Saks & Co. v. New York Edison Co.

178 A.D. 634, 165 N.Y.S. 572, 1917 N.Y. App. Div. LEXIS 6507
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 8, 1917
StatusPublished
Cited by1 cases

This text of 178 A.D. 634 (Saks & Co. v. New York Edison Co.) 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
Saks & Co. v. New York Edison Co., 178 A.D. 634, 165 N.Y.S. 572, 1917 N.Y. App. Div. LEXIS 6507 (N.Y. Ct. App. 1917).

Opinion

Page, J.:

The action is brought by the plaintiff, Saks & Company, to recover from the New York Edison Company overpayments alleged to have been made for electric current consumed by the plaintiff during the period from January 1, 1904, to January 1, 1913.

The complaint. alleges that pursuant to a contract made [636]*636between the plaintiff and the defendant on the 5th day of December, 1903, it was agreed that defendant should furnish electric current to the plaintiff at certain specified rates, with a proviso that in the event of the defendant making any reduction in prices to a customer using current under like conditions, corresponding reductions in prices should be made to the plaintiff.

It is further alleged that on the 10th day of March, 1904, the defendant made a contract with the Broadway Realty Company, whereby it reduced the cost of electric current to the said Broadway Realty Company at all times since the 5th day of December, 1903, to a price of three cents per kilowatt hour, and that by the terms of the contract between the plaintiff and the defendant the plaintiff became entitled to that rate. It is then alleged that the defendant concealed from the plaintiff the fact that it had made this reduction to the Broadway Realty Company, and the plaintiff had no knowledge or notice thereof until the month of December, 1912, and that the defendant falsely and fraudulently represented to the plaintiff in writing each and every month from the 1st day of January, 1904, to the 1st day of January, 1913, that there was due from the plaintiff to the defendant for current used, certain amounts charged at full prices, provided in the original contract between 'them, without any reduction, and that relying upon the said statements by the defendant the plaintiff paid the amount of the bills so rendered.

It is further alleged that the plaintiff thereafter demanded repayment of the said overpayments, with interest, and the defendant has refused to make the same. Judgment is demanded that the plaintiff recover from the defendant the amount of such overpayments, with interest and costs.

Upon the trial the contract between the plaintiff and the defendant for current was placed in evidence. The portion thereof material to the questions raised upon this motion provides: In the event of any reduction in the prices of The New York Edison Company made to a customer using ' current under like conditions, corresponding reductions shall be made in the terms of this contract as herein scheduled.”

The first question raised in the action involves a construction of this clause for the purpose of determining what is [637]*637meant by the words: “to a customer using current under like conditions.” It was shown that the Broadway Realty Company, with whom the defendant is alleged to have made a contract at a rate lower than that given to the plaintiff, used the current merely for lighting purposes and in quantities approximating the quantity consumed by the plaintiff. The plaintiff conducts a large dry goods establishment, and the Broadway Realty Company operates an office building known as the Bowling Green Building. The only material difference between the service rendered the Broadway Realty Company and that rendered to the plaintiff consists of the fact that the New York Edison Company had a substation in the basement of the Bowling Green Building which it used for the purpose of supplying all the other buildings in that vicinity, and the Broadway Realty Company was able to obtain its current direct from the substation without the intervention of channels of conveyance through the streets, whereas the plaintiff obtained its current by conveyance from a substation at a greater distance.

The learned trial justice, over the exception of the defendant, received evidence showing that at the time when the contract was made conversations were had between the agents acting on behalf of the plaintiff and the defendant, explaining the meaning of this clause and tending to show that the plaintiff was to receive the same rate as any consumer in the city of New York buying a similar quantity of current for like purposes. This evidence was received on the theory that the words of the contract are ambiguous. While I do not agree with the learned trial justice that the contract was ambiguous, I think his finding upon the evidence that the plaintiff and the Broadway Realty Company were customers “ using current under like conditions ” within the meaning of the contract, was correct and could be supported by a reasonable interpretation of the language of the instrument alone, without outside evidence. The defendant practically concedes this and does not urge the point before this court.

A more serious question is presented, however, as to the interpretation of the contract between the defendant and the Broadway Realty Company. That contract provides in paragraph “2:”

[638]*638“ In consideration of the use. of the basement of said premises for the storage batteries and other apparatus of said Edison Company, all of which is now installed therein, the price for such current supplied under said contract shall be three cents (3c) a kilowatt hour.”

Paragraph 3 ” provides:

“ On and after May 1st, 1904, and during the remainder of the term of said contract, should such payments exceed the sum of $10,000 annually, any excess thereof, to an amount not exceeding $3,500 is to be credited to the annual rental of said basement, and said current is to be supplied in payment for such annual rental; for all current supplied in excess of 450,000 kilowatt hours annually, the price is to be three cents (3c) a kilowatt hour.”

Paragraph “5” provides:

Said Realty Company hereby leases to said Edison Company the space in said basement hereinbefore referred to, for and during the continuance of this contract, for the purposes above specified, free and without charge for such use and occupancy, except as stipulated in the foregoing paragraph numbered 3.”

It was shown by the bills rendered by the New York Edison Company to the Broadway Realty Company for electric current that the parties to that contract interpreted it as allowing the Broadway Realty Company a rate of three cents per kilowatt hour for current consumed up to $10,000 per year, and in years when the consumption of the Broadway Realty Company exceeded $10,000, any excess thereof to the amount of $3,500 was charged against rent for the use of the ‘ aforesaid substation, and thereafter any current used in excess of $13,500 was paid for at the regular wholesale rate charged to the plaintiff and all other customers.

The plaintiff’s whole contention and basis for this' action is, that the rate of three cents a kilowatt hour for current used up to the amount of $10,000 was one-half cent per kilowatt hour less than the amount which it was charged under its contract with the defendant, and, therefore, it was entitled to the rate of three cents upon all current consumed by it up to that amount. The defendant’s answer to this proposition is that the difference between the regular wholesale rate charged [639]*639to the plaintiff, and the three-cent rate allowed to the Broadway Realty Company, represented rent for the use of the basement of the Bowling Green Building for a substation. The plaintiff points, however, to paragraph

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Bluebook (online)
178 A.D. 634, 165 N.Y.S. 572, 1917 N.Y. App. Div. LEXIS 6507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saks-co-v-new-york-edison-co-nyappdiv-1917.