Screw MacHine Products Corp. v. Cutter & Wood Supply Co.
Screw MacHine Products Corp. v. Cutter & Wood Supply Co.
Opinion of the Court
This is an action in assumpsit. The declaration alleges that the parties entered into a contract whereby the plaintiff agreed to buy and the defendant agreed to sell a certain number of drills; that the defendant broke the contract by refusing to make delivery in accordance with the terms of the contract. The trial in the Superior Court resulted in a verdict for the plaintiff for $2,895.32. The case is before us on the defendant’s exceptions, as follows: to the refusal of the trial court to direct a verdict for the defendant; to the admission and exclusion of testimony; to the refusal to strike out certain testimony; to certain instructions to the jury; to the refusal to instruct as requested, and to the refusal of said court to grant the defendant a new trial.
The defendant was a dealer in.tools and mill supplies, with the main store and office located in the city of Boston and a branch store located in the city of Providence. The business was both wholesale and retail. Only a small stock was carried in the Providence store. On September 27, 1915, Mr. Barnett, manager of the Providence store, obtained from the plaintiff an order or orders for 334 dozen right hand and 334 dozen left hand high speed twist drills at the price of 62J^ per cent off the catalogue price. Mr. Barnett attempted to obtain the order for 60 per cent off but plaintiff refused to agree to pay more than the catalogue price less 62J^ per cent.'
The plaintiff contends that Barnett at the time he obtained said order agreed to fill the order by delivering at once such portions of the order as the defendant had in stock and the balance as soon as it could be obtained from the manufacturer, the Cleveland Twist Drill Co., and not later than two months. The defendant contends that Barnett accepted the order with the understanding that he would fill the order provided he could obtain the drills for the *411 plaintiff at 'the catalogue price less per cent. The defendant also contends that its agent had no authority, either express or implied, to bind the defendant by entering into a contract to sell such a large number of high speed drills.
After conferring with his principal Mr. Barnett, on October 12, 1915, in a conversation by telephone, told the plaintiff’s purchasing agent that1 the defendant could not fill the order at the catalogue price less 62J^ per cent. On the following day the plaintiff replied by letter, as follows:'
"October 13, 1915.
Cutter and Wood Supply Co.
131 Washington Street,
Providence, R. I.
Attention Mr. Barnett Re-Manager.
Gentlemen:
Confirming the conversation between yourself and the writer yesterday, we expect you to fill our orders No. 12730, 12731, 12732, 12733, 12735, and 12736 for right hand straight shank Cleveland Twist Drills at a discount of 62^'per cent from the regular Cleveland Twist Drill price list. These orders were given you at your request in the presence of Mr. Swan of the Cleveland Twist Drill Company, Mr. McDermott and the writer of this company, at a discount of 62^ per cent and from a strictly business stand point it is up to you to fill the orders at your own discount, viz., 62^ per cent.
It seems very strange to us that fifteen days after this order has been in your hands that you should come to us and tell us that you cannot accept the order at the price at which you took it. Had you advised us at once that you were not in a position to fill the order at a discount of 62^ per cent we could have purchased from another concern without loss of money to us, but now it is too late for us to place the order with your competitors without paying them a higher price than *412 would have been the case when the order was first placed with you, and you at the time you took this order, were aware of the fact that we could place the business with your competitor without paying him a higher price than he had been receiving for the past year or so.
As stated to you yesterday, we do not like to see anybody accept our orders and take them at losing basis, but looking at the proposition from any angle that you choose, we believe that you will be confronted with the fact that you are bound to fill the order, particularly under the existing circumstances, at the price which you took it.
Yours very truly,
THE SCREW MACHINE PRODUCTS CORP.
Leo P. Burgess, Purchasing Dept.”
The price of drills advanced soon after said order was taken and continued to advance very materially for a period of several months, during which time the defendant made deliveries of drills on said order at the catalogue price less 62^2 per cent. All left hand drills specified in the order were delivered but the defendant failed to deliver a large portion of the right hand drills specified in the order and for this failure the plaintiff is seeking damage.
