Shell Eastern Petroleum Products, Inc. v. White

68 F.2d 379, 62 App. D.C. 332, 1933 U.S. App. LEXIS 4957
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 26, 1933
DocketNo. 5770
StatusPublished
Cited by6 cases

This text of 68 F.2d 379 (Shell Eastern Petroleum Products, Inc. v. White) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shell Eastern Petroleum Products, Inc. v. White, 68 F.2d 379, 62 App. D.C. 332, 1933 U.S. App. LEXIS 4957 (D.C. Cir. 1933).

Opinion

GRONER, Associate Justice.

This is a bill in equity in which appellant was defendant below and appellees were plaintiffs. The purpose of the bill w'as to have specific performance of a contract dated the 21st of April, 1930, by which, it is claimed, appellant agreed to lease the premises of the appellees for a period of eight years at an annual rental of $6,000 a year and to purchase the property on or before the expiration of the lease period for $100,-000. The memorandum of the contract is in the following words:

“April 21-30.

“Morgage we secure $50,000.

“Lease 8 year $6,000 per year we pay all Taxes insurance ects. obligation to purchase within 8 year for $100,000 by paying $50,-000 cash assume morgage $50,000 Rent payable 1 year in advance, this does not include gasoline ects. on hand — Mr. White signs will not go into gasoline business in this district.

“David T. Smith.

“J. E. White.

“Commission payable at time of closing lease to McKeever & Goss.

“4/30-30 J. E. White.”

The trial court made certain findings of fact and conclusions of law, and in conformity with its findings and conclusions entered a decree for plaintiffs (appellees). The main facts found are as follows:

«2. * * * That during the early part of December 1929 the defendant company sent one David T. Smith to the District of Columbia to acquire for the company gasoline stations, or sites upon which stations could be erected, for the purpose of extending the company’s business in the District of Columbia; that the defendant company held out to the public that the said David T. Smith was its purchasing agent of property and that he had the authority to purchase or lease property for and on behalf of the defendant.
“3. That the defendant company employed the real-estate firm of McKeever & Goss, Inc., Washington, D. C., to act as its agent and to assist the said D. T. Smith in acquiring from the plaintiffs, their property located at the northeast corner of 4th and Massachusetts Ave., NE., for the defendant. That Stewart E. Godden and Guy S. White-ford, employees of said firm were assigned to conduct the negotiations with the plaintiffs.
“4. From October 29, 1929, until April 21, 1930, the defendant company was negotiating with the plaintiffs, seeking to acquire the property. That on the 21st day of April 1930 a contract was entered into by and between the plaintiffs, and defendant whereby the defendant company agreed to lease and purchase said property upon the following terms and conditions: [Here follow the conditions of the contract.]
“That the description of the property and the terms and conditions of said sale and lease contract are set forth in a letter dated October 29, 1929, from the defendant company to the plaintiff J. W. White, the memorandum dated April 21, 1930, signed by the plaintiff J. D. White and the defendant’s agent D. T. Smith and the letters of the defendant’s agent Guy S. Whiteford to his principal and the plaintiff.
“5. On the 25th day of April 1930 the defendant sent one of its employees to the plaintiffs, to secure a more detailed description of the property. The company advised the plaintiffs that it desired to take possession of the premises within 30 days after April 21st, 1930. That pursuant to said contract and acts of the defendant company the plaintiff James E. White made preparations to retire from business and disposed of his stock in trade at greatly reduced prices. The motor livery business of the plaintiff which was a business of furnishing limousines and hearses to undertakers was disposed of and the plaintiff retired from that business.
[381]*381“6. That the defendant company did not close said deal with the plaintiffs within the said 30-day period; that thereafter the defendant company requested of the plaintiffs a modification of the terms of the April 21, 1930, agreement which the plaintiffs declined to grant. That the plaintiff James F. White on or about the 1st of July 1930 made a personal call upon the president of the defendant company and insisted and demanded that tho company carry out the terms of the contract of April 21, 1930, and that the said defendant company refused and declined to do so.
“7. The plaintiffs have, at all times, stood able, willing, and ready to carry out their agreement of April 21, 1930. The defendant has failed and refused to carry out its part of the agreement. That the agreement entered into between the plaintiffs and the defendant for the lease and purchase of said property was made within the actual or apparent scope of the authority of the defendant’s agent; that said act of its agent was thereafter ratified and confirmed by the defendant company.”

Appellant has assigned thirty-six grounds of error, but in the brief and in the argument the grounds relied on were condensed, and the points may be summarized as follows : That the memorandum of April 21, 1930, is not a valid contract because not enforceable under the statute of frauds and because it never was ratified by appellant, that it is void for want of mutuality, and that ap-pellees failed to show they were re-ady, willing, and able to carry it out. Error is also assigned in tho admission and rejection of evidence, but this assignment was not pressed, and we think it is without merit.

As a preliminary statement, we think it well to say we regard ourselves hound by the findings of fact made by the court below. Lawson v. Mining Co., 207 U. S. 1, 28 S. Ct. 15, 52 L. Ed. 65; Butte & Superior Co. v. Clark-Montana Co., 249 U. S. 12, 30, 39 S. Ct. 231, 63 L. Ed. 447.

Tho contract of April 21, 1930, was the result of negotiations carried out over a period of approximately six months. Appellant was apparently anxious to lease rather than purchase appellees’ premises. Appel-lees, who are husband and wife, were unwilling to lease, but were willing to sell. Negotiations were begun October 29, 1929, and on that day one Wildman, appellant’s Baltimore representative, whose territory included the District of Columbia, wrote a letter to appellee, White, stating he was interested in the lease of appellees’ gas station at Fourth and Massachusetts Avenue Northeast, and would have a salesman call on him and obtain details of the property, business, etc. In the early part of January, 1930, Wildman came to Washington and brought with him Mr. D. T. Smith, and opened an office in tho Raleigh Hotel. The purpose of his visit was to establish the Shell Oil Company in Washington, and the object was to acquire, either by lease or purchase, a number of gasoline stations then in operation. Mr. Gny S. Whiteford, a real estate agent living in Washington, had formerly had some correspondence with Wildman in relation to assisting him in this campaign, and, shortly after Wildman’s arrival in Washington, Whiteford was sent- for and thereafter continued to locate and assist in buying and leasing stations for appellant.

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Bluebook (online)
68 F.2d 379, 62 App. D.C. 332, 1933 U.S. App. LEXIS 4957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-eastern-petroleum-products-inc-v-white-cadc-1933.