Standard Lumber Co. v. Florida Industrial Co.

141 So. 729, 106 Fla. 884
CourtSupreme Court of Florida
DecidedMay 11, 1932
StatusPublished
Cited by14 cases

This text of 141 So. 729 (Standard Lumber Co. v. Florida Industrial Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Lumber Co. v. Florida Industrial Co., 141 So. 729, 106 Fla. 884 (Fla. 1932).

Opinion

Davis, J.

This is an appeal from a final decree ordering the sale of the alleged equity of the appellant, Standard Lumber Company, in a large tract of timber in Lee County for alleged non payment of the remainder of the purchase price thereof as promised by appellant as purchaser. The amount of the decree was for an aggregate of $2,280,307.12, and the enforcement of the agreement on vendee’s part was ordered to carry out performance of the terms of a written timber purchase contract shown to have been entered into between Standard Lumber Company, the appellant on one side, and the Florida Industrial Company and Consolidated Land Company on the other. The sale as required by the final decree was subsequently executed and confirmed by the Chancellor.

On the issues made by a voluminous answer, to which was filed an equally voluminous replication, the case was *887 tried before the Chancellor himself in open Court. Practically two weeks were thus consumed in the taking of testimony and in the proceedings at the trial.

The case is here on an appeal from the final decree. That decree found that the equities were with the complainants and against the defendants, that the evidence adduced failed to sustain the allegations contained in the answer and counter-claim of the defendant Standard Lumber Company, and denied to that company the affirmative relief prayed for by its answer and counter-claim. An appeal was also taken to the decree confirming the Master’s sale ■which was held pursuant to the final decree, but no particular error is assigned thereon independent of those argued with respect to the final decree.

By the bill, the Florida Industrial Company and its pledgee, The Barnett National Bank, sought to have performed the timber contract hereinbefore mentioned. The contract so sued on was made a part of the bill of complaint and according to its provisions, required appellant, Standard Lumber Company, to purchase On the terms of the contract, and pay for, a represented minimum of 550,-000,000 feet of timber scattered over 275,000 acres of land in Lee and Hendry Counties.

The bill alleged the making of the contract; the Standard Lumber Company’s conveyance to the complainant vendor of tracts of Florida lands valued at $831,000.00 which were accepted as a credit on the purchase price; the giving by the vendee o'f notes for the remainder of the purchase price; that the purchase was made subject to an option to demand the cruising of the timber; that the option to demand a cruise of the timber was exercised and that such cruise was subsequently made; that the cruise as made showed an excess of over 2,000 feet per acre; that after the cruise was reported that the timber had been partially cut by the vendee and partial payments made by it on its notes; that *888 subsequently there was a default in the payment of certain other notes, interest and taxes when due; that the Standard Lumber Company had announced abandonment of the contract on its part; that by reason of this fact the complainant had elected to accelerate the maturity of the remaining notes and accordingly was claiming an alleged balance due of more than $2,000,000.00 on the purchase price. Appropriate relief by way of accounting and for enforcement of the contract was prayed.

Demurrers were interposed to the bill and over-ruled, after which separate answers were filed by the several defendants, including the Standard Lumber Company.

The answer of the Standard Lumber Company set up by way of counter-claim for affirmative relief that the vendor had caused the vendee to enter into the contract by fraudulent representations and concealments as to the quantity of timber on the tract, and as to what cruises had been made to ascertain the quantity and prayed for cancellation and rescission. It also' averred that in various ways the vendor had represented and led the vendee to believe that the timber aggregated 550,000,000 feet and would cut better than 2,000 feet per acre, considering the tract as a whole; that the timber had been cruised by several expert cruisers, each of whom had found on the tract more than 2,000 feet to the acre on the tract as a whole; that the areas purchased under the contract were so great, and the character of the timber so diversified, that the vendee in trading for it had to rely, and did rely, on the alleged false representations of the vendor; that the vendee, supposing the quantity of timber to be on the tract as represented by vendor, forthwith erected a saw mill plant as provided in the contract at a cost of a million and a half dollars, and began operating it; that, however, after several months operation o'f this plant, vendee began 'to discover a very serious shortage in the timber; that this shortage ran from 35 per cent to 50 *889 per cent, of the amount of timber that had been represented; that after this the vendee learned that the cruises which had been represented as having been made before the contract was entered into had not been made as alleged; that subsequent to the execution of the contract, that the cruises demanded by the vendee had been so fraudulently manipulated through the activities of the vendor’s cruiser so as to show an increase in the amount of timber above what actually was on the land; that by reason of all this that vendee was kept in the dark as to the true status of the timbered land it was buying, during which time it built its saw mill' plant and continued to make payments to the vendee on the contract at the rate of $21,000.00 per month; that accordingly the contract should be cancelled or rescinded and defendant be decreed to have a lien for its advancement under it.

The vendor-complainant filed a lengthy replication denying in substance the charges of misrepresentations contained in the vendee’s answer. It also asserted the further defense that the contract carried a clause which estopped and precluded the vendee from asserting any misrepresentations as to the quantity of the timber. This clause was as follows :

“The vendor has not made and does not make any representations or covenants regarding the quantity, quality or value of the timber covered hereby or any part thereof, nor the logging conditions in connection therewith, nor any other representations or covenants whatsoever relative thereto except those specifically set forth in this agreement, the purchaser having already made such examination as satisfied it regarding all matters (except title matters) connected with this agreement and relying solely upon such examination.”

The replication further set up that the vendee, long before it ceased cutting the timber, had acquired full knowledge of every fact and circumstance that it was attempt *890 ing to plead in avoidance of the timber purchase contract, but took no action in regard thereto' and thereby waived its right to complain thereof.

The amount of the decree was based upon the minimum purchase price stated in the contract, eliminating the increased amounts which would have been payable as the result of the joint timber cruise provided for in the contract to be made at the option of the vendee. This the appellee contends makes unnecessary any consideration of the charges of fraud the vendee makes with reference to the manner in which that cruise was carried out.

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Bluebook (online)
141 So. 729, 106 Fla. 884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-lumber-co-v-florida-industrial-co-fla-1932.