Pierson & Co. v. American Steel Export Co.

194 A.D. 555, 185 N.Y.S. 527, 1920 N.Y. App. Div. LEXIS 6682
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 24, 1920
StatusPublished
Cited by5 cases

This text of 194 A.D. 555 (Pierson & Co. v. American Steel Export Co.) 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
Pierson & Co. v. American Steel Export Co., 194 A.D. 555, 185 N.Y.S. 527, 1920 N.Y. App. Div. LEXIS 6682 (N.Y. Ct. App. 1920).

Opinion

Greenbaum, J.:

The action was brought to recover damages for an anticipatory breach of contract. In April, 1917, the plaintiff agreed [556]*556to sell and the defendant to buy a quantity of checkered steel plates which it was understood by the parties were intended for export to Japan, shipments to be made during June and July, 1917. The contract consisted of two orders numbered 201 and 237 respectively. On June ninth, twelfth, eighteenth and twenty-first the defendant wrote to the plaintiff requesting it to make special effort to make delivery of all the goods during that month, the reason given being that the freight arrangements of the defendant at the Pacific coast called for clearance during the month of July.

On June twenty-third the plaintiff wrote to the defendant as follows: “We wish to advise that we cannot at the present time definitely advise date of shipment. We expect to have a rolling of these plates about the middle of July, and we hope to get the shipment away during the latter part of next month, which we -trust will be in time for your requirements.” On July fourteenth plaintiff further wrote to defendant calling attention to the fact that it would be unable to roll the pattern plates before some time in August due to the fact that “ on our last rolling of this pattern we broke our roll, as well as some machinery, parts of which we have been unable to replace. The very earliest that we expect to be rolling this pattern will be the early part of August, and as soon as we do commence rolling will be glad to give attention to these orders. * * * We hope that you will be able to arrange with your customer to have your credit extended as well as satisfactorily explaining the cause of the delay which is evidently not a fault of the mill.”

On August 6, 1917, the defendant wrote to the plaintiff that it had secured a United States government export license issued on August third and expiring August fifteenth covering ten tons of plates and also inquiring, “Will you see what you can do towards getting shipment away before expiration date? ” Defendant wrote on August seventh, the following day, calling attention to the fact that it had received United States government export license for forty-six gross tons of sunken diamond floor plates, at the same time asking, “ Will you see what you can do towards getting shipment forward before expiration date? ”

On August eighth plaintiff replied: “ It will be utterly [557]*557impossible for us to prepare these plates and have ready for shipment by the 10th and have the bill of lading dated previous to the 15th inst. We would be pleased to accommodate you if it would be possible to do so; but we regret to advise that there have been so many export licenses ahead of this one that the mill say they cannot .get out the tonnage. They expect, however, to have a rolling about the 20th or 25th of this month and will include your plates in this rolling and will endeavor to give them preference. * * * We trust that you appreciate the circumstances under which we are working, and we would also like to know if you can secure for us government license effective after Aug. 15th, so that we can proceed with the rolling of this order.”

The defendant replied to the letter of the eighth as follows: “ We wish to state that we have applied for United States Export Government Licenses on these orders and will endeavor to secure extension as you request. We appreciate the existing conditions, and hope to have the new license before this rolling comes around.”

On August 23, 1917, plaintiff wrote to the defendant: “ Referring to your orders #237 and #201 for Sunken Pattern Floor Plates, we are of the impression that we can roll these plates Saturday, the 25th inst. or the early part of next week, providing you have a government license. Are you able to secure this information? If so, please telephone us the license number.”

On the following day, August twenty-fourth, defendant replied that, “up to the present date we have not received United States Government License for these orders. We have the matter up now, and just as soon as we have the license number, we will advise you.”

On September 4, 1917, the defendant wrote to plaintiff two letters, one referring to order 201 and the other to order 237, each of which read as follows: “ Owing to the President’s recent proclamation embargoing plates for export, please suspend manufacture of the material on this order until further advised. If we are successful in securing an export license, the number will be sent to you immediately upon receipt of same.”

On the following day, September fifth, plaintiff replied: [558]*558“ We have your two letters of the 4th inst. referring to orders #201 and #237. We note that you require a suspension on these orders. We have accordingly passed this information on to the mill, but please understand if they suspend this material now that it may be three or four months before they can schedule it again for rolling. We are advancing you this information so that you can be kept posted on the progress of the order.” There appears to have been no answer to this letter by the defendant. On November 3, 1917, defendant wrote two letters of similar import to plaintiff referring to the respective orders reading as follows: “ Kindly change the instructions .applying on the above order to read as follows: Consign to: Order American Steel Export Company, Yokohama, via Seattle. Japan. All other instructions to remain unchanged. Acknowledge receipt of these instructions and oblige.”

The only difference between the two letters was as to the place of consignment, the second order, 201, reading, “ Kobe, Japan,” instead of “ Yokohama.”

On November fifth plaintiff acknowledged receipt of the two letters of the third inst. in which it stated: “We note you have given us revised instructions and we have accordingly passed these to the mill; but please understand we are doing nothing with these orders until you favor us with licenses covering both of these. Would like to know if your customer would be willing to take these orders on an inland bill of lading, having the plates marked but no mention .made on the bill of lading that they are for export. You, of course, understand that you will have to pay the domestic rate of freight.” On November nineteenth the defendant wrote to plaintiff additional instructions with respect to the two orders. The plaintiff replied on the following day, November twentieth, acknowledging receipt of the revised instructions and that it would communicate them to the mill and also asked whether the defendant would be willing to take inland bill of lading or “ do you intend to wait for Federal license? ” On the same day, November twentieth, defendant advised the plaintiff that the orders were at that time to be shipped freight prepaid and asked that this be changed to read freight collect; and on November 21, 1917, in answering the plaintiff’s letter of November twentieth, the defendant wrote: “We cannot allow [559]*559you to ship this order on Domestic Bill of Lading, as it is against the government’s instructions to forward material for export in this manner. We will have to wait until the Government Export License has been issued. As soon as we have this we will advise you.”

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Bluebook (online)
194 A.D. 555, 185 N.Y.S. 527, 1920 N.Y. App. Div. LEXIS 6682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierson-co-v-american-steel-export-co-nyappdiv-1920.