Pease Oil Co. v. Monroe County Oil Co.

78 Misc. 285, 138 N.Y.S. 177
CourtNew York Supreme Court
DecidedNovember 15, 1912
StatusPublished
Cited by7 cases

This text of 78 Misc. 285 (Pease Oil Co. v. Monroe County Oil Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pease Oil Co. v. Monroe County Oil Co., 78 Misc. 285, 138 N.Y.S. 177 (N.Y. Super. Ct. 1912).

Opinion

Woodward, J.

The questions at issue arise upon demurrers to a counterclaim and a defense in the answer of the defendant.

The parties to the action entered .into a contract, dated January 14, 1911, exhibit A with complaint, for the sale by plaintiff to defendant of 160,000 gallons of sixty-four gasoline at eight and a quarter cents á" gallon,' to he taken in equal monthly shipments of approximately 13,300 [287]*287gallons per month, and paid for by defendant within 30 days after the date of each invoice.

The defendant received and paid for 38,242 gallons between January twenty-fifth and April fifteenth of that year, but, though. often demanded, as it is alleged, failed, neglected and refused to accept, receive or pay for the remainder or any more thereof.

The plaintiff thereupon, after due notice to defendant, sold at public auction, from time to time, the balance of gasoline due on said contract for prices less than defendant was to have paid, and now sues for the difference between the contract price and the amount realized from such sales.

The defendant, admitting the incorporation of the parties, the contract of purchase, payment for the 38,242 gallons of gasoline thereunder, and denying the other material allegations of the complaint, sets up a counterclaim to the effect that, prior to the contract sued on, the plaintiff represented and warranted that said gasoline was of sixty-four specific gravity, free from impurities and without disagreeable odors; and, knowing that said gasoline was purchased by defendant for immediate sale for fuel and cleaning purposes, plaintiff also represented and warranted that it was reasonably fit and proper for such purposes; and that defendant, relying upon such warranties, purchased the same.

Then follows an allegation that the gasoline delivered was not of sixty-four specific gravity, but greatly inferior thereto, was impure, etc., negativing the terms of the warranty, “ and that said gasoline delivered to defendant was not worth to exceed the sum of $2,000; that many of defendant’s customers to whom it sold gasoline, upon using the same, because of its inferior quality, impurities and disagreeable odors, immediately ceased to ” make further purchases from defendant, and it has lost said customers and sales of gasoline to them and the profits to be derived therefrom in the sum of $3,000, all to the damage of the defendant in the sum of $4,154.96.

The same or like alleged representation, warranty and breach are set up as a defense to the action, but without any allegation of damages. The defense contains an additional [288]*288averment to the effect that as soon as defendant discovered this (that the gasoline delivered was not of the kind or quality purchased) defendant notified the plaintiff and demanded ” that plaintiff deliver to defendant the gasoline “ as specified in the contract, exhibit A, which the plaintiff refused to do.” The defendant demands judgment for $4,154.96, the amount alleged in the counterclaim. The plaintiff demurs to both the counterclaim and defense as insufficient in law.

A counterclaim must be a complete cause of action existing in favor of the defendant asserting it (Cragin v. Lovell, 88 N. Y. 258), and must be set forth with the same particularity — disclosing an enforcible claim against the plaintiff — as is required in a complaint for a like cause. Weeks v. O’Brien, 25 App. Div. 206.

The warranty and its breach in this case are set forth, as it seems, with sufficient particularity. A general averment that the vendor warranted the articles to be of a good quality seems to be a sufficient averment of the warranty (Hoe v. Sanborn, 21 N. Y. 552, 555); or an averment that he warranted and represented the goods to be of a certain quality. Lindsay v. Mulqueen, 26 Hun, 485; Burch v. Spencer, 15 id. 504. It is settled, in fact, that upon the sale of personal property where inspection of it is not had or possible at the time and the seller knows the quality and the buyer does not, as may reasonably be supposed in this case, the representations made by the seller as to the quality are to be regarded' as a warranty. Egbert v. Hanford Produce Co., 92 App. Div. 252, 256, and cases there cited.

Be that as it may, both representations and a warranty are expressly alleged and a breach of both in this case. These facts, taken as true on demurrer, and standing alone, constitute a cause of action in favor of the defendant against the plaintiff — a contract and its breach — and for which the defendant is entitled to recover nominal damages at least (Devendorf v. Wert, 42 Barb. 227; Nilsson v. De Haven, 47 App. Div. 537, 541), without reference to the sufficiency of the other allegations of damage.

It is claimed, however, that the alleged warranty having [289]*289been made prior to the contract of sale was merged in it, and Stowell v. Greenwich Ins. Co., 163 N. Y. 304, is cited in support of the claim. The written contract there between the defendant, an insurance company, and its general agent, not only covered the general subject of his employment, but contained an express provision that its termination, no matter which of the parties brought it about, “ should be without any liability on the part of the insurance company beyond the commissions actually earned at the close of the said agency. This was the deliberate engagement of the parties,” said the court, “ and by it they attempted to close the door against all possible claims for services or damages, and to absolutely destroy all opportunities for controversy.” Yet the agent sought to prove on the trial an oral agreement alleged to have been made prior to and at the time of the written contract, and imposing an additional liability upon the company. A decision upon that state of facts has little or no application here. The question there was not whether admitted facts constitute a cause of action or, as in this case, a counterclaim; but as to the admissibility of evidence, over objection at the trial, of an oral agreement varying the terms of the written contract. This, it was held, could not be done, because of the familiar general rule that, when an agreement is reduced to writing, it as between the parties merges all prior and contemporaneous negotiations upon the subject, and that oral evidence is not admissible to vary, explain or contradict its terms; for the writing is conclusively presumed to contain the whole engagement of the parties.

But there are several exceptions to that rule mentioned in that and other cases (Vaughn Machine Co. v. Lighthouse, 64 App. Div. 138; Chapin v. Dobson, 78 N. Y. 74), one of which is to the effect that an independent prior or contemporaneous collateral agreement is not merged and may be alleged and proved. This exception is apparently as well established as the rule itself.

Two things are essential to bring this or any case within that exception: “ 1. The writing must not appear upon inspection to be a complete contract, * * * and designed to express the whole arrangement between the parties, * * *. [290]*2902. The parol evidence must be consistent with and not contradictory of the written instrument.” Thomas v. Scutt, 127 N. Y. 133, 138.

As clearly as the exception and its essentials are thus stated in the books, it is not always easy to determine whether a given case is within the exception. A precedent may serve that purpose in this case.

In Chapin v. Dobson, 78 N. Y.

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Bluebook (online)
78 Misc. 285, 138 N.Y.S. 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pease-oil-co-v-monroe-county-oil-co-nysupct-1912.