Rietz v. Hovden Food Prodducts Corp.

121 P.2d 775, 49 Cal. App. 2d 376, 1942 Cal. App. LEXIS 819
CourtCalifornia Court of Appeal
DecidedJanuary 29, 1942
DocketCiv. No. 11757
StatusPublished
Cited by2 cases

This text of 121 P.2d 775 (Rietz v. Hovden Food Prodducts Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rietz v. Hovden Food Prodducts Corp., 121 P.2d 775, 49 Cal. App. 2d 376, 1942 Cal. App. LEXIS 819 (Cal. Ct. App. 1942).

Opinion

SPENCE, J.

P1aintiff recovered judgment against def en. dant for the alleged purchase price of two presses. Defendant appeals from said judgment.

Defendant presents numerous contentions on this appeal hut the determinative question under the unusual situation presented by the record is whether there was any valid written contract between the plaintiff and defendant for the purchase of said presses.

Plaintiff was engaged in the manufacture and sale of machinery under the fictitious name of Process Machinery Company. Defendant was a corporation engaged in fish canning at Monterey. The president of the defendant corporation, hereinafter called the Hovden Company, was K. Hovden, [378]*378who was also the president of Mazama Fisheries Corporation, hereinafter called the Mazama Company. The last mentioned corporation was organized for the purpose of acquiring the “Mazama” and operating said vessel in the fish reduction industry at Neah Bay, Washington.

In April, 1936, plaintiff entered into a written contract with the Mazama Company, by which it agreed to sell and deliver to said corporation four “presses” and one “disintegrator.” The entire purchase price was $13,650, which was payable $3,412.50 upon the execution of the agreement, and the balance in equal monthly installments commencing on July 15, 1936, and ending on October 15, 1936. Delivery was to be made on or before May 22, 1936.

The above mentioned machinery wa,s ordered for installation on the “Mazama” and said machinery was to be shipped to the Commercial Boiler Works in Seattle for that purpose. In May, 1936, it developed that plaintiff would be unable to make delivery of said equipment by May 22nd as provided in the written agreement. The northern fishing season was to open shortly and the Mazama Company arranged with the Hovden Company to obtain from the Hovden Company two presses which the Hovden Company had acquired a short time before. In return, the Mazama Company agreed with the Hovden Company to cause two of the four presses covered by its written contract with plaintiff to be delivered by plaintiff to the Hovden Company as soon as said presses were completed. This arrangement appears to have been agreeable to all concerned.

Pursuant to this arrangement the Hovden Company shipped its two presses from its plant at Monterey to Seattle for installation on the “Mazama” and the Mazama Company instructed plaintiff to deliver to the Hovden Company at plaintiff’s plant in Oakland two of the four new presses covered by the written contract between plaintiff and the Mazama Company. Two new presses were thereafter shipped by plaintiff to Seattle and the two remaining new presses were delivered by plaintiff on June 15, 1936, to the Hovden Company at plaintiff’s plant in Oakland. These last mentioned new presses were installed in the Hovden Company’s Monterey plant in place of the two presses which it had removed and sent to Seattle for installation on the “Mazama.”

The Mazama Company made the initial payment upon the [379]*379written contract and also paid in advance the payment due on July 15, 1936, making a total payment of $5,971.87 upon said written contract. Thereafter the Mazama Company appears to have had financial difficulties. It did not make the payment due on August 15, 1936, or any further payment. Later in 1936, it was adjudicated a bankrupt. Plaintiff assigned, “for the purposes of collection only” its claim against the Mazama Company and plaintiff’s assignee sought his remedy on the written agreement in the bankruptcy court. He was unsuccessful, and in 1937, plaintiff charged off as a bad debt in his income tax return the entire balance due on this written contract with the Mazama Company. It was not until February, 1940, that plaintiff filed his complaint in this action seeking to recover the alleged purchase price of two presses from the Hovden Company.

This action was brought upon the theory that a valid written contract for the purchase of said two presses was entered into between plaintiff and the Hovden Company in June, 1936. The claim that such contract existed was based solely upon two letters, one written by an employee of plaintiff on June 1, 1936, and one written in reply thereto by an employee of the Hovden Company on June 3, 1936. After the above mentioned arrangement for the exchange of two presses had been made between the Mazama Company and the Hovden Company, plaintiff instructed his employee Harris that he “should ship two of these to the Commercial Boiler Works and that the Hovden Food Products would call with a truck for the other two, and they would go to Monterey. ’ ’

The first of the two letters above mentioned was written by Harris, plaintiff’s employee, on June 1, 1936, and read in part as follows: “On June 12th we will bill four presses to the Commercial Boiler Works, Seattle, shipping two of them to Seattle and holding two for your truck to take to Monterey. If this is not as you understand it, please notify the writer, otherwise we will deliver according to this schedule.”

To this letter, Wood, an employee of the Hovden Company, sent a reply under date of June 3rd, which read in part as follows: “We note that there appears to be some confusion in the matter of the four presses. ... In regard to the second paragraph of your letter, you will bill two presses only to the Mazama Fisheries Corporation, care Commercial Boiler Works, Seattle, Washington, and bill ourselves at Monterey [380]*380for the other two, and we will arrange to have a truck call on June 15th to pick up these two presses if they will be ready by that time. Kindly advise.”

The position of plaintiff in this case is based entirely upon the use of the word “bill” in these letters and particularly in the last mentioned letter written by the employee of the Hovden Company. Plaintiff apparently takes the position that the word “bill” has a plain and unambiguous meaning and that said last mentioned letter constituted a written authorization to plaintiff to charge the two presses to the Hovden Company upon delivery of said presses. Defendant takes the position that the word “bill” has more than one accepted meaning; that it is frequently used with respect to delivery or shipping instructions (Illinois Fuel Co. v. Mobile & Ohio Ry. Co., 319 Mo. 899 [8 S. W. (2d) 834]), and that it clearly appears from said correspondence that the parties were not discussing charges or payment but were merely discussing delivery or shipping instructions. In this connection, it may be stated that on cross-examination, plaintiff was questioned concerning said correspondence and the „use of the word “bill” by his employee Harris in the letter of June 1st. He testified, “That was Mr. Harris’ letter there and that is his wording. I had no control over that. He has quite obviously slipped in his verbiage. He used the wrong words.” Harris testified that he had nothing to do with charging for the presses and that “All I was instructed to do was where to ship them and I sent the bill of lading for the last two presses to Hovden and I shot two of them up north with a bill of lading. ”

The trial court sustained objections to a direct question relating to the sense in which the word “bill” was used in said correspondence, saying “. . . the letter is the best evidence, and it is a simple word that the court can understand. ’' There was other evidence, however, tending to show the sense in which said word was used.

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Bluebook (online)
121 P.2d 775, 49 Cal. App. 2d 376, 1942 Cal. App. LEXIS 819, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rietz-v-hovden-food-prodducts-corp-calctapp-1942.