Walker v. Gateway Milling Co.

92 S.E. 826, 121 Va. 217, 1917 Va. LEXIS 26
CourtCourt of Appeals of Virginia
DecidedJune 14, 1917
StatusPublished
Cited by14 cases

This text of 92 S.E. 826 (Walker v. Gateway Milling Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walker v. Gateway Milling Co., 92 S.E. 826, 121 Va. 217, 1917 Va. LEXIS 26 (Va. Ct. App. 1917).

Opinion

Kelly, J.,

delivered the opinion of the court.

About the middle of January, 1915, H. B. Walker, of Newport News, purchased from The Gateway Milling Company, of Kansas City, through a Suffolk brokerage firm, fifteen cars of a commodity designated in the written order therefor as “Winter Wheat Bran.” Rush shipments were requested by Walker, and the cars were all in Newport News by February 9, 1916. The bills of lading for these cars, with drafts attached, were forwarded to a Newport News bank. On March 2, 1916, after Walker had taken up the drafts and bills of lading for six of the cars and disposed of the. same to a customer, he sent the following telegram to the Gateway Milling Company: “Unloaded six cars bran find other cars promiscuous shipments not uniform grade. Shipped by different mills not like sample several cars unable use, two cars transferred [220]*220in transit and bags tom up wire disposition of cars not according to sample and cars containing torn sacks.”

Some days later, about March 12th, Walker took up one more draft and applied the car thus secured in completing a contract which he had previously made with the purchaser to whom he had sold the other cars; but with the exception of this car he stood upon his rejection of the remaining portion of the shipment.

Immediately upon receipt of the telegram above quoted, the Milling Company took up the matter of disposing of the rejected cars to the best advantage, apparently using every effort to this end, including an unsuccessful attempt to induce Walker to complete the contract, with the final result that a sale was made early in April to P. W. Hiden, the same party to whom Walker had sold the seven cars which he had accepted and paid for. This sale, however, was made at considerably less than the contract price.

Thereupon, this proceeding by motion was instituted to recover the loss thus sustained by the vendor, and there was a verdict and judgment against Walker which he brings here upon a writ of error.

The controversy hinges upon the proper interpretation to be given to the words “Winter Wheat Bran,” as used in the contract between the parties. It is conceded that the bran contained a certain percentage of screenings. Walker’s contention is that he was entitled to bran without screenings, and the Milling Company contends that, under the custom and usage of the business, the expression. “Winter Wheat Bran,” as understood by both parties to the contract, designated a commodity which carried such screenings as were contained in the bran shipped by it to Walker.

A circumstance which, perhaps, had considerable weight with the jury, and which was properly before them under correct instructions from the court, was that in his tele[221]*221gram of March 2nd rejecting the bran, Walker did not mention screenings, and that the evidence as a whole fails to show that the presence of screenings was, in fact, the subject or cause of any fault found with the bran before it was rejected. There was evidence tending to show that Walker over-stocked himself in¡ anticipation of a large contract for feeding horses which he failed to get. These and other considerations bearing upon the legal effect of Walker’s belated refusal of a part of the bran, after using nearly half of it, were properly submitted to the jury. Their verdict for the plaintiff renders it unnecessary for us to determine whether, under the evidence, and, as claimed by plaintiff, these considerations were sufficient as a matter of law to cut off any defense.

The principal assignment of error, to quote from the petition, is “that the court erred in. admitting evidence of custom to contradict, vary and add to the written agreement between the parties.”

This assignment proceeds upon a misconception of the rule against the use of parol evidence to contradict or vary the terms of a written contract. The evidence which the court permitted to go to the jury with reference to the usage and custom of the trade was not designed to vary or contradict the contract, but to interpret certain terms used therein which, under the plaintiff’s theory and contention, had an accepted and established trade meaning, not contradictory of but entirely consistent with the contract. For such a purpose resort may always be had to parol evidence.

“The words of a contract are to be understood in their ordinary and proper sense unless ■ by usage of trade or otherwise they have, in. respect to the subject rñatter, acquired a peculiar meaning; and such meaning is not clearly inconsistent with the terms of the contract. * * * And this admission of evidence as to usage is not inconsistent [222]*222with the general rule that a written contract is not to be contradicted or varied by parol evidence.” Elliott on Contracts, Sec. 1707.

“There are cases where usage is admissible to show the meaning of words which are used in a sense different from their ordinary meaning. This occurs where, by some usage of trade, words have acquired a peculiar meaning distinct from the popular meaning of the same words, or where the context evidently shows that they must be understood in some other special and peculiar sense. Under this rule, evidence is admissible to explain the meaning but not to contradict an instrument, and this, though no ambiguity exists on the face of the instrument. ‘Such evidence is received on the theory that the parties knew of the usage or custom and contracted in reference to it, and in such cases the evidence does not add to or contradict the language used, but simply interprets and explains its meaning.’ ” Elliott on Contracts, sec. 1723.

In the case of Richlands Co. v. Hiltebeitel, 92 Va. 91, 94, 22 S. E. 806, 807, Judge Riely, speaking for this court, used the following language:

“ ‘Extrinsic evidence’ it is said in Browne on Parol Evidence, sec. 57, ‘is admissible in the construction of a mercantile contract, to show that phrases or terms used in the contract have acquired, by the custom of the locality, or by the usage of trade, a peculiar signification, not attaching to them in their ordinary use, and this whether the phrases or terms are in themselves apparently ambiguous or not.’ And again it is stated in the same work (p. 216) that ‘parol evidence is competent to annex to a contract a custom or usage of the business and locality, known to the parties, or so general and well settled as to be presumed to be known to them, and with reference to which they must be deemed to have contracted.’ ”

[223]*223The case of Rastetter v. Reynolds, 160 Ind. 133, 66 N. E. 612, is much in point. In that case the court said:

“Appellant - insists that there was a contract between the parties in this case which was entirely clear and free from ambiguities, not subject to be varied by parol proof of custom or usage alleged to have existed in such business, and that, therefore, it was not proper for the appellees in their complaint to allege and by their evidence to prove, a usage intended to be explanatory of the language of the appellant’s order. Common terms, however, may in a particular business or trade, acquire a peculiar and different signification from that generally given to them.

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Cite This Page — Counsel Stack

Bluebook (online)
92 S.E. 826, 121 Va. 217, 1917 Va. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-v-gateway-milling-co-vactapp-1917.