Sugarman Iron & Metal Co. v. Miller & Lux, Inc.

This is an appeal from a judgment for $5,000 in favor of the plaintiff in an action for damages for the breach of a contract to sell certain scrap or salvage material.

Prior to June, 1925, the defendant maintained and operated a meat packing plant in South San Francisco. The plant was destroyed by fire during that month. At that time the plaintiff was a dealer in scrap-iron and metals, with offices in San Francisco. Shortly after the fire and on June 20, 1925, the plaintiff sent to the defendant a letter submitting an offer to buy “all of the scrap-iron, metal, pipe and machinery, boilers, etc.,” which had gone through the fire at the price of $7.50 per ton. This letter also contained the following clause: “We also agree to permit your engineers to reserve whatever material they may deem necessary for the equipment of your contemplated new plant.” On the same day the defendant replied by letter accepting the offer. Pursuant to the terms of this contract the plaintiff, during the months of July, August, and December, 1925, removed from the premises 991,770 pounds of scrap-iron and paid therefor the sum of $5,275.49. In addition to this material there were five boilers on the…