Procter v. Atlantic Fish Companies

94 N.E. 281, 208 Mass. 351, 1911 Mass. LEXIS 830
Massachusetts Supreme Judicial Court·Decided March 4, 1911·Published·Cited by 14 cases

Opinion

Loring, J.

This is an action for breach of warranty in the sale of three hundred and fifty barrels, and for the breach of an executory contract for the sale by description of forty-one barrels of salt mackerel. The plaintiffs’ firm did business in Gloucester and the defendant company in Lunenburg, Nova Scotia. One of the plaintiffs’ employees, McKinnon by name, had seen the three hundred and fifty barrels on a wharf in Lunenburg in the first week of November, 1906. By an interchange of telegrams between the parties on November 10, 1906, the plaintiff bought the three hundred and fifty barrels, agreeing to pay $14 a barrel for large mackerel and for the medium and small “what they are worth.” It is stated in the bill of exceptions “ that several small lots of salt mackerel came to the defendant’s place of business within a few days after McKinnon’s visit, and that these lots were sent to Yarmouth and shipped with the larger lot.” All the mackerel were shipped from Lunenburg to Yarmouth, Nova Scotia, where they were put on the Boston steamboat. The invoice of both lots was as follows: Large mackerel: three hundred and fifty barrels and eighteen half barrels, at $14 a barrel, amounting to $5,026. Medium mackerel: Eight barrels and eight half barrels, at $10 a barrel, amounting to $120; and small mackerel, nineteen barrels and two half barrels, at $7.50 a barrel, amounting to $150; the whole price being $5,296, to which was added $2.50 for consular papers, making a total of $5,298.50. For this the defendant drew two drafts on the plaintiffs which were paid.

By direction of the plaintiffs the fish were shipped to a Boston [353] firm who were instructed to sell them for the plaintiffs. The plaintiffs’ Boston agents sent to the plaintiffs’ customers half a dozen samples of five barrels each, which were returned .as rusty mackerel. Thereupon one of the plaintiffs “ examined the lot of mackerel ” and found it to be a fact that rusty mackerel were packed in the middle of all of the barrels, with clear fish at each ,end. On finding this the plaintiffs shipped the fish to their wharf in Gloucester at a cost of $114.50, and there unpacked, re-sorted and. repacked them at a cost of $177.75. One of the plaintiffs testified that there was no place in Boston where that could be done economically. The same plaintiff also testified that “ the fish were not salable except as rusty mackerel until they were repacked and that after repacking, the clear fish were salable as clear mackerel and the discolored ones as rusty mackerel.”

The result of the sorting and repacking was: Large mackerel : one hundred and fifty-two barrels of these were rusty, for which the plaintiffs claimed $7 each, amounting to $1,064; one barrel marked large mackerel contained sour mackerel, for which they claimed $14, and one contained herring, for which they claimed $14, making a claim on large mackerel of $1,092. Medium mackerel: seven and one half barrels medium mackerel were mixed with large and so sold; and ten barrels and four half barrels medium mackerel were marked and sold as large, on which the plaintiffs claimed $4 a barrel, amounting to $78; also four barrels and four half barrels of the medium were rusty, for which they claimed $5 a barrel, amounting to $30, making the total claim on medium mackerel $108. No claim was made on the small mackerel. The defendant had agreed to make the price of small fish $6.50 in place of $7.50, at which they were invoiced. The plaintiff’s whole claim therefore was (1) for difference between invoice price of small fish and price later agreed upon $20 (not contested) ; (2) breach of warranty and of contract in delivering rusty fish and medium as large mackerel, $1,200; and (3) cost of sorting and repacking, $292.15.

1. At the trial * the plaintiff was allowed to prove that in the fish trade “ The custom is when a party purchases a lot of mackerel he is supposed to receive clear fish. If he finds they are rusty fish he is entitled to cull out the rusty fish and have an [354] allowance of half price for the rustles.” What the plaintiff was allowed to prove by the first part of this custom was that the word “ mackerel ” in the fish trade has a trade meaning, namely, clear mackerel, not rusty mackerel. That was admissible. Mooney v. Howard Ins. Co. 138 Mass. 375. Eldridge v. McDermott, 178 Mass. 256. The second part of the custom is to supply by usage a basis of settlement in case of breach by delivering! rusty in place of clear fish. Such an arrangement could have been made by an express agreement and the existence of the usage dispensed with the necessity of making it expressly. In our opinion it is not a usage which is contrary to the rule of law and so bad within Dickinson v. Gay, 7 Allen, 29. See in this connection Barrie v. Quinby, 206 Mass. 259.

The defendant objected to the evidence on the ground that this was a sale of specific barrels which McKinnon saw and inspected, and that the plaintiffs received those barrels and consequently that is an end of their case. In any event this reasoning applies to the three hundred and fifty barrels only and not to the forty-nine barrels. But that is of no consequence because it is not correct. It is settled in this Commonwealth that in the sale of specific goods as goods of a specified description, the description amounts to a warranty that they are as described. It is also settled that the fact that the specific goods were open to inspection and were in fact inspected by the buyer does not deprive him of his right to rely on such a description as a warranty, if the difference between the specific goods and the description of them would not have been and was not detected on the inspection. Both points were decided in Henshaw v. Robins, 9 Met. 83, where they were considered at length. For later cases see Harrington v. Smith, 138 Mass. 92; Could v. Stein, 149 Mass. 570. And see also the cases of Edgar v. Breck Sons Corp. 172 Mass. 581; Putnam-Hooker Co. v. Hewins, 204 Mass. 426, where the first rule stated above was applied to an executory contract of sale in which the goods were to be identified by description.

The fact, if it be a fact, in the case at bar that the bargain was completed in Nova Scotia where the defendant’s offer was accepted by the plaintiffs’ telegram being despatched is of no consequence. There was no evidence that the law which obtains in Nova Scotia differs from our own.

[355] The exceptions taken to the admission of the custom must be overruled. The fifteenth and sixteenth rulings asked for by the plaintiffs * and given by the judge stand on the same footing and the exception taken to them must also be overruled.

2. The testimony of McKinnon that he .would have made a further examination of the barrels of fish here in question if he had not been told that they had been sold to a third person, was competent as showing that he did not make a thorough inspection. If McKinnon by his inspection had learned of the presence of the rusty mackerel in the middle of the barrels, the plaintiffs’ claim on that ground so far as the three hundred and fifty barrels are concerned could not have been maintained.

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Procter v. Atlantic Fish Companies, 94 N.E. 281, 208 Mass. 351, 1911 Mass. LEXIS 830 (Mass. 1911).

94 N.E. 281 (Procter v. Atlantic Fish Companies) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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