Bagby v. Straub
Bagby v. Straub
Opinion of the Court
The defendants made a contract by which they agreed to furnish to the plaintiffs, for a period of two years, beginning October 1, 1912, from 4,000 to 6,000 barrels of fuel oil at Moran, in Allen county, at 58 cents a barrel. They made deliveries upon the contract until February 14, 1913, when they refused to proceed further under it. The plaintiffs brought suit for breach of contract and obtained a judgment for $1,830.82, which was found to be the amount of the damages they had sustained up to May 2, 1913, at which time the only customer with whom they had a contract for the disposal of the oil became bankrupt and ceased business. The plaintiffs appealed on the ground that they were entitled to recover an additional sum for damages accruing after that date, and the defendants in the same proceeding asked a reversal on the theory that they were not liable in any amount. This court approved the judgment so far as it established a liability of $1,830.82 up to May 2, 1913, but reversed the case for further proceedings with reference to the plaintiffs’ claim for damages thereafter sustained. (Bagby v. Straub, 101 Kan. 608, 168 Pac. 1098.) In the opinion it was stated that, although other matters had been presented for consideration, the only material error found was the refusal to make additional findings with respect to the market price of the oil after May 2, 1913, and award the plaintiffs a further amount based thereon. This necessarily involved an approval of the orders of the trial court in other respects, including the findings and conclusions theretofore made. On the remand of the case the trial court gave the plaintiffs a judgment for the additional sum of $11,294.71, and the defendants appeal.
The defendants seek to renew a contention made in the former appeal, that their refusal to carry out the contract was justified by a breach of its conditions by the plaintiffs. That matter, however, together with other challenges of the correctness of the original findings and conclusions, is set at rest by the decision then made, which left nothing to be determined excepting the liability of the defendants accruing subsequent to May 2, 1913. The question now to be considered is whether error was committed in fixing that liability at $11,294.71. This
“I further find that soon after the execution of contract between parties hereto fuel oil commenced and continued to advance in price, reaching its highest price in February, 1913, to-wit: $1.05 per barrel; that during the entire time covered by said contract there was a steady demand for fuel oil; the latter part of the year 1912 and the first one-half of year 1913, the demand for fuel oil was great and prices good; no fuel oil during such period could be purchased for as low a price as fifty-eight cents (58c) per barrel f. o. b. cars at refinery in this section of the country.”
The expression “such period” in the last clause quoted appears to refer to “the entire time covered by said contract.” Possibly it may refer to “the latter part of the year 1912 and the first one-half of year 1913.” In either event, it recognizes a demand for the oil after May 2, 1913, and shows liability on the part of the defendants after that time, unless on the theory that no definite amount could be arrived at from the evidence. No witness undertook to say in so many words that there was an established market price for fuel oil at Moran, or in that field, and none testified to a specific estimate of such market price. Nevertheless, we think, as indicated in the former opinion, there was evidence from which the existence of a market price, and its amount, could readily be determined. The fuel oil referred to is a by-product of the refining of crude oil— it is the residuum after the gasoline and kerosene have been extracted. The manager of a refinery at Chanute testified that fuel oil had no- general quoted or published market price, as crude oil had; that its price depended to some extent upon that of crude oil, and fluctuated accordingly, but not uniformly; that during the period in question there was an exceedingly good demand for it — a steady demand and a ready sale; that his company sold theirs to the best possible advantage, but usually the prices received were about what other outputters charged — '
“That fuel oil is a commodity having no regular quoted market price; however, under the evidence adduced upon the trial of the cause, in the light of the mandate and opinion of the Supreme Court, filed herein, and the observations made therein by said court, concerning such evidence, the court now finds that during the whole period intervening between May 2, 1913, and October 1, 1914, a period of sixteen (16) months and twenty-nine (29) days, the plaintiffs could have realized a net profit of fifteen (15c) cents per barrel had the defendants furnished same upon orders of plaintiffs under their contract before referred to at the contract price of fifty-eight (58c) per barrel, f. o. b. cars at Moran, Kans.”
The defendants maintain that the reference to the mandate and opinion of this court, especially in view of its repetition, shows that the trial judge believed that obedience thereto compelled the finding made, irrespective of his own judgment in the matter. The language used suggests the possibility of such an understanding. It is not necessary to incur any risk that
The cause is remanded for a modification in regard to the amount of oil on which the recovery is to be based, the judgment to be otherwise affirmed or further modified according to the test already laid down to be applied by the district court.
Reference
- Full Case Name
- H. F. Bagby and F. J. Horton, Partners as Bagby & Horton v. C. A. Straub [Partners as The Eastern Kansas Oil Company, Limited]
- Status
- Published
- Syllabus
- SYLLABUS BY THE COURT. I. Contract- — Sale of Oil — Breach of Contract — Evidence — Findings. The evidence held sufficient to support a finding of the market price of fuel oil during a certain period. 2. Same — Sale of Oil — Breach of Contract — Action for Damages — Re-referred to Trial Court for Further Proceedings. In view of the possibility that the judgment appealed from was affected by a misunderstanding of the purpose of this court in a former remand, it will be set aside or allowed to stand according to whether or not it was influenced by a belief on the part of the trial judge that the mandate required the making of a certain finding irrespective of his own judgment of the truth and weight of the evidence on which it was based, the trial court to apply this ruling according to its knowledge of the fact in that regard. 3. Same — Sale of Oil — Breach of Contract — Measure of Damages. In an action against the seller for refusal to complete the performance of a contract to furnish at a stated price from 4,000 to 6,000 barrels of fuel oil per month for two years, a provision being added that the buyer must take the maximum amount if offered, the liability of the seller, where it is measured by the ordinary rule of the difference between the contract and market price, is based upon the nondelivery of the minimum amount only, although deliveries of an intermediate amount had been made while the contract was being carried out. 4. New Trial — Motion Denied — No Error. The overruling of a motion for a new trial on the ground of newly discovered evidence held not to have been erroneous.