Weiland Tool & Manufacturing Co. v. Whitney

188 N.E.2d 756, 40 Ill. App. 2d 70, 1963 Ill. App. LEXIS 433
CourtAppellate Court of Illinois
DecidedMarch 11, 1963
DocketGen. 48,020
StatusPublished
Cited by6 cases

This text of 188 N.E.2d 756 (Weiland Tool & Manufacturing Co. v. Whitney) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weiland Tool & Manufacturing Co. v. Whitney, 188 N.E.2d 756, 40 Ill. App. 2d 70, 1963 Ill. App. LEXIS 433 (Ill. Ct. App. 1963).

Opinions

MR. JUSTICE ENGLISH

delivered the opinion of the court.

Plaintiff’s complaint in equity sought damages for breach of contract and for the declaration and satisfaction of a lien on machinery and other property belonging to defendant. Defendant and Hexarmour Company filed a counterclaim for damages arising from the same contract, and for conversion of their property. A decree was entered in favor of plaintiff on both complaint and counterclaim, and defendant has appealed.

As we see this case, almost all the differences between the parties stem from their opposing views as to what constituted the basic contract. The master and the chancellor found in favor of plaintiff’s contention that the terms of the contract were contained in an exchange of four letters — two from each party — written between July 2 and July 14, 1954. Defendant, on the other hand, argues that the source of contract rights is limited to the last three of these letters, and that plaintiff’s letter of July 2 should play no part in the case, the proposals contained therein having been rejected by defendant.

At the time, defendant was in Florida, and Mr. Y. A. Welland, president and treasurer of plaintiff (whose name will be used interchangeably with that of plaintiff), was in Chicago. They had met only once, and then in Chicago on June 29, 1954, after a letter from plaintiff to defendant soliciting business. To that meeting, held at plaintiff’s factory, defendant had brought a sample of Hexteel, a hexagonal patterned steel mat with squared ends, used in reinforced concrete. They discussed the manufacture of a somewhat similar product called Hexarmour. Certain machinery and steel belonging to defendant, which the parties contemplated would be used in the manufacture of Hexarmour, were then located at. the plant of Carlson Steel Products Company in Batavia, Illinois.

The pertinent parts of the four letters follow:

Letter of July 2, 1954 from Weiland to Whitney
Last Wednesday Mr. Bedner,
We likewise discussed with Mr. Bedner the possibility of securing his services as a Working Supervisor to oversee the skidding of the steel, shipping of machinery, setting up same in our plant and then to have under him a crew of approximately five men or whatever workers are needed, plus such additional skilled help as may be required to then turn out the mats in required quantities. From discussions with him we are led to believe that production in quantity should start in about six weeks. Mr. Bedner appears to be a capable individual who we believe will supervise and run the job to both your satisfaction and ours.
Our proposal will then appear as follows. Weiland will fabricate mats as required by you, using your special hydraulic clinching unit and your Bock-ford Press, Also your dies. Should additional punch presses be required we will also furnish same, one equipped with automatic roll feed. If necessary additional presses will also be furnished but the roll feed would have to be furnished and installed by you or by us at a price that we can agree upon if such volume materializes. You are also to furnish and install a roll feed on your present Rockford Press. We are informed that roll feeds at present require about ninety days delivery, so to get started we would use our press or transfer one of our present roll feeds to your press. Once installed and producing parts to your satisfaction, we will then maintain, repair and keep up all equipment due to normal wear and tear, but not repair or replace broken parts nor replace the entire unit or units when worn out. You, at your own expense, will move the machinery and steel from Batavia to our plant and set up same for production, including electrical wiring. We are locating your heavy motors very close to our master electrical panel board so that this should be a nominal expense. If you wish to hire your own labor for this purpose it is acceptable to us. However, if you care to have us furnish this labor we shall be glad to do so at actual costs plus 19% which is our out-of-pocket cash expense for payroll taxes, insurance, hospitalization and other fringe benefits. This could be done under Mr. Bedner’s supervision who could approve daily time tickets, work done, etc. Reimbursement to us for this portion of the work would be on a weekly basis, due each week as the work progresses. Apparently some work has to be done on your die, to which we would assign our skilled toolmakers again under Mr. Bedner’s instructions. In short, we would turn the job over to Mr. Bedner furnishing him such help as he may require.
We have approached the cost of our operations from four different angles, and always wind up somewheres between twenty-one cents and twenty-four cents per square foot. In doing so, we are taking Mr. Bedner’s statements as to assembly speed etc. but which seems to us to be fair and accurate also. Likewise using your opinion that ten or eleven cents per square foot was direct labor cost and comparing it with increases since your time of manufacture again brings us to these figures. Therefore we could come to terms by quoting a cost plus basis using twenty cents as a floor and twenty-four cents as a ceiling. Or if acceptable to you we could go along on a flat twenty-two cent price until more experience can be gained, at which time we could then renegotiate the price to the satisfaction of all concerned. Mr. Carlson did not say so in so many words but we believe his expressions indicated that his twenty cent contract was on the low side and that he could operate his plant much more favorably in other orders.
If necessary the writer will be glad to fly to Florida to further discuss this program with you, should there be anything herein which could not be settled by telephone Tuesday afternoon when he will be back from Michigan. Our negotiations with Mr. Bedner have covered everything noted in this letter except price and we seem to be in quite harmonious accord. He did not, however, nor did we, mention anything about price. If acceptable to you, Mr. Bedner is willing to start immediately and we can likewise assign to him one or several men that he may require.
We have not had the opportunity to check credit angle on this matter which good business practice might require, but from our impressions and your statements we assume that sufficient financial reliability is present by both you and us, which can be proved by proper investigation and background. We understand from your statement that you would accept billing for fabricated stock at time of shipment, but no date of payment was stated. We believe, however, this can satisfactorily be worked out.
It is also understood that you are to furnish all steel for this product and that we are to store same.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

St. Paul Federal Bank v. Wesby
501 N.E.2d 707 (Appellate Court of Illinois, 1986)
McNeill Asphalt Co. v. State
37 Ill. Ct. Cl. 68 (Court of Claims of Illinois, 1984)
Weiland Tool & Manufacturing Co. v. Whitney
251 N.E.2d 242 (Illinois Supreme Court, 1969)
Weiland Tool & Manufacturing Co. v. Whitney
241 N.E.2d 533 (Appellate Court of Illinois, 1968)
Nardi, Pain & Podolsky, Inc. v. Vignola Furniture Co.
224 N.E.2d 649 (Appellate Court of Illinois, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
188 N.E.2d 756, 40 Ill. App. 2d 70, 1963 Ill. App. LEXIS 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weiland-tool-manufacturing-co-v-whitney-illappct-1963.