137 F. 625 (S.D.Ga 1905), D.A. Tompkins Co. v. Monticello Cotton Oil Co.
|Citation:||137 F. 625|
|Party Name:||D. A. TOMPKINS CO. v. MONTICELLO COTTON OIL CO. et al.|
|Case Date:||April 21, 1905|
|Court:||United States Courts of Appeals, Court of Appeals for the Eleventh Circuit|
Robert C. Alston and Merrel P. Callaway, for complainant.
John R. L. Smith and Greene F. Johnson, for respondents.
SPEER, District Judge.
This cause is under consideration for final decree. All of the evidence has been taken and submitted to the court. The contentions of the parties have been fully argued, and the court has taken time for consideration.
The case is a bill brought in equity to enforce the recovery of the price of certain machinery and equipment used in the manufacture of oil from cotton seed. The cost of the machinery, equipment,
and installation was $19,000. The complainant is a manufacturer and dealer in such machinery, and a contractor for its installation. The defendants were the projectors, and subsequently became the incorporators, of the Monticello Cotton Oil Company. While these persons, as the contract was made with them, were made parties, the principal defendant is the oil company. It appears from the evidence that the machinery was manufactured or furnished by the complainant, and installed in the mill of the defendant company. A dispute arising between the parties, and it being denied by the defendants that there was a substantial compliance on the part of the complainant with its contract to furnish and install the machinery within the time limited, payment of the full amount claimed was denied. The bill was then brought. As originally presented, this had a double aspect. It was alleged that complainant was entitled to a materialman's or contractor's lien, as defined by the law of Georgia. A suitable prayer was made for the enforcement of such line. It was also alleged that the contract between the parties was a conditional sale, and, since the condition of payment had not been complied with, the bill also presented a prayer for an order directing the recaption or restitution to the complainant of the machinery and equipment sold, delivered, and installed. However the averments and the prayer with relation to this construction of the contract are not merely for recaption. It is alleged that since the machinery has been installed and attached to the realty, or otherwise built into the plant, it is impossible to retake it in its entirety without great loss, and the court is asked to frame such a decree as will enforce the equitable rights of the vendor. While the bill rested in the form thus described, a demurrer was interposed thereto. The principal ground of this was that the court was without equitable jurisdiction. It appearing, however, to the court that the bill, by its averments, made obviously a case for the enforcement of a statutory lien authorized by state law, this demurrer was overruled. Answer and replication having been filed, and the evidence taken, the case was assigned for hearing. On the hearing the complainant amended its bill; alleging, in substance, that the contract relied on must be treated as a chattel mortgage, and accompanied this amendment with a prayer seeking to enforce it as such. This amendment, having been allowed, reopened the case to the usual defenses. An additional demurrer was interposed upon the ground that the contract was in no sense a mortgage, and otherwise objecting to the amended bill for the want of equity, etc. This demurrer, while argued, is, by consent of counsel, to be considered and determined in connection with the whole case.
The questions involved have not been free from difficulty. The contract is set out in a printed and written order. The blank order was furnished by the Tompkins Company, as is usual with them in such transaction. It was completed and signed by the defendant company, or, more accurately, by the projectors, who were afterwards the incorporators. Of the responsibility of these parties, in case liability is established, there is no question. The order is in evidence and its material stipulation will be presently considered.
Its acceptance by the complainant, along with certain 'general conditions,' constitutes the contract. These general conditions accompanying the order are also in print and in writing, and, it is conceded, were agreed to by the complainant. They contain the following material stipulations:
'Our work is to be considered completed when the mill is set in motion, and each machine is put on its legitimate work. At this time complete settlement must be made for unpaid balances in cash or by notes, as per order sheet.
'The plant will not be...
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