Sadler Machinery Co. v. Ohio National, Inc.

102 F. Supp. 652, 64 Ohio Law. Abs. 142, 48 Ohio Op. 349, 1952 U.S. Dist. LEXIS 4778
CourtDistrict Court, N.D. Ohio
DecidedFebruary 4, 1952
DocketNo. 6515
StatusPublished
Cited by4 cases

This text of 102 F. Supp. 652 (Sadler Machinery Co. v. Ohio National, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sadler Machinery Co. v. Ohio National, Inc., 102 F. Supp. 652, 64 Ohio Law. Abs. 142, 48 Ohio Op. 349, 1952 U.S. Dist. LEXIS 4778 (N.D. Ohio 1952).

Opinion

OPINION

By KLOEB, District Judge.

This is an action by the plaintiff, a machinery dealer of Detroit, Michigan, against the defendant, a manufacturer at Upper Sandusky, Ohio, to recover the purchase price which plaintiff paid defendant for a 16" 6 spindle Bullard MultAu-Matic machine located at the plant of defendant at Upper Sandusky, which was severely damage^ by fire while in the plant. The claim of the plaintiff is based on the allegation that the machine was purchased F. O. B. cars Upper San-dusky, Ohio; that at the time of the fire- it was in the possession of defendant and had not been loaded on cars at Upper Sandusky and thereby transferred to the ownership and control of the plaintiff. The defendant contends that the title to the machine passed to the plaintiff prior to the loss.

Two questions are presented:

(1) Did the title to the machine pass to the plaintiff prior to the loss?

(2) Did the loss fall on plaintiff as buyer because delay in delivery was due to the fault of the plaintiff?

We find the facts as follows:

1. During telephone conversations January 12 to 15, 1951, between Mr. Sadler,, of plaintiff, and Mr. Day, of defendant, the defendant agreed to sell the plaintiff, for the sum of $25,000 a certain Bullard Muta-Au-Matie machine, then located in the plant of the defendant at Upper Sandusky, Ohio, which had been previously examined by Mr. Sadler.

2. Under the date of January 15, 1951, a written contract in the form of a purchase order was mailed by plaintiff to defendant (Plaintiff’s Exhibit 1), and later signed by defendant, in which the price of the machine was fixed at $25,000, to be paid $4,000.00 down — balance within ten days. The order contains the term “F. O. B. Cars Upper Sandusky, Ohio.” It also contains the following with reference to shipment: “Ship To Will advise” and “Via Will advise.” The order also [144]*144contains the following with reference to preparation for shipment of the machine: “Note: It is understood that you will skid the machine and prepare it properly for shipment. The counterweights to be removed and heads blocked, also all machined surfaces to be sludged to prevent rusting.”

3. On January 15, 1951, after a telephone conversation with Mr. Day, at which the terms were agreed upon, the plaintiff, by Mr. Sadler, wrote to the defendant, attention of Mr. Day, a letter enclosing the purchase order and check for $4,000, which letter contained the following request that the defendant hold the machine temporarily (Plaintiff’s Exhibit 3): “* * * We would like you to hold the machine for a week or two, as we may sell it direct from your plant. In that way, we can avoid extra handling cost by shipping it to our warehouse.”

4. Mr. Day testified that, upon receipt of the above letter, on January 17, 1951, he telephoned Mr. Sadler and told him that the terms set forth in the purchase order did not carry out the terms of the oral agreement; that he wrote Mr. Sadler a letter under date of January 17, 1951 (Plaintiff’s Exhibit 4), responding to Mr. Sadler’s letter of January 15, stating that be was returning copy of the purchase order signed.

„* * s ku|. you will n0£e j hayg changed the terms as agreed upon by telephone and that is $4,000.00 Cash, and the balance of $21,000.00 within ten days.”

“One of my reasons for agreeing to sell this machine is the fact that we are cramped for space and would like to get it out of our factory as soon as humanly possible. We realize, of course, that if you can ship directly from our plant, it would mean considerable saving to you, and we are willing to go along for a couple of weeks as outlined.”

