Standard Oil Co. v. Sugar Products Co.

107 So. 566, 160 La. 763, 1926 La. LEXIS 1959
CourtSupreme Court of Louisiana
DecidedFebruary 1, 1926
DocketNo. 25546.
StatusPublished
Cited by3 cases

This text of 107 So. 566 (Standard Oil Co. v. Sugar Products Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Oil Co. v. Sugar Products Co., 107 So. 566, 160 La. 763, 1926 La. LEXIS 1959 (La. 1926).

Opinion

LAND, J.

Plaintiff company has appealed from a judgment sustaining an exception of no cause of action and dismissing its suit.

Accepting as true the facts well pleaded in the petition, for the purpose of disposing of the exception, we have before us a state of facts substantially as follows:

On September 15, 1919, the defendant, the Sugar Products Company, entered into a written contract with the West India Oil Company for the sale by said company and the purchase by the Sugar Products Company of fuel oil to. bunker certain steamships belonging to defendant.

Under this contract, the Sugar Products Company had the right to have its ships bunkered at the price of 85 cents per barrel in the port of New Orleans, at $1.50 per barrel at all Cuban ports, and at $1.20 per barrel at New York, Baltimore, and Norfolk.

Plaintiff company, the Standard Oil .Company, entered into a contract with the West India Oil Company whereby it obligated itself to said company, to furnish the defendant, the Sugar Products Company, such bunker oil as said company had the right to demand of the West India Oil Company by virtue of the contract entered into between the latter company and the Sugar Products Company.

Defendant company, the Sugar Products Company, called upon plaintiff company for oil for bunkering its vessels in the port of New Orleans, and received from the Standard Oil Company, at various times, a total of 25,768.74 barrels, but used for bunkering purposes only 3,100 barrels. The remaining *767 22,668.74 barrels were used by defendant company as cargo oil; tbe difference between tbe contract price of 85 cents per barrel and the market price being $18,161.30.

Plaintiff company, tbe Standard Oil Company, has instituted tbe present suit to recover tbis amount, on tbe ground that tbe delivery of tbe oil was made by it in error, induced by tbe representations of ■ defendant company, tbe Sugar Products Company, that said oil was to be used as fuel by its vessels under tbe contract between tbe parties.

We are of tbe opinion that tbe petition of plaintiff company, alleging tbis state of facts, discloses a cause of action.

It is clear that, under tbe contract between the West India Oil Company and tbe Sugar .Products Company, as well as under tbe contract between tbe West India Company and tbe Standard Oil Company, defendant company could demand and legally receive oil for fuel purposes only, at a fixed price of 85 cents per barrel.

It is also equally clear that plaintiff company, tbe Standard Oil, could collect from tbe West India Oil Company only 85 cents per barrel, under its contract with said company, for all oil furnished by plaintiff company to defendant, tbe Sugar Products Company, if tbe latter company failed or refused to pay for tbe oil delivered.

- When defendant company ordered oil from plaintiff company in excess of tbe needs of its ships for bunkering purposes, it obtained such oil, not by virtue of its written contract with tbe West India Oil Company, but by a fraud practiced upon plaintiff company, which bad undertaken to fulfill tbe obligation of tbe West India Oil Company to defendant, the Sugar Products Company.

Plaintiff company, in delivering tbis oil through error and misrepresentation to defendant company, manifestly was not acting as tbe agent of tbe West India Oil Company, but was acting for itself, as plaintiff company bad gone beyond tbe terms of its contract of agency in making such delivery. On the other band, defendant company, in accepting delivery of tbis oil, secured it, not by .any right to claim tbe oil under tbe contract, but through error and by misrepresentation, and was clearly obligated to return it to plaintiff company, which had agreed, by no means, to set up defendant company in tbe oil business, as a competitor in the open market. ^ .

“He who receives what is not due him, whether he receives it through error or knowingly, obliges himself to restore it to him from whom he has unduly received it.” R. C. C. art. 2301; C. P. art. 18; R. C. C. arts. 2293, 2294.

It sufficiently appears from tbe allegations of tbe petition that tbe property of plaintiff company was tortiously taken as cargo oil, and converted into money by defendant company. Steamship Co. v. Stewart, 44 So. 138, 119 La. 392.

We conclude, therefore, that tbe petition of plaintiff company sets forth a cause of action, and that tbe exception of no cause of action tendered by defendant company should have been overruled by tbe trial judge.

2. Tbe appeal from the judgment of the lower court sustaining tbe exception of no cause of action was taken on June 19, 1922.

It is suggested by amici curiae:

“That later, in the federal court for the state of New York, the Sugar Products Company was placed in the hands of a receiver, and Mr. Robert Szold was duly appointed and qualified as receiver of said Sugar Products Company by the federal court for the Southern district for the state of New York.
“That thereafter in the suit entitled ‘Inter-ocean Oil Company v. Sugar Products Company,’ and numbered 16939 of the docket of the United States District Court for the Eastern District of Louisiana, New Orleans Division, by an order of court signed April 12, 1922, by Hon. Rufus E. Poster, judge of the said court, Mr. Robert Szold, the said receiver appointed by the United States District Court for the Southern District for the state of New York, was appointed ancillary receiver of the Sugar Products Company, duly qualified as such, and, *769 after rendering his account, was discharged as ancillary receiver of, Sugar Products Company by an order signed by the said Hon. Rufus E. Foster on April 13, 1923, as evidenced by a certified copy of the said order annexed hereto and made part hereof.”
“That on the - day of October, 1925, Messrs. Merriclt & Schwartz, who had represented Sugar Products Company, defendant anpellee herein, in the proceedings in the civil district court withdrew as attorneys of record, and there is now no one representing defendant appellee herein.
“Appearers further inform the court that said receiver has never been made a party to this suit either in the civil district court or in the Supreme Court.”

The present suit was filed October 31,1921, in tbe civil district court for the parish of Orleans, and on November 10, 1921, the Sugar Products Company, a nonresident corporation of the state of New Jersey, executed a bond with the United States Fidelity & Guaranty Company as surety for the release of various properties seized and taken into custody by the sheriff in this case, under the writ of attachment and garnishment process issued herein against defendant company.

It is clear, from the record and the information furnished by the amici curise, that the property of defendant had been attached by plaintiff in the civil district court for the parish of Orleans, prior to the appointment of both the original receiver in the state of New York and the ancillary receiver in this state.

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Bluebook (online)
107 So. 566, 160 La. 763, 1926 La. LEXIS 1959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-oil-co-v-sugar-products-co-la-1926.