Pugh v. Porter Bros. Co.

50 P. 772, 118 Cal. 628, 1897 Cal. LEXIS 821
CourtCalifornia Supreme Court
DecidedOctober 15, 1897
DocketSac. No. 204
StatusPublished
Cited by7 cases

This text of 50 P. 772 (Pugh v. Porter Bros. Co.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pugh v. Porter Bros. Co., 50 P. 772, 118 Cal. 628, 1897 Cal. LEXIS 821 (Cal. 1897).

Opinion

HARRISON, J.

The plaintiff is a raisin grower in Fresno county, and the defendant is a corporation engaged in the business of shipping fruits from different points in this state to eastern states and selling them on commission. In 1892 the plaintiff consigned and delivered to the defendant, at Fresno, a quantity of raisins for shipping and sale to his account, and they were shipped by the defendant to Chicago and there sold by it. The defendant rendered an account of its sales to the plaintiff, and, after deducting its advances and the expenses incurred and its commission, paid him the balance. It is claimed by the plaintiff that the defendant, as a consideration for such consignment, guaranteed to him that upon the sale of the raisins it would account and pay to him not less than four and a half cents per pound net. The present action is brought to recover the difference between this amount and the amount received by the plaintiff. The complaint is framed in three counts, one charging the defendant with negligence in the shipment and sales of the [630]*630raisins, by which it failed to obtain their value; the second alleging the aforesaid contract of guaranty and its breach, and another for a sale and delivery of the raisins to the defendant at the rate of four and a half cents per pound. At the trial no claim was made under the last count. The plaintiff has also joined in his complaint two other causes of action of the same nature, assigned to Mm by other shippers—3VL B. Silver and A. J. Brooks. A verdict was rendered in favor of the plaintiff, and from the judgment rendered thereon and from an order denying a new trial the defendant has appealed.

There was evidence before the jury tending to show that the defendant made the agreement of guaranty with the plaintiff claimed by him, and also with his assignor, Silver. To the extent, therefore, that the verdict rests upon the implied finding by the jury that such an agreement was made, it must be accepted as correct, and as the defendant does not challenge the correctness of the amount it is unnecessary to consider the effect upon the verdict of not showing that such agreement was made with the plaintiff's assignor, Brooks.

It is contended by the appellant, however, that, notwithstanding such guaranty, it is liable only for negligence in making the sales, and that, even if such negligence be shown, the plaintiff can recover only the difference between the actual value of the raisins at the time they were sold and the amount for which they were sold; that as it appears that the raisins were sold by it for their full value at the time of the sale, the plaintiff has sustained no injury, and consequently is not entitled to any recovery. In support of this contention, several authorities are cited to the effect that where a factor has been instructed by his principal not to sell the consigned goods below a certain price, and in violation of his instructions sells them below that price, the measure of damages is not the difference between the price at which they ar’e sold and the price limited by the consignor, but is the actual damage or loss sustained by the principal; that if in fact the goods were of no greater value than that at which they were sold, the principal has sustained no loss, and can recover no damages from the factor. (Blot v. Boiceau, 3 N. Y. 78; Frothingham v. Evertson, 12 N. H. 239; Dalby v. Stearns, 132 Mass. 230; Ainsworth v. Portillo, 13 Ala. 461; Hinde v. Smith, 6 Lans. 464; Nelson [631]*631v. Morgan, 2 Mart., O. S., 256; Mechem on Agency, sec. 1009.) Tbe appellant urges tbat tbe same rule of damages must be applied to tbe breach by tbe factor of bis actual agreement for tbe guaranty of a fixed price, as by the above authorities is applied to the breach of bis implied agreement not to sell tbe consigned goods for less than tbe limited price when be accepts them under such instructions. Tbe appellant, however, overlooks the distinction between the two obligations assumed by tbe factor. Tbe agreement which is implied from receiving tbe goods under specific instructions only adds another term to bis obligation as a factor, and defines tbe mode in which be is to discharge tbat obligation, and a breach of this agreement, like any other breach of bis duty, entitles bis principal to only such damages as be has actually sustained thereby; whereas, in tbe case of a guaranty of a fixed price, bis obligation is tbat of a promisor, and its breach renders him liable for tbe amount which be has promised. His position under tbe guaranty is similar to that which would have arisen bad he taken tbe goods on a del credere commission, only tbat, instead of merely guaranteeing the sales tbat he may make, be also guarantees that the goods shall be sold for a fixed amount. His liability to bis principal for this amount becomes absolute upon a sale for cash, or, if upon credit, upon the expiration of the credit. (Wolff v. Keppel, 2 Denio, 368; Cartwright v. Greene, 47 Barb. 9; Swan v. Nesmith, 7 Pick. 220.) In Dallon v. Goddard, 104 Mass. 497, the plaintiffs guaranteed eighty per cent of the invoice price of certain goods consigned to them for sale. The goods were sold for more than this amount, but the expenses and commissions claimed by them would reduce the net proceeds to less than this amount. It was held that the plaintiff took the risk that the goods would yield that amount, and that the defendants were not liable to pay for any charges which would reduce the price to less than the eighty per cent guaranteed. See, also, Rollins v. Duffy, 18 Ill. App. 398, where the court held that the contract of the factor could not be construed as a guaranty of a fixed price, but said that if such had been the contract he would have been liable therefor, irrespective of the value of the goods or the price at which he sold them. In Ex parte White, In re Nevill, L. R. 6 Ch. App. 397, it was said by Lord Justice Mellish: “If the consignee is at liberty according to the contract between [632]*632him and bis consignor to sell at any price be likes, and receive payment at any time be likes, but is to be bound, if be sells tbe goods, to pay the consignor for them at a fixed price and a fixed time, in my opinion—whatever tbe parties may think—their relation is not that of principal and agent.”

Tbe plaintiff alleges in bis complaint that be delivered tbe raisins to tbe defendant as his agent and commission broker, “for tbe purpose of shipment and sale,” and that defendant “did ship, sell, and dispose of the same”; and the first count in the several causes of action set forth in tbe complaint is based upon tbe negligence of tbe defendant in not obtaining tbe best market price to be obtained for the raisins. For the purpose of showing tbe value of tbe raisins, the court permitted the plaintiff to introduce evidence of their value at Fresno, and ruled that their value at Chicago was inadmissible. In this ruling the court erred. It was never understood between the parties that the defendant was to sell the raisins in Fresno. They were consigned to it to be shipped to the eastern states, and sold by it there, and it was shown that they were in fact shipped and sold by the defendant in Chicago.

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Cite This Page — Counsel Stack

Bluebook (online)
50 P. 772, 118 Cal. 628, 1897 Cal. LEXIS 821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pugh-v-porter-bros-co-cal-1897.