Providence Ice Company v. Bowen
Providence Ice Company v. Bowen
Opinion of the Court
This is an action of assumpsit to recover for an alleged failure to deliver ice in accordance with a written contract, also to recover the amount of certain alleged over-payments for ice. The trial in the Superior Court resulted in a verdict for the defendant. The plaintiff’s motion for a new trial was denied by the justice who presided at the trial. The case is before this court on the plaintiff’s exception to the refusal of said justice to grant said motion for a new trial, also on certain exceptions taken to the rulings of said justice during the trial.
On January 21, 1916, the parties entered into a written contract whereby the plaintiff agreed to buy and the defendant agreed to sell for a period of five years 72^% of one-half of all ice harvested by defendant during the term of the contract and stored in the defendant’s ice houses- at Abbott Run, Rhode Island. The amount so harvested and stored was to be determined by measurements taken immediately after each ice harvest. The minimum price to be paid for ice was one dollar per ton. This action is the culmination of a dispute between the parties as to the interpretation of a clause of said contract, which clause reads as follows: “In the event that the party of the first part receives, in writing, a bona fide offer or offers in any year during the term of this contract, of One Dollar Fifty Cents ($1.50) per ton, or more, F. O. B. ice houses at Abbott Run or Highland Lake, for five hundred tons or upwards, it is agreed by the party of the second part that it will pay to the party of the first part one-half of the increase in price, in addition to One Dollar ($1.00) per ton, for so much of its ice as the party of the first part is able to dispose of at the increased price, or forfeit such an amount of said ice to the party of the first part.”
The plaintiff contends that, upon receiving notice from the defendant that he had received an offer as specified in said clause, the plaintiff was not required to elect whether it would pay the extra price or forfeit the amount of ice named in said offer until the defendant had submitted said offer *177 for the plaintiff’s inspection. The defendant would at no time consent to this construction.
The controversy arose during the spring and summer óf 1918. After the ice harvest of the preceding winter the ice in the Abbott Run ice houses was measured and it was determined that 72^% of one-half of the ice in said houses was 7,343 tons. On March 8, 1918, the defendant wrote the plaintiff, stating, “Now in reference to the portion of ice coming to you under the contract. I have sold 1,000 tons for $2.00 per ton, with the privilege of another 1,000. I will know regarding this amount within a few days, but the first mentioned amount is positively sold. ... I would like to know between now and Monday if you intend to pay the advance in the price, $1.50 per ton, on the 1,000 tons which were positively sold, as stated above.” To the above letter the plaintiff replied: “We ask you to permit us to see your contract for the sale of 1,000 tons- of ice at $2.00 per ton and also the contract for the sale of another 1,000 tons at $2.00 per ton, if the latter contract is entered into by you.” On March 20, defendant wrote that “there is nothing in the contract that requires me to allow you to inspect or handle any contracts which I may have. ... Now relative to the 2,000 tons at $2.00 per ton, I will kindly ask whether you will give $1.50 per ton for the 2,000 or release the same.” On March 26,1918, the plaintiff replied: “ , . . But in this connection we must say that we insist that it is clearly our right to know that you have a ‘bona fide offer in writing,’ etc., according to the terms of the contract. One of the ways in which that can be established is for you to show us the ‘bona fide offer in writing,’ and we again repeat our request that you show us the offer or offers, and we reserve all our rights with reference thereto. . . . We can only repeat what we have already said in -this, namely: if you have received 'a bona fide offer in writing etc., we shall pay you an increased price for some of the Abbott Run ice we have purchased of you, all according to the contract, but we are entitled to know the facts. It is unreasonable to suppose that we may *178 be successfully called on to stand and deliver without proof.’ ” On April 19, 1918, the defendant replied as follows: “I note that in your favor of the 26th ult., you say that you will pay the increase for the same. That will not apply to the 2,000 tons which I have already sold, as you did not avail yourself of the right to take this at the increased price.” The same letter also stated: “I received a bona fide offer some time ago for 1,400 tons of ice from Abbott Run. As I want a reply as soon as possible, I would like to have you advise me, on or before Saturday night, April 20, at 6:00 o’clock p. m., if you will pay the difference -as expressed in the contract or not.” The plaintiff replied: “As you give us no figures as to price on this lot it would be impossible for us to reply to your question as to whether or not we ‘will pay the difference as provided in the contract,’ even if we /were so disposed. Our position in reference to the 1,400 tons just mentioned is just the same as with reference to the other quantities mentioned in your previous favors and our replies thereto, namely: Show us bona fide offers in writing as described in the contract and we will now and at all times do just as we have agreed to do.” On April 22, 1918, defendant replied: “I regret that the matter of price was overlooked