Standard Pipe & Supply Co. v. Oil State Pipe Co.

1930 OK 450, 292 P. 12, 145 Okla. 143, 1930 Okla. LEXIS 184
CourtSupreme Court of Oklahoma
DecidedOctober 7, 1930
Docket19563
StatusPublished
Cited by2 cases

This text of 1930 OK 450 (Standard Pipe & Supply Co. v. Oil State Pipe Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Pipe & Supply Co. v. Oil State Pipe Co., 1930 OK 450, 292 P. 12, 145 Okla. 143, 1930 Okla. LEXIS 184 (Okla. 1930).

Opinion

DIEFENDAFEER, C.

This is an action brought by Oil State Pipe Company and W. J. Birch against the Standard Pipe & Supply Company, Jake Baren, and Max Jaffe to recover judgment for breach of an alleged oral contract for the sale of certain pipe. Plaintiff Birch and defendants Baren and Jaffe were dismissed from the cause and are not parties to the appeal.

Trial was had to a jury, resulting in a verdict and judgment for plaintiff Oil State Pipe Company, and defendant Standard Pipe & Supply Company appeals.

The assignments of error presented are: Error in overruling a demurrer to plaintiff’s petition; overruling demurrer to plaintiff’s evidence; refusing motion for directed verdict for defendant and the giving of certain instructions.

It is first asserted that the trial court erred in overruling defendant’s demurrer to plaintiff’s petition, in that the contract pleaded was alleged toi be oral, for the sale of some 40,000 feet of standard 6 in. pipe at 55c per foot, being for more than $50, was within the statute of frauds. That other allegations contained in the petition were insufficient to remove the contract from the operation of the statute of frauds.

The petition alleges, in substance, that on or about December 2, 1926, defendant entered into an oral contract with plaintiff, whereby they agreed to sell and deliver to plaintiff 40,000 feet of standard line pipe in sound ahd usable condition for 55c per foot, free on board cars at Devol, Okla.; that as a part of said agreement, plaintiff was to procure a bank in Oklahoma to agree to honor drafts drawn by defendant on plaintiff, which they did by arranging with the Security State Bank of Blackwell, Okla.,, and that said state bank on December 2, 192,6, wired defendant that it would honor draft on plaintiff for $23,000, six-inch pipe line at 55e per foot, tally O. K. by William Birch or Chas. T'riger, draft to be drawn by Standard Pipe & Supply Company; that thereafter defendant in partial performance of said oral contract, actually delivered to plaintiff 2,548.5 feet of said line pipe, and through inadvertence drew a draft on plaintiff through said bank for 2,815 feet 9 inches of pipe, which draft was drawn in obedience to and in accordance with said oral contract, and was paid by said bank.

As we understand defendant’s argument, it is contended that the petition was insufficient in that there was no certain pipe designated in the alleged contract and no sufficient description of the pipe attempted to be sold, it only being described as being in sound and usable condition; that the contract alleged was too uncertain and lacked mutuality of obligation in that there was no allegation that plaintiff was bound to accept, and that the petition did not sufficiently allege a delivery and acceptance of a part of the property, so as to validate the oral contract under the statute of frauds.

As to the first contention, we think the same wholly without merit. The alleged contract was that the pipe was to be “6 inch, Standard Line Pjjpe in ¡sound and usable condition.” We think this a sufficient description. It is certainly as definite as a given number of bales of cotton, middling basis. Numerous cases have held this or similar descriptions to be sufficient.

The next contention is that because the petition alleged that the contract was that the pipe was to be subject to inspection and acceptance at time of loading, the plaintiff could, by mere refusal to inspect and accept, defeat the contract if it so desired, or in case the pipe would prove to be worth less than 55c per foot at the time of loading. This is also without merit. Plaintiff could not, by refusing to inspect when defendant tendered sound and usable 6-inch pipe, defeat the contract. True, either plaintiff or defendant could have defeated the contract by refusal to perform at any time before partial performance. But after delivery and acceptance of a part of the pipe, the oral *145 contract became binding on both parties, and plaintiff could hot arbitrarily refuse to accept sound and usable pipe of the size provided in the contract and thereby escape liability under its contract. Neither could defendant escape by refusal to furnish such. However, it is urged that there was no sufficient allegation of delivery and acceptance of a part of the pipe. This contention is also without merit. True, the petition alleges that defendant did actually deliver to plaintiff a part ot the pipe, to-wit, 2,548 feet, without specifically alleging that plaintiff accepted the same. But the petition does allege that, in obedience to and in accordance with said contract, defendant drew a draft on plaintiff for 2,815 feet, and that the draft was paid by the bank. We think this sufficiently alleges receipt and acceptance of a part of the pipe. Certainly plaintiff’s intention to accept will be inferred by the payment when facts are pleaded showing a delivery. We think it is unnecessary to go further and specifically allege that the buyer did accept.

The assignments as to the overruling defendant’s demurrer to plaintiff’s evidence and refusal to direct a verdict for defendant may be treated together.

Defendant in its answer denies the oral agreement to sell plaintiff the 40,000 feet of line pipe. It admits the sale of 2,815 feet and 9 inches, but asserts that this was a sale of that much line pipe only, and was a single transaction, and that it never contracted or agreed with plaintiff to sell it •40,000 feet, or any quantity whatever of line pipe, other than the particular 2,815 feet and 9 inches, which it alleges plaintiff bought and paid for as one entire transaction, ahd specifically denies that this 2,815 feet of pipe was delivered by defendant to plaintiff as a part fulfillment of any contract or agreement to sell and deliver a greater amount of line pipe.

W. J. Birch, the purchasing agent of plaintiff, and Morris Zelickson, its president, testified positively to the contract had over the telephone with Jake Baren, president of -defendant company for the purchase of 40,-•000 feet of 6-inch line pipe as alleged in the petition.

There is positive evidence as to the delivery of the 2548 feet and 5 inches of line pipe as a part of that contracted for, and the drawing and payment of the draft, as alleged in the petitioh, and of a statement attached to the draft reading as follows:

“Standard Pipe & Supply Company, Inc.

“Iron and Steel Products.

“Office.

“3217 Main street, Phone Y 6200 “Dallas Texas. Dec. 6, 1926. “E. O. B.

“Charge. Sold to Oil State Pipe Company, “Via. Car Penna. — 840378 Blackwell,

“Oklahoma.

“2815rft. 4-in. of 6” S. H. Line pipe

55c ft_____________________$1,548.43

“E. O. B. Shipping Point.

“Pipe cutting1 and threading to order.”

Mr. Baren and his bookkeeper or secretary both positively deny the agreement and testify that in the telephone conversation referred to by plaintiff’s witnesses, Baren positively refused to sell plaintiff any pipe Whatever, but referred them' to Dave Cap-lan, vice president of defendant company, who was at Wichita Palls, Tex.,, in charge of defendant’s sales department at that place and in the vicinity thereof, including Devol, Okla.

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Bluebook (online)
1930 OK 450, 292 P. 12, 145 Okla. 143, 1930 Okla. LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-pipe-supply-co-v-oil-state-pipe-co-okla-1930.