S. L. Jones & Co. v. Winter

209 A.D. 76, 204 N.Y.S. 454, 1924 N.Y. App. Div. LEXIS 8555
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 2, 1924
StatusPublished
Cited by1 cases

This text of 209 A.D. 76 (S. L. Jones & Co. v. Winter) 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
S. L. Jones & Co. v. Winter, 209 A.D. 76, 204 N.Y.S. 454, 1924 N.Y. App. Div. LEXIS 8555 (N.Y. Ct. App. 1924).

Opinion

Martin, J.:

This submission involves two independent written contracts, each for the sale by plaintiff to defendants of Chinese tin. Both contracts were made in the city of New York, where the parties are engaged in business. There is no controversy concerning quantity, quality or price under either contract.

The first contract was dated March 31, 1920, and provided for the sale by plaintiff to defendants of twenty-five tons of No. 1 Chinese tin, ninety-nine per cent pure, at sixty cents per pound, to be shipped from China during April or May. Thereafter the market price declined sharply. When the tin was tendered on July 9, 1920, the defendants refused to accept delivery or pay for it. By reason of defendants’ breach, plaintiff suffered damages amounting to $8,491.50 with interest from July 14, 1920, the date of sale; for this plaintiff demands judgment. No effort is made to justify this breach of contract on defendants’ part.

By the second contract, dated April 10, 1920, plaintiff agreed to sell to defendants fifty tons of No. 1 Chinese tin, ninety-nine per cent pure, at sixty cents per pound. This contract was on the printed form adopted by the New York Metal Exchange, and subject to the rules thereof. It provided for “ delivery c. i. f. New York ” and for shipment from Hongkong within two months, direct to New York via Panama canal. It required defendant to establish “ at once ” an irrevocable banker’s letter of credit for $67,200, the amount of the purchase price, direct in favor of one Fung Tang, in Hongkong, against which ninety-day sight documentary drafts should be available.

Fung Tang, in whose favor the credit was to be established, [78]*78owned and operated a smelter at Hongkong, and had previously offered to sell to plaintiff the quantity of tin in question. He was not a party to the contract, and his relation to the transaction was that of an independent vendor from whom the plaintiff was to purchase the tin. This was recognized by the parties by the provision that the credit was to be established “ direct ” to Fung Tang.

The contract contained the following clauses:

“ 4E.— Strikes, lockouts, differences with workmen, accidents, delays en route, or other contingencies beyond seller’s control, to be sufficient excuse for any delay in shipments traceable to these causes, but if from these causes shipments are not made within the contract time, they must be made by first opportunity. Seller is to notify buyer immediately of any postponement.
4F.— If accidents or other causes, beyond seller’s control, prevent the arrival of tin by the steamer or steamers originally declared, and the tin arrives by another steamer or steamers, delivery shall be valid upon the arrival of the tin.”

Instead of “ at once ” establishing the credit, defendants appear to have allowed twenty days to elapse without proceeding to open it. Fung Tang was notified of its establishment on May 12, 1920, though defendants claim it was arranged for with the Guaranty Trust Company on May 4, 1920.

On May 21, 1920, the plaintiff notified the defendants in writing under the heading Declaration,” with the usual reservations pending receipt of final documents,” that the fifty tons of tin for shipment under the contract of April 10, 1920, had been shipped on a boat named the City of Colombo on May 20, 1920, from Hongkong to New York. As a matter of fact the tin had not been shipped to the defendants on the steamship City of Colombo, and on July 3, 1920, the plaintiff notified the defendants to the effect that such notification was erroneous and that it had been shipped ” on another vessel called the Toyooka Maru from Hongkong, about June 20, 1920, and not by the steamship City of Colombo on May 20, 1920, as stated in the plaintiff’s former letter of May 21, 1920.

After the receipt of the plaintiff’s notification of July 3, 1920, to the effect that the tin had not been shipped on the steamship City of Colombo but on the steamship Toyooka Maru, and on July third and again on July ninth the defendants notified the plaintiff in writing that a shipment from Hongkong on the Toyooka Maru was not due performance by the plaintiff of the terms of the contract of April 10, 1920, which called for shipment from Hongkong within two months, direct to New York, via Panama Canal,” that is not later than June 9, 1920; and that if Fung Tang had drawn [79]*79against a shipment not made within the time specified in the agreement, the credit had not been correctly used and the defendants would not accept delivery.

Because of this alleged breach as to the second contract the defendants declined to take the first lot of twenty-five tons of the same kind of tin sold to them under the contract of March 31, 1920. They caused the second lot of fifty tons to be sold on notice to and for the account of the plaintiff at a loss of $20,472.04. For that amoimt with interest thereon and for the amount of certain interest claims on the sum paid to meet the drafts drawn by Fung Tang, the defendants demand judgment.

Fung Tang had on May twenty-sixth engaged cargo space for the fifty tons of tin on the Tsuruga Maru, which was scheduled to clear from Hongkong on June 10, 1920. On May thirty-first' he was informed by the steamship company that the Tsuruga Maru had been delayed en route by bad weather and port congestion, and that her place would be taken by the Toyodka Maru, which would clear from Hongkong about the middle of June, although there was some chance that the latter ship would sail by June tenth. On May thirty-first and June first he endeavored to engage shipping space from the other companies operating steamers that sailed by June tenth, but was unable to do so, none being available.

On May thirty-first, when Fung Tang learned of the change in the carrier’s schedule, the time was too short to render it possible to have the tin loaded on any of the vessels sailing on June first and second, even if cargo space had been obtained. On June ninth Fung Tang lightered the fifty tons of tin across the harbor, and pursuant to instructions of the steamship company delivered it at the wharf of the Hongkong and Kowloon Wharf and Godown Company. This was the wharf customarily used for the reception of freight intended for transportation on the vessels of the steamship company operating the Toyooka Maru, it having no wharf or similar facilities of its own.

The steamship company thereupon issued and delivered to him two bills of lading for the tin, dated June 10, 1920, took possession of the merchandise and marked it received for shipment.” These documents were not issued by the wharfinger, but by the carrier. Their issuance is evidence that the carrier accepted the goods for transportation, and that it recognized that the wharfinger received and held them as its agent or bailee.

It is contended by plaintiff, therefore, that Fung Tang did all that was possible to further the transit. He had engaged cargo space on a vessel scheduled to sail on June tenth, the last day [80]*80originally stated for shipment, lightered the tin to the wharf, delivered it there to the carrier in accordance with its instructions, ready for immediate transportation, and received the carrier’s bill of lading therefor.

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Bluebook (online)
209 A.D. 76, 204 N.Y.S. 454, 1924 N.Y. App. Div. LEXIS 8555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-l-jones-co-v-winter-nyappdiv-1924.