Silveira v. Associated Milk Producers

STURTEVANT, J.

The plaintiffs sued for, and by the trial court were awarded, a judgment for a balance alleged to be owing to them on the sale of milk. The defendant being dissatisfied with the judgment has appealed, bringing up a bill of exceptions. The dealings between the parties were had under a written contract, a copy of which is as follows:

“Agreement made this 20th day of March, 1919, by and between the Associated Milk Producers, a California corporation, with its principal place of business at No. 53 Clay Street, San Francisco, California, hereinafter called the

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‘The Association,’ and A. F. Silveira & Co., hereinafter called ‘the producer.’

“Witnesseth:

“That the producer hereby agrees to market all the milk produced by him, beginning June 1st, 1919, and ending September 20th, 1921, exclusively through the association; he agrees to produce and deliver twice daily to the association at San Francisco, California, or to such other place as the association shall direct, in all not- less than 2666 hundred pounds of market milk, and not more than 2924 hundred pounds of market milk, for which on the 20th day of each month he is to be paid for all milk shipped on the preceding month, less freight charges from the point of shipment thereof to San Francisco aforesaid, and the association’s charges for marketing said milk, which marketing charge shall in no case exceed fifteen cents per hundred pounds.

“The board of directors of said association is hereby given full power to fix the price of said milk from time to time, and the association hereby agrees to market all of said milk at the prices so fixed by its said board of directors.

“For all milk furnished in excess of the maximum amount above set forth producer shall receive monthly, as above specified, the prevailing butter fat price received therefor by the association less freight charges and less whatever expenses may be incident to the handling, manufacture and sale thereof by the association.

“Should the producer fail at any time to twice daily deliver to the association the minimum amount of market-milk hereinbefore specified, he hereby authorizes the association, as. his agent, at its option, to go into the open market and buy whatever milk shall be deemed necessary to make up his shortage to the minimum amount hereinbefore specified, and to charge the extra cost thereof to him, and he hereby promises to pay the same on demand.