A description of the drills ordered was, by reference to catalogue numbers, typewritten on the plaintiff’s regular order sheets which contained in the margin printed instructions under various headings. Under “DELIVERY” is the following: “Unless delivéry be made within one day of date of order, we must have written acceptance by return mail stating delivery and actual shipping date. As soon as possible and promptly are not dates. Material must be delivered within time agreed, otherwise we reserve right to cancel.” The defendant argues that the first sentence of the language above quoted conclusively shows that an order, to be accepted only in writing, was given and that no contract was made. The plaintiff’s testimony is to the *415 effect that this typewritten description of drills was not an order but was a memorandum and was not made until after the terms of the contract for the purchase and sale of the 334 dozen right hand and the 334 dozen left hand drills was completed. There was no attempt to vary, by parol testimony, the terms of a written contract for no one contends that these .several sheets of paper were written contracts. Under “PRICE” is printed the following: “This order must not be filled at ai higher price than noted on order nor at a higher price than last charged or. quoted. When price is ‘delivered our factory,’ prepay freight.” We find no price “noted” on any of these sheets but the parties agree that the price was to be the catalogue price less 62]/£%. To one having this information the language last quoted^ might indicate that the typewritten sheets were not orders to be accepted. As we have above stated it was a question for the jury on all of the evidence whether the parties contracted. Exceptions 4, 5, 21, 27, 30, 32 and 33 are each overruled. Exceptions 1, 2 and 3 were to the admission of testimony relative to left hand drills. The defendant contends that the sale of left hand drills was a separate transaction and that the testimony concerning the sale and delivery of left hand drills tended to confuse the issue. There was testimony to the effect that the agreement for the sale of left hand and right hand drills was not separable but was an entire contract. The testimony objected to was admissible as it tended to show that the defendant recognized the existence of a contract between the parties for the delivery of right hand as well as left hand drills'.
The 18th exception was to the admission of the defendant’s invoice of drills to the plaintiff on May 12, 1916, at a price higher than the contract price. We find no merit in this exception.
The 17th exception is to the refusal of the trial court to strike out testimony. On cross-examination said Barnett, a witness called by the defendant, was asked the question, *416 “Didn’t you at that time request Mr. Briggs to release you from delivering the balance of those drills?” The purpose of the question evidently was to show that the witness made-no contention that a contract did not exist between the-parties. The witness answered “No,” and then added, “I may have asked Mr. Briggs to state some offer to avoid trouble. We were very anxious to avoid trouble and expense of going to law and willing to do anything in reason, almost,, to avoid that.” The defendant took exception to the refusal of the court to strike out all of the answer following the word, “No.” The language contained an implied denial of liability and was a voluntary statement by witness; called by defendant. Under the circumstances we do not consider the ruling of the court refusing to strike out said language reversible error.
The 19th exception was to the exclusion of similar testimony and is also overruled.
The 35th exception is to the refusal of the trial court to ' grant a new trial. In considering the exception to the refusal to direct a verdict for the defendant we have discussed the defendant’s contention that no valid contract was entered into by the parties. The defendant further suggests that the damages awarded are excessive for the reason that, as he contends, if a contract existed between the parties it was broken on October 12, 1915, when Barnett told the plaintiff that the defendant could not fill the order at the price stated and was also broken when deliveries were not completed at the expiration of two months from *417 the date when the order was obtained and that in computing the damages the market price of drills on one of these two dates should have been considered rather than the much higher price of August or September, 1916.
In Ogle v. Vane, L. R. 2 Q. B. 275, the defendant agreed to deliver 500 tons of iron to the plaintiff by the end of July and none had been delivered at said date and at the request of defendant plaintiff waited until February of the following year.' Defendant failed to deliver in February and plaintiff sought to recover damages as of February. Defendant contended that inasmuch as the contract was broken at the end of July the damages should be fixed as of that time and that since no new contract was entered into the measure of damages could not be altered by subsequent events. The court, at pp. 281 and 283, said: “I agree that the plaintiff did not make a binding contract at law, because he never contracted at all” (referring to the consent to extend time for delivery); “.but I think that what he did operated so far *418 that it amounted to a postponement of the day at which he might go into the market, and at which the jury might calculate the measure of damages.” . . . "Here there was no substitution of one contract for another. Here the inference which I think the jury might well draw as the result of the evidence is that the parties did no more than this: The plaintiff was willing to wait, at the request of the defendant, for the defendant’s convenience, and he did wait a long time, till February; but if he had lost patience sooner, and refused to wait any longer, he would have had a right to bring his action at once for the breach in July. It is clearly a case of voluntary waiting, and not of alteration in the contract; and the length of time can make no difference.” See also Brown v. Sharkey, 93 Iowa, 157; ’ Ralli v. Rockmore (Ga.) 111 Fed. 874; Consumers’ Bread Co. v. Stafford County Flour Mills Co. (Kan.) 239 Fed. 693; Hickman v. Haynes, L. R. 10 C. P. 598; Schultz v. Glickstein, 168 N. Y. Sup. 490; Sedgwick on Damages, 9th Ed. Vol. 2, § 737.
Exceptions 6 to 13, inclusive, and exceptions 25 and 28 are each overruled.
The 35th exception, which was to the refusal to grant a new trial, is also overruled.
All of the defendant’s exceptions are overruled and the case is remitted to the Superior Court with direction to enter judgment on the verdict.
Reference
- Full Case Name
- Screw MacHine Products Corporation vs. Cutter & Wood Supply Co.
- Status
- Published