Willits & Patterson v. Abekobei & Co.

197 A.D. 528, 189 N.Y.S. 525, 1921 N.Y. App. Div. LEXIS 7496
Appellate Division of the Supreme Court of the State of New York·Decided July 1, 1921·Published·Cited by 6 cases

Opinion

Smith, J.:

The plaintiff is a California corporation. The defendant is a Japanese corporation. Upon the 22d of December, 1919, they entered into a contract on the part of the defendant to sell and on the part of the plaintiff to purchase some soya bean oil. This contract was in the following form:

“ Kobe Sale No. 84. Kobe, 22nd December, 1919.

“ Messrs. Willits & Patterson,

“ San Francisco.

“ Bought of Abe Kobei Kobe Branch,

Kobe, Japan.

Dato Quantity Description Packing Shipment Price

10,000 eases Bean Oil not 75 lbs. Jan /Feb/ $15.00

exceed 3% of tin in March per

fatty acid cases 1920 100 lbs.

Net landed weight cif

San Francisco.

1% of Commission to Mr. Donkin

Comm. Paid Mar. 27

“ Confirmed by your Mr. H. Donkin

“ on the 22nd December 1919

“ Terms:— as usual

“ABE KOBEI KOBE BRANCH

“ P. P. M. Mori.”

It will be noticed that the contract called for 10,000 cases, 75 pounds in each case, which would make 750,000 pounds of this oil. The plaintiff paid the full price for the oil. When the oil arrived in San Francisco, however, there was a shortage of 79,555 pounds. This action is brought by the plaintiff, the buyer, to recover back the proportionate amount of the purchase price paid, which amounts to SI 1,483. The complaint [530] contained two causes of action. The first cause of action was to recover back the amount paid upon a contract for the delivery of peanut oil, upon which there was a shortage at the time of delivery of the value of $12,864, so that the amount demanded in the complaint was the sum of $24,167, with interest from the 17th day of August, 1920. This included the damages upon both causes of action. An attachment 'was granted and levied upon property of the defendant in the State of New York. Upon defendant’s motion to vacate that attachment, the plaintiff made no claim that the first cause of action was proven, but sought to uphold the attachment as to the second cause of action. The Special Term held, however, that there was no cause of action shown by the papers and granted the order wholly vacating the attachment. The sole question presented for determination here is as to whether the plaintiff has shown by his complaint and affidavit the existence of the cause of action set forth in the complaint as the second cause of action which is upon the contract hereinbefore set forth. The Special Term has held that this contract was simply a c. i. f. contract and that the perils of the voyage from Japan to San Francisco were at the buyer’s risk, and for failure to show that this shortage existed at the time of the delivery to the carrier, the plaintiff has failed to show any right of action.

The law is well settled that a simple c. i. f. contract requires the seller to deliver to the carrier and upon such delivery the obligation of the seller is at an end and the risk of the voyage is thereafter with the buyer. These contracts of sale, however, are to be construed according to the intention of the parties. A straight f. o. b. contract is satisfied by the seller’s delivery to the carrier' for the purpose of shipment, the risk of transportation resting upon the buyer. If, however, there be anything in the contract which shows that such was not the intention of the parties, the contract will be construed according to their intention. This court has lately held in the case of Standard Casing Co., Inc., v. California Casing Co., Inc. (197 App. Div. 187) that in a contract to ship from California to New York, reserving the right of inspection to the buyer at New York, the liability of the seller was shown by this provision to extend to a delivery in New York city, notwith[531] standing the contract provided for a price f. o. b. San Francisco. •This case followed a decision of this court in the case of Boss v. Hutchinson (182 App. Div. 88) wherein it was held, notwithstanding a named price f. o. b. at point of shipment that the right of inspection at the destination of the transportation indicated an intention that the delivery was not to be deemed complete until such destination was reached. In the case at bar we find the expression “Net landed weight.” This expression can only have one significance and that significance is that the weight at the point of landing, to wit, at San Francisco, must accord with the requirements of the contract. It is true that this expression is put in a column under the word “ description,” and preceding in that column are the words “Bean Oil not exceed 3% of fatty acid.” But the provision “Net landed weight,” although appearing in that column, is a distinct expression, not connected with the description .in any way. The clause begins with a capital “ N,” and although it is in the column marked “ description,” it is between the first column which provides for 10,000 cases and the third column which provides for seventy-five pounds in a case, under which circumstances it may well be held that it was not intended in any way to be a part of the description of the property sold, but was rather intended to be a part of the weight as specified in the first and third columns, although placed in the second column under the word “ description ” between the first and third columns. Wherever these words might be placed, however, no significance can be given to these words as a part of the description of the article sold. The description in reference to the extent of fatty acid can in no way be determined by weight. It is shown that the amount of fatty acids is determined by chemical analysis and it is not apparent how the net landed weight can in any way qualify the description.

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

Willits & Patterson v. Abekobei & Co., 197 A.D. 528, 189 N.Y.S. 525, 1921 N.Y. App. Div. LEXIS 7496 (N.Y. Ct. App. 1921).

197 A.D. 528 (Willits & Patterson v. Abekobei & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Badhwar v. Colorado Fuel and Iron Corporation
138 F. Supp. 595 (S.D. New York, 1955)
Boston Iron & Metal Co. v. Rosenthal
156 P.2d 963 (California Court of Appeal, 1945)
Caplan Grocery Co. v. Aron & Co.
6 Pa. D. & C. 623 (Alleghany County Court of Common Pleas, 1925)
Dwane v. Weil
199 A.D. 719 (Appellate Division of the Supreme Court of New York, 1922)
Warner, Barnes & Co. v. Warner Sugar Refining Co.
117 Misc. 247 (New York Supreme Court, 1921)