Southwest Fabricating & Welding Co. v. Roy L. Jones, Inc.

190 So. 2d 529, 1966 La. App. LEXIS 4669
CourtLouisiana Court of Appeal
DecidedJuly 8, 1966
DocketNo. 6706
StatusPublished

This text of 190 So. 2d 529 (Southwest Fabricating & Welding Co. v. Roy L. Jones, 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
Southwest Fabricating & Welding Co. v. Roy L. Jones, Inc., 190 So. 2d 529, 1966 La. App. LEXIS 4669 (La. Ct. App. 1966).

Opinion

LANDRY, Judge.

From a judgment of the trial court rejecting the demand of Southwest Fabricating and Welding Company, Inc. (Southwest), for damages aggregating $77,375.20, against defendant, Roy L. Jones, Incorporated (Jones) for alleged breach of contract to haul, transport and deliver certain units of fabricated refinery equipment, plaintiff has appealed.

For most part, the basic facts of the present controversy are not in dispute except as will hereinafter otherwise appear.

The Shell Oil Company proposed construction of an oil refinery in North Terre-bonne Parish near Houma, Louisiana, and engaged Hudson Engineering Corporation, (Hudson), as the prime contractor for the project. In turn, Hudson requested plaintiff, through plaintiff’s Baton Rouge, Louisiana Division known as Delta Southern Company (Delta) to submit a bid for construction and delivery to the plant site of 18 items of fabricated equipment, (known in the trade and hereinafter referred to as “vessels”), designed as components for the proposed refinery, said units varying in weight from 20,000 to 560,000 pounds. To provide delivery of the various units in the event it should obtain contracts for their manufacture, plaintiff invited quotations from defendant, Roy L. Jones, Incorporated (Jones) for transporting the completed vessels from Delta to the refinery site in Terrebonne Parish.

By letter dated June 27, 1963, defendant submitted an itemized drayage cost for each of the 18 vessels aggregating the sum of $35,208.25. On the following day, June 28, 1963, defendant wrote plaintiff asking that plaintiff remit purchase orders to defendant confirming defendant’s quotations for service promptly upon plaintiff securing firm orders for the Shell Refinery job or any other project and commencing placement of orders for the materials required.

It developed that plaintiff proved to be the successful bidder on only 10 of the 18 vessels for the Shell Refinery on which defendant submitted transportation charges. On July 1, 1963, plaintiff received a tentative purchase order from Hudson which order was subsequently validated and made firm by instrument dated September 16, 1963, and received by plaintiff September 27, 1963.

As will hereinafter appear, whether or not defendant was duly notified of the confirmation of September 27, 1963, is a matter of considerable importance and one of the few paramount issues in dispute 'n this law suit.

It is undisputed, however, that on February 21, 1964, plaintiff issued to defendant a purchase order covering 9 of the 10 vessels for which plaintiff proved to be the successful bidder and upon which defendant had submitted a quotation. It is likewise uncon-troverted that the vessel eliminated was the smallest on the list and for which defendant had indicated the transportation charge would be $236.00.

Plaintiff’s purchase order of February 21, 1964 was returned by defendant accompanied by a letter dated March 18, 1964, advising that defendant had withdrawn its former offer. In the meanwhile, on March 2, 1964, defendant informed plaintiff by wire that defendant was unable to obtain permits necessary to transport the vessels over the highways of the state. Six days later, on March 8, 1964, defendant notified plaintiff that defendant was in the process of investigating certain conditions at the destination point which might affect delivery.

Through counsel, plaintiff on April 3, 1964, called upon defendant to perform, failing which plaintiff would hold defendant responsible for any monetary loss occasioned by defendant’s refusal. On April 8, 1964, defendant’s counsel informed plaintiff that in his view no contractual relation[531]*531ship existed between the parties and defendant would not undertake to haul the vessels in question.

Thereafter plaintiff arranged for transportation of the vessels by another carrier at a total cost of $120,672.48, and instituted this action for the amount herein sought, said sum being the difference between the total cost incurred and the alleged contract price, allowing defendant credit for $7,-398.48, for which defendant admittedly is not liable, which allowance plaintiff now concedes should be $12,266.95.

The record shows that some of the vessels involved were of such unusual weight and dimensions that permits for their transportation by truck over state highways could not be obtained thus necessitating their shipment by rail and barge at considerable additional cost. It is not seriously questioned that the mode of shipment undertaken was the only practical means as well as the most economical.

In essence plaintiff maintained in the trial court and re-urges before us that defendant’s letter of June 27, 1963, quoting plaintiff prices per unit involved was tantamount to an offer which was timely accepted by plaintiff and therefore constituted a binding agreement. In this regard plaintiff argues that defendant’s offer contained no conditions inasmuch as it was not tendered on an “all or none” basis and contained no time limit for its acceptance. Appellant further argues that according to the custom of the trade it is understood such offers for hauling may ultimately result in the offerer being awarded only part of the work for which prices are submitted of which custom, defendant, as an experienced hauler, was well aware. Plaintiff also , maintains defendant was cognizant that, in such cases, it is not unusual for fabrication time to consume many weeks. On this basis it is contended there was no unusual delay between the time plaintiff received confirmation of the tentative offer from Hudson and forwarded its purchase order to defendant.

On the contrary, defendant contends its-offer of June 27, 1963, contained a condition precedent which was never met by-plaintiff, namely, that plaintiff would immediately notify defendant of confirmation, of Pludson’s order and plaintiff’s placement of orders for materials to fill same. In-this connection defendant argues such condition was an absolute necessity in order to permit sufficient time to make the numerous and complex arrangements necessary to transport vessels of the nature involved, including, but not limited to securing permits and site preparations. Regarding plaintiff’s order of February 21,. 1964, defendant maintains it amounted to a counter offer for only part of the original' vessels which counter offer defendant never accepted, gave no indication of intent to. accept and made no preparation to fulfill. Defendant also contends plaintiff’s.order of January 21, 1964, contained a new condition, namely, that defendant must provide a 600,000 pound tail-dolly, a requirement not included in plaintiff’s original proposal and never discussed by the parties.

In rejecting plaintiff’s demands, our learned colleague below found in effect that plaintiff failed to comply with the time demand contained in defendant’s letter of June 27, 1963, because notwithstanding plaintiff received confirmation from Hudson on September 16, 1963, and immediately placed orders for material to fill same, plaintiff failed to so notify defendant until February 21, 1964, on which date it sent its order for 9 vessels and added the requirement for a 600,000 pound tail-dolly. The trial court in essence concluded plaintiff’s work order of February 21, 1964, constituted an entirely new offer in that it changed the number of vessels from 18 to 9, imposed new conditions and was never accepted by defendant.

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Bluebook (online)
190 So. 2d 529, 1966 La. App. LEXIS 4669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwest-fabricating-welding-co-v-roy-l-jones-inc-lactapp-1966.