The Superior Court of Fresno County (California )

Procedural Posture

Plaintiff, a raisin grower, sued defendant, a corporation that was engaged in the business of shipping fruits and selling them on commission, to recover the difference between the amount that the grower had been allegedly guaranteed for his raisins and the amount that he had received. The Superior Court of Fresno County (California ) entered judgment for the grower and denied the corporation's new trial motion. The corporation appealed.

Overview: caci punitive damages

The corporation shipped the raisins and sold them in Chicago (Illinois). Thereafter, the corporation deducted its expenses and commission and paid the grower the balance. The grower contended that the corporation had, as consideration for the consignment, guaranteed to pay the grower not less than four and one-half cents per pound net. The grower alleged negligence in the shipment of the raisins and breach of the contract of guaranty. The trial court permitted the grower to introduce evidence as to the raisins' value at the time of their delivery to the corporation but not as to their value in Chicago. On appeal from the grower's judgment, the corporation alleged that the grower had sustained no injury because the raisins were sold for their full value. The court held that the corporation was liable for the amount that it had promised because its obligation was that of a promisor given the fact that the guaranty contract was for a fixed price. The trial court erred in refusing evidence as to the raisins' value in Chicago because the raisins were consigned for sale in Chicago and, thus, the market price in Chicago was the basis of the corporation's liability.

Outcome

The court reversed the judgment and order and ordered a new trial.