Case Name: Willard FEE and Donald Fee d/b/a Fee Brothers Logging Contractors, Plaintiffs-Appellees, v. VANCOUVER PLYWOOD CO., INC., Defendant-Appellant
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1976-03-30
Citations: 331 So. 2d 151
Docket Number: No. 5339
Parties: Willard FEE and Donald Fee d/b/a Fee Brothers Logging Contractors, Plaintiffs-Appellees, v. VANCOUVER PLYWOOD CO., INC., Defendant-Appellant.
Judges: Before HOOD, CULPEPPER, DO-MENGEAUX, GUIDRY and PETERS, JJ.
Reporter: Southern Reporter, Second Series
Volume: 331
Pages: 151–157

Head Matter:
Willard FEE and Donald Fee d/b/a Fee Brothers Logging Contractors, Plaintiffs-Appellees, v. VANCOUVER PLYWOOD CO., INC., Defendant-Appellant.
No. 5339.
Court of Appeal of Louisiana, Third Circuit.
March 30, 1976.
Rehearing Denied May 19, 1976.
Writ Refused July 2, 1976.
Smitherman, Smitherman, Lunn, Hussey & Chastain, by Merritt B. Chastain, Jr., Shreveport, for defendant-appellant.
John P. Navarre, Oakdale, for plaintiffs-appellees.
Before HOOD, CULPEPPER, DO-MENGEAUX, GUIDRY and PETERS, JJ.

Opinion:
GUIDRY, Judge.
This is a suit for damages for breach of a logging contract. Plaintiffs and Defendant entered into a written contract of date January 3, 1973 by which Fee Brothers Logging Contractors (hereafter sometimes referred to as Contractor) agreed to cut and haul timber for Defendant (hereafter sometimes referred to as Vancouver). During the term of the contract, i. e., January 3, 1973 through March 31, 1974, Contractors were to have the exclusive right to cut and haul timber and timber products designated by Vancouver for cutting, the timber tract or tracts covered by the agreement to be identified by Vancouver for Contractors by a separate letter agreement marked Exhibit "A" which was to be attached to the contract. According to the agreement, the parties contemplated that, from time to time, such letter agreement might be amended by a subsequent letter agreement or agreements, which would also be attached to and become part of the initial contract.
On December 5, 1973 the parties executed a letter .of agreement marked Exhibit "A" wherein Vancouver designated a 270 acre tract of land in Grant Parish described as "Sec. 2 T 6 N 2 W, Sec. 35 T 7 N R 2 W, Sec. 34 T 7 N R 2 W" for cutting by Contractor under the terms of the initial agreement. Plaintiffs started logging the tract on December 6th. On December 7th, John Read, Timber Department Manager for Vancouver, terminated the contract with plaintiffs.
There is a conflict in the evidence as to what transpired between the time Exhibit "A" was signed and Contractors work was terminated. The evidence presented by Vancouver reflects that on the morning of December 5th John Read began negotiations with Contractor for the logging of the 270 acre tract. During these negotiations Contractor visited the tract to be logged in company with Talbot Watson, logging supervisor for Vancouver. On this visit to the tract Contractor was specifically advised that Vancouver would block up the tract into smaller areas and would direct the sequence in which these blocks would be cut to the end that one small area would be logged and cleaned up before starting on another. Pursuant to this plan and during this visit Watson advised contractor that the job should be commenced in an area east of a road which cut across the tract. Thereafter, on the same day, Watson and plaintiffs returned to Vancouver's office and executed Exhibit "A". At about noon on the 6th of December Watson returned to the 270 acre tract and found plaintiffs cutting timber on the west side of the road in an area where Watson had on the previous day told them that they were not to cut. In addition Watson found that on the east side of the road (where plaintiffs were supposed to be working) there were several lodged trees, many not yet cut, and many logs strewn about on the ground. In short, the area to be initially logged had not been completely cut nor cleaned. Watson told plaintiffs they were working in the wrong area and that they should move back across the road and completely log and clean up the tract first designated before moving to another. Plaintiffs agreed to do so. On Watson's return to the office he reported what he had found to his superior, John Read. On the following day John Read went to the tract and again found plaintiffs logging in the area west of the road where they had been told not to cut. Read also found that the area east of the road had not been completely logged or cleaned up. Read then tried to tell plaintiffs that they should immediately return to the east side of the road and log the tract pursuant to the instructions given to them by Watson. At that point, plaintiffs became abusive of Read advising that they would do the job in the manner they chose. One of the plaintiffs, Willard Fee, then struck Read whereupon Read terminated the contract and told plaintiffs to get their equipment off of the tract.
