S. Snyder Corp. v. United States

68 Ct. Cl. 667, 1930 U.S. Ct. Cl. LEXIS 583, 1930 WL 2603
CourtUnited States Court of Claims
DecidedJanuary 13, 1930
DocketNo. E-286
StatusPublished
Cited by6 cases

This text of 68 Ct. Cl. 667 (S. Snyder Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S. Snyder Corp. v. United States, 68 Ct. Cl. 667, 1930 U.S. Ct. Cl. LEXIS 583, 1930 WL 2603 (cc 1930).

Opinion

Littleton, Judge,

delivered the opinion of the court:

By authority of an act of Congress the War Department offered for sale certain surplus material at the Morgan Ordnance Beserve Depot, at South Amboy, N. J., among which was listed and described a lot of empty shells. The sale of these shells was made at public auction September 21, 1922, at which time plaintiff bid upon and purchased 46,212 shells of a total weight, of 3,415,238 pounds, such bid being upon the basis of $1.32% per hundredweight. A formal contract was entered into by the plaintiff and the United States consummating the sale and the full purchase price of $45,251.90 was paid. A refund of $209.19 was made to plaintiff because of shortage in the total weight delivered. [675]*675Plaintiff contends that although it purchased the shells with knowledge that the property was being sold by the defendant “ as is ” and “ where is ” without warranty or guaranty as to quality, character, condition, size, weight, or kind, there were misrepresentations by the defendant of material facts upon which plaintiff had a right to rely and that, therefore, the disclaimer of warranty by the defendant becomes void and of no effect and that the sale should be governed by the same rule as would prevail had there been no attempted disclaimer.

Plaintiff was in possession of the catalogue at least two weeks prior to the sale and was thoroughly familiar with the contents thereof. This catalogue showed that it was compiled by the auctioneer, Samuel T. Freeman & Co., and contained the statement of the auctioneer that the catalogue had been made and checked from Government records, that the descriptions, weights, counts, and measures were as accurate as could be obtained but that no guaranty would be made as to the correct description or full delivery of the specified weight, count, or measure on any lot. The Government terms of sale, set forth on page 8 of the catalogue, invited inspection and set forth that the property was to be sold “ as is ” and “ where is ” without warranty or guaranty of any kind and that failure on the part of any purchaser to inspect would not be considered as ground for any claim for adjustment or rescission. Plaintiff made no application to test or inspect any of the shells offered for sale or to examine the Government records referred to by the auctioneer in the catalogue, which records, the plaintiff states in its brief, were present at the place of sale.

We think the circumstances under which the catalogue, on which the plaintiff relies as a basis of its claim, was prepared required the plaintiff to make an inspection before it purchased the property in order for it to be entitled to maintain successfully the claim here made, and, having failed to do so, it can not, under the Government terms of sale set forth on page 8 of the catalogúg; anil the provisions of the contract of sale of October 11, 1922, hereinbefore set forth, recover from the defendant for a breach of an implied warranty. [676]*676The same principle which prevails between individuals should control in the construction and carrying out of contracts between the Government and individuals. United States v. Utah, Nevada & California Stage Co., 199 U. S. 414; Hollerbach v. United States, 233 U. S. 165. The misrepresentations which will vitiate a contract of sale must not only relate to a material matter constituting an inducement to the contract but it must relate to a matter respecting which the complaining party did' not possess at hand the means or knowledge, and it must be a representation on which he relied and by which he was actually misled to his injury. This court will not relieve a party from the consequences of his own inattention and carelessness. Where the means or knowledge are at hand and open to inspection, if the purchaser does not avail himself of these means and opportunities he will not be heard to say that he has been deceived by the vendor’s misrepresentations. There was here no concealment by the defendant or anyone representing it and, so far as appears, the plaintiff not only had the opportunity to inspect but was invited to do so. The plaintiff states that having had considerable experience dealing, with the Government as a purchaser of surplus war materials, it had found the dealings satisfactory; that its experience had been that by relying upon the best figures which the Government was able to offer, it got satisfactory information as to the character and quantity of the goods sold.

There was no concealment and plaintiff is not entitled to favorable consideration when he complains that he suffered or was misled by overconfidence in the statements in the catalogue. The doctrine of caveat emftor applies here. In Smith v. Richards, 13 Pet. 26, the court pointed out “ that the law does not go to the romantic length of giving indemnity against the consequences of indolence and folly or a careless indifference to the ordinary and accessible means of information.” In Barnard v. Kellogg, 10 Wall. 383, 388, the court stated-

“ No principle of the commoil lahas been better established, or more often affirmed, pothdn this country and in England, than that in sales of personal property, in the absence of express warranty, where the buyer has an oppor[677]*677tunity to inspect the commodity, and the seller is guilty of no fraud, and is neither the manufacturer nor grower of the article he sells, the maxim of caveat emptor applies.”

It appears that in compiling the catalogue in which the property in question was listed, Samuel T. Freeman & Co., the auctioneer, misinterpreted the Government records with reference to the weight of the base cover lead disc, complete with copper. Plaintiff’s claim is not predicated entirely upon this discrepancy. It does not appear that the defendant manufactured these shells or that it had any knowledge of the copper content other than that shown in the catalogue, with the exception of the discrepancy between the Government records and the statement in the catalogue, as shown in the letter of Major George F. Lemon to plaintiff on October 28, 1922, set forth in Finding VII, but in the catalogue these weights were stated to be approximate and prospective bidders were cautioned to examine and inspect and they were put upon notice that the property would be sold “ as is ” and where is ” without warranty or guaranty as to quantity, character, condition, size, weight, or kind, and these terms were carried, even with greater force, into the contract of sale executed by the plaintiff and the defendant on October 11, 1922. In Triad Corporation v. United States, 63 C. Cls. 151, the court, at page 156, said:

“ The plaintiff was thus notified before the sale that if it bid and purchased the lot of material it could not claim any allowance on account of deficiency in quality, character, or kind of material sold and delivered.
“ The plaintiff did not take advantage of its right to inspect, blit bought the lot without inspecting it.

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Bluebook (online)
68 Ct. Cl. 667, 1930 U.S. Ct. Cl. LEXIS 583, 1930 WL 2603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-snyder-corp-v-united-states-cc-1930.