Pennsylvania Retreading Tire Co. v. Goldberg

224 Ill. App. 241, 1922 Ill. App. LEXIS 258
CourtAppellate Court of Illinois
DecidedJanuary 23, 1922
DocketGen. No. 26,799
StatusPublished
Cited by2 cases

This text of 224 Ill. App. 241 (Pennsylvania Retreading Tire Co. v. Goldberg) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Retreading Tire Co. v. Goldberg, 224 Ill. App. 241, 1922 Ill. App. LEXIS 258 (Ill. Ct. App. 1922).

Opinion

Mr. Justice MaTohett

delivered the opinion of the court.

The appellant in this case, who was plaintiff below, is a corporation organized under the laws of the State of Pennsylvania. It brought a suit against the defendant, Goldberg, based upon the terms of a contract in writing entered into between the parties on May 12,1919. This writing recites a prior contract between the plaintiff and a corporation, known as the Whittier Company, whereby plaintiff became an assignee of the exclusive right to manufacture, use and vend the invention, products and process covered by an application for a U. S. patent, serial number 265839.

The contract recites that it was the desire of the party of the second part (the plaintiff) to assign its rights under said contract to the party of the first part (the defendant) and all equipment and inventory connected therewith. It was, therefore, mutually agreed that the plaintiff assign to defendant the entire right, title and interest which it obtained from the Whittier Company to the defendant, for which defendant agreed to pay $30,000 in cash, upon proof of the authorizing of the execution of the agreement, and further:

‘ ‘ Third, The party of the first part further agrees that within ninety days after payment of said $30,000, he will organize a corporation and deliver to the party of the second part as much of the capital stock of said corporation as will amount, at the market price at date of delivery, to the sum of $120,000.

£ £ Fourth, The party of the first part shall, however, havé the right at any time prior to the delivery of the stock, to pay to the party of the second part, the sum of $50,000, in lieu of delivery of said stock.”

The statement of claim alleged in effect that plaintiff complied with all the terms of the contract on its part; that defendant had paid the $30,000 as required by the contract, but that defendant had not organized a corporation as agreed within 90 days, nor delivered to the plaintiff capital stock of the corporation amounting at the market price at the date of delivery to $120,-000, nor any stock whatsoever, nor had he at any time offered to deliver the stock, nor paid to plaintiff the sum of $50,000 as required by the contract. Plaintiff, therefore, claimed as due the sum of $120,000 together with interest thereon, from and after August 12, 1919.

Defendant, in his affidavit of merits, admitted the execution of the contract, the assignment and reassignment of the invention and contract, the payment of the $30,000, and further, that he had not organized a corporation, and had not delivered or offered to deliver to plaintiff any stock of said corporation, and admitted that he had not at any time paid to plaintiff the Sum of $50,000 referred to in the said contract. He denied that the plaintiff suffered loss in the sum of $120,000, and denied that any such sum or part thereof was due to the plaintiff. The cause was tried by the court without a jury. The parties introduced evidence which is without substantial conflict.

At the conclusion of the evidence the plaintiff moved the court to find the issues for it, and to find that the plaintiff was entitled to recover from the defendant the sum of $120,000, with interest, from August 12, 1919. It requested further that in the event the court should find that the damages sustained by plaintiff were not $120,000, then as an alternative, that the court find that the plaintiff was entitled to recover from the defendant the sum of $50,000, with interest from the same date.

The defendant requested the court to find the issues for the defendant, and further to find “that plaintiff is not entitled to recover more than nominal damages in this cause, ’ ’ in the event that the court should overrule defendant’s motion made at the close of all the evidence, to find the issues for defendant. The defendant further requested the court to hold as propositions of law that the plaintiff was not entitled to recover more than nominal damages, “that the contract sued upon in this case is too uncertain, indefinite1 and incomplete to be capable of enforcement in this suit.”

The court refused to find as requested by plaintiff that plaintiff was entitled to recover the sum of $120,000, with interest, and refused to find in the alternative that plaintiff was entitled to recover the sum of $50,000, with interest, and refused, at the request of the defendant, to find the issues for the defendant, and refused to hold, as a matter of law, that the plaintiff was not entitled to recover, but held as a matter of fact and law, as requested by defendant, that the plaintiff was not entitled to recover more than nominal damages. The court also refused to hold, as a matter of law, that the contract sued upon was too uncertain, indefinite and incomplete to be capable of enforcement. Thereupon the court made a general finding, finding the issues for the plaintiff and against the defendant, and assessing the damages of the plaintiff in the sum of one cent. And plaintiff’s motions to set aside the finding and to grant a new trial and in arrest of judgment being denied,' the court entered judgment upon the finding, and this appeal followed.

The appellee, defendant, has not assigned cross errors, and we assume therefore he must be held to concede that the contract was not so uncertain and indefinite as to preclude recovery thereon. The sole question to be decided upon this appeal, therefore, is whether the court erred in its finding as to the amount of damages recovered.

Appellant contends, first, that it was entitled to a finding in its favor in the sum of $120,000, or in the alternative, to a finding that the sum of $50,000 was due. The plaintiff, appellant, relies on a line of cases holding that where a party has a right to discharge his obligation by the delivery of specific property, upon his failure so to do the obligation is converted into a money demand, for which the obligee may sue and recover. The leading case announcing this rule is Roberts v. Beatty, 2 Pen. & W. (Pa.) 68, where plaintiff sued upon two due bills as follows:

“On the 1st day of October next, due A. B. Roberts two bureaus at Carnahan’s shop, in Butler.

May 31, 1826.

William Beatty.”

and

“On the 1st day of January, due Abner R. Roberts two bureaus at Carnahan’s shop, in Butler, and one dough-chest.

It was there held, construing these contracts, that the payer had an election to pay at the time and place in the property stipulated for or in money. In Smith v. Dunlap, 12 Ill. 184, an agreed case was submitted to the trial court showing that the defendant Dunlap made his note for the sum of $131,480.52, payable in “State of Illinois indebtedness”; that the note had matured and was unpaid; that the market value of Illinois State indebtedness was twenty cents on the dollar. Construing this note, the court said:

“The sum expressed in the obligation indicates the true amount of the debt; and the other provision is inserted for the benefit of the debtor, and relates exclusively to the mode of payment. If he does not avail himself of the privilege of discharging the debt in property, the obligation becomes a naked promise to pay the amount in money.”

Other cases announcing a similar rule are Borah v. Curry, 12 Ill. 66; Bilderback v.

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Cite This Page — Counsel Stack

Bluebook (online)
224 Ill. App. 241, 1922 Ill. App. LEXIS 258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-retreading-tire-co-v-goldberg-illappct-1922.