Plaintiffs' version is that nothing was ever said to them concerning how the tract was to be logged. Plaintiffs denied that they were ever told by Talbot Watson that they were cutting the wrong area rather they testified that on Watson's December 6th visit he told them that they were doing a good job. Concerning Read's visit on the 7th of December, plaintiffs' version is that Read arrived at the tract, jumped out of his car and immediately, and without any explanation, told plaintiffs they were fired.
The trial court accepted defendant's version of the facts but found that plaintiffs' refusal to log the tract as instructed by Vancouver did not violate any of the provisions of the contract. The trial judge found that the contract contained no explicit provision which would permit Vancouver to subdivide the large tract into smaller tracts and direct the sequence in cutting, and accordingly held that Vancouver was without right to terminate the contract because of plaintiffs unwillingness to abide by Vancouver's instructions. The trial court rendered judgment in favor of plaintiffs and against defendant in the amount of $25,000.00
Defendant appealed and contends that by virtue of the contract Vancouver had the right to direct the manner in which the tract was to be logged as it sought to do; plaintiffs breached the contract by refusing to abide by its instructions; and, under such circumstances defendant had the right to terminate the contract.
For the reasons hereinafter set forth we determine that the trial judge erred when he concluded that Vancouver had not the right under the contract to direct contractor's operations as it sought to do. Accordingly, we reverse the judgment of the trial court.
The trial court was clearly correct in accepting defendant's version of the facts. There is no doubt but that prior to the commencement of logging operations Vancouver, through its employees, subdivided the 270 acre tract into smaller tracts and advised contractor as to the sequence in which these tracts should be cut and that each such tract should be completely logged and cleaned up before moving to another. It is equally clear that Vancouver terminated the contract only after contractor absolutely refused to log the tract pursuant to Vancouver's directions.
There was clear, uncontradicted testimony at the trial that it is a long standing custom in the sawlog industry for the timber owner to subdivide a timber tract into smaller areas and to direct the logging contractor concerning the sequence in which these areas are to be logged. It is also customary practice in the logging industry that the timber owner supervise the contractor to the end that in cutting the blocked tracts in sequence that each tract will be completely logged and cleaned up before the contractor begins to cut on another tract. Mr. James Henry Smart, an expert in forest management, who was called as a witness by plaintiff, testified at length as to the customs and standards which maintain in the logging industry. He emphasized that the owner of a large timber tract (a tract of 270 acres being considered large) must maintain "control of the job" by designating from time to time the specific areas which can be cut. He stated that under such circumstances a logger who cuts somewhere other than where he has been specifically instructed to cut violates accepted standards prevailing in the logging industry. He also stated that it is a violation of long standing custom for a logger to leave an area and move to another before the first area has been completely logged and cleaned up. There is nothing in the record to contradict the opinion of Mr. Smart in this regard. On the contrary, the parties stipulated that three other forestry experts would testify to the same effect if they were called, i. e., Clyde Knox, an employee of Hunt Lumber Company, Mr. James C. Way, a forester with Powell Lumber Company and Arlie H. Wilkerson, a forester with Boise-Southern Company.
The above being considered, although it may be said that the contract contains no explicit provisions giving to Vancouver the right to subdivide the 270 acre tract into smaller tracts with the corresponding right to direct the sequence and clean up of each subdivided tract, we conclude that Vancouver, as a result of long standing custom in the logging industry, enjoys' such rights as an incident to the contract.
LSA-CC Article 1903 provides as follows:
"The obligation of contracts extends not only to what is expressly stipulated, but also to everything that, by law, equity or custom, is considered as incidental to the particular contract, or necessary to carry it into effect."
LSA-CC Article 1964 provides as follows :
"Equity, usage and law supply such incidents only as the parties may reasonably be supposed to have been silent upon from a knowledge that they would be supplied from one of these sources."
LSA-CC Article 1966 provides in pertinent part as follows:
"By the word usage mentioned in the preceding articles, is meant that which is generally practiced in affairs of the same nature with that which forms the subject of the contract."
