Williams-Donahue Co. v. Felty

21 Ohio N.P. (n.s.) 233

This text of 21 Ohio N.P. (n.s.) 233 (Williams-Donahue Co. v. Felty) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams-Donahue Co. v. Felty, 21 Ohio N.P. (n.s.) 233 (Ohio Super. Ct. 1918).

Opinion

Kinkead, J.

Plaintiff seeks to recover $4,440 as damages for breach of contract. The petition alleges that on October 10, 1917, the parties, made a contract whereby defendant sold plaintiff ten cars of new yellow corn of twelve hundred bushels each, the same to be delivered to plaintiff at Boston, Mass., at the price of $1.33 per bushel.

Defendant claims the contract called for new yellow corn, cool and sweet, to be shipped to Boston rate points, destination to be designated by plaintiff when called for 'by defendant. Defendant claims that the exemptions contained in the contract relieve him from his obligation because of war conditions, embargo and weather conditions resulting in excessive moisture in the corn so that it could not have been shipped to Boston points without destruction from excessive heat resulting from such moisture during transit.

Plaintiff admits that the embargo and conditions of shipment as alleged, but avers that “it is a custom with the Grain Dealers Association to allow a reasonable time to deliver grain after embargoes, strikes, car shortages and other causes beyond seller’s" control, are removed.” Plaintiff avers in the latter part of December, 1917, and again on January 2, 1918, defendant refused to carry out the contract at any time in the. future.

Jury was waived and trial was had to the court.

The claim of counsel and parties is, whether an alleged custom among grain dealers will operate as a continuance of the obligation to deliver the corn to a period beyond the time stipulated for shipment, or until a reasonable time after embargo is lifted.

By the contract defendant agreed to sell plaintiff:

“Ten cars of New Yellow corn (1200 Bu. each) at $1.33 cost and freight to Boston Rate Joints. Time of shipment December shipment (Gtd. Cool & Sweet) Destination. When called for. Final destination to be given. Remarks. Subject to embargoes, strikes, car shortages, and other causes beyond sellers control. Bluyer to pay any advance in freight, if any. Should railroads raise size of cars average to be figured at the market price on date of shipment. ’ ’

[235]*235December 8, 1917, defendant called on plaintiff for billing at once and to points not embargoed, through hauls not junction points. Plaintiff sent billing points December 19, 1917, for eight ears, only one of which was for Boston points. December 19, 1917, billings were sent for the two, neither of which were for Boston points. Cancellation was made of two cars December 21, 1917, and December 27th billing was given for one car at Elizabeth, N. J.

Defendant’s letter of December 8, 1917, calling for billings, also stated:

“These loaders may call me up any moment for billing and not being able to get it out, will let the orders go overboard, as they can not hold this com back indefinitely until some future time when embargoes are raised or cars furnished.”

Letters passed between the parties in November. Defendant wrote the brokers through whom contract was made that the quality of corn was poor. The broker’s reply to defendant was that this seemed to be the situation, suggestion being made that it would be hard to “know where people are going to get off who have November and December shipment corn sold here (Boston), and seems like a foregone conclusion that it would be out of condition.”

The brokers thereupon suggested to defendant that it would be well

“to buy your corn that you have sold from somebody else down here, and let them take the risk of handling hot corn. If you feel this way, and will give us your limits we will do the best on it than we can for you.”

The matter culminated, however, by defendant’s writing plaintiff December 29, 1917, as follows:

“Impossible ship corn conditions beyond my or any human control. ’ ’

January 2, 1918, plaintiff notified defendant that within twenty-four hours it would buy the corn on defendant’s account and [236]*236charge loss to him. Mr. Williams of plaintiff company personally called upon defendant at Columbus, and desired to know if he ever intended to fill his contract according to its terms. Defendant replied in the negative, claiming that the contract was not good “one minute after midnight on the 31st of December,” stating that he never would ship the corn.

Oral testimony has been offered concerning an alleged custom or usage prevailing among grain dealers in respect to the trade meaning and understanding of the words in the contract, viz:

“Subject to embargoes, strikes, car shortages, and other causes beyond seller’s control.”

It is well settled that evidence of custom and usage is admissible to explain the meaning of a written instrument. Such evidence is inadmissible to vary the obvious meaning of words used, 'but it is competent for the reason that by law the custom becomes part of the contract. 12 Cyc., 1081.

If a custom is general, every person who makes a contract is presumed to know the custom, and it enters into the contract and binds him. (Horan v. Strachan, 86 Ga., 408, 22 Am. St., 491.)

Parties are presumed to have dealt with reference to a general custom, and in order to correctly interpret their intentions. (Bowman v. Bank, 9 Wash., 614, 43 Am. St., 870.) A custom, if known to the parties to a contract to which it relates, is held obligatory. (Bank v. Fiske, 133 Pa. St., 241, 19 Am. St., 635, and note.) Knowledge of a usage may be inferred from circumstances or implied from its notoriety. Barry v. Ry., 98 Mo., 62, 14 Am. St., 610. See 10 Am. St. Rep., 826, note.

AYhere goods are “to be taken by” a certain time, custom is admissible to show that these words meant as the purchaser might from time to time specifically order, and that if all were not ordered within the time specified it was customary to send the purchaser, a bill for the.'balance, and to hold such balance subject to his order for a reasonable time. 12 Cyc., 1085; Atkinson v. Truesdell, 127 N. Y., 230.

Usage and custom can not alter or contradict express or implied terms of a contract free from ambiguity, nor make the [237]*237legal rights of liabilities of the parties to a contract other than they are by the terms of the contract (78 O. S., 358; Hopper v. Sage, 112 N. Y., 530, 8 Am. St., 711, and note 775); but usages of trade, if reasonable, and so generally adopted by persons engaged in a particular branch of business as to raise the presumption that they are known to all persons in that business, are valid, and contracts made in that business will be deemed made with reference to them. Clark v. Baker, 11 Md., 186, 45 Am. Dec., 199, and note 202.

Assuming that there is a well-established and understood custom in respect to the implied obligation of grain dealers to deliver grain sold under contract within a reasonable time after an embargo, custom or usage does not and can not settle or establish the question of reasonable time. It becomes a question of fact as developed by the special facts, circumstances and conditions.

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Related

Atkinson v. . Truesdell
27 N.E. 844 (New York Court of Appeals, 1891)
Hopper v. . Sage
20 N.E. 350 (New York Court of Appeals, 1889)
Bowman v. First National Bank
38 P. 211 (Washington Supreme Court, 1894)
Horan v. Strachan Co.
12 S.E. 678 (Supreme Court of Georgia, 1890)
Holland v. Mayor of Baltimore
11 Md. 186 (Court of Appeals of Maryland, 1857)
C. & O. Ry. Co. v. O'Gara, King & Co.
139 S.W. 803 (Court of Appeals of Kentucky, 1911)
Barry v. Hannibal & St. Joseph Railroad
98 Mo. 62 (Supreme Court of Missouri, 1888)

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Bluebook (online)
21 Ohio N.P. (n.s.) 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-donahue-co-v-felty-ohctcomplfrankl-1918.