W. J. Bush & Co. v. Van Camp Sea Food Co.

203 P. 1026, 55 Cal. App. 672, 1921 Cal. App. LEXIS 145
California Court of Appeal·Decided December 15, 1921·No. Civ. No. 3744.·Published·Cited by 2 cases

Opinion

JAMES, J.

This action was brought by the plaintiff to recover damages from the defendant for an alleged breach of contract. Plaintiff had judgment, from which defendant appeals.

It is alleged in the complaint that on the fifteenth day of August, 1918, defendant entered into a written contract with the plaintiff whereby the plaintiff agreed to sell and the defendant to buy 50,000 pounds of oil manufactured from peach kernels at a price of thirty-six cents per pound; that defendant accepted 4,800 pounds of the oil and refused to accept any more; that the oil manufactured to fill defendant’s order was not resold and that the value of the oil to the plaintiff was twenty-nine cents per pound. The difference of seven cents per pound for the unaccepted part of the oil ordered was claimed as damages, according to the measure fixed by section 3311 of the Civil Code. The trial court found that the value of the oil to the plaintiff was thirty-one cents per pound, and calculated damages accordingly at five cents per pound. Upon defendant’s part, the answer alleged that the oil was sold under representations that it was suitable for canning fish and sardines for human consumption, and that for such purpose it was equal to the “best grades of imported olive oil.” Under this allegation defendant claimed an express warranty was made. In this connection and as supporting that defense there was testimony tending to show that some of the oil delivered contained stearine, which, expressed in ordinary terms, was congealed vegetable fat appearing as white particles in the oil. The appellant insists that the defense of a particular *674 warranty was completely made out by the evidence. We will refer first to the evidence as to the circumstances under which contract was made, and the terms of the latter. It may be stated that it must be taken as established under all the evidence that peach kernel oil, of fair quality and free front stearine, is fit for human consumption and altogether suitable for use in the packing of sardines, which was the use to which the defendant intended to put it. The presence of stearine would be detrimental only as it affected the appearance of the oil. On August 7, 1918, the agent of the plaintiff, in response to previous inquiry, wired to the defendant a quotation of thirty-six cents per pound on peach kernel oil. On the same day the same agent addressed a letter to the defendant, confirming the quotation made in the telegram, and adding the following statement: “Peach kernel oil or fruit kernel oil, as some of the packers call it, is the same as the sample I left with your Mr. Van Camp last year, and on which I quoted him. This is being used very successfully by a large number of the fish packers, and while we have been compelled to raise our price some on account of the price of raw material advancing, when you take into consideration the quality of the oil, which I believe for your purpose is equal to the best grades of imported olive oil, it is still low.” On August 9th the defendant wired to plaintiff’s agent as follows: “Enter our order fifty thousand pounds peach kernel oil price terms your wire August seventh confirm.” This order was acknowledged and confirmed by letter from plaintiff’s agent dated August 9th, in which it was stated: “As per your instructions I have entered your order for 50,000 lbs. or 125 drums at 400 lbs. each, to be taken as wanted up to January, 1919, terms to- be net cash in 10 days. -. . . You will note that I have given you until January to draw this oil. I believe the factory can deliver it all at once if you so wish.” A letter from the defendant was received by the plaintiff in response to the last communication, in which defendant requested that a contract be forwarded covering the order. Such a contract was prepared under date of August 15, 1918, providing for deliveries to end December 31, 1918, and stating the price to be thirty-six cents per pound for 50,000 pounds, describing the merchandise simply as “oil peach kernels.” *675 Referring first to the claim that there was a representation and, consequently, a warranty that the oil to be furnished would be equal to the best grades of imported olive oil: We think the conditions surrounding the transaction do not justify this claim. The letter of the agent which followed the telegram quoting the price, referred to a sample of oil left with Mr. Van Camp the preceding year, and expressed the opinion of the writer only that the oil for the purpose intended was equal to the best grades of olive oil. This opinion was expressed in connection with the statement as to an advance in price of the commodity. The statement was made, too, with the qualification that the oil was of the kind shown by sample previously left with Van Camp, who was at the head of defendant’s establishment. Defendant, in the evidence furnished by it, made no denial as to its having been furnished a sample of kernel oil as stated in the letter. If it did in fact receive such a sample, then, irrespective of other considerations, it would have not the slightest ground for relying upon the opinion of the plaintiff’s agent that the oil was equal to the best grade of olive oil for fish packing purposes. The packing of fish was the business of the defendant and it was better able to determine the suitability of oil for its purposes than was the plaintiff. [1] However, even without reference to the statement concerning the sample having been furnished, the expression comparing the product to olive oil expressed a mere opinion and could by no means be relied upon as a warranty. The trial court then had to determine first as to whether the peach kernel oil offered to be furnished by the plaintiff under its contract with the defendant was of reasonably good quality. In the manufacture of that oil it was common to find congealed portions which showed white in the liquid. A filtering process was used in connection with the production of the oil and, as the testimony showed, the greater part of the congealed portions was capable of being taken out. The filtering process was shown to have been made use of by the plaintiff, although it was admitted that occasionally a defective filter might permit some of the oil to retain a greater amount of stearine than other portions. Up to nearly the end of the year 1918 the defendant had required but little of the oil which it had contracted should be all delivered *676 by the end of December of that year. The fact is made clear by letters written by the defendant to plaintiff that the run of sardines had been sparse and consequently the cannery of the defendant had had little occasion for use of the oil. Some few drums had been furnished and accepted. On the 16th of November, 1918, the defendant wrote to the plaintiff as follows: “Referring to our contract of August 15th for peach kernel oil, we are inclined to think that it will be necessary for us to either cancel or materially reduce the quantity as the season is now far advanced and we are not receiving any sardines at all. We, therefore, suggest that you make an effort to sell elsewhere at least half or two-thirds of the quantity covered by our contract.” To this letter the plaintiff replied, stating that in order to be prepared to fill the.order given by the defendant it had purchased many tons of kernels and that the greater part of the oil was then ready to be shipped, adding: “We regret therefore that we cannot cancel the order or reduce the quantity we have to deliver to you. We might also add that we have a la

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W. J. Bush & Co. v. Van Camp Sea Food Co., 203 P. 1026, 55 Cal. App. 672, 1921 Cal. App. LEXIS 145 (Cal. Ct. App. 1921).

203 P. 1026 (W. J. Bush & Co. v. Van Camp Sea Food Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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