H. H. Lineaweaver & Co. v. McFadden
H. H. Lineaweaver & Co. v. McFadden
Opinion of the Court
Opinion by
Both plaintiff and defendant in the present case were jobbers in coal, the former having been so engaged for many years, and the latter being likewise employed,
In the following February a new policy was adopted by the federal authorities, which can be best explained by repeating, in part, the words of the circular then issued. “The United States Fuel Administration is satisfied that the only sound basis is to include in the government price a proper price for selling expense', and to provide for the compensation of the distributor in that way. It is therefore officially announced that on and after April 1, 1918, the limit of compensation of the jobber is removed, but that his compensation must come out of the government price at the mine, and may not be added to it. The mine prices will be republished prior to April 1, 1918, and at that time a proper allowance for selling expense will be included in the price named.” To meet the additional burden thus imposed upon the operator, a new schedule was put in force, increasing the amount chargeable at the mine to $3.05, instead of $2.45, plus fifteen cents, or $2.60, theretofore named as the maximum, though the first sum was later reduced to $2.95.
Plaintiff, claiming to have earned the compensation provided for by the original contract, — the defendant being the vendee of the coal company, and then the seller to Lineaweaver & Company, who in turn sold to the railroad, — brought suit for the commissions on the product mined and disposed of, at the rate fixed originally for its brokerage services. The first trial ended in a nonsuit, subsequently set aside, the second in a disagreement of the jury, and the third, was heard by the court, by consent, under the Act of 1874, which entered judgment for the full amount of the claim, based on the tonnage produced and sold between June 26, 1918, and the date named for the termination of the sales agreement.
The first question raised on this appeal relates to the effect of the government order of February, 1918. Prior to that time a maximum brokerage fee was fixed, and all of the parties contracted with this in mind, the plaintiff and defendant arranging between themselves for the manner in which the allotted sum should be divided. The change in base price, considerably increased as it was, evidently contemplated that sellers of coal should, in the future, pay commissions from the charge permitted to be made. Though the contract was subject to
As said by the learned court below in its first conclusion of law, which we adopt, “Neither the United States Fuel Administration, nor any other governmental agency, made any rule, order or regulation at any time which prevented, or interfered with, the carrying out of the contract between the parties hereto at such prices as to enable the plaintiff to obtain the profit contemplated in the original contract.”
The construction as to the effect of the change of price ordered accords with that adopted by the defendant until June 26th, when the coal company ceased deliveries through the parties to this proceeding. Though requesting that an effort be made to secure the commissions .from the railroad, it allowed the deductions from the new fixed price until that time. And this practice was in conformity with the intents, purposes and directions of the fuel administrator, as appears by the evidence of his Pennsylvania representative.
The latter purchased directly and sold to the former, who was to receive a definite sum in compensation for reselling. Lineaweaver & Company performed the duty as agreed upon, and it is entitled to the commissions upon the tonnage mined from the one who contracted to pay. The fact that the coal company may have interpreted the orders of the government in such a way as to deprive McFadden of his just dues is no defense to the present action. The conclusion reached by the court below was correct, and should be sustained.
The judgment is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.