Reigart v. Manufacturers Coal & Coke Co.

117 S.W. 61, 217 Mo. 142, 1909 Mo. LEXIS 271
CourtSupreme Court of Missouri
DecidedMarch 9, 1909
StatusPublished
Cited by29 cases

This text of 117 S.W. 61 (Reigart v. Manufacturers Coal & Coke Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reigart v. Manufacturers Coal & Coke Co., 117 S.W. 61, 217 Mo. 142, 1909 Mo. LEXIS 271 (Mo. 1909).

Opinion

WOODSON, J.

This suit originated in the circuit court of Adair county, and was instituted by plaintiff against defendant to recover approximately $1,000,000 for the breach of the contract hereinafter-set forth. The trial resulted in a verdict and judgment in favor of the defendant, and, after taking the-proper preliminary steps, he appealed the cause to» this court.

The cause was assigned to Division No. One, and was there argued and submitted for adjudication, which resulted in a divided court, and in pursuance to the mandate of the Constitution the cause was transferred to Court in Banc.

The contract sued upon is in words and figures as follows:

“This agreement made this twentieth day of November A. D. 1902, between the Manufacturers Coal & Coke Company, party of the first part, and H. P. Reigart of St. Joseph, Missouri, party of the second part, Witnesseth:
“The party of the first part shall furnish and the-party of the second part shall receive such coal as the party of the second part shall make requisition for, but not exceeding twenty-five hundred tons per working day. The coal shall be furnished from the mines-, of the party of the first part in Missouri and Iowa, and shall be free from stone, slate, dirt, bone, sulphur- and black jack, and shall be screened over bar or perforated shaker screens to remove slack and nut coal.
“The coal shall be subject to the inspection and’, acceptance of the party of the second part at the mines; and subject to the weight of the Western Railway-Weighing Association at the mines, the actual tare* weight of cars to be ascertained by weighing the cars¿ empty before they are loaded.
[150]*150“The party of the second part shall pay and the party-.of the first part shall receive as full compensation for said coal furnished hereunder one dollar and seventy-five cents ($1.75) per net ton F. O. B. cars St. Joseph, Missouri; and the same price shall apply on coal delivered F. O. B. cars to connecting lines at any junction point on the Iowa and St. Louis Bailway between Mystic, Iowa, and Macon, Missouri, both in-elusive, less the prevailing rate per ton on coal from said junction point to St. Joseph, Missouri.
“Payments for coal shall be made by the party of the second part on or about the twentieth of each month for coal furnished during the previous month.-
“The party of the first part shall make shipments of coal in- such quantity and manner as the party of the second part shall from time to time direct, but the party of the first part shall not be held liable for damages on account of failure to make shipments when such failure shall be due to strikes, fires, floods, mine accidents or other causes wholly beyond the control of the party of the first part.
“This agreement shall take effect January first, Nineteen Hundred and Three (1903), and shall continue in effect until December thirty-first, Nineteen Hundred and Seven (1907), and shall bind and inure -to the benefits of the successors and assigns of the party of the first part, and the heirs, administrators ;and assigns of the party of the second part as fully as if the said successors, assigns, heirs and administrators had been specifically mentioned in each instance.
“In witness whereof, the parties hereto have executed this agreement, in duplicate on the day and year first above written.
“ Manufacturers Coal and Coke Company,
By H. F. Bedding, President.
H. P. Beigart.”
“Witnesses: W. H. Marshall, C. H. Varnon.

[151]*151The petition, in addition to the ordinary allegations of the breach of the contract, stated' in substance that prior to and independent of the contract mentioned in the petition there was an oral contract by and between plaintiff and defendant to the effect that the former would go out and endeavor to sell this coal and make a market therefor, and that said contract and understanding on his part with the coal company was a moving motive or inducing cause or consideration which induced the coal company to enter into the contract sued upon, and he went out to make a market for the company’s coal, and that in pursuance to same he did so and sent to it the orders mentioned in the petition as the result of his efforts.

The answer was a general denial, and, among other things, there was a plea of the Statute of Frauds, and that the contract sued on was unilateral and not binding on defendant.

It will be unnecessary to set out the pleadings and evidence in full, as the questions presented for determination are questions of law which will sufficiently appear in the opinion for a proper understanding of the legal propositions involved.

I. “It is conceded by counsel for appellant that the contract at its inception was unilateral — a mere option, given to Reigart, and that no. consideration for the option is expressed therein.”

In order to escape the effects of that concession, they contend that the consideration passing from appellant to respondent and supporting the option may rest in parol and may be shown aliunde of the option, or the written contract.

In pursuance to that contention, counsel for appellant offered to prove by parol evidence that, independent of the option sued on, there was an oral contract entered into between them to the effect that he would go out and endeavor to make a market for and sell the [152]*152coal of respondent, and that the option given by the latter to appellant, and the undertaking on his part to create a market and sell the coal, was a moving motive or inducing cause or consideration which induced the coal company to enter into the so-called contract sued on, and that when he went out and sold the coal in pursuance to the option and his undertaking to create a market for the coal, that changed the contract from a unilateral or an optional contract, without a consideration to support it, into a bilateral contract based upon a valuable consideration, and, when broken, the company was liable for the damages which flowed from that breach.

While, upon the other hand, the respondent contends that the option sued on is unilateral and is therefore nudum pactum, because appellant does not thereby bind himself to purchase any of the coal mentioned in the option, nor is there any consideration to support the option expressed therein. The respondent also> contends that parol evidence is not admissible to show such a consideration, for the reason that, if such consideration existed in fact, it was one of the terms of the contract and should have been included in the terms of the written memorandum thereof, otherwise it is void under the Statute of Frauds.

These various contentions of the appellant and respondent present the main legal proposition we are called upon to decide.

Sections 3418 and 3419, Revised Statutes 1899, which are two of the sections of the statutes commonly called the “Statute of Frauds,” read as follows:

“Sec. 3418. No action shall be brought .... to charge any person ....

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Bluebook (online)
117 S.W. 61, 217 Mo. 142, 1909 Mo. LEXIS 271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reigart-v-manufacturers-coal-coke-co-mo-1909.