Thomas China Co. v. C. W. Raymond Co.

135 F. 25, 67 C.C.A. 629, 1905 U.S. App. LEXIS 4300
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 7, 1905
DocketNo. 1,342
StatusPublished
Cited by9 cases

This text of 135 F. 25 (Thomas China Co. v. C. W. Raymond Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas China Co. v. C. W. Raymond Co., 135 F. 25, 67 C.C.A. 629, 1905 U.S. App. LEXIS 4300 (6th Cir. 1905).

Opinion

SEVERENS, Circuit Judge.

This is a suit brought by the defendant in error, by petition, to recover from the plaintiff in error the unpaid balance, amounting to $2,107, of the purchase price of certain machinery used in the manufacture of pottery. The answer admitted the contract of sale, but denied the performance of the conditions to be performed by the plaintiff in the court below, and a cross-petition was filed by the defendant in that court to establish a counterclaim against the plaintiff for damages alleged, to have been sustained by the defendant in consequence of specified breaches of the contract by the plaintiff. By the verdict of the jury, the defendant appears to have established at the trial a counterclaim in the sum of $696.92, and the plaintiff to have established its claim to the unpaid balance of the purchase price stated in the contract, and the sum of $193.56 for extras, less the amount allowed upon the counterclaim. Judgment for the plaintiff was entered accordingly. The defendant, not being satisfied with this result, brings the case here, alleging errors in the rulings of the court upon the trial.

[27]*27The stipulations of the contract upon which the main questions of the controversy arise are as follows:

“It Is understood that your Mr. Harker will examine and O. K. the drawings of any of the machines we may submit to him before we build the same.
“Ship as required within ninety days.
“We guarantee the above machinery to be of modern design; to be constructed throughout of the best materials, and to be machine finished according to the very latest standard, with all parts made from jigs and templates and interchangeable, and all the important adjustment finished to micrometer sizes. We agree to replace f. o. b. cars, Dayton, Ohio, free of charge, any parts breaking from defective material or improper workmanship.' We guarantee the above machinery to perform in a proper manner all of the duties that are customarily required of machines and machinery of this class and character and built for this purpose.
“All agreements are contingent upon strikes, accidents, delays of carriers and other causes beyond our control.”

1. It is complained that the court instructed the jury that they might find a verdict for the balance appearing to be due upon the contract. It is apparent from an examination of the instructions that what the court meant was that the jury might take that as the starting point, for the court proceeds to state the conditions upon which the jury might allow the defendant reductions under its counterclaim. We see no objection to submitting the case in this way. The defendant had received and kept and used the machinery upon the footing of the contract, and had at no time claimed the right to rescind, or offered to return the machinery. The right to rescind had been lost by the defendant. The remedies of the buyer of machinery on a contract such as this, upon discovering its defects, were stated by Judge Lurton, in delivering the opinion of this court in Dodsworth v. Hercules Iron Works, 66 Fed. 483, 488, 13 C. C. A. 552, as follows:

“The first was to reject, and give notice of their determination to the vendor. This course, if adhered to, would have entitled them to sue for a return of purchase money, and such other damages as they had sustained by the failure of the vendor to furnish them the machinery according to the contract. If the machinery had not been removed by the plaintiff upon notice of rejection, then the defendants might have removed and stored it, subject to the risk of the seller, or, if suffered to remain, they might have recovered storage. The second remedy open to defendants was to accept the machinery and bring an action for breach of the warranty in the contract. The third remedy, having paid but part of the price, was to set off by way of counterclaim, when sued by the buyer for the balance due, the damages sustained by the failure of the machinery to comply with the contract. Benj. Sales (Cor-bin’s Ed.) § 1348. The right of rejection was lost by the long-continued use of the machinery, which use 'was utterly inconsistent with a purpose to resort to the first remedy which was open to them, and consistent only with a claim of title and ownership. Id. § 1356.”

And see Lyon v. Bertram, 20 How. 149, 15 L. Ed. 847; German Savings Inst. v. De La Vergne Refrig. Mach. Co., 70 Fed. 146, 17 C. C. A. 34. The third of these remedies is that pursued by the defendant in this action.

2. The court construed to the jury .the above-stated stipulation in the guaranty of the plaintiff, “We agree to replace f. o. b. cars, Dayton, Ohio, free of charge, any parts breaking from defective material or improper workmanship,” as intending to provide that [28]*28the only remedy the buyer should have in case of such breakage would be to notify the seller, and have it replaced by the latter; and the court put the matter in this way, as if it answered the claim of the defendant that certain articles furnished “were of such imperfect design, material, and construction as to be not only worthless, but dangerous.” In this we think the court erred. To begin with, the defects complained of were other and larger than those covered by this limited stipulation relative to breakage. It was claimed that these articles were of faulty design, and that they were within the terms of the general guaranty contained in the following words:

“We guarantee the above machinery to perform in a proper manner all of the duties that are customarily required of machines and machinery of this class and character and built for this purpose.”

The facts that the parts were broken and might be replaced would not, as the court seems to have supposed, have displaced the more fundamental grounds of objection. For broken parts might have been replaced without fulfilling the guaranty. Moreover, the court was in error in holding that the promise to replace broken parts bound the purchaser to resort to that means of remedy. The view generally taken of such a stipulation is that it is a cumulative promise, and gives the purchaser a special privilege in addition to such rights as he may have under the general warranty, which he may exercise, or not, as he may see fit. Douglass Axle Mfg. Co. v. Gardner, 10 Cush. 88; Seigworth v. Leffel et al., 76 Pa. 476; Park v. Richardson, 81 Wis. 399, 51 N. W. 572; McCormick v. Dunville, 36 Iowa, 645; Hefner v. Haynes (Iowa) 57 N. W. 421; 24 Ency. of Law (2d Ed.) 1158, 1159; Kemp v. Freeman, 42 Ill. App. 500; Moore v. Emerson, 63 Mo. App. 137.

It follows that the defendant, in case the parts of the machinery were broken or proved defective, might resort to other manufacturers to remedy the defects by supplying new parts. It might better fulfill its requirements in that way than by going back to the party who had originally furnished the defective machinery. Beyond doubt, it is ordinarily the right of a purchaser of warranted machinery which has been put into his works for continuous operation, but proves inadequate for use by reason of defects warranted against, to take any reasonably prudent and sufficient means to supply the defects; and, if he acts in good faith, he is entitled to charge the warrantor with the cost thereof. This rule applies to the case at bar. The defendant was therefore entitled to prove under the counterclaim that such defects appeared; that it took proper measures to remedy them, and at what fair cost. Benjamin v. Hillard, 23 How. 149, 16 L. Ed. 518; Marsh v.

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Bluebook (online)
135 F. 25, 67 C.C.A. 629, 1905 U.S. App. LEXIS 4300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-china-co-v-c-w-raymond-co-ca6-1905.