United Sales Company v. Curtis Peanut Co.

302 S.W.2d 763, 1957 Tex. App. LEXIS 1847
CourtCourt of Appeals of Texas
DecidedMarch 22, 1957
Docket15226
StatusPublished
Cited by4 cases

This text of 302 S.W.2d 763 (United Sales Company v. Curtis Peanut Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Sales Company v. Curtis Peanut Co., 302 S.W.2d 763, 1957 Tex. App. LEXIS 1847 (Tex. Ct. App. 1957).

Opinion

YOUNG, Justice.

Appellant’s action as plaintiff in trial court against Curtis Peanut Company, Inc., sought recovery for shortages in two shipments of peanuts made by it to plaintiff, amounting to $2,705.13, which shipments the latter had paid for prior to delivery, and for its lost profits of $22,977.75 on the remaining portion of peanuts not delivered by defendant pursuant to its contract to deliver thirteen carloads. An appeal relating to venue of the cause is reported in 283 S.W.2d 113, and in the interest of brevity reference thereto is made for a detail of material facts. Defendant admitted in open court to liability for shortages in shipments made; and upon jury trial and answers to special issues, judgment was rendered for plaintiff in that amount only ($2,705.13); denying any relief on its remaining cause of action (damages growing out of failure to deliver balance of shipments under contract), which becomes the subject matter of this appeal.

Fact issues presented and resolved by the jury should first be summarized: (1) That on or about October 26, 1954 United Sales Company had sold the undelivered portion of said peanuts' (9½ rail cars) to another purchaser; (2) so sold by plaintiff were 480,600 lbs. of peanuts; (3) plaintiff was to receive therefor $116,094; (4) that because of adverse weather conditions and drought during the year of 1954 it was impossible for defendant to make delivery of the remaining portion of said thirteen cars of peanuts to the plaintiff; (5) plaintiff failed and refused to pay, upon presentation, the sight draft, bill of lading attached, drawn by defendant for payment of the third carload of peanuts; (6) plaintiff had requested permission of defendant to inspect said car of peanuts prior to payment of sight draft; (7) defendant had refused plaintiff permission to inspect such third rail car of peanuts prior to payment of said draft; (8) plaintiff was ready and willing to pay said draft before defendant caused same to be returned to it.

The parties were members of the Southwestern Peanut Shellers Association; the transaction being governed by printed rules of the Association which in part provided: Section 4.15, art. IV, “Deliveries under contracts are subject to delays or cancellation on account of strikes, fire, explosions, storms, destruction incident to war, and other causes beyond the control of the seller.” Section 5.3 art. V, “Each car of Shelled Peanuts, Farmers’ Stock Peanuts and other Peanut Products bought or sold under these rules shall be treated and handled throughout as a separate purchase *765 or sale, regardless of the number of cars or the time of shipment stipulated in any given contract. * * * ” Sec. 9.4, art. IX, "When either party to a contract feels that the other has breached the same by failing to furnish shipping instructions, failing to pay for goods, failing to make shipments or to replace rejected shipments, or by failing otherwise to comply with the terms of a contract the following rules shall govern: (I) The complaining party may, not sooner than 24 hours or later than 48 hours (Sundays and holidays not included) after filing telegraphic notice to the other party, confirmed by letter, stating his intentions to do so: (a) Cancel the contract, (b) Buy (or sell as the case may be) for the account of the other party the goods covered by that part of the contract under dispute, for shipment conforming as nearly as possible to the original contract. (c) The purchase (or sale) shall be made through a recognized peanut broker. The broker’s negotiations with and confirmation to the third party shall not mention the name of the party complained of, or distinguish the transaction in any way. (d) However, the broker shall immediately notify, by wire, confirmed by special written memorandum, both parties to the original contract, (e) Instructions of the complaining party to the broker shall be by telegraph, confirmed in writing, stating the name of the party for whose account the purchase (or sale) is being made, for the purpose of distinguishing the same from other ordinary transactions which might possibly be in the process of consummation concurrently. (II) After taking into consideration any necessary expenses incurred under Section I, of this rule, the complaining party shall be entitled to recover from the other party any loss incurred as compared with the original contract terms, and conversely shall account to the other party for profit that may have been similarly realized.”

Further material testimony was to the following effect: That the sight draft, bill of lading attached, for the third car of peanuts of 50,000 lbs., mentioned in issues 5, 6, 7 and 8, was not paid immediately and on following day the shipment was canceled by defendant with order to the Bank for return of draft (plaintiff’s official testifying in such connection that the delay was incident to a determination of whether such carload was in transit; also that later the second day he had offered to pay the draft at Bank but was told that same had been withdrawn) ; that the total peanuts delivered was 169,400 lbs.; that defendant was obligated to deliver the balance of 480,600 lbs. to plaintiff at 19¾⅛ per lb., or a total price of $93,116.25; plaintiff then selling said part of contract (9½ cars) to E. B. Johnson, Inc., — 150,000 lbs. at 24½⅜ per lb. and 330,600 lbs. at 24¡¡S per lb., a total of $116,094; Mr. Johnson testifying that the transaction was conditioned on delivery by Curtis Peanut Company.

Defense to plaintiff’s claim of breach of contract and lost profits was twofold: first, that defendant was absolved perforce of the quoted proviso 4.5, Association Rules, and as reflected in the affirmative answer to issue 4 that delivery of the remaining cars of peanuts could not be made because the anticipated crop of peanuts on date of contract, September 7, 1954, was affected by the continuation of drought and adverse weather conditions to the extent that such peanut crop was reduced to a yield so small as to render impossible the full performance of such contract; and secondly, defendant in amended answer, after allegations to effect that plaintiff had violated Association rules in payment of previous sight drafts, then charged “That because of the continuous additional cost to this defendant of the failure of the plaintiff to pay such sight drafts as per the contract and as such sight drafts were presented to the plaintiff’s bank as per plaintiff’s instructions defendant had no other alternative but to rescind the said contract because of the continuous breach of the contract by the plaintiff.” Plaintiff had moved for judgment on the jury ver- *766 diet, and in the alternative for judgment regardless of their answer to issue 4; in other words, that adverse weather condition or drought was not a contingency excusing performance of contract within purview of sec. 4.15 allowing cancellation on account of strikes, fire, explosion, storm, destruction incident to war, and other causes beyond, the control of the seller. Points of appeal are too lengthy for inclusion here but argue liability of defendant for lost profits on above ground as a matter of law and also in fact, on basis of testimony of Curtis, defendant’s own President.

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Bluebook (online)
302 S.W.2d 763, 1957 Tex. App. LEXIS 1847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-sales-company-v-curtis-peanut-co-texapp-1957.