Producers Grain Corp. v. Rust

291 S.W.2d 477
CourtCourt of Appeals of Texas
DecidedMay 28, 1950
DocketNo. 6605
StatusPublished
Cited by1 cases

This text of 291 S.W.2d 477 (Producers Grain Corp. v. Rust) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Producers Grain Corp. v. Rust, 291 S.W.2d 477 (Tex. Ct. App. 1950).

Opinion

PITTS, Chief Justice.

This is an appeal from a “take nothing” judgment in a case in which appellant, Producers Grain Corporation, sued appellee, John Rust, for the alleged breach of a grain sales contract between the parties and ap-pellee defended primarily on the grounds that, as a result of negotiations concerning the subject matter, there was no meeting of the minds of the party litigants and therefore no contract existed between them. By agreement of the parties, the case was withdrawn from the consideration of a jury and left to the discretion of the trial court [479]*479to determine, as a result of which appellee’s principal defensive matters were sustained by the trial court, which rendered judgment accordingly, from which an appeal has been perfected.

At the request of appellant, the trial court made and filed its findings of fact and conclusions of law which were consistent with its judgment, and all of which were timely objected to and excepted to by appellant, who sought to no avail additional findings. Appellant predicates its appeal upon the alleged erroneous findings of fact and conclusions of law filed by the trial court. Appellant charges reversible errors were committed by the trial court because of its, failure and refusal to find and conclude that there existed a valid contract between the parties; that the same was breached by ap-pellee and that appellant was entitled to its alleged damages by reason of the breach.

The parties joined issues in the pleadings and we find little controversy in the oral testimony given by the parties themselves concerning the facts. Appellee, John W. Rust, was in the grain business in Lubbock County and had been for 16 years. Carl D. Ferguson was a cash grain broker associated with C. M. Carter Grain Company of Fort Worth, Texas, where he had resided for about 40 years. Producers Grain Corporation was in the grain business in Amarillo, Texas, with Frank Pharris as its assistant general manager. The negotiations concerning the transactions were had between Rust, Ferguson and Pharris. On January 9, 1951, Carl Ferguson called Frank Pharris by telephone and inquired if Producers Grain Corporation had any milo for sale and Pharris told Ferguson they had a million pounds of milo they would sell at $2.65 per cwt. Ferguson then called John W. Rust the same day by telephone and asked Rust if he wanted to buy a million pounds of milo at $2.65 per cwt. TCP (Texas Common Points) and Rust told Ferguson he would take the grain if he could get 14% moisture or less. Ferguson told Rust that Producers Grain Corporation had the milo and he would be dealing with it in the transaction but Ferguson also told Rust that he would contact Producers Grain Corporation and wire Rust a confirmation. Thereafter, on the same day, Ferguson called Pharris again and told him that John Rust would take the million pounds of milo if it were 14% moisture or less and Pharris told Ferguson “that’s all right with us because that’s about the only kind of grain we have anyway.” The record reveals that on the same day (January 9, 1951) Ferguson sent Rust the wire of confirmation which Rust admits he received. As a result of the foregoing uncontroverted negotiations, Rust testified that he understood at the time that he was buying the grain from Producers Grain Corporation through Ferguson; that he received the wire of confirmation from Ferguson without complaint to anybody about its contents; that he continued to recognize the fact that he had bought the said grain from Producers Grain Corporation through Ferguson, the broker, and that he recognized the same to be true on the day of the trial.

The record also reveals that the grain was referred to by the parties as “#2 yellow milo,” and that the parties agreed upon shipment of the grain by appellant to ap-pellee during the first half of February, 1951, with appellee agreeing to give appellant five days shipping notice and appellee was also given the privilege however df taking delivery of the said grain if he desired at any time through the month of April, 1951, with the understanding that 2‡ per cwt. would be charged against him by appellant for each 15 days or fraction thereof, beginning February 16, 1951, that shipment may be delayed by reason of appellant’s failure to give shipping instructions. In addition to the telegram of confirmation sent by Ferguson to appellee Rust, Ferguson likewise on the same date and on the date of the negotiations (January 9, 1951) sent by mail to both appellee, the buyer, and appellant, the seller, a written similar confirmation (No. 63) of the sale of the million pounds of “#2 or better yellow milo, 14% or less moisture” at a price of “$2.65 per cwt and del’d. TCP” and the following language thereafter contained therein:

[480]*480“February, buyers option, 5 days shipping notice to be given seller buyers privilege of carrying thru April'at a cost of 2‡ per cwt for each 15 days or fraction thereof -beginning February 16th Lubbock or Amarillo official weights and grades as buyer will instruct later from Amarillo or Lubbock on once applied-west Texas billing good for two more free transits draft and all papers to you at Lorenzo, Texas.
“It is also agreed that this confirmation is part of the contract and its acceptance without notifying us of error herein, is acknowledgement of contract as above. It is agreed that all claims and difference under this contract are. due and payable at Fort Worth, Texas.”

Both appellant and appellee timely received the confirmation by mail. However, before appellant knew Ferguson had sent it and appellee a confirmation, it, through its agents, caused to be sent to appellee Rust, a confirmation (# 632) of date January 9, 1951, (the same date of the negotiations and of the Ferguson confirmation) of the said grain sale to appellee by appellant through Ferguson, showing the same amount, same price and the same delivery date with ap-pellee’s option of a later delivery from February 16 through April, 1951, at a cost of 2f, per cwt. for each 15 days or fraction thereof. But appellant therein described the grain only as “#2 Yellow Milo” without showing the moisture percentage thereof and this confirmation contained the following printed language in conclusion:

“We do not accept any liability, save for our negligence if grain does not arrive according to -billing instructions. On all ‘Delivered’ sales unless otherwise agreed, we reserve the privilege of- routing all shipments. Demand drafts with bills of lading attached to be paid on presentation. This contract is subject to extension of time in case of strikes, car shortage, embargoes or all delays beyond our control and is subject to no penalty because of these reasons for non-shipment. - Receipt of this contract by - the buyer, without immediate notice by wire to us of error, is an acknowledgment of acceptance of all conditions thereof.”

This latter confirmation sent by appellant was later received by appellee,'who did not at any time complain or communicate any error or any inconsistencies between the terms of the grain sales contract and either of the confirmations furnished to him.

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