Western Industries Co. v. Mason Malt Whiskey Distilling Co.

This action was brought to recover damages against defendant company for breach of contract. By a separate count plaintiff has joined as codefendants the stockholders of defendant company. Trial was had by jury and a verdict in the sum of $300,000 was rendered in favor of plaintiff. From the judgment entered thereon this appeal is taken.

The contract sued upon was entered into by and between defendant Mason Malt Whiskey Distilling Company (hereafter referred to as the Mason Company) and the Western Grain and Sugar Products Company, the plaintiff’s predecessor in interest. The contract was made on November 10, 1916, and was assigned to plaintiff on April 26, 1917, this company having succeeded to the business of the Western Grain Company. Both parties operated plants for the manufacture of alcohol, plaintiff’s works being located at Agnew, Santa Clara County, and the defendant’s near Sausalito, in Marin County. The process of manufacture at both plants involved the distillation of molasses from which alcohol was extracted. From this process there resulted a certain waste or residuum commonly called slops. These slops contained a certain percentage of potash. Prior to the time the…