Ruttonjee v. Frame

205 A.D. 354, 199 N.Y.S. 523, 1923 N.Y. App. Div. LEXIS 5024
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 4, 1923
StatusPublished
Cited by2 cases

This text of 205 A.D. 354 (Ruttonjee v. Frame) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruttonjee v. Frame, 205 A.D. 354, 199 N.Y.S. 523, 1923 N.Y. App. Div. LEXIS 5024 (N.Y. Ct. App. 1923).

Opinion

Finch, J.:

The action is brought to recover damages for failure to accept and pay for goods sold by plaintiffs to the defendants. On [355]*355November 27, 1918, the plaintiffs shipped to New York 1,700 bales of cloves by delivering same on board a certain vessel and receiving bills of lading dated that day. Plaintiffs then cabled to their agent in New York to sell said cloves, and on December 6, 1918, a c. i. f. contract of sale was entered into by said agent for plaintiffs’ account with the defendants for 600 bales of said cloves, providing, in so far as material, as follows:

M. Arachtingi.
Broker in Foreign Dried Fruits.
“ 6 Harrison St.
‘‘ New York, Dec. 6th, 1918.
* Triplicate *
“ Contract in Triplicate No. 1415.
“ Sold to Messrs. Frame & Co.
“ New York, N. Y.
For account of Messrs. Ruttonjee, Jeevandass & Co.
Bombay, India.
Six Hundred (600) Bales of about 175 lbs. each Zanzibar cloves at 160/-per cwt. C. I. F. N. Y.
Goods of Good Merchantable Quality Crop 1918 and guaranteed to be passed by the U. S. Dept, of Agriculture.
Shipment: Goods AFLOAT per s/s Kasadomarú.
Marine Insurance to be taken care of by SELLERS, including war-risk.
Terms: Buyers to pay on presentation of Documents.
Accepted Buyer (signed) Frame & Co.
' “ (signed) M. ARACHTINGI, Broker.”

The shipping documents were presented to the defendants on or about February 21, 1919, together with draft for the amount due, and were refused upon the ground that the sellers had not shipped the goods in accordance with the contract. Upon the arrival of the goods in New York the documents were tendered again, and were refused.

Upon the trial the defendants attempted to justify their refusal to accept solely upon the ground that the goods were not shipped in accordance with the contract, claiming that the use of the word “ afloat ” meant not merely that the goods had been placed on board ship, but that the ship had sailed and was en route to the port of destination. Outside of the question of damages, the issue tendered was the meaning of the word afloat,” as used in the contract and understood in the trade. Conflicting evidence was offered by both sides upon this question, and it was submitted to the jury for determination, and properly so, because the sense [356]*356in which it was used was ambiguous and could only be shown by proof of usage or custom in the trade. This is a question of fact. (Rickerson v. Hartford Fire Ins. Co., 149 N. Y. 307, 316; Victor v. National City Bank, 200 App. Div. 557, 572.) The verdict of the jury was not against the weight of the evidence.

Upon the question of damages the court held that such damages should be computed as of the date when the shipping documents were first tendered and refused, and it was stipulated that the difference between the contract and market price in New York upon that date was $4,972.10, which amount the plaintiffs recovered. By stipulation, also, the difference between the contract price and the market price in New York on the date of the arrival of the goods and the second refusal of the shipping documents, was fixed at $12,572.31, to which latter amount the plaintiffs claim to be entitled.

Under a c. i. f. contract (as here conceded) the title passed to the purchaser, and while primarily the intention of the parties controls, yet the mere fa'ct that the seller takes the bill of lading in his own name, is not sufficient to show a contrary intention. (Rosenberg Bros. & Co. v. Buffum Co., 234 N. Y. 338.) In the case at bar the seller drew the bill of lading in the name of the bank at New York, so that there would be even more reason to hold that title passed to the defendant purchasers.

Under section 144 of the Personal Property Law (as added by Laws of 1911, chap. 571), which is a part of the Sales of Goods Act" (Pers. Prop. Law, art. 5, as added by Laws of 1911, chap. 571), the seller is given the right to sue for the purchase price of goods sold, where title has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract. The seller, however, may waive that right, and under his hen on the goods to secure the payment of the purchase price thereof, may sell the same and hold the buyer for any deficiency. (Moore v. Potter, 155 N. Y. 481, 486; Sawyer v. Dean, 114 id. 469.)

It is thus seen that, whether the plaintiff sues for the purchase price or whether the plaintiff sues for damages and sells the goods and recovers the difference between the amount realized in the sale and the contract price, the amount received by the plaintiff is in theory an identical amount and proves the right of the plaintiff to await the arrival of the physical goods in order to ascertain the amount of his damage. If damages are to be awarded to the plaintiff upon the fiction of a sale of the documents immediately upon the refusal of the defendant to accept the documents and pay for the goods at the market price of the goods, then the plaintiff [357]*357has lost just so much as is the value of the goods in hand over the value of the goods while still on the high seas, and this through the wrongful act of the defendant. In the case at bar the transaction was not a sale of documents, but a sale of the goods and an agreement to pay for the same upon the presentation of documents. To hold that the defendants are liable only for a sum equivalent to the market value of the goods still upon the high seas as if they had arrived, is to substitute fiction for the facts of the case. Even assuming by way of illustration that the transaction was a sale of documents merely, the damages were not measured by the value of the documents at the time of the breach, of which value there was no proof, but by the market value of the goods as if on hand instead of on the high seas. The goods being on their way to the defendants and payment being refused, plaintiffs had the right of resale. Such conclusion has been enacted into the statutory law, and accords with the rights and remedies of an unpaid seller* where, as here, title has passed, under the Sales of Goods Act (Pers. Prop. Law, §§ 133,134, as added by Laws of 1911, chap. 571). Section 133 provides as follows:

§ 133. Definition of unpaid seller. 1. The seller of goods is deemed to be an unpaid seller within the meaning of this article (a) When the whole of the price has not been paid or tendered.

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Bluebook (online)
205 A.D. 354, 199 N.Y.S. 523, 1923 N.Y. App. Div. LEXIS 5024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruttonjee-v-frame-nyappdiv-1923.