Phillips-Jones Co. v. Reiling & Schoen, Inc.

193 A.D. 716, 184 N.Y.S. 387, 1920 N.Y. App. Div. LEXIS 5635
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 5, 1920
StatusPublished
Cited by4 cases

This text of 193 A.D. 716 (Phillips-Jones Co. v. Reiling & Schoen, Inc.) 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
Phillips-Jones Co. v. Reiling & Schoen, Inc., 193 A.D. 716, 184 N.Y.S. 387, 1920 N.Y. App. Div. LEXIS 5635 (N.Y. Ct. App. 1920).

Opinion

Dowling, J.:

The complaint herein sets forth the following facts: Plaintiff is engaged in the business of manufacturing and selling shirts; defendant was engaged in the business of vending a fabric known as “ silkendure,” to be used for the manufacture of shirts. In the month of March, 1918, plaintiff and defendant entered into an agreement wherein and whereby the plaintiff agreed to procure orders for shirts to be manufactured by plaintiff of said silkendure ” and to purchase of the defendant all of such fabric necessary for the making of samples which plaintiff would use to procure such orders, and also which plaintiff would need for the manufacture of shirts on the orders so procured by plaintiff up to June 1, 1918, at the price of one dollar and thirty cents per yard for the crepe lots and of one dollar and thirty-five cents per yard for the other grades, to be paid seventy days after delivery, deliveries to be made by the defendant to the plaintiff no later than the fall of the year 1918, and the defendant promised and agreed to sell and deliver to the plaintiff all of such fabric upon the terms and conditions aforesaid, and also to furnish samples of said material to plaintiff to be also used by it in procuring orders for shirts to be manufactured out of said material.

At the time when the plaintiff and defendant entered into this agreement the defendant well knew that the plaintiff, in reliance thereon, would, at a great expense to itself, procure orders for and enter into contracts for the manufacture and sale by it. of shirts to be manufactured by it out of such fabric.

In accordance with and under the terms of said agreement, defendant thereafter delivered to plaintiff some of the fabric aforesaid, for which the plaintiff paid the defendant and out [718]*718of which the plaintiff made samples of shirts to be exhibited by it in procuring orders and the defendant likewise delivered to plaintiff samples of the fabric also to be exhibited by plaintiff for the purpose of procuring orders for shirts.

Thereupon the plaintiff, at a large expense to itself, caused the said sample shirts and samples of said fabric to be exhibited to various merchants in the United States, and before June 1, 1918, procured orders and contracts from such merchants for the purchase by them of shirts to be manufactured out of such fabric by the plaintiff, and plaintiff accepted such orders, and after procuring said orders and entering into the contracts therefor, plaintiff informed defendant thereof, and before June 1,1918, ordered of defendant 630 pieces of approximately fifty-five yards to the piece of said fabric which was needed by plaintiff for the manufacture of the shirts so ordered under the agreement, and requested and demanded that defendant sell and deliver the same as provided by the agreement but defendant repudiated the agreement and informed plaintiff that it would refuse to comply with the orders, and in fact it did so refuse and fail to comply with the orders, requests and demands of plaintiff to deliver the said fabric. The fabric silkendure ” cannot be obtained in the open market or from any one other than the defendant. By reason of the foregoing, plaintiff was, and will be, unable to manufacture the shirts with which to fill its orders and contracts, and by reason thereof it has lost the profits it would have earned if it could have filled the same and which it could have filled, except for defendant’s failure and refusal to sell and deliver the fabric; all to its damage in the sum of $6,236.56. There is a final allegation: That plaintiff has duly performed all the terms and conditions of said agreement on its part to be performed, except as performance was waived by the acts and conduct of defendant, as hereinbefore set forth.”

■ The answer denies the making of the agreement in question, as well as all the other material allegations of the complaint, and for a separate defense sets up the Statute of Frauds.

Upon the trial but one witness was called on behalf of plaintiff and he was not cross-examined. This witness, David F. Phillips, the vice-president of plaintiff, was in charge of its manufacturing department and buying. Plaintiff is one [719]*719of the largest manufacturers of shirts in this country. Defendant’s representative, Arthur Gilbert, in the latter part of February, 1918, at plaintiff’s office, and in a conversation with Phillips told him that defendant was going to extensively advertise a cloth called silkendure ” and would like to have plaintiff put in that line knowing how large its business was and what a good thing it would be for defendant to have plaintiff represent it. Gilbert said the defendant would sell plaintiff this cloth in crepe de chine for one dollar and thirty cents a yard and in broadcloth for one dollar and thirty-five cents a yard, and plaintiff was to make up samples and instruct its salesmen to go out and push the sale of the material. Defendant was to make sample cards and furnish advertising matter for the salesmen to use in the sample rooms, to push the sale of this cloth. Phillips said: Well, what about the price? We must have some protection about the price?” whereupon Gilbert replied that defendant would keep the price open and fill any orders that plaintiff’s salesmen might send in for this material. Phillips wanted the price kept open until July first, but Gilbert said he must talk that matter over with his firm. Phillips further said that he wanted to be sure the goods would be delivered, as they were going out to take orders and must be positive the goods would be furnished to fill them. Gilbert replied that defendant was making the material right along, and they certainly would furnish it. The shirts to be manufactured were for the midsummer and fall season, as defendant was informed. Gilbert promised to send sufficient material for the making of two shirts by plaintiff, which were to be sent to defendant, photographed and the photographs reproduced in a trade magazine, to show that plaintiff was making shirts out of the silkendure ” material. At this time plaintiff had forty salesmen on the road selling shirts and traveling in every State in this country. Thereafter on March 1,1918, defendant sent to plaintiff two seven-yard cuts of crepe de chine and one of broadcloth, accompanied by a letter in which it asked plaintiff to have the two shirts made up at once therefrom for our special advertisement which matter was taken up with your Mr. Dave Phillips.” It also promised to return the two shirts as soon as they were photographed, so that you may [720]*720utilize them in your sample line as these two (2) patterns will be represented in the cards we are making up for you. We will have one (1) set of cards for your salesmen leaving next week, by Monday or Tuesday. Our special labels Silkendure Silk Shirtings’ will be attached to each card.” It also stated in reference to the quantity of sample cards for the balance of plaintiff’s salesmen, that it would notify plaintiff in a day or two how many styles it contemplated giving on' the two qualities. Some of plaintiff’s salesmen were leaving earlier than others, which was the reason why some cards were to be prepared at once. Upon receipt of this letter, on March third, plaintiff wrote defendant as follows:

“ We are in receipt of your letter of the 1st and also received the two cuts sent to us.

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Cite This Page — Counsel Stack

Bluebook (online)
193 A.D. 716, 184 N.Y.S. 387, 1920 N.Y. App. Div. LEXIS 5635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-jones-co-v-reiling-schoen-inc-nyappdiv-1920.