defendants have duly performed all the terms and conditions of said contract on their part to be performed.

The plaintiff had a verdict for the full amount claimed, with interest. The uncontradicted evidence was that this lot of 400 bags of beans was the second lot of beans of that identical kind and description which the plaintiff had purchased from the defendants within the period of one month; that in March, 1917, one month prior to the purchase of this lot of beans, the plaintiff had purchased a lot of 100 bags from the defendants from samples, paid for them and marketed them without complaint. The 400 bags here involved were exactly the same kind of beans and came out of the same original consignment as the first lot, and were exactly like the sample upon which such first lot had been purchased as well as like the bulk of such first lot.

The defendants say that the only distinction between the two lots of beans were (1) that the first lot was purchased, received and marketed by the plaintiff when the market was rising, while shortly after the delivery of the second lot the market fell alarmingly, and (2) that the first lot was satisfactorily disposed of in the trade shortly after its delivery in the cool months of March and April, while the second lot was kept unfumigated in a hot warehouse in St. Louis from May 3 to October 15, 1917, the five hot months, and allowed to deteriorate.

The proof shows that it is a case of goods bought on a repeat order, received, inspected and accepted by the buyer on May 3, 1917, retained for five months in a hot warehouse until probably spoiled, and then analyzed and pronounced unfit for use.

Upon the arrival of the beans, plaintiff’s president, Mr. Niehoff, who testified that he was the buyer for plaintiff of certain lines of merchandise and had been buying different varieties of beans for plaintiff since 1916, personally examined the beans “ to see what kind of beans they were,” and then had them put in his company’s stock, in warehouse, where they were kept and dealt with like the rest of the plaintiff’s merchandise.

He had personally within a month theretofore also examined the sample on which the first lot of 100 bags had been sold him, as well as the bulk of such 100 bags which his company had received and disposed of in the trade. These 400 bags of beans were exactly like the sample upon which the plaintiff had purchased the first lot of 100 bags, and like the bulk of such first lot of 100 bags, as plaintiff’s president admitted upon cross-examination. [71]*71They came out of the same original importation of 2,000 bags which the defendants made in February, 1917.

The plaintiff’s correspondence illumines the situation more fully than paraphrasing could.

The first letter received read:

July 3, 1917.

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Bluebook (online)
205 A.D. 67, 199 N.Y.S. 196, 1923 N.Y. App. Div. LEXIS 4951, Counsel Stack Legal Research, https://law.counselstack.com/opinion/niehoff-schultze-grocer-co-v-gross-nyappdiv-1923.