It is clear that the parties intended that custom and practice in the logging industry should supply incidents to the contract on which the contract was silent for in paragraph 7 of the contract the parties specifically agreed as follows:
"Contractor shall conduct its logging op-eratings in a workmanlike manner and as a prudent operator so as to avoid and minimize danger to the timber not cut under this contract. Contractor shall perform this contract in a diligent, practical businesslike manner as is customary in sawlog production." (Emphasis mine)
As previously indicated, although the contract may be said to contain no specific provision or provisions giving to Vancouver the right to direct the logging operation as it sought to do in the instant case, the contract does contain two separate provisions which can reasonably be interpreted as granting such rights. Paragraphs 4 and 7 of the subject agreement provide as follows :
"Contractor agrees to cut, remove, haul and deliver logs or other timber products as designated by Vancouver from time to time. Logs or trees shall be scaled by Doyle Log Rule, or weight converted to log scale in accordance with Doyle Log Rule, as modified by Vancouver and utilized uniformly in the locality. Contractor understands that Vancouver requires a steady flow of timber and timber products in order to operate efficiently and contractor agrees, weather permitting, to deliver to Vancouver at its designated delivery point volumes of logs or timber products prescribed by Vancouver on either daily, weekly or monthly basis. Contractor agrees to deliver the timber cut currently as same is cut so as to prevent deterioration, blue stain or bug damage between the time of cutting and delivery." (Par. 4)
"Contractor shall conduct its logging operations in a workmanlike manner and as a prudent operator so as to avoid and minimize damage to the timber not cut under this Contract. Contractor shall perform this Contract in a diligent, practical, businesslike manner as is customary in sawlog production.. Contractor shall comply with all applicable rules and regulations of any governmental authority having jurisdiction in the premises. Contractor shall not be responsible for the removal or other disposition of slash, except that Contractor shall leave the property lines, drainage ditches and canals free and clear of debris such as cull logs, tops and jump-butts. Should contractor fail promptly to remove and clear such debris after notice from Vancouver, then Contractor shall be liable for any and all expenses incurred in the removal of such debris." (Par. 7)
Pursuant to the quoted provisions of paragraph 4 Contractors agreed to cut, remove, haul and deliver logs or other timber products AS DESIGNATED BY VANCOUVER FROM TIME TO TIME. This provision can reasonably be interpreted to mean that Vancouver reserved the right to control cutting on the tract identified in Exhibit "A" by subdividing said tract and directing the sequence of cutting on the subdivided tracts. Likewise, the provisions of paragraph 7 can reasonably be construed to grant this right to Vancouver with the corresponding right to require contractor to completely log and clean up one tract before moving to another, especially since contractor under such provision agrees to perform in a diligent, practical, businesslike and workmanlike manner AS IS CUSTOMARY IN SAW LOG PRODUCTION. •
In this latter connection plaintiff contends that at best such provisions are ambiguous and therefore since Vancouver prepared the subject contract any ambiguous provision must be construed against Vancouver and in a light most favorable to plaintiffs. R.C.C. Articles 1957 and 1958. We recognize that this is one rule of construction. However, in matters of construction the primary objective is to determine the intent of the parties. In the instant case we are dealing with a standard form logging contract wherein, the plaintiff, a logging contractor, was obligated to perform under the contract in a manner "as is customary in sawlog production." Regardless that the above referenced provisions of the contract may be ambiguous, these provisions are not per se to be construed against Vancouver, but instead the ambiguity, if any, should more properly be resolved from the common intent of the parties and according to the usage of the place where the contract is made. Civil Code Articles 1950 and 1953. It is well settled in our jurisprudence that custom or usage should be taken into consideration in interpreting an ambiguous contract. Terrell v. Alexandria Auto Company, 12 La.App. 625, 125 So. 757; Moore v. Johnston, 8 La.Ann. 488; LSA-CC Arts. 1903, 1964 and 1966.
For the above reasons we hold that by their absolute refusal to log the subject tract in the manner directed by Vancouver plaintiffs violated their obligations under the contract and accordingly defendant had the right to terminate the contract.
Accordingly the judgment of the District Court is reversed and it is now ordered, adjudged and decreed that plaintiffs' suit be dismissed, all costs on the trial and appellate level to be taxed to plaintiffs.
REVERSED AND RENDERED.
DOMENGEAUX, J., concurs in the decree. The parties intended that customs of the trade prevail as shown in Paragraph 7 of the contract. The custom referred to in the opinion was amply proven.
CULPEPPER and PETERS, JJ., dissent and assign written reasons.