5. On January 26, 1951, the plaintiff wrote a letter to the defendant (Plaintiff’s Exhibit 5; Defendant’s Exhibit C), which states that the plaintiff is attaching a check for $21,000 “to cover the final payment on the 16" 6 Spindle Bullard MultAu-Matic recently purchased from your company.”

The plaintiff also referred in the letter to its desire to leave the machine in the plant of the defendant for another week or two, stating:

“We tried to contact you today, by phone, but were informed that you were out of town until Monday. The reason for trying to phone you was to ask if it would be possible to leave the machine in its present location for another week or two. If this is not possible, we will have a truck at your plant Wednesday, January 31st, to pick the machine up and take it to Cleveland, where it will be stored.

“We wish to thank you kindly for your co-operation and hope [145]*145that we may have the pleasure of hearing from you the early part of next week.”

6. On the same day, January 26, 1951, the plaintiff wrote a letter to the Noll Equipment Company of Cleveland, Ohio (Plaintiff’s Exhibit 7), stating as follows:

“When talking with you by phone today it was agreed that you would send a truck to Ohio National, Inc., at Upper San-dusky to get the Bullard Multa-Au-Matic next Wednesday morning. You will deliver the machine to your warehouse and store it there until sold.

“We are sending Ohio National a check today to cover the balance due on this machine, so there should be no trouble in getting it released.

“Ohio National will prepare the machine for shipment and load it on your truck therefore you won’t need to send any riggers along.”

7. On January 29, 1951, the plaintiff wrote a letter to Noll Equipment Company (Plaintiff’s Exhibit 6), confirming a telephone conversation of that day “in which we asked you not to send your truck to The Ohio National. Inc. Plant in Upper Sandusky, Wednesday morning to get the Bullard Mult-Au-Matic which we purchased from them. Tfye reason for the change in plans is that Mr. Day called us today stating that it would be alright to leave the machine in their plant another two weeks.”

8. The weight of the evidence is that two or three days after the sale was made the machine was prepared for shipment by defendant by being skidded and sludged, but the counterweights were not removed and the head was not blocked, for the reason that this operation was not considered by Mr. Day necessary on a machine of this particular type.

9. The fire occurred about 11 A. M., on January 30, 1951. (Plaintiff’s Exhibit 11.)

10. Plaintiff’s check for $21,000, dated January 26, 1951 (Friday), was apparently received by defendant at Upper San-dusky on January 29, 1951 (Monday), and mailed for deposit to defendant’s bank at Cygnet, Ohio, on that day and deposited to its credit on January 30, 1951, and paid by plaintiff’s bank at Detroit on February 2, 1951.

On the question of whether the title to the machine passed to the plaintiff prior to the loss, plaintiff contends that the title remained in the defendant because the purchase order provided for delivery “F. O. B. Cars Upper Sandusky, Ohio.” The general rule is stated in 46 Am. Jur., Sec. 442, p. 608, as follows: “Where the contract of sale provides for a sale f. o. b. the point of shipment, the title is generally held to [146]*146pass, in the absence of a contrary intention between the parties, at the time of the delivery of the goods for shipment at the point designated.”

It is generally held that the term “f. o. b.” standing alone in a contract simply means that the subject of the sale is to be loaded for shipment without expense to the buyer. Olsen v. McMaken & Pentzien, 139 Neb.

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Related

Delta Tank Manufacturing Co. v. Weatherhead Co.
150 F. Supp. 525 (N.D. Ohio, 1957)
Elias Sayour & Co. v. J. P. Stevens & Co.
205 Misc. 807 (New York Supreme Court, 1954)
Sadler MacHinery Co. v. Ohio Nat., Inc.
202 F.2d 887 (Sixth Circuit, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
102 F. Supp. 652, 64 Ohio Law. Abs. 142, 48 Ohio Op. 349, 1952 U.S. Dist. LEXIS 4778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sadler-machinery-co-v-ohio-national-inc-ohnd-1952.