Halver v. Higgins Sheep Commission Co.

Decision Date17 March 1920
Docket Number32255
Citation176 N.W. 713,188 Iowa 806
PartiesC. P. HALVER, Appellee, v. HIGGINS SHEEP COMMISSION COMPANY et al., Appellants
CourtIowa Supreme Court

Appeal from Woodbury District Court.--GEORGE JEPSON, Judge.

ACTION on a written contract, to recover the agreed purchase price of certain lambs delivered by the plaintiff to the defendant pursuant to such contract. The answer of the defendant admitted the execution of the contract, but averred that the contract itself did not express the real agreement of the parties, in that the same should have contained an undertaking and guaranty on the part of the plaintiff of the weights of the lambs to be delivered, and that such provision was omitted by oversight, and that the same should now be reformed. Defendant avers a breach of the terms of the contract, as thus reformed. It prays a reformation and a judgment on counterclaim or cross-bill. The cause was tried in equity. The district court entered a decree for the plaintiff, substantially as prayed, and dismissed the cross-bill. The defendant has appealed.

Affirmed.

E. A Burgess and Fred H. Free, for appellants.

Henderson Fribourg & Hatfield, for appellee.

EVANS, J. LADD, GAYNOR, and STEVENS, JJ., concur. WEAVER, C. J. (dissenting).

OPINION

EVANS, J.

I.

The defendant Joshua W. Higgins operates under the trade name of Higgins Sheep Commission Company, and is engaged in the business indicated by such trade name, in Sioux City. The plaintiff is a real estate man, engaged also in the business of buying and selling sheep. He was a resident of Flandreau, South Dakota. The contract sued on was one of two contracts, made at the same time, and pursuant to the same negotiations. They are both identical in all their terms, except that one called for a delivery of 2,200 lambs on September 1, 1916, and the other called for a delivery of 2,500 lambs, on September 25, 1916. Under the first contract, known in this record as Exhibit 13, the lambs were delivered on September 1st, and paid for. Under the other contract, the lambs were delivered on September 25th, but were not paid for. Plaintiff's suit is predicated upon this contract, known in this record as Exhibit A.

The defendant's cross-bill, however, treats both contracts as one, and asks to reform them both, and for relief under them, as so reformed. The general nature of defendant's contention is that the plaintiff agreed to guarantee a general average weight of all the lambs at 50 pounds, and a considerable percentage thereof at 60 pounds. This contention is denied by the plaintiff. If the defendant's contention at this point is sustained by the record, he is entitled to the reformation prayed, and to the consequent relief. If defendant is not entitled to such reformation, the plaintiff is entitled to recover, in accord with the strict terms of the contract sued on. Exhibit A is as follows:

"This is to certify that I, C. P. Halver, of Flandreau, S. D., have this 25th day of August, 1916, bargained, sold and agree to deliver to Higgins Sheep Com. Co., the following described live stock at time, place, prices and under the conditions mentioned and described below.

"I guarantee the title to the live stock which I have sold under this agreement, and guarantee the stock when delivered will be in a merchantable, marketable condition, free from any and all infectious or contagious diseases, which guarantees state and Federal inspection.

"In consideration of and to complete this contract, I hereby acknowledge the receipt of $ 625 as an advance payment, the balance to be due and payable upon the complete delivery of the stock and fulfillment of this contract.

"Description of Live Stock Sold.

No. Head

Description

Price

Time & Place of Delivery

2,500

Lambs

$ 4.90

F. O. B. Cars Sept. 25,

per

1916, Hettinger and

Head

Griffin, N. D. In proportion

to total number

loaded at both places.

These lambs not to be sorted,

or topped out for mutton.

(Signed) C. S. Halver."

We need not set out Exhibit 13, which is identical, except as to number of lambs (2,200) and date of delivery (September 1st). The negotiations which resulted in these contracts began on the morning of August 19th, and continued up to the time of their consummation, August 25th. One week later, delivery was made, under Exhibit 13. These negotiations were initiated by certain telegrams, as follows:

"Exhibit 3.

"Lemmon, S. D., Aug. 17, 1916.

"Higgins Sheep Com. Co., Sioux City, Iowa:

"Wire offer on four thousand to be weighed at Griffin Oct. 1st. Nothing under fifty pounds. To average sixty pounds or better. Halver."

"Exhibit 6.

"Sioux City, August 18, 1916.

"Halver, Sheep Man, Lemmon, S. D.:

"What will you contract four thousand lambs average sixty Griffin October first delivery. Higgins."

"Exhibit 5.

"Sioux City, August 18, 1916.

"Wire me at once how much per hundred you will pay me for twenty-five hundred to four thousand head delivered at Griffin or Hettinger October first to weigh average sixty pounds. Wire me your best offer as I have two offers now and will sell at the highest price this afternoon. Will sell by weight or head. C. P. Halver."

