Sharp v. Behr

136 F. 795, 1905 U.S. App. LEXIS 5180
U.S. Circuit Court for the District of Eastern Pennsylvania·Decided April 19, 1905·No. No. 22·Published·Cited by 3 cases

Opinion

ARCHBALD, District Judge.1

According to the views previously expressed in this case (117 Eed. 864) it was found that the defendants were in arrears for royalty due on ore mined from the Lancaster Earm to the extent of at least $14.40, on the strength of which it was held that the plaintiff was entitled to call for a re-conveyance of the Fulton Farm, which he- had originally owned, as provided by the fourth article of the agreement between the parties.2 It is earnestly contended that this was a mistake, and as [797] the right to maintain the bill, with the other relief incident to it,, depends upon the conclusion so reached, a reconsideration has been asked in the light of further evidence and argument.

The arrears in question arise out of the shipment of February 11, 1898, stated at 2817,40/224o tons, on which the defendants allowed the plaintiff $14.40, or at the rate of 50 cents a ton, instead of $1, the royalty fixed by the agreement referred to. There is some dispute as to just where this particular ore came from; that is to say, whether from the “dump” or refuse heap, or from a stock of “brown ruby” which had been condemned and put to one side. I accept the látter view, but it is not important. It was undoubtedly a special lot, which was cleaned up and reclaimed by direction of the defendants from a larger lot which had been intended to be thrown away; five cars, or 60 tons, of the best of it on hand being ordered to be shipped for a certain purpose outside of their sandpaper business. The material thing, on which the defendants particularly rely, is that, in a letter to the plaintiff January 12, 1898, inquiring with regard to what it would cost to clean up the rest of it and the quantity of “clean stuff” it would be likely to yield, it is said:

“We have to calculate on a different basis on this lot, to come out entire, as we cannot use it for sandpaper.”

Adding:

“It will be necessary to arrange royalty for this old lot, and we suggest a credit of 50 cents per ton. Awaiting your estimate, and further news, we-remain, Yours truly, Herman Behr & Co.”

The plaintiff answered this letter the next day, giving an estimate of the cost of cleaning and the probable yield, but made no response with regard to the proposed reduction in the royalty, and the matter was allowed to rest at that until January 5, 1899, a year later, when the defendants, in accounting to the plaintiff for the royalties for the year, in a letter of that date, say:

Below we beg to hand you the figures of royalties for 1898, viz.:
Tons, 540 1S29/224o at $1.00 per ton.................. $540 60
Brown ruby, tons, 28 1774/224o at .50 per ton.................. 14 40
$555 00
Also royalty received from Fulton Farm, viz.:
Tons, 570 «"/224o at 75 cents per ton................ $427 76-

To this the plaintiff made prompt reply, objecting because he had not been allowed $1 a ton royalty on ore from the Fulton Farm, the same as he had been receiving, but saying nothing as to the reduction on the “brown ruby.” Subsequently, however, on March 18, when a check was sent in accordance with this statement, the plaintiff refused to accept it as a payment in full, and merely receipted for it on account, claiming a balance of $14.40 still due. It is-contended that the failure of the plaintiff to object to the reduction of the royalty, at the time it was suggested, was evidence of his acquiescence, on which the defendants had the right to rely, and to which he is therefore to be now held, and that this is confirmed, by the fact that when the statement with regard to the royalties was received no question was made of it until over two months had [798] passed. It is to be remembered, however, that the defendants were held by a written agreement with the plaintiff to pay a royalty of $1 a ton, which could not be changed without he gave his direct consent, and this the mere failure to repudiate their proposition did not necessarily do. The only thing that can be urged is the suggestion by the defendants in that connection that they had to calculate on a different basis on this particular lot of ore, which they designed for a special use, in order to come out whole, in consequence of which it would be necessary to adjust the royalty upon it. If the parties were newly bargaining together for something which the one was to supply and the other to pay for, an assent to the price so nominated might be implied from silence. But the ore was the defendants’ own, subject only to a royalty to the plaintiff, which was already fixed, and which was not a measure of its value, but was one means of compensating the plaintiff for his services as mine superintendent. Something more positive is to be expected, therefore, than in the ordinary case, and the plaintiff’s silence is not to be taken as an acceptance or acquiescence, but rather the contrary. The proposition of the defendants was not made a condition of shipment, and the failure of the plaintiff to respond to it should not have misled them. It was passed over unnoticed, although everything else in the letter was answered, and the matter was allowed to rest at that by both parties. Considering that the burden was on the defendants to secure a definite agreement to modify the royalty, in order to be relieved from liability to the full extent of it, and that the subject apparently never passed beyond the negotiating stage, I do not see that the plaintiff was bound.

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Sharp v. Behr, 136 F. 795, 1905 U.S. App. LEXIS 5180 (circtedpa 1905).

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