Norris, Inc. v. M. H. Reed

278 F. 19, 1922 U.S. App. LEXIS 1694
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 18, 1922
DocketNo. 3620
StatusPublished
Cited by6 cases

This text of 278 F. 19 (Norris, Inc. v. M. H. Reed) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norris, Inc. v. M. H. Reed, 278 F. 19, 1922 U.S. App. LEXIS 1694 (5th Cir. 1922).

Opinions

BRYAN, Circuit Judge.

November 17, 1919, defendant in error, herein called plaintiff, brought suit in a state court against plaintiff in error, herein called defendant, to recover damages for breach of a contract whereby it is alleged plaintiff agreed to sell and defendant agreed to buy three carloads of pecans, one carload to be delivered in December, 1919, and two carloads to be delivered in January, 1920, at the price of 18% cents per pound. The petition alleged that on November 7, 1919, the defendant repudiated said contract, and that the market value of the pecans was then 12 cents per pound. Plaintiff prayed that—

“he have judgment for his damages in the sum of $5,850, as aforesaid, for his costs of suit, and for all other relief to which he may be entitled in the premises.” ^ -,

[20]*20Defendant being a nonresident of Texas, personal service was not had, but a certified copy of plaintiff’s petition was served upon it, and by writs of garnishment served upon residents of Texas within the jurisdiction where the suit was brought funds of defendant aggregating $.1,960.27 were impounded. Thereafter the defendant presented to the state court a petition for removal to the United States District Court, and appearing in the latter court, “specially and for the sole and only purpose of protecting its title to the property sought to be impounded by proceedings in the nature of proceedings in rem herein, and declining to appear generally, or for any other purpose than such special purpose,” filed a general demurrer, and an answer denying the allegations of the plaintiffs petition, and subsequently, while in like manner reciting that it appeared specially, filed numerous exceptions to the petition.

In the month o'f October, 1919, correspondence took place between' the parties as follows:

On the 7th of that month the plaintiff wrote a letter to the defendant, stating that he had pecans to sell in carload lots, and soliciting an order, which letter defendant replied to on the following day, stating that it was in the market for pecans, requesting plaintiff to send samples, and to quote prices on three carloads, one to be delivered at once, one in March, and one in^May. On the 13th plaintiff acknowledged receipt of defendant’s letter, stated that he did not have storage facilities sufficient to enable him to carry the pecans until March and May, but that he could ship one carload at once, and two carloads in December. He further stated that he was sending samples, quoted prices, and expressed the hope that defendánt would send an order by telegram. On the 16th defendant replied to plaintiff’s letter of the 13th, stating that it had received the samples of pecans, but found that the meat did not entirely fill out the shells, and that there was a quantity of faulty nuts, and then continued:

“Counting the entire amount cracked, including the bad ones, the yield of meat is only 38 per cent. We should procure from seedling pecans at least 40 per cent, meats, and we are therefore reluctant in placing an order with you. If you can supply us with the quality we require, we can use two cars in December at the price quoted, but prefer one car shipped in December and one in January.”

October 20, 1919, the parties exchanged the following telegrams:

From plaintiff to defendant:

“Referring our letter thirteenth yours sixteenth suggest you let us book three cars price quoted shipment one car each October, December, January. Leave the quality to us and we will guarantee good shelling stock today. Wire acceptance.”

From defendant to plaintiff:

“Your wire even date. Will take three cars pecans eighteen one half cénts f. o. b. your city, packed in double bags, one car December, two cars January. Wire.”

October 21, 1919, plaintiff sent to defendant a telegram reading as follows:

“Confirm sale three cars. Mailing contracts can not yon use Oct. car.”

[21]*21These telegrams were promptly delivered as sent. Immediately thereafter the defendant inclosed a signed order in which the following appeared: “Crack guaranteed not less than 40 per centwhile the plaintiff wrote a letter confirming the sale and stating: “Pecans guaranteed to be good shelling stock,” etc. Thereafter defendant wrote to plaintiff, complaining that the contract sent by the latter did not include the guaranty, while the plaintiff, on the other hand, objected to the guaranty which defendant had included in its order, and which is above quoted. The parties continued to correspond with each other for several days, and not being able to agree upon the form of a contract which they were willing to sign, defendant finally on November 7, 1919. sent to plaintiff a telegram reading as follows:

“We have consummated no contract with you. Samples not up to representation. Do not ship us any goods.”

It was admitted that a, minimum carload of pecans would weigh 30,COO pounds. There was evidence that the market price of pecans of the quality ordered was.from 12 to 16 cents per pound in December, 1919, and 12 cents per pound in January, 1920.

There was testimony for defendant that it received a sample of pecans from plaintiff about October 28th, and that a chemist’s report showed that only 36 per cent, were good. The defendant used pecans in its business of candy manufacturer, but claimed that it could not profitably use pecans such as the sample sent by plaintiff contained. On the other hand, there was testimony for plaintiff that the pecans were of good quality, and contained a greater percentage of meat than demanded. The court charged the jury to find for defendant, if they believed that the minds of the parties did not fully meet, or that it was the intention of either that no contract should be considered as consummated until a formal written contract or further writing should he signed, or if they believed that defendant understood and intended that there should be included in the contract a guaranty that the pecans should contain at least 40 per cent, meats, or if they believed the contract was based upon samples which should be satisfactory to the defendant. The foregoing charges were given at defendant’s request. .\s to the measure of damages, the court instructed the jury that it would be the difference between the contract price and the market price at the times specified for delivery. Plaintiff had verdict and judgment for $2,925.

[ 1 ] The principal contention, presented by numerous assignments of error, is that the minds of the parties never met, and that consequently no contract was ever consummated. It is urged that the telegrams, whether considered separately or in connection with the letters to which reference is therein made, amounted to nothing more than negotiations. The letters of October 7th and 8th are undoubtedly of that character, and have been referred to solely for the purpose of showing the manner in which the. parties began their dealings with each other. Plaintiff’s letter of October 13th is likewise unimportant, because the offer of sale therein contained was not accepted. Indeed, the only significance to be attached to defendant’s. letter of October 16th is the statement that it desired a guaranty that the pecans would [22]*22yield 40 per cent, meats. The negotiations became important upon the sending of plaintiffs telegram of October 20th, in which the defendant was in effect

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Cite This Page — Counsel Stack

Bluebook (online)
278 F. 19, 1922 U.S. App. LEXIS 1694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norris-inc-v-m-h-reed-ca5-1922.