Ryan v. Ohmes

244 F. 31, 156 C.C.A. 459, 1917 U.S. App. LEXIS 1984
CourtCourt of Appeals for the Second Circuit
DecidedMay 31, 1917
DocketNo. 233
StatusPublished
Cited by17 cases

This text of 244 F. 31 (Ryan v. Ohmes) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryan v. Ohmes, 244 F. 31, 156 C.C.A. 459, 1917 U.S. App. LEXIS 1984 (2d Cir. 1917).

Opinion

ROGERS, Circuit Judge

(after stating the facts as above). This suit is brought to obtain from the defendant the complainant’s proportion'of the profits realized from an order, alleged to have been obtained through Col. Mackie, for shrapnel fuses. The claim arises under the written memorandum signed on Eebruary 20, 1916, and which is hereinbefore set forth. The parties who signed the writing do not agree as to what it means. The defendant insists that the District Court has misinterpreted, misconstrued, and misapplied it; and we are now asked to review the whole of the interlocutory decree, not merely the part granting the injunction, and, if such review warrant, to direct that the bill be dismissed.

[1-4] The written memorandum the parties signed was the culmination of a series of negotiations and activities on their part. It will be admitted at the outset, for the law is well settled to that effect, that the [34]*34execution of a contract in writing supersedes and merges all oral negotiations or stipulations concerning its terms. It will also be admitted »that the intent of the parties, as expressed in the writing they have signed, must govern the court in determining, the rights of the parties as derived therefrom. Indeed, the rule is that greater regard is to be had to the clear intent of the parties than to any particular words they may have used in the expression of their intent. Canal Co. v. Hill, 15 Wall. 94, 21 L. Ed. 64 (1872); Hoffman v.Ætna Fire Ins. Co., 32 N. Y. 405, 88 Am. Dec. 337. The language used must be interpreted in the sense in which the promisor knew, or had reason to know, that the promisee understood it. Tallcott v. Arnold, 61 N. Y. 616; Jordon v. Dyer, 34 Vt. 104, 80 Am. Dec. 668; Evans v. McConnell, 99 Iowa, 326, 63 N. W. 570, 68 N. W. 790. And the rule is clearly established that in case of doubt all the negotiations between the parties may be considered in arriving at the true intent of the parties. Jennings v. Whitehead, etc., Mach. Co., 138 Mass. 594; Kennedy v. Porter, 109 N. Y. 526, 17 N. E. 426; Freeman v. Bartlett, 47 N. J. Law, 33.

To understand this contract, it is necessary to consider the negotia-tioms which led up to it. In January, 1915, the defendant solicited the aid of complainant in financing his Ohio Company. At that time the complainant suggested to defendant the possibility of procuring for that company contracts or orders for the manufacture of munitions of war, or parts thereof, directly or indirectly for the governments at war in Europe, and the complainant agreed to bring the defendant into touch with parties having such contracts to let. The written memorandum was drawn, which provides that, “if any order is received from Col. Mackie,” the profits shall be divided in the manner specified. Col. Mackie is a reserve officer of the Canadian Ariny. He was in Russia in October, 1914, where he met the artillery boafd, and after weeks of negotiations he and three other officers associated with him obtained a contract with that board to supply it with 2,000,000 shrapnel shells complete, with a right in the board to increase the number of shells to 5,000,000. Mackie then returned to England in January, 1915, where he met Senator Curry, the president of the Canadian Car & Foundry Company, and offered him the contract. The latter was not certain whether he could meet the Russian requirements, and the matter was left opeiv to be decided after Curry’s return to- Canada.

