Schuylkill Products Co. v. Alloy Metal Products, Inc.

219 So. 2d 322, 1969 La. App. LEXIS 5390
CourtLouisiana Court of Appeal
DecidedJanuary 27, 1969
DocketNo. 7560
StatusPublished
Cited by1 cases

This text of 219 So. 2d 322 (Schuylkill Products Co. v. Alloy Metal Products, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schuylkill Products Co. v. Alloy Metal Products, Inc., 219 So. 2d 322, 1969 La. App. LEXIS 5390 (La. Ct. App. 1969).

Opinion

REID, Judge.

This lawsuit arises out of certain contracts entered into between plaintiff, Schuylkill Products Company, Inc., and defendant, Alloy Metal Products, Inc., for the sale and purchase of scrap battery lead. Plaintiff alleges that on or about May 21, 1965, it entered into a written agreement with the defendant to purchase 1,000 tons of scrap battery lead for $16.00 per hundredweight for lead and antimony content, less $50.00 per net ton smelting charge, with the shipment to be made to plaintiff’s Baton Rouge plant by July 21, 1965, defendant’s principal place of business being Davenport, Iowa. Plaintiff further alleges that pursuant to the agreement, it tendered and defendant accepted the sum of $50,000 on May 25, 1965, and $40,000 on June 11, 1965, as advances against the invoice charge of defendant; that the defendant refused to deliver the material required under the terms of the agreement and refused to refund the full advance made by plaintiff by withholding the sum of $14,298.67; that plaintiff suffered damages in the amount of $15,452.50 because of the additional cost of obtaining said materials at a later date on the open market, after defendant refused to supply said materials; and further that plaintiff is entitled to legal interest on the $90,000 advanced on the contract price from [324]*324July 21, 1965, the last performance date under the contract, until October 7, 1965, the date the defendant returned $75,701.33 of the total advance of $90,000, and entitled to legal interest on the $14,298.67 retained by defendant from October 7, 1965, until paid.

The defendant filed a general denial and alleged that the sum withheld from payments made by the plaintiff represented the amount due defendant from various transactions between the parties.

After three days of trial, for oral reasons assigned and read into the record, the Trial Judge rendered judgment in favor of plaintiff and against defendant in the amount of $936.00, being the amount of interest prayed for on the advance of $90,-000, and dismissed the remaining demands of the plaintiff. Application for a new trial was denied and both plaintiff and defendant appealed.

In his oral reasons for judgment, the Trial Judge said there was no dispute as to the fact that two contracts between the parties are involved, the first in the early part of 1965 and the second being the one sued on in the plaintiff’s petition. The first contract, actually three contracts merged into one, was for a total of 1100 tons of scrap material, but slightly less than 1100 tons was actually delivered to plaintiff. Because of a dispute as to the lead content recoverable from the 1100 ton shipment, plaintiff did not remit an amount sufficient to cover that claimed to be due. Prior to the delivery of the 1100 ton shipment, the parties entered into the second contract covering 1000 tons. Again plaintiff advanced certain funds but the second contract was never completed. Plaintiff demanded a return of the money it claimed was advanced on the second contract. Defendant retained $14,298.67 which it said was still due on the first contract and returned the balance of the $90,000 remitted, that is, the sum of $75,-701.33.

The Trial Judge first took up the issue of the retainage by defendant of the $14,-298.67, and stated that it was his opinion that this claim arose because the plaintiff and defendant both were negligent in connection with the agreements covering the first contract for the purchase of 1100 tons of scrap material. He said:

“The real issue is that defendant contends it was guaranteed a seventy-five per cent lead recovery out of this 1100 ton shipment. On the other hand, plaintiff denies any such guarantee and contends its assay shows a lead recovery of approximately .seventy-two per cent. It is not disputed that plaintiff had the right to assay this material upon delivery. That seems to be routine in transactions of this kind, but again defendant contends that despite this right of plaintiff to assay the material it was guaranteed a lead recovery of not less than seventy-five per cent. The court has listened and listened to testimony relative to the assay of this material. It is the defendant’s contention that plaintiff’s assay was incorrect, and it stands on its contention that this sale was made with a guarantee of a lead content of not less than seventy-five percent, this percentage being based on defendant’s experience in this type of business.”

The Trial Judge commented upon the fact that neither party called outside experts to give testimony as to the proper procedures in assaying scrap battery material and admitted that the Court was not in a position to state whether the plaintiff’s assay was made according to recognized procedures nor whether the defendant’s experience in this type of business justified it in requiring a guarantee of 75% lead recovery. The record did show that after the defendant questioned the assay of plaintiff, the President of defendant corporation was invited to come to Baton Rouge to make his own assay or to have an independent expert make such an assay. This he agreed to do only if he could be [325]*325assured that the material shipped to plaintiff was still intact. He was not given such assurance and the Trial Judge said he was convinced the material was not intact, that some of it had been processed already and other parts of it had been placed in stockpiles on plaintiff’s yard and had been commingled with other materials. The Trial Judge then concluded:

“Coming back to the special terms as shown by plaintiff’s contract forms and by defendant’s contract forms, it has been shown that defendant’s contract forms provided for a payment of fifty per cent of the agreed price upon the placing of the order with an additional thirty per cent to be paid when the buyer was furnished with bills of lading evidencing the shipment of the material, the remaining twenty per cent to be paid after delivery. No such provision was made a part of plaintiff’s contract forms. There were some provisions about payment but they were not the same as that on the defendant’s forms. It is, in the opinion of the court, very significant that in connection with this contract plaintiff made an advance payment of precisely fifty per cent of the sale price of the first two of the 500 ton contracts comprising the large part of the 1100 ton order.
“It is necessary to digress for a moment to say that the record shows, and it seems to be undisputed, that the extra hundred ton order was transmitted to defendant shortly before or possibly while he was in the process of loading the 100 tons in question, and according to the defendant president’s testimony, nothing was done about an advance payment on the 100 tons. Actually it was a little less than 100 tons. The court has stated that this fact is of particular significance in that it clearly indicated to the court that plaintiff understood that defendant had a guarantee of seventy-five per cent lead recovery, and is of material assistance in the court’s reaching a final conclusion in this case in the face of disputes as to what the contract actually was and as to whether the court should be guided by plaintiff’s assay of this material. Let me say that the court’s conclusion that defendant did have a seventy-five per cent guarantee is based on that evidence in the record. Accordingly, it is the court’s opinion that plaintiff is not entitled to recover the item of $14,298.-67.

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Cite This Page — Counsel Stack

Bluebook (online)
219 So. 2d 322, 1969 La. App. LEXIS 5390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schuylkill-products-co-v-alloy-metal-products-inc-lactapp-1969.