Sun-Maid Raisin Growers v. K. Arakelian, Inc.

The plaintiff was given judgment against the defendant for $12,387.06 as liquidated damages for failure to deliver 206.451 tons of raisins produced in the year 1923. The defendant has appealed from the judgment.

The contract upon which the action is based contains substantially the same terms as the one involved in the case of Sun-Maid Raisin Growers of California v. Paul A. Mosesian & Son, Inc., ante, p. 1 [ 265 Pac. 828 ]. The last sentence in the contract reads as follows: “The execution of this contract by seller is also an application by the seller for membership to buyer whenever buyer may be authorized to receive the same.” The contract was entered into between the Sun-Maid Raisin Growers, a capital stock corporation, and the defendant. That corporation assigned the contract to the plaintiff, a nonprofit co-operative corporation, together with about 15,000 similar contracts, by a blanket assignment. The instrument by which the assignment was effected contained covenants to be performed by the plain tiff and was signed by both the plaintiff and its assignor. It contained the following provision: “But the second party shall not be deemed by reason of this instrument or…