"Exhibit 4.

"Sioux City, Iowa, August 18, 1916.

"C. P. Halver, Sheep Man, Lemmon, S. D.:

"My man Baker leaves for Lemmon tonight. Will try buy your stuff. Higgins Sheep Com. Co."

Pursuant to the last telegram, W. M. Baker, employee of the defendant, arrived at Lemmon, South Dakota, August 19th, and started upon an inspection of the lambs owned by plaintiff, under executory contracts for future delivery; and such inspection continued for a period of 5 days. Baker was a man of 17 years' experience in the business. Halver was the owner of 18,000 or 20,000 lambs, in the sense that he had entered into contracts of purchase to that extent with sheep owners, who were to deliver to him on September 1st and September 25th. The lambs thus contracted for were still in the custody of their original owners, and could be inspected in the separate flocks, respectively, of such original owners. There was a large number of these flocks, covering an extended territory in both South and North Dakota. The parties traveled by automobile from one flock to another, and Baker went through each flock, for the purpose of forming a judgment as to the quality and value of the lambs therein. One V. E. Baker also made the same trip with the parties, and conducted an inspection in his own behalf, as purchaser of the ewes of the same flocks. To avoid confusion, we shall use the initials of V. E. Baker, whenever reference to him is made. When initials are not used with the name Baker, reference will be had to W. M. Baker, the agent of the defendant herein. Baker completed his inspection August 23d, and the parties returned the same evening to Lemmon, South Dakota. In the meantime, he had sent to his principal one or more telegrams. On the morning of August 24th, he mailed to his principal the following letter, known in this record as Exhibit F.

"Lemmon, So. Dak., Aug. 24, 1916.

"Higgins Sheep Co. Co., Sioux City, Iowa,

"Dear Sir: I got into Lemmon Saturday afternoon and saw C. P. Halver. He and Halsted are the same. Halver lives at Flandreau, S. D., and has bought up a lot of lambs and ewes out here.

"I went out of here Sat. afternoon and we covered a large country south and west. He showed me a lot of lambs. I was not in reach of a wire until Wed. morning when I phoned a message to Lemmon for you from Bison. Reached Hettinger Wednesday afternoon and drove here last night; will go back to Hettinger this morning; will wait to hear from you there. Halver has around 25,000 lambs and sheep bought. As near as I find out he has paid $ 4.00 to $ 4.50 per head for lambs and $ 4.25 for ewes. His lambs are to have about 50 culled out of each band, the owner keeping them. The bands run about 750 each. Some men not selling ewe lambs.

"He is going to cut out and keep 1,600 ewe lambs. But first, he is receiving at Griffin and Hettinger the 1st of Sept. After counting each man's flock, he will turn them all together, then cut out his ewe lambs at both places to make the 1,600. Then from what is left if he sells any to deliver F. O. B. he will cut ten each way through the chute until enough are cut out to make the count. Some of the bands at both places are good, some are not. There will be about 25 per cent fat I think, but they are not very heavy, would weigh 55 pounds on market. And if the sellers sort as he says, the feeders will run down to 38 or 40 pounds. He seems very set on $ 4.90 per head, which is too high as they would not pay out even if all fat at the weights. He wants 25 cents per head down. He has cut out the Sept. 10th shipment and will only ship Sept. 1st and 25th. He has bought from 50 to 350 old ewes from the different bands and is selling them at $ 4.75 to $ 5.25 per head. The ewes in some places have lots of needles and some of the lambs also.

"I don't think I would care to contract lambs or ewes from him at present the way he wants to handle them. You might be able to do better by being present shipping day and buy just certain bands then. He has a lot of this stuff sold around Flandreau. Moxon has ordered 1,000 lambs. Halver is looking for too big a profit. And I don't see any money in them except the chance to buy at shipping time and that is slim. I met Mr. Waite last night and this morning and he said as I had seen conditions he would not write. I will go to Hettinger today and wait there to hear from you. Yours truly, W. M. Baker."

On the same date, Baker received from his principal the following telegram, known in the record as Exhibit 8:

"Sioux City, August 24th, 1916.

"Walter M. Baker, Hettinger, N. D.:

"I want...

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1 cases
  • Halver v. Higgins Sheep Comm'n Co.
    • United States
    • Iowa Supreme Court
    • March 17, 1920
    ... 188 Iowa 806 176 N.W. 713 HALVER v. HIGGINS SHEEP COMMISSION CO. ET AL. No. 32255. Supreme Court of Iowa. March 17, 1920 ... Appeal from District Court, Woodbury County; George Jepson, Judge. Action on a written contract to recover the agreed purchase price of certain lambs delivered by the plaintiff to the defendants pursuant to such contract. The ... ...

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