Thos. J. Sheehan Co., a Corporation v. Crane Company, a Corporation

418 F.2d 642
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 23, 1969
Docket19495
StatusPublished
Cited by13 cases

This text of 418 F.2d 642 (Thos. J. Sheehan Co., a Corporation v. Crane Company, a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thos. J. Sheehan Co., a Corporation v. Crane Company, a Corporation, 418 F.2d 642 (8th Cir. 1969).

Opinion

LAY, Circuit Judge.

Recovery is sought against the defendant Crane Company for alleged excess charges paid for plumbing supplies used by the plaintiff, Thos. J. Sheehan Co., as a subcontractor, on a large apartment project in St. Louis, Missouri. The plaintiff claims that it had an enforceable contract with the defendant for the supply of copper tubing and pipe at a certain guaranteed price. Thos. J. Sheehan Co. issued a purchase order based on the price quoted by the defendant. Crane Company rejected the purchase order, but asked a new price reflecting a smaller discount than originally quoted. It was ultimately agreed by the plaintiff that the defendant would ship the supplies under the new discount. Plaintiff paid for the supplies under the new pricing schedules as they were delivered. Plaintiff contended in the trial court, as well as here, that the payments in excess of the original price schedule were made under economic duress and should be returned.

The facts and issues were presented to the court without a jury. The trial judge found in favor of the defendant holding that there existed no enforceable contract between the parties based on the original quotation, and additionally held there was insufficient evidence as a matter of law to constitute economic coercion. Although for different reasons, we affirm the judgment for the defendant.

Plaintiff was a successful bidder on the plumbing work for an apartment development called the Mansion House Project. Moran-Turner was the general contractor. Plaintiff, in anticipation of its bid with Moran-Turner, obtained a written price quotation from the defendant on May 8, 1963, regarding various supplies, including copper tubing and copper pipe. The written quotation was in response to plaintiff’s general inquiry and it revealed that price protection would be given to shipments of “copper tubing” from May 1, 1963 to May 1, 1964. The May 8 letter from Crane Company recited that “copper fittings” were to be protected for the “duration of the job.” Thereafter plaintiff rendered its bid estimate on the work to Moran-Turner. At the trial Sheehan Co. did not recall whether the price of materials included in its bid was actually based upon defendant’s price schedule or the list of some other supplier who may have furnished price quotations to the plaintiff for the copper involved. On August 6, 1963, the general contractor gave plaintiff its “letter of intent” which indicated that plaintiff was the successful bidder and would be given the subcontract for the work. However, the general contractor reserved the right to withdraw from the contract any time before formal signing. The actual subcontract between the Thos. J. Sheehan Co. and Moran-Turner itself was not formally executed until August of 1964.

In November of 1963 defendant’s manager, Albert Lesker, informed plaintiff that a more favorable discount could be provided on copper than had previously been submitted. This new price was based upon the so-called “Chase Sheet” which was dated S.ept. 23, 1969. This was a typical mill price sheet fur *644 nished distributors such as Crane Company by the manufacturers of copper pipe and tubing. Defendant asserts that shipments under the ,new price sheet were to be protected for only one year, until November of 1964. The trial court so found. Plaintiff, on the other hand, asserts that this finding was in error. Plaintiff asserts that the only evidence in the record is that the prices on the “Chase Sheet” were to be protected for “the duration of the job.” The evidence shows that in July of 1964 Sheehan Co. orally communicated to the Crane Com-' pany that it was going to give defendant the order. However, it was not until January of 1965 that plaintiff actually submitted its first purchase orders to the defendant, the price reflecting the September 1963 “Chase Sheet” quotations. Crane Company then announced that it could no longer deliver the copper at the prices set forth on the purchase order.

Plaintiff then agreed to take the supplies at a smaller discount since there was a shortage of copper on the market, and the new price offered was less than the price available on the open market. Furthermore, plaintiff needed immediate shipment of the supplies in order to perform on its contract with Moran-Turner.

The Sheehan Co. paid for the shipments made by the Crane Company. However, the final payment of $30,000 was withheld in an attempt to negotiate the alleged excess charges for the copper. Because of this action, defendant served a “Notice of Intention to File a Mechanic’s' Lien” on Moran-Turner. The plaintiff had a contract provision with Moran-Turner which stated that plaintiff would not allow any mechanic’s liens to be filed against the general contractor. Rather than be in violation of its agreement with the contractor, the Sheehan Co. ultimately made the $30,000 payment. It is the filing of this “Notice” as well as the alleged coercive conduct centering around defendant’s refusal to ship under the September 1963 price sheet which plaintiff asserts as economic duress.

We fail to find that plaintiff and defendant at any time entered into an enforceable contract to sell and buy the copper at the September 1963 price. In view of this holding we need not discuss the secondary issue of economic duress.

We find no evidence to support the trial court’s finding that the price protection on-the September 1963 quotation extended only until November 1964. Mr. Lesker testified that the “Chase” quotations were, “as far as he recalled” based upon the information received from the manufacturer, and were in fact for “the duration of the job.” The information shown to be available to Lesker at the time, as communicated by the manufacturer to the defendant Crane Company, demonstrates that Lesker was in error and that the prices were to be protected only until November 1964. However, the evidence is uncontradicted that this fact was never communicated to the Thos. J. Sheehan Co. The Thos. J. Sheehan Co. cannot be charged with defendant’s knowledge.

Plaintiff further argues that the trial court’s finding that there existed no contract as a result of the May 8, 1963, price sheet and letter from Crane Company to Sheehan Co. is in error. Plaintiff asserts that its claim is not based upon this letter but rather the oral “offer” made in September of 1963, reflecting a totally new proposal and agreement with price protection for the duration of the project. To the extent that the trial court erred in stating the dates of the alleged offer, defendant agrees.

However, we see no necessity to remand the case for further findings. We find as a matter of law that an enforceable agreement did not exist between the parties at any time based upon the “Chase Sheet” prices of September 1963. In order to hold that the parties entered into a contract to buy and sell at the September 1963 prices, there must be evidence of an offer by *645 Crane Company inviting an acceptance at those prices. Such an offer must have manifested a present intention of a promise to sell to the Sheehan Co. at the prices indicated. We think it clear that the Crane Company’s oral quotation of September 1963 manifested only a future intention to sell and thereby its quotation constituted only an invitation to plaintiff to make an offer. The oral quotation lacked the definiteness required under basic principles of Contract law in order to constitute an offer.

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418 F.2d 642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thos-j-sheehan-co-a-corporation-v-crane-company-a-corporation-ca8-1969.