St. Regis Paper Co. v. Santa Clara Lumber Co.

65 N.E. 967, 173 N.Y. 149, 11 Bedell 149, 1903 N.Y. LEXIS 1135
CourtNew York Court of Appeals
DecidedJanuary 6, 1903
StatusPublished
Cited by18 cases

This text of 65 N.E. 967 (St. Regis Paper Co. v. Santa Clara Lumber Co.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Regis Paper Co. v. Santa Clara Lumber Co., 65 N.E. 967, 173 N.Y. 149, 11 Bedell 149, 1903 N.Y. LEXIS 1135 (N.Y. 1903).

Opinion

Bartlett, J.

The complaint was dismissed by the trial judge on the pleadings and the opening of plaintiff’s counsel and judgment entered to that effect, which was affirmed by the Appellate Division without opinion on the authority of same case in 55 Appellate Division, 225 (66 App. Div. 617). We are now called upon to review this determination.

This case has been twice before the Appellate Division on questions of remedy; on an appeal by the defendant from an order continuing an injunction pendente lite (31 Misc. Rep. 695), which resulted in reversal with an opinion (55 App. Div. 225); again on the defendant’s appeal from an order of the Special Term, made after the affirmance of judgment dismissing the complaint, denying a motion to cancel the notice of lis pendens ; this order was affirmed with an opinion. . (62 App. Div. 538.)

*157 • The plaintiff seeks in this action the enforcement of a contract providing, in substance, for the sale and delivery by the defendant to the plaintiff of twelve thousand cords of pulp wood a year for the period of ten years, with an option in the plaintiff to extend the term of the contract for another ten years.

It is the contention of the plaintiff that it has set forth in the complaint an equitable cause of action which entitles it to the remedies and protection afforded by a court of equity to litigants who are properly before it.

On the other hand, it is argued by the defendant that this contract involves merely a sale of chattels, to wit, pulp wood, which may be cut by the defendant from any premises it sees fit, and that assuming it is in default of its contract, the plaintiff’s remedy at law is adequate.

The counsel for the plaintiff argues that while it is a contract for the sale of chattels, it is of chattels that are to be severed from the realty, according to its terms, for the purpose of delivery, and that by those terms its faithful performance by the defendant is secured by covenants which fastened on the land indicated therein and its products so far as is necessary to insure that the chattels will be severed and delivered.

As the dismissal of the complaint" was upon the pleadings, the question as to the sufficiency of the pleading is presented as upon demurrer.

An examination of a few provisions of the contract- makes it very clear that the contention of the defendant’s counsel that it involves a mere sale of chattels is erroneous.

The complaint alleges, in this connection, that at the time the contract was made the defendant was the owner of thirty-two thousand acres of land situated in the county of Franklin, and gives a lengthy description of the property, and avers that this tract was all the forest land which the defendant owned, and that the contract was made and entered into with reference to such land.

We thus have the premises identified from which this pulp wood was to be obtained.

There are other provisions of the contract which show con *158 clusively that the parties were contracting with reference to these premises.

This provision is found in the contract: “ The wood so cut shall consist of all the green spruce upon the lands cut over, so as not to deliver to said second party more small wood than necessary.”-

It also provides that in case the mill of the defendant is destroyed by fire a reasonable time is to be allowed for the reconstruction of the same, and in this connection occurs the provision : “ It is further provided that in no case shall said party of the first part be required to deliver in the aggregate (unless it shall choose so to do) more than the amount of pulp wood which may be obtained from the lands owned by it, being about thirty-two thousand acres.”

There is a provision calculated to protect the defendant in case all or part of the pulp wood on these premises is destroyed by fire, or if the whole or a portion of the premises are condemned by the state of JSTew York, to the effect that it shall not be compelled to deliver in such an emergency any more pulp wood “ than it is still able to obtain from its said lands.” Then follow these significant provisions :

It is further provided that said party of the first part will not, during the term of this contract, sell any of its land or the pulp wood thereon so as to in any way jeopardize or prevent its complete fulfillment and performance of this contract.”
It is further agreed that the said party of the second part shall be deemed to have an equitable interest in said pulp wood for advances made by them as hereinbefore provided and the equity of said second party in this contract is assignable and may be used as collateral security for the payment of any loan or obligation made by said second party.”

The contract obligates the plaintiff to make advances from time to time to the defendant, as follows : The party of the second part shall make such advances of money to the party of the first part as it may request during the progress of the work, but the party of the second part need not advance more than approximately the cost of work done.”

*159 The complaint alleges that the defendant entered upon the lands in question and commenced the cutting of the pulp wood under the contract about the first of October, 1899, and notified the plaintiff that it was so doing ; that it called upon the plaintiff to make advances under the terms of the contract, which it did in the aggregate sum of twenty-five thousand dollars; that notwithstanding the plaintiff so performed its contract, the defendant assumed to rescind the contract on the ground, as alleged in the answer, that the plaintiff was in default of its covenant to make necessary advances for work done.

The complaint also avers that following this attempted rescission, the defendant entered into a contract in writing with its co-defendant, the Brooklyn Cooperage Company, which is set forth in full, wherein it appears that the defendant has covenanted to convey to the Brooklyn Cooperage Company about one-lialf of the thirty-two thousand acres of land.

The complaint further avers that the total amount of wood pulp upon the thirty-two thousand acres subject to the contract in question does not exceed two hundred and forty thousand cords. In other words, this allegation implies that all the pulp wood on the premises is not more than sufficient to meet the demands of the contract if it covers a period of twenty years.

There is also an averment that the defendant has refused to deliver to plaintiff the pulp wood covered by these advances and upon which it has an express lien under the terms of the contract.

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Bluebook (online)
65 N.E. 967, 173 N.Y. 149, 11 Bedell 149, 1903 N.Y. LEXIS 1135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-regis-paper-co-v-santa-clara-lumber-co-ny-1903.