Siquig v. West Coast Pickle Co.

DOOLING, J.

In these seven consolidated actions the defendants appeal from judgments for the plaintiffs.

Plaintiffs are farmers in Santa Clara County. Early in 1954, through one Joseph Di Napoli, who was employed as their agent, buyer and field-man in Santa Clara County, the two corporate defendants, appellants herein, entered into separate written contracts with plaintiffs to plant, grow, harvest and sell to said appellants yellow Cascabella peppers at the price of 9% cents per pound. The contracts were

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negotiated by Di Napoli and signed by him' in appellants’ names as “buyer’s agent” on forms furnished to him for that purpose by appellants.

After several deliveries had been made to appellants, some of which were paid for at the contract price of 9% cents, and some later deliveries by voluntary action of appellants at 10% cents per pound because the market price had increased, appellants began to pay on further deliveries less than the contract price, the lowest price so paid being 3% cents per pound. The growers complained to Di Napoli that they could not make a profit at these lower prices since their harvesting cost was 5 cents per pound and they were informed by Di Napoli under authorization of one Root, president of appellant West Coast Pickle Company, that appellants could not use the peppers and to plow them under.

Respondents consulted their attorney and on September 17, 1954, the attorney wrote to appellants stating that respondents had been informed by their agent Di Napoli that appellants were no longer desirous of accepting delivery of the peppers in accordance with their contracts. The attorney’s letter concluded with a statement that respondents were ready, willing and able to comply with their contract and if they sustained damages by appellants’ failure to comply “they expect to hold you legally responsible for any and all damages.”

Appellants replied that if Di Napoli had made such representations he was not authorized to do so and stated further that “we are ready, able and willing to perform all of our obligations under the contract or contracts . . . according to the terms thereof, and that we intend to do so.”