Three Star Food Products Corp. v. Ofsa

119 S.E. 859, 94 W. Va. 636, 29 A.L.R. 1053, 1923 W. Va. LEXIS 193
CourtWest Virginia Supreme Court
DecidedOctober 30, 1923
StatusPublished
Cited by6 cases

This text of 119 S.E. 859 (Three Star Food Products Corp. v. Ofsa) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Three Star Food Products Corp. v. Ofsa, 119 S.E. 859, 94 W. Va. 636, 29 A.L.R. 1053, 1923 W. Va. LEXIS 193 (W. Va. 1923).

Opinion

Meredith, Judge:

Defendant, Ofsa, seeks to reverse the judgment of the circuit court of McDowell County, rendered against him in a proceeding by notice of motion for the recovery of the price of a quantity of malt extract and hops sold to defendant by plaintiff. The circuit court directed the jury to return a verdict for plaintiff for the amount sued for, $343.00, and judgment was entered thereon.

The facts are largely undisputed. Defendant is the owner of a grocery and meat shop in the town of Keystone. Plain[637]*637tiff, a Baltimore concern, is the manufacturer and dispenser of a preparation called “Non-Such” Malt Extract, to be used by consumers in making a malt beverage. In September, 1921, a salesman of plantiff took defendant’s order for 25 cases of tbe extract, 25 dozen packages of bops, and a case of crowns. Tbe crowns were to be used in capping tbe bottles in wbieb it was contemplated tbat tbe users would preserve tbe beverage. Defendant was to sell tbe malt extract and tbe bops to purchasers, wbo, by adding water thereto in certain proportions, could manufacture tbe drink in their own homes. ' Plaintiff also furnished a quantity of printed directions which were to be distributed to tbe purchasers of tbe extract. These directions are interesting and important documents in this case. They are entitled : “Directions for making Temperance Beverage.”

They state tbat tbe preparation of tbe Temperance Beverage consists of but three simple operations, and tbat no special apparatus is required except a boiling pot and a six gallon stone crock. Tbe three operations are described in detail. For our purpose, they can be considered as one. Tbe malt extract, bops and sugar are to be mixed in certain proportions, boiled in water and strained into tbe stone •crock. To this mixture 15 gallons of water are to be added, and tbe whole allowed to cool. Later, yeast is dissolved in the mixture, and after fermentation tbe beverage is bottled, and sealed with the crowns provided.

To these directions was added tbe following “Caution”:

“Be sure to comply with the National Prohibition Laws, and do not use less than 20 gallons of water in making this beverage, as using a small quantity of water will create a greater percentage of alcohol, and thereby you will violate the prohibition laws.”

Defendant testified that be inquired of tbe salesman as to bis legal right to handle tbe extract when the sale was solicited; that tbe salesman assured him tbat be bad nothing to fear on tbat score; and tbat tbe company would back tbe defendant in case any trouble of tbat bind should arise. Plaintiff’s treasurer denies tbat tbe salesman bad authority to make any such engagement for tbe company, but, as to [638]*638the legal character of the extract, he testifies that their product is advertised and distributed throughout the country, that it is widely used as a sweetening syrup in the manufacture of candy and in baking, as well as in the Temperance Beverage, and that he never before this action knew of its being confiscated as being' in violation of the prohibition law. That is just what occurred in defendant’s case, however. He had displayed the preparation in his show window but a few days, when a federal officer arrested him, seized his stock of extract and hops, and reported him to the federal district attorney. Upon the latter officer being satisfied of defendant’s innocent intentions in the matter, the criminal charges against defendant were ultimately withdrawn. However,' these circumstances were not sufficient explanation, to plaintiff to satisfy its claim for the purchase price of the order; therefore this action.

The evidence recited makes clear the theory of the defense. Defendant’s position is that as the contract with plaintiff involved the sale of goods, forbidden by the prohibition laws of the state and nation, it was therefore illegal and unenforceable. Plaintiff,' on the other hand, conceding that an illegal contract would be unenforceable, urges that while it is undisputed that the commodity sold could be used for the preparation of an intoxicating beverage, it was intended and designed to be used for no such purpose; and that it .is incumbent upon the court to impute proper and legal motives to the parties to the transaction.

The circuit court seems to have been persuaded that the principle urged by plaintiff was so controlling on the facts presented, and that there was such slight evidence — if in fact any at- all — of violation of or intent to violate existing law, that it held the contract of sale to be a legal and binding obligation- on the defendant, and directed the verdict to be found.

To ascertain whether this finding be correct, we must consider the sections of the prohibition statutes involved in the issue of fact presented.

Serial section 8351q, cum. sup. 1922, Barnes’ Federal Code (Act Oct. 28, 1919, ch. 85, Title II, §18) reads:

[639]*639“It shall be unlawful to advertise, manufacture, sell, or possess for sale any utensil, contrivance, machine, , preparation, compound, tablet, substance, formula, direction, recipe advertised, designed, or intended for use in the unlawful manufacture of intoxicating liquor.”

No section of our state prohibition law in effect when the sale in question was made so nearly describes the offense of which it is argued the plaintiff was guilty,, as the provision quoted above. However, serial section 8352, cum. sup. 1922, Barnes’ Federal Code, making it unlawful to have or possess “any liquor or property designed for the manufacture of liquor,” would less specifically cover the offense chargeable to the parties.

Concede for the moment, however, that the plaintiff, by its sale of the extract and hops was guilty of the offense created by the federal statute above quoted, and concede also the general, principle that a contract having for its object the commission of an illegal act is unenforceable, is the matter then concluded ? The point that suggests itself to us, and it has not been argued in the briefs, is.whether or not a contract having for its object the violation of a federal statute, be, as a consequence of such violation, unenforceable in the state courts. Counsel seem content with the mere statement that an illegal sale would fasten no obligations on the parties, and cite no authorities directly bearing on the subject involved.

By a special plea filed in that behalf, defendant has distinctly directed judicial notice to the federal statutes to which we have referred, and the only issue is as to what effect they have relative to the action on the contract in this action.

We are familiar with the often stated principle that public policy forbids the enforcement of obligations which are violative of penal statutes. We are also familiar with some of the decisions announcing what circumstances shall be considered in ascertaining what such public policy is. Some of them would limit such ascertainment to the latest expressions of the legislature and the courts of the particular state; others would open the way to more extensive investi[640]*640gation; but all agree that public policy is in most instances a nebulous and unsatisfactory basis for judicial decision. We prefer, therefore, to determine what force or comity our own and other courts have given to national legislation in cases of this general character.

Á somewhat similar case in principle is Dorr v. Chesapeake & Ohio Ry. Co., 78 W. Va.

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Bluebook (online)
119 S.E. 859, 94 W. Va. 636, 29 A.L.R. 1053, 1923 W. Va. LEXIS 193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/three-star-food-products-corp-v-ofsa-wva-1923.