in my communication of the 19th inst., to you regarding the amount of 1,400 tons of ice. The offer is for $2.00 per ton F. O. B. Abbott Run, and from no other place. I will wait until Wednesday, April 24th, at 6:00 p. m. for a reply.” On May 10, 1918, defendant wrote: “Regarding the bona fide offers for some of that portion of the ice which might be coming to you, will say that I will allow Mr-William C. Angelí or Mr. A. B. Chace of the Westminster Bank to look over the offers I have received and advise your attorney, Mr. Hinckley. This is with a distinct understanding that they do not give names or addresses of parties making the offers. They may have them, however, acknowledge their signatures, if they wish to do so.” It appears from the testimony that at that time Mr. Chace was president and Mr. Angelí cashier of the Westminster *179 Bank and that Mr. Hinckley and Mr. Bowen were directors of the same bank. In a letter of May 15,1918, the plaintiff rejected the above proposal and stated that it did not give the plaintiff the right to which they were entitled under the contract. On June 7, 1918, defendant wrote, stating that he had bona fide offers for 1,700 tons at $2.00 per ton and requested the plaintiff to advise whether they would pay the difference in price. The letter continued as follows: “Í will verify the same, if you wish me to, and place the offers in the hands of Mr. Arnold B. Chace or Mr. William C. Angelí, or both if you desire, as I previously offered to in my letter to you of May 10,1918, and which you declined to accept.” Plaintiff replied, June 8, 1918: “Your offer to ‘place the offers in the hands of Mr. Arnold B. Chace or Mr. William C. Angelí or both’ is the same offer made to us by you under date of May 10th and is subject to the same reply. . . .We have heretofore, perhaps a number of times, informed you what is necessary for you t.o do in order to establish this year’s price, and we are still waiting for reasonable action on your part with reference thereto.” In a letter of June 12, 1918, the plaintiff enclosed a check paying for the ice delivered from May 27, to June 1, 1918, at the rate of $1.00 per ton. Plaintiff stated in this letter that if and when the defendant met the requirements of the contract'and established the fact that they were indebted further they would pay such amount if any as may be found to be due. In a letter of June 28, 1918, the defendant returned said check and notified the plaintiff that he had an offer for 800 tons of ice at the price of $2. per ton and that he was willing to refer the offer to the persons mentioned in his communication of June 7. The letter also stated that the offer for 800 tons makes a total of 5,900 tons, for which he had received offers in writing. On July 2, 1918, the plaintiff wrote that its reply relative to this offer was the same as it had made to notices concerning other offers.. On July 3, 1918, defendant wrote, stating that he had duly notified the plaintiff of offers in writing which he had received *180 for ice at the rate of $2.00 per ton; that he had given the plaintiff every opportunity to live up to the contract; that he had offers for 5,900 tons; that the difference between the 5,900 tons and 7,343 tons was 1,443 tons; that he had shipped the plaintiff more than the latter amount; and that he would ship no ice after July 6, 1918, It was admitted at the trial that the amount shipped by the defendant was 2,358 tons. On July 9, 1918, the plaintiff’s attorneys sent the defendant a letter in which it was contended that the plaintiff had performed its contract. The letter stated that failure on the defendant’s part to ship ice would constitute a breach of the contract and that the plaintiff was willing to pay an increased price but must have proof that bona fide offers in writing had been made to defendant. Thereafter upon receiving a promise from Mr. Hinckley that he would not disclose the names of the persons who had made said offers for ice, the defendant delivered said written offers to Mr. Hinckley who kept them until the following day. On July 30, 1918, the plaintiff wrote, stating that without prejudice and reserving all its rights it would pay $1.50 per ton for the ice shipped during the month of June and from July 1, to July 6, 1918, and for the balance of the ice due for the season, vis., 5,034 tons, as they contended. Said letter contained a check, in payment for ice, at $1.50 per ton, shipped during the last five days of May, 1918. The defendant refused to ship any more ice and stated in a letter to the plaintiff that he had sold all of the remaining ice in question to the persons who had submitted offers to him. The plaintiff thereafter paid for the ice shipped from June 1, to July 6, 1918, at the rate of $1.50 per ton.
The plaintiff and the defendant were rivals in business. No other wholesale ice dealer had a business located either in the city of Providence or within ten miles from said city and while the plaintiff was suspicious as to the genuineness of said offers the defendant suspected that the plaintiff, if it knew the name of his customer, would induce such customer by offering to sell him ice at a lower price, to withdraw his offer. There is testimony to the effect that the plaintiff before said contract was executed had learned the names of some of the defendant’s customers and had induced them, by underbidding the defendant, to purchase their supply of ice from the plaintiff. It is evident that the construction placed on said contract by the trial court might work a hardship on the plaintiff and also that the construction contended for by the plaintiff might give it an unfair advantage over the defendant.
