EXPORT AND IMPORT LUMBER COMPANY
v.
PORT BANGA LUMBER COMPANY

U.S. | 1915-04-26
No. 686
237 U.S. 388 Supreme Court of the United States (1915) Positive Treatment
Also reported at: 59 L. Ed. 1009 · 35 S. Ct. 604 · 1915 U.S. LEXIS 1344 · SCDB 1914-094
Cited by 6 cases

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Synopsis

Two lumber companies disputed the enforceability of contracts concerning the sale of logs, with Port Banga claiming the written contract was procured through fraud and seeking to enforce an earlier oral agreement, while Export and Import contended the written contract remained valid. The Philippine Supreme Court found the written contract was fraudulently induced and awarded Port Banga damages based on the oral agreement, but the U.S. Supreme Court dismissed the appeal for lack of jurisdiction because the amount in controversy, calculated at approximately $21,706.60, fell below the $25,000 threshold required for appellate review.


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Opinion of the Court
Mr. Justice McReynolds,

Mr. Justice McReynolds,

Memorandum opinion by by direction of the court.

This is an appeal from the Supreme Court of the Philippine Islands, allowed May 13, 1914. Our jurisdiction de pends on the amount involved; and a motion to dismiss must be sustained unless from a consideration of the whole record it fairly appears that “the value in controversy exceeds twenty-five thousand dollars.” Act of July 1, 1902, § 10, c. 1369; 32 Stat. 691, 695. What is actually in dispute here is' the criterion. Bowman v. Chicago & Northwestern Railway Co., 115 U. S. 611, 613; Martinez v. International Banking Corporation, 220 U. S. 214, 221.

To avoid possible confusion their United States currency equivalents are used herein instead of the Philippine peso and centavo.

The Port Banga Lumber .Company instituted a proceeding November 14, 1910, and afterwards filed an amended complaint, against appellant, the Export and Import Lumber Company, wherein it alleged that in March or April, 1910, the two companies entered into-an oral arrangement to sell logs in the China trade upon joint account — the proceeds to be appropriated first to expenses and then equally divided; appellant on May 6,1910, agreed to furnish to the China Import and Export Lumber Company logs at ninety cents per cubic foot; thereafter falsely pretending such stipulated price was twenty-seven and one-half cents appellant induced complainant to consent to an annulment of the oral arrangement between them and enter into a written one dated June 10, 1910, under which the latter agreed to supply the logs for twenty cents per cubic foot; and that at an expense of $7,211.43 it delivered 32,032 cubic feet and appellant collected therefor ninety cents per foot — $28,828.80. The complainant accordingly asked that the writing of June 10th be annulled; the oral contract.be declared in force; and in harmony therewith judgment for $18,020.12.

The Export and Import Lumber Company denied the allegations in the complaint, except as specifically admitted, but said the written contract of June 10th was in force and $2500.00 had been paid thereunder and accepted by complainant. It further set up that by the contract of May 6th it became obligated to furnish the. China Import and Export Lumber Company designated logs within a specified time; on June 10th it transferred this duty to the complainant which failed fully to comply therewith; and as a consequence $8,750.00 had to be deducted from the sale price which otherwise would have been received.. It therefore claimed damages to that extent and asked judgment accordingly.

Counsel admitted of record that 32,032 cubic feet of logs were delivered by complainant to the China Import and Export Lumber Company; and unquestionably appellant collected therefor 90 cents per foot, $28,828.80, less $8,750.00.

The court below held (26 Phil. Rep. 602; 27 Phil. Rep. * ) the contract of June 10th was procured by fraud; the rights of the parties depended upon die oral agreement; the deduction of $8,750.00 from stipulated sale price should be taken into consideration; complainant was entitled to its expenses of $7,211.43; and'that the balance of amount actually collected by appellant should be equally divided. A certain credit of $450.00, explanation of which is now unnecessary, having been allowed, judgment was entered April 3, 1914, against appellant for $13,195.12, together with $2,683.01 interest from November 14, 1910, when the original complaint was filed — in all $15,878.13. The Port Banga Lumber Company has not appealed and this is the maximum recovery which appellant can suffer. According to appellant’s theory the written contract of June 10th remained in force. A settlement thereunder would require a debit against it for logs delivered — 32,032 cubic feet at twenty cents — of $6,406.40, and necessitate credits of $2,500.00, alleged payment on account, and $8,750.00, damages sustained. The resulting balance of $4,843.60, with interest from November 14, 1910, to April 3,1914, $984.87, or $5,828.47, is the greatest sum for which it could have recovered judgment.

The maximum amount fairly in dispute is therefore the judgment of $15,878.13 against appellant, plus $5,828.47 which it sought to recover from appellee — a total of $21,706.60. Dushane v. Benedict, 120 U. S. 630, 636; Buckstaff v. Russell, 151 U. S. 626, 628; Harten v. Baffler, 212 U. S. 397, 403; Keller v. Ashford, 133 U. S. 610, 617; Philippine Code of Civil Procedure, § 510.

The value in controversy being under $25,000.00, the appeal must be

Dismissed.

*

Volume 27, not yet published and received.


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Citator

Cited By

  • De la Torre v. Nat'l City Bank of N.Y., 110 F.2d 381 (1st Cir. 1939)
    …that determines our jurisdiction.” Montes v. Sancho, 1 Cir., 1936, 82 F. 2d 25, 27. See also Hilton v. Dickinson, 108 U.S. 165, 2 S.Ct. 424, 27 L.Ed. 688; Dows v. Johnson, 110 U.S. 223, 3 S.Ct. 640, 28 L.Ed. 128; Export Lumber Co. v. Port Banga Co., 237 U.S. 388, 389, 35 S.Ct. 604, 59 L.Ed. 1009. [*384] Since the value in controversy does not otherwise appear in the record, the petition for appeal might have been disallowed because not accompanied by affidavits supplying the missing jurisdictional fact. See…
    1 / 2
  • San Pedro v. United States, 247 U.S. 307 (U.S. 1918)
    …gives the right of review only where the matter in controversy exceeds one thousand dollars besides cost. The amount actually in dispute here being only nine hundred dollars, the writ of error must be dismissed. Export Lumber Co. v. Port Banga Co., 237 U. S. 388. There is an application for the allowance of a writ of certiorari under § 240, consideration of which has been postponed until the hearing on the writ of error; but, since it was presented, all occasion for granting it has been removed by our deci…

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