United Canneries Co. v. Seelye

292 P. 341, 48 Cal. App. 747, 1920 Cal. App. LEXIS 467
CourtCalifornia Court of Appeal
DecidedJuly 29, 1920
DocketCiv. No. 3219.
StatusPublished
Cited by6 cases

This text of 292 P. 341 (United Canneries Co. v. Seelye) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Canneries Co. v. Seelye, 292 P. 341, 48 Cal. App. 747, 1920 Cal. App. LEXIS 467 (Cal. Ct. App. 1920).

Opinion

THOMAS, J.

This is an action to recover damages for an alleged breach of contract to deliver fruit. The case. was tried without a jury, findings and judgment went for defendant, and plaintiff appeals.

*749 The action was originally commenced by the Southern California Canning Company, for which corporation plaintiff here was, by proper order, substituted, the former’s rights having passed to the latter. The present plaintiff had nothing whatever to do with the making of the contract in question, or with any of the acts or transactions here involved. For convenience, therefore, the designation “plaintiff,” as here used, will refer to the original plaintiff in the action.

From the record it appears that in the spring of 1914 plaintiff and this defendant entered into a contract whereby the former agreed to purchase, ■ and the latter agreed to sell, defendant’s yearly crop of peaches for a period of five years —1914 to 1918, both years inclusive. The contract says nothing as to the time when payment should be made. Defendant delivered the crops of 1914 and 1915 under this agreement. The fruit delivered in 1914 was paid for; but for that delivered during the year 1915, defendant received nothing. Plaintiff claims that there was some disagreement as to the amount due defendant under the contract for fruit delivered during that year. At the close of the season plaintiff tendered to defendant a given sum, which it claimed to be the full amount due for the 1915 crop, but defendant refused to accept the same, claiming, on the other hand, that a much larger amount was due. Thereafter defendant instituted an action against this plaintiff upon the contract in question for the sum claimed by the former to be due, upon the trial whereof defendant here recovered a judgment for practically the full amount claimed. Having had this experience, and notwithstanding the same, it appears that defendant respected his agreement, and proceeded to act thereunder for the year 1916. At the time of the delivery to the plaintiff of the first load of fruit for that year, defendant also delivered to plaintiff a letter, which in words and figures is as follows:

“July 25, 1916.
“The Southern California Canning Company,
“W. H. Braun, A. C. Harvey, •
1 ‘ Ontario, California.
“Gentlemen:
“Delivery is herewith offered you of the fruit covered by that certain contract entered into between you and the undersigned on the 30th day of April, 1914. You are *750 hereby notified that demand is herewith made for payment for said fruit at the price mentioned in said contract. Payment is hereby demanded for the fruit delivered and for each load as it shall be delivered at your cannery as per said contract. Pull payment for each load will be expected as it is delivered. Yours truly,
“O. L. Seelye.”

The buyer of the fruit, after receiving this letter, paid for the fruit, at the close of each day’s delivery, until the twenty-eighth day of July, 1916, upon which date it refused to pay as delivered. Thereupon this defendant, as was his legal right so to do, refused to make further deliveries, and the present action ensued.

Before the execution of the contract referred to, it contained a clause reading as follows: “Payments in settlement of this contract to be made one-third in thirty days, one-third in sixty days, one-third in ninety days, after completion of deliveries.” This clause was stricken from the contract for the reason that defendant told plaintiff’s representatives that he would not sign any contract of that nature—that he would have to have his money in order to carry on his business—to which suggestion plaintiff, through its agent, Mr. Harvey, answered: “You can have your money any time you want it, as the fruit is delivered. We have got lots of money to pay with, and you don’t have to wait for your money.” [1] The contract being thus silent on the matter of payment, regardless of the evidence referred to, the time of payment is, as a matter of law, fixed as at the time of delivery (Civ. Code, sec. 1657; Cole v. Swanston, 1 Cal. 51, [52 Am. Dec. 288]; Veerkamp v. Hulburd etc. Co., 58 Cal. 229, [41 Am. Dec. 265]; J. K. Armsby) Co. v. Blum, 137 Cal. 552, [70 Pac. 669]; Gilfallan v. Gilfallan, 168 Cal. 23, [Ann. Cas. 1915D, 784, 141 Pac. 623]); and with such evidence explaining, not modifying, the contract, there can be no doubt with reference thereto. Confronted with this fact, we do not think the letter of July 25, 1916, adds to or detracts from the contract under consideration ; it certainly is not a modification or variation thereof in any way. Under these circumstances we think the buyer of the fruit was legally bound to pay for the same at the time of delivery, in the absence of an agreement to the contrary.

*751 [2] The refusal on the part of plaintiff to pay for the fruit as delivered, we think, constitutes the “fault” referred to in subdivision 2 of section 1689 of the Civil Code, which furnishes the basis of rescission (Lake Shore etc. Co. v. Richards, 30 L. R. A. 33, and cases there cited in an elaborate note on the “Eight to rescind or abandon contract because of other party’s default”) that was promptly taken advantage of, as provided by the terms of section 1691 of the Civil Code by this defendant. Indeed, in our opinion the existence of this fact alone is sufficient to support the judgment before us.

[3] On the other hand, if we hold that the court erred in finding that the contract was rescinded, the facts in this casé, as shown by the evidence, disclose such a breach of the contract as entitled defendant to treat the same as rescinded; and by so doing defendant might have brought suit, on the implied promise to pay, for the value of the peaches so delivered to and not paid for by plaintiff. (Cox v. McLaughlin, 54 Cal. 605; Id., 76 Cal. 60, [9 Am. St. Rep. 164, 18 Pac. 100]; Porter v. Arrowhead Co., 100 Cal. 500, [35 Pac. 146]; Golden Gate L. Co. v. Sahrbacker, 105 Cal. 114, [38 Pac. 635] ; San Francisco Bridge Co. v. Dumbarton Co., 119 Cal. 272, [51 Pac. 335].) In legal contemplation this is what the defendant here has sought to do by his counterclaim for the value of peaches so delivered, which position the court found to be supported by the evidence. Was the defendant entitled to his pay for the peaches so delivered under the contract? He was. There is no doubt about it. Hence, regardless of whether the court erred in finding that the contract was rescinded, plaintiff’s conduct was such that f. it could not assert its alleged rights under the contract in question, while the defendant was legally justified in acting as he did.

[4]

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Bluebook (online)
292 P. 341, 48 Cal. App. 747, 1920 Cal. App. LEXIS 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-canneries-co-v-seelye-calctapp-1920.