One of the difficulties in the way of the acceptance of the contract by the Canadian Company was to find some one who could supply, the necessary time fuses. Mackie promised Curry to aid him in bringing in real contractors who could furnish the component parts needed by the Canadian Company to fill, the contract, and Curry asked Mackie to join his organization, which the latter did, taking a seat in his office. Mackie, in his search for a proper party to manufacture the time fuses, came to New York and was introduced to the complainant, Ryan, who told him that he had a party who could furnish the fuses. Later Mackie introduced Ryan to Curry. Then, Mackie testifies, “some days after, Mr. Ryan and I met again, and I asked him to produce his man; if he was not an actual manufacturer, not to bring him.” The result was that complainant caused defendant' and Mackie to meet. “Mr. Ohmer,” Mackie testifies, “came to my room and presented one or two [35]*35American-made Russian time fuses. I had with me, in my possession,' the time fuses as given to me by the Russian military authorities. I compared Mr. Ohmer5s lime fuses and those, and after a conference of probably two hours I decided that Mr. Ohmer was not of the floating characters that we were meeting so frequently, but that he was really a man who could make time fuses, and 1 told him I would bring him to Senator Curry, and he would have to negotiate the contract with Senator Curry or with the Canadian Car, who had decided to take it over, or had taken it over, at that time.’5 This Mackie did, with the result that on March 22, 1915, defendant obtained for his Ohio- Company the contract from the Canadian Car & foundry Company for the manufacture of shrapnel fuses; and Mackie testified that complainant brought the defendant to him pursuant to his request. While Mackie was under cross-examination, counsel said:

“What we want to know is whether you were representing the Canadian Car & Foundry Company at the time of your conversation with Mr. OhmorV”

To which the witness replied:

“A11 of the time in America, excepting a pause of about two days, when it looked as if Senator Curry could not arrange tinances, each and every person whom I approached or who approached me on boxes, shells, powder, etc., each and every man knew and was given to understand that I was for the Canadian Car; that I was not tooting any hom.”

He was then asked:

“What were your duties with the Canadian Car & Foundry Company at that time? What was the nature of the services that you were rendering?”

This was answered as follows:

“Weeding out the chaff iron? the thousands of men who were calling at the hotel and at the offices or elsewhere, making the selection of Mr. Ohmer in preference to ton other men who said they could make time fuses.”

Then followed questions and answers which are reproduced in order:

“You were making the selection of Mr. Ohmer for the Canadian Oar & Foundry Company?”
“Yes.”
“In making this selection, as you stated, you had no power to make a contract with Mr. Ohiner?”
“None whatever. I should say I was to make the selection of the good from the bad to present to Senator Curry.”
“When you interviewed Mr. Ohmer, pursuant to the introduction of Mr. jRyan, you did so in the interest of the Canadian Car & Foundry Company, for them, and not for yourself?”
“For them.”
“Not for yourself?”
“No, sir; not whatsoever.”
“At the time you could not have executed a contract with Mr. Ohmter for the manufacture of fuses, could you?”
“No.”

Iti the same connection the testimony of the counsel of the Canadian Company, who was also chairman of the executive committee of that company, Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Holbrook v. United States
194 F. Supp. 252 (D. Oregon, 1961)
Thompson v. Baltimore & OR Co.
59 F. Supp. 21 (E.D. Missouri, 1945)
In Re Westover, Inc.
82 F.2d 177 (Second Circuit, 1936)
ætna Life Ins. Co. v. Phillips
69 F.2d 901 (Tenth Circuit, 1934)
Deutschle v. Wilson
39 F.2d 406 (Eighth Circuit, 1930)
Murphy v. India Tire & Rubber Co.
29 F.2d 228 (Fifth Circuit, 1928)
Canadian Nat. Ry. Co. v. George M. Jones Co.
27 F.2d 240 (Sixth Circuit, 1928)
Kramer v. Harsch
278 F. 860 (Third Circuit, 1922)
Gates v. Megárgel
266 F. 811 (Second Circuit, 1920)
Peirce v. New York Dock Co.
265 F. 148 (Second Circuit, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
244 F. 31, 156 C.C.A. 459, 1917 U.S. App. LEXIS 1984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-v-ohmes-ca2-1917.