Exceptions 28, 30, 31, 52, 53 and 57 each presents the same question as exception 12 and each is overruled.
The 24th and 25th exceptions were taken to the ruling of the court refusing to strike out testimony of certain witnesses. Each of said exceptions is without merit and is overruled.
The 35th exception was taken to the refusal of said justice to grant the plaintiff’s 1st request to charge, which request was as follows: “That under the contract the defendant was required to notify the plaintiff that he had bona fide offers in writing if he desired to take advantage of the same.” As the defendant, in some of his letters, notifying the plaintiff that defendant had received offers for some of said ice, failed to state that said offers were bona fide and in writing, the plaintiff contends that it was not required to elect whether it would forfeit the amount of ice specified in said letters or *183 pay the increased price and that by refusing to elect it did not forfeit any of the ice specified in said letters. In making this contention the plaintiff relies upon the following language of the contract: “In the event that the party of the first part receives, in writing, a bona fide offer or offers in any year during the term of this contract of One Dollar Fifty Cents ($1.50) per ton, or more F; O. B. ice houses at Abbott Run.” The plaintiff knew when it received notice of each of said offers that the notice was given for the purpose of requiring the plaintiff to elect in accordance with the terms .of the contract whether the plaintiff would forfeit the amount of ice specified in the notice of offer or pay the increased price. From the correspondence between the parties it is clear that the language of said letters did not mislead the plaintiff. It made no objection to the form of notice but demanded that the offers be submitted for the plaintiff’s inspection. The *35th exception is overruled.
Exceptions 26, 29, 32 and 36 to 40 inclusive each presents the same question as does Exception 35. Each of these exceptions is overruled.
Exception 33 presents the saíne question as Exception 54 and is overruled.
The 68th exception is without merit and is overruled.
Exceptions 69 and 70 each presents substantially the same question as Exception 12 and each is overruled.
*185
The 66th exception presents the same question as the 34th exception and is also overruled.
The 64th exception is without merit and is overruled.
“We beg to acknowledge receipt of your favor of the 7th inst. in which you say you 'have bona fide offers for 1,700 tons of that portion of the ice coming to you (us) from Abbott Run, etc., and asking us whether or not we 'will pay the difference in price as expressed in that contract.’
"Replying thereto we beg to assure you that we will pay any 'difference in price as expressed in that contract’ not only for the 1,700 tons just mentioned, but for any and all of our portion of the Abbott Run ice, and will do so whenever the price to be paid by us is properly established under the terms of the contract referred to.
"We do not admit the correctness of your statement that 'the above offer covers more than the balance of the ice coming to you’ (us).
“Your offer to 'place the offers in the hands of Mr. Arnold B. Chace or Mr. William C. Angelí or both’ is the same offer made to us by you under date of May 10th and is subject to the same reply as made to you by us under date of May 15th.
"We ask your attention to the following closing paragraph in our letter to you May 28th:
“ 'We have heretofore, perhaps a number of times, informed you what is necessary for you to do in order to establish this year’s price, and we are still waiting for reasonable action on your part with reference thereto.’ ”
*187 In the above letter plaintiff states that it will pay the increased price “whenever the price to be paid by us is properly established under the terms of the contract referred to,” but the letter clearly shows that the plaintiff was still contending that the price could be “properly established under the terms of the contract,” only by submitting the offers for the plaintiff's inspection. The plaintiff contended that the contract gave the plaintiff the right to refuse to elect whether it would forfeit the ice, until after the offers were submitted for the plaintiff's inspection but' this contention, as we have already pointed out, was untenable. The plaintiff relied upon its construction of the contract and did not elect to take the ice. It was necessary for the defendant in the proper management of his business either to accept or reject, within a reasonable time, the offers which he received and we think he was justified in concluding, notwithstanding the plaintiff's statements that it would not forfeit the ice, that the plaintiff did not intend to decide whether it would forfeit the ice until after the plaintiff was permitted to inspect the offers. In our opinion the trial court did not err in modifying the plaintiff’s 34th request to. charge. The 63rd exception is overruled. ' The 55th exception presents the same question as the 63rd exception and is overruled.
The 58th exception is without merit and is overruled.
The 49th exception is to the refusal of the trial court to grant the plaintiff's 19th request to charge. Said- request was based on a misstatement of the evidence. The 49th exception is overruled.
The 62nd and 65th exceptions are without merit and are overruled.
We have examined each of the plaintiff’s exceptions and find each of them to be without merit.
All of the plaintiff’s exceptions are overruled and the case is remitted to the Superior Court with direction to enter judgment upon the verdict.
Reference
- Full Case Name
- Providence Ice Company v. William E. Bowen.
- Cited By
- 1 case
- Status
- Published