In re National Boat & Engine Co.
In re National Boat & Engine Co.
Opinion of the Court
The claim of Carl G. Fisher, of Indianapolis, Ind., comes before me upon the report of Mr. Little, referee in bankruptcy. It is for two motor boats, now in the possession of the trustee, as a part of the assets of the bankrupt company. The boats were manufactured for Fisher by the Truscott Boat Manufacturing Company, before the sale of its assets to the bankrupt com
He says that the 45-foot boat was not built in a workmanlike manner ; that it leaked badly and was unsatisfactory in many other ways; that he notified the Truscott Company that he would wait until July 12, 1912, for them to remedy the defects; that thereupon, he notified them of his refusal to accept the boat because of the inferior workmanship. He says he has paid $4,500 on account of the 45-foot boat, and he demands the return of this money. He further claims that by contract thereafter between his attorneys and the Truscott Company it was agreed that the boat thereafter should become his property;- that title thereby passed to him pursuant to this agreement; but that he gave the Truscott Boat Manufacturing Company until August 1',-1911, and extended said time to September 1, 1911, within which time the Truscott Company were to have the exclusive right to sell the boat, and, out of the proceeds, to pay him $9,500; that any sums received by the Truscott Company in excess of this amount should belong to the company. The petitioner prays for an order directing the trustee to deliver to the petitioner the two boats in question. The referee denied the prayer of the petition, and ordered that the boats be not delivered to the petitioner as prayed for, but that they be transmitted to the assets of the bankrupt.
Had the title to the two boats passed to Fisher prior to the bankruptcy ?
The petition shows that the boats were not built properly, and that Fisher refused them, and demanded his money back. The testimony of Fisher is to the effect that the boats were never completed, and that he. refused to accept them, or to pay any more for them, and that he demanded the return of the money he had paid. He says that he never was notified in accordance with the requirements of the contract that either boat was ready for delivery, and that there never was any written communication by him accepting the boats. On examination of-the correspondence, there appears to be no letter of Fisher tending to show acceptance of the boats. The letters show, on the contrary, that he expected the boats to be completed before they were
There having been no agreement that the title should pass, it is dear that it could not pass by operation of law. In Tufts v. Grewer, 83 Me. 407, 22 Atl. 382, it was claimed by the defendant that the manufacture of an article of a particular description, pursuant to a special order of the customer, transferred the title. The court held that this was not the law; but that there could be no transfer of title unless there was an acceptance on the part of the vendee. Atwood v. Lucas, 53 Me. 508, 89 Am. Dec. 713; Moody v. Brown, 34 Me. 107, 56 Am. Dec. 640: Goddard v. Binney, 115 Mass. 450, 15 Am. Rep. 112; Bennett v. Platt, 9 Pick. (Mass.) 560. Tufts v. Grewer, supra, is the leading authority among recent cases on this subject. In speaking for the court, Chief Justice Peters cited the old authorities, and traced the history of the law upon this subject. He referred to Atwood v. Lucas, supra, as the leading authority in Maine, where, in speaking for the court, Mr. Justice Walton said:
“It is laid down by Mr. Saunders that, to support an action for goods sold and delivered, the plaintiff must prove, not only such a delivery as will vest tlie property in the goods in the defendant, but such a delivery as will divest himself of all lien upon the goods, and enable the defendant to maintain trover for them without payiug or offering to pay for them. Saund, on PI. & Ev. 586.”
In the case at bar the testimony shows that the boats had not been finished according to order. The Truscott Company had never given notice that the boats were finished. It had never presented any hill, nor made any agreement that it would keep the boats after they were finished; nor had there been any act that can be taken as an equivalent to an acceptance. The claimant of the boats steadily refused to accept them as being completed in accordance with the contract, but asserted at all times that the boats never fulfilled the requirements of the contract. It is clear that, under the doctrine of the Maine court, Fisher had not been vested with the title, and the Truscott Company had not been divested of it; certainly it had not lost its lien.
Reference
- Full Case Name
- In re NATIONAL BOAT & ENGINE CO. In re FISHER
- Status
- Published