Watts v. Phillips-Jones Corp.

211 A.D. 523, 207 N.Y.S. 493, 1925 N.Y. App. Div. LEXIS 10652
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 9, 1925
StatusPublished
Cited by12 cases

This text of 211 A.D. 523 (Watts v. Phillips-Jones Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watts v. Phillips-Jones Corp., 211 A.D. 523, 207 N.Y.S. 493, 1925 N.Y. App. Div. LEXIS 10652 (N.Y. Ct. App. 1925).

Opinion

Kapper, J.:

The action, vendor against vendee, was brought to recover damages for the vendee’s refusal to accept a quantity of cotton cloth sold to it by the plaintiffs. Plaintiffs obtained a verdict which, in our opinion, finds ample support in the evidence. Some of the objections to plaintiffs’ recovery, which this appeal presents, seem to justify an expression of opinion.

It is urged that the cause of action sued upon does not belong to the plaintiffs for the reason that the plaintiffs were the disclosed [525]*525agents for a specified principal, and were, therefore, not the real party in interest. The contract of sale was,as follows:

“ Watts, Stebbins & Co.
“ Selling Agents
“ 44-46 Leonard St., N. Y. C.
“ New York, April 10th, 1920.
“ Watts, Stebbins & Co. have sold for the account of No. 5234, Victor Monaghan Mills, Victor Plant,
“ To Phillips-Jones Company, Inc.,
“ 829 East 134th Street,
“New York City, N. Y.
“ Quantity 300,000 Yards Fancy Shirtings Price $1.50 lb.
“ Standard construction Terms Net — 10 days
“ Quality First Freight none ,
“ Delivery Start November — sooner if possible — 6/8% weekly. Construction and styles subject to mill’s approval, and to conform to mill’s regular yarns.
“ F. O. B. mill or at mill in case of embargo, lack of shipping facilities or shipping instructions.
“ Shipping Instructions Later.
“ 10% Tailings if made at contract price.
“ 5% Seconds if made at 5% less than contract price.
“ WCH. It is Agreed:
“1. That if the production of the seller, the Victor Monaghan Mills, Victor Plant, shall be curtailed between the date. hereof and the end of the deliveries stipulated herein by strikes, lockouts, accidents, fire, flood, casualties, shortage of labor, or any other cause beyond the reasonable control of the mill, aside from those particularly mentioned, a like proportionate reduction in deliveries may be made.
“2. That default, delay or defect in any one or more deliveries shall not affect the balance of this contract. Partial deliveries are to be paid for at contract price and terms.
“ 3. That goods delivered and not removed are at purchaser’s risk and are covered by insurance to the same extent and'under the same conditions as those owned by the mill. The mill does not guarantee the solvency of the insurance companies nor assume any Other liability in respect to such insurance.
4. That invoices are payable in New York Exchange,
“■ Yourg truly
« WATTS, STEBBINS & CO.
1 - W, C, Houston, Jr,”

A duplicate of the contract, also in evidence, was signed by the defendant.

[526]*526On its face the contract describes the plaintiffs as having sold for the account of a particular principal to the defendant. The particular principal of the account is further characterized by the name of the mill which was the manufacturer of the goods. The contract, however, was made with the plaintiffs, in their name, and signed by them. The question presented was first raised at the opening of the trial and again on the motions to dismiss made at the close of the plaintiffs’ case and at the conclusion of the reception of the evidence. Upon the trial numerous witnesses occupying important executive posts in the Victor Monaghan Mills testified on behalf of plaintiffs and in support of the contract and its fulfillment. Amongst them were the vice-president and general manager, the head of the manufacturing department, the superintendent of the Victor plant of the Victor Monaghan Mills, the person in charge of the mill cloth room and the “ head grader.” Many other employees of the mill were in court and testified on behalf of plaintiffs, such as weavers and graders, and the depositions of a number of’ the mill employees were read in evidence in support of the plaintiffs’ claim. Besides this, there were in evidence approximately one hundred letters making up correspondence of the parties, in all instances being communications between these plaintiffs and this defendant in all of which the plaintiffs were regarded as the actual sellers, and nowhere was it claimed that the defendant looked to the mill as having any obligation in the matter. Amongst the documentary evidence are shown payments made directly to the plaintiffs and to their order by the defendant for a portion of the goods that had been delivered under and pursuant to the contract. The correspondence further shows that the defendant’s accounts under the contract in question were entered on the plaintiffs’ books as a transaction with the plaintiffs and without reference to the mill. All complaints regarding the quality of the goods were lodged with the plaintiffs and the defendant’s attempt to cancel the contract for alleged breach thereof was based upon an alleged breach by plaintiffs personally; indeed, in finally concluding not to accept the goods' sold, notice thereof was given by the defendant to the plaintiffs personally. In one of the letters addressed to plaintiffs defendant indicates plaintiffs’ responsibility for the breach and the defendant’s belief that the situation justified a claim for damages against the plaintiffs. There is also to be found in the documentary evidence suggestions by the defendant to plaintiffs to arbitrate and to make various adjustments and corrections of price, all of which ordinary agents empowered simply to sell the goods of their principal would not be authorized to do.

A consideration of the evidence leads us to the conclusion that [527]*527the plaintiffs were more than a mere agent authorized to find a customer to purchase the principal’s merchandise. The contract was made with them and in their name. The dealings were wholly with them, including all claims and adjustments, as well as payments in part to them, as already found. It cannot be assumed that the written contract was made, in legal effect, with the Victor Monaghan Mills through the plaintiffs acting as their mere naked agent. As the case stands, we think that the plaintiffs come within one of the exceptions of section 449 of the Code of Civil Procedure (now section 210 of the Civil Practice Act) as interpreted by well-recognized authority. Section 449 (supra), in force at the commencement of this action, provided as follows:' “Every action must be prosecuted in the name of the real party in interest, except that an executor or administrator, a trustee of an express trust, or a person expressly authorized by statute, may sue, without joining with him the person for whose benefit the action is prosecuted. A person, with whom or in whose name, a contract is made for the benefit of another, is a trustee of an express trust, within the meaning of this section.”

In Schipper v. Milton (51 App. Div. 522; affd., 169 N. Y. 583) it was said by the Appellate Division (p.

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Bluebook (online)
211 A.D. 523, 207 N.Y.S. 493, 1925 N.Y. App. Div. LEXIS 10652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watts-v-phillips-jones-corp-nyappdiv-1925.