Wirth, Ltd. v. Panhandle Pipe and Steel Inc.

580 S.W.2d 58, 1979 Tex. App. LEXIS 3380
CourtCourt of Appeals of Texas
DecidedMarch 22, 1979
Docket1195
StatusPublished
Cited by17 cases

This text of 580 S.W.2d 58 (Wirth, Ltd. v. Panhandle Pipe and Steel Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wirth, Ltd. v. Panhandle Pipe and Steel Inc., 580 S.W.2d 58, 1979 Tex. App. LEXIS 3380 (Tex. Ct. App. 1979).

Opinion

MOORE, Justice.

This is a suit for damages for breach of a contract. Appellant, Wirth, Ltd. (Wirth), brought suit against appellee, Panhandle Pipe and Steel, Inc. (Panhandle), alleging that Panhandle, acting by and through its President, Maurice Seliger, contracted with Wirth for the purchase of 390 tons of steel products, or alternatively, contracted for the purchase of 300 tons of steel products, to be rolled by European steel mills and to be delivered at the port of Houston in Harris County, Texas. Wirth alleged that after it had placed Panhandle’s order for the steel products with the foreign mills, Panhandle notified Wirth that it would no longer go forward with the contract and would refuse to accept delivery of the steel; that when the steel arrived at the port of Houston, Panhandle refused to accept delivery and Wirth was compelled to sell the steel on the open market; and that as a result of the breach of the contract Wirth suffered damages in the amount of $98,266.67. together with other incidental damages.

Panhandle denied generally the allegations of the petition and specially denied the existence, either in fact or in law, of any contract with Wirth for the purchase of steel products. Panhandle alleged that Wirth failed to accept its offer within a reasonable time and that when Wirth finally did send its “order acknowledgment” some 90 days after the order, the delivery times thereof differed from the order and that same was returned to Wirth unsigned within 10 days after receipt thereof. Panhandle alleged that the “order acknowledgment” differed in material respects from the quantity and quality of the steel ordered, and therefore did not amount to an unqualified acceptance of its order. Panhandle further alleged that the “order acknowledgment” amounted to a repudiation of the offer because it showed that the steel was not to be delivered until sometime after the last quarter of 1974 which was contrary to the previous agreement between the parties. Panhandle further alleged that even if a contract existed, no liability at *60 tached because Wirth breached its duty to resell the steel in a commercially reasonable manner at the time it arrived at the port of Houston. After a trial before the court, without a jury, the trial court entered a take-nothing judgment against Wirth, from which ruling and judgment Wirth perfected this appeal.

We affirm.

The record reveals that Wirth, through its sales representative, W. V. Garrett, in Houston, Texas, had established with Panhandle, through its President, Louis Seliger, a general course of business in which Wirth solicited orders for steel products to be rolled in foreign markets. The general course was for Mr. Garrett to contact Mr. Seliger on the telephone and solicit from him an offer to purchase certain steel products. Garrett had no authority to bind Wirth in the transaction. Contracts in connection with the purchase and sale of the steel were to be finalized by Wirth’s Montreal office. Once an offer was given on the phone by Mr. Seliger to Mr. Garrett, Mr. Garrett would telex the offer to the home office of Wirth in Montreal, Canada. Upon receipt of that telex at the home office in Montreal, Wirth would telex its various suppliers, being the mills in Europe, an offer on behalf of Panhandle to purchase the products from the foreign mills. The foreign mills would then telex Wirth in Montreal that the offer was either accepted or was unacceptable. Wirth, in turn, would then telex such information to Mr. Garrett in Houston who would immediately pass that information on to Panhandle, such information being passed on by telephone. In the event the mill had accepted the order, Mr. Garrett would inform Mr. Seliger that the order had been booked for the account of Panhandle and would then request that Seliger issue a purchase order. Panhandle would then issue its purchase order and mail it to Mr. Garrett in Houston, Texas. Upon receipt of the purchase order, Mr. Garrett would forward the same to Wirth at its Montreal office. After the receipt of the purchase order in Montreal, Wirth would issue an order acknowledgment and forward the same to Mr. Garrett in Houston. Garrett would then forward the acknowledgment to Mr. Seliger. Once the steel products arrived in Houston, Panhandle would make arrangement for receiving delivery of the steel and pay for the same upon taking delivery.

The transaction made the basis of the present suit arose from a telephone conversation on July 18, 1974, in which Garrett called Seliger to solicit an order for steel. Garrett testified that Seliger verbally agreed to purchase 890 tons of steel and that he forwarded such information on to the Montreal office. Seliger denied he agreed to purchase any steel at that time. He testified that the telephone conversation amounted to nothing more than a discussion of the availability of the steel and that he never promised Garrett that he would order 390 tons of steel. He testified that no offer to purchase the steel was made until he subsequently forwarded Garrett his written purchase order for 300 tons of steel on July 27, 1974. He testified that after hearing nothing from Wirth, on October 21,1974, he mailed a letter to Wirth revoking the offer. He testified that he finally received an “acknowledgment of the order” on November 5,1974, with a request that it be signed and returned to Wirth. He returned the order acknowledgment to Wirth unsigned because it differed materially with Panhandle’s order. It had extended the delivery date beyond the end of the fourth quarter of 1974.

At the request of appellant, the trial court filed extensive findings of fact and conclusions of law. The findings of fact consist of 41 separate findings, many of which include various additional findings. In view of the disposition we make of the case, it will not be necessary to restate these findings in detail. Generally, the court found that (a) no oral contract was consummated; (b) Panhandle’s order for the steel was never accepted by Wirth; (c) that even if Wirth’s “order acknowledgment” amounted to an acceptance of Panhandle’s order, such acceptance was not made within a reasonable time; (d) that time was of the essence between the par *61 ties; (e) that Wirth’s written “order acknowledgment” which Panhandle received on November 5, 1974, materially differed from Panhandle’s written order; (f) that Panhandle’s order for the steel was made on the condition that the steel was to be delivered at the port of Houston not later than the fourth quarter of 1974; (g) that even if a contract existed between the parties, it was repudiated by Wirth’s “order acknowledgment” showing that the bulk of the steel was not to be delivered until after January 1, 1975; (h) that the alleged contract relied on by Wirth was unenforceable because it failed to comply with the Statute of Frauds’ provision of sec. 2.201 of the Texas Business & Commerce Code; (i) that the resale of the steel by Ashworth when it arrived in Houston was not made in a commercially reasonable manner; and (j) that there was no evidence establishing the market price of the steel at the time Wirth resold the same.

The conclusions of law were as follows:

1. Plaintiff and Defendant did not, either orally or in writing, reach an agreement with respect to the purchase and sale of any of the subject steel products sufficient to form a contract.
2.

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Bluebook (online)
580 S.W.2d 58, 1979 Tex. App. LEXIS 3380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wirth-ltd-v-panhandle-pipe-and-steel-inc-texapp-1979.