Henrikson v. Pacific Coast Packing Co.
Henrikson v. Pacific Coast Packing Co.
Opinion of the Court
The purpose of this action was to recover the balance claimed to be .due under the guaranty clause of a written contract. The defendant answered the complaint by certain admissions and denials and an affirmative defense. To the affirmative defense, a •demurrer was interposed and sustained by the trial court. The defendant declined to plead further and elected to stand upon the defense as pleaded. Thereupon judgment was entered against the defendant as prayed for in the complaint, and from that judgment the appeal is prosecuted.
The facts alleged in the complaint and in the affirmative defense thereto will he summarized, so far as
“This agreement entered into at Seattle, Washington, this 6th day of June, 1918, between Pacific Coast Packing Co., hereinafter referred to as ‘Company,’ and H. A. Henrikson, owner of the seine boat ‘Taholah’
“Witnesseth that H. A. Henrikson hereby agrees to fish in the waters of southeastern Alaska for the Pacific Coast Packing Co. exclusively during the season of 1918, and the Pacific Coast Packing Co. hereby agrees to purchase such fish so caught by H. A. Henrikson and the purse seine boat ‘Taholah.’
“It is further agreed that H. A. Henrikson shall fish throughout the season of the run of humpback salmon in southeastern Alaska, the Pacific Coast Packing Co. agrees to take delivery of all fish so caught and delivered by the purse seine boat ‘Taholah’ to the company’s plant located in Cleaveland Passage, paying for same at the rate of five cents for each and every good humpback salmon, and the going price of the district for all other fish so caught and delivered to the plant of the company.
“H. A. Henrikson agrees, whenever possible, to ■turn over all fish taken by the seine boat ‘Taholah’ to the plant of the company, but in the event that he is unable to make delivery to the plant before the fish .might spoil, he is to be permitted to dispose of the fish elsewhere. Amount received by H. A. Henrikson for fish so sold shall apply upon this agreement.
“The Pacific Coast Packing Co. hereby agrees that in case H. A. Henrikson does not catch enough of the various kinds of fish during the season of 1918 to the amount of $500 per share of ten shares, they will pay*646 the difference between the amount earned and $500 per share of ten shares.
“The company agrees to furnish free oil for the operation of the purse seine boat ‘Taholah’ for the voyage from Seattle to the company’s plant and for the return voyage to Seattle.
“Witnessed: Seattle Coast Packing Co.
“H. C. Barney. By W. S. Clark, Sec. and Treas. “J. D. Clark. Accepted H. A. Henriks on
“Owner of Purse Seine Boat ‘Taholah.’ ”
That, in pursuance of this agreement, respondent went to the waters bordering the Territory of Alaska vqth his fishing vessel and fished during the season of 1918; and that for the fish. caught he received the sum of $1,824.15. Prayer is made for a judgment for the difference between this sum and the sum of $5,000 mentioned in the written contract, or $3,175.85. The affirmative defense alleged, after admitting the making of the contract set out in the complaint, that it owned and operated a salmon canning plant located on Frederick Sound, in the southeastern portion of the Territory of Alaska; that the respondent went to Alaska during the season of 1918 and caught and delivered to the appellant a certain quantity of salmon; that, on August 10, 1917, the Congress of the United States duly passed, and thereafter the President of the United States approved, an act entitled: “An act to provide further for the national security and defense by encouraging the production, conserving the supply, and controlling the distribution of food products. and fuel,” which act is known as the Federal food control act; that, at the time of the execution of the contract upon which the respondent’s action is based, the act was in full force and effect, and has since this time remained in force and effect; that, in the act, the President of the United States was given full power and authority to carry out and enforce the
The controlling question is whether the guaranty clause in the contract was an unlawful undertaking as violating the Federal act, if it resulted in paying more for the fish than the prices fixed by the food administrator. The respondent claims that the contract, properly construed, is one of employment, and therefore does not come within the provisions of the act. The appellant contends that the contract is one for the sale of fish, and that the prices fixed by the Federal food administrator are controlling, and that an agreement to pay more would be illegal and void.
If the respondent can recover, under the guaranty clause in the contract, more than the prices fixed by the Federal food administration, the law under which such prices were so fixed would be nullified. The purpose of the food control act, as applied to the subject-matter of the contract here in controversy, was to insure fishermen a reasonable price for the fish they caught, enable the cannerymen to secure an adequate supply of fish for canning purposes at such a reasonable price as would enable them to sell the same at a reasonable price to the purchasing public and make a fair profit. If the act could be avoided by contracts such as the one here in question, its provisions would be largely defeated. To hold that this contract was •one of employment, and therefore not subject to the
The judgment will be reversed, and the' cause remanded with directions to the superior court to overrule the demurrer to the affirmative defense in the answer.
Holcomb, O. J., Parker, and Mackintosh, JJ., concur.
Dissenting Opinion
(dissenting)—I dissent. I have no doubt the contract was made in the best of faith. Appellant alleges it is a domestic corporation. Manifestly, in addition to its prospects of profits, with commendable zeal and catching the spirit of the times, it determined, even at some financial risk, to commence or continue operating a cannery for the support of the government’s needs for the increased production and preparation of food, and made this contract; and now, after it appears to have been faithfully performed by the other party, it seeks to hide behind the government and, through a strained construction of its contract, escape from the effects of its solemn obligation.
The essential and controlling error in the majority opinion as to the. purpose of the contract — which adopts the contention of appellant — lies in its con- ■ elusion: “Its primary purpose was for the sale to the appellant of the fish caught by the respondent. ” On the contrary, the contract is entitled to no other construction than that of an attempt on the part of the
And again, the contract provides that, if necessary to prevent spoiling, fish caught might be sold to other parties, in which event the amounts thus received should be applied on the agreement. What agreement? Surely not the agreement to pay for fish actually delivered to appellant; thus distinguishing appellant’s agreement to at least divide the risk, wholly independent of its other agreement to pay as the fish were delivered. If appellant’s idea of the contract is right, then one under a contract providing therefor would not be allowed to pay the transportation of men from Seattle to its cannery in Alaska, and put them, or others already there, to work on its own fishing boats with the understanding that they would be paid the regulation price at which fish were sold; because, forsooth, the expense incurred, together with the price to be paid for the fish, would exceed the price fixed by the government, and therefore the contract would be void. Or, as pertinently remarked in the argument of the case, it is difficult to understand why the cost of oil furnished by appellant for the operation of the
In the fifth section, the contract provides that, if respondent does not catch enough fish to earn $5,000, appellant will pay the difference. That is, if respondent’s earnings by the plan of paying so much per fish should be less than $5,000, then, to compensate him for his loss, appellant agreed, as an incident to* the risks of its own cannery business, devoted to the pursuit of profit as wed as the needs of the government, to pay the difference. That is the matured promise this suit is brought to enforce, and, in my opinion, it is a perfectly lawful and enforcible obligation.
Reference
- Full Case Name
- H. A. Henrikson v. Pacific Coast Packing Company
- Cited By
- 1 case
- Status
- Published
- Syllabus
- Sales (3)—Contracts (40, 41)—Validity—Sales Distinguished From Employment—Violation of Federal Food Control Act. A contract between a packing company and the owner of a fishing vessel whereby the owner of the vessel agreed to fish in certain waters and the company agreed to purchase the fish, paying so much per fish for all fish caught and guaranteeing a certain sum for the catch, is primarily a contract of sale and not of employment; and any guaranty of price in excess of the prices fixed by the Federal food control act is unenforceable, since such act is controlling (Mitchell, J., dissenting).