Opinion ID: 1436149
Heading Depth: 1
Heading Rank: 4

Heading: conversion factor

Text: Raymond also alleges several areas of error in connection with the conversion factor which it contends the Court applied. Raymond assumes that the trial Justice applied a factor of 2300 pounds to establish the price and compute damages. It is argued that this was error. It is also argued that the Justice erred in not ruling that the contract called for an independent laboratory to determine the conversion factor, and in rejecting several alternative conversion factors offered by Raymond. Raymond further contends that the Justice erred in refusing to grant a motion for a new trial on the grounds that the damages were excessive. Blue Rock, on the other hand, defends the conversion factor of 2300 pounds as not being clearly erroneous, relying on the correspondence between the parties and Raymond's course of performance in paying for sand delivered over a period of time while Raymond knew that the prices had been established with reference to this factor. If the presiding Justice had in fact computed the damages in accordance with a price based on the 2300 pound factor, we would not be inclined to say this was clearly erroneous. From the correspondence alone, the Justice could have found that by June of 1970 the parties had clearly agreed on a price per ton which incorporated the 2300 pound factor. The problem here, however, is that both parties have wrongly assumed that a factor of 2300 pounds was used. Had the Justice applied that factor, then the prices would have been as quoted by Blue Rock ($2.30 and $2.17 per ton) and the damages would have been in the amount of $128,891.61 as alleged by Blue Rock. The Justice's finding was in the amount of $114,231.27, which represents a difference of $14,660.34. An examination of the record reveals the reason for the discrepancy and clearly indicates that the trial Justice computed damages in accordance with a price based on a conversion factor of 2374 pounds. During cross-examination of the Blue Rock representative who had calculated the 2300 pound factor, counsel for Raymond brought out several errors which the witness had made in his computation. The witness had computed the 2300 pound conversion factor from a sample consisting of thirteen trucks, and, in dividing the weight of the sand in these trucks by their assigned cubic yard capacity, the witness had divided incorrectly on ten occasions. A correct computation of the figures would have given a rounded figure of 2374 which, when applied to the total quantity of sand delivered, would have resulted in Raymond owing $14,660.34 less than the amount claimed by Blue Rock. This is the exact amount by which the trial Justice reduced Blue Rock's claim for damages. The Justice's action can only mean that the conversion factor he used to compute damages was in fact 2374, not 2300. [6] The question remaining is whether the use of this figure was error prejudicial to the defendant. [7] Raymond argues that the Court could have adopted any one of five other factors. Although Raymond does refer to a sixth factor, lower than the others and said by Raymond to be the lowest which the Court should have considered, Raymond discounts this factor on the theory that it fails to consider moisture content. The five remaining factors range from 2800 to 2897, and although Raymond concedes that the Court could properly have adopted any one of these, Raymond most strongly suggests the 2897 factor, as this was one of the factors obtained by the independent laboratory subsequently hired by Raymond. It is Raymond's position that the parties had agreed that the correct conversion factor was to be calculated by an independent laboratory. Raymond's position is unacceptable for several reasons. As we have already held in our discussion of the term truck measure, a truck measured cubic yard was intended to denote something other than a standard cubic yard. All of the factors submitted by Raymond purport to show the number of pounds in a standard cubic yard. As such, these factors had no probative value. The conversion factor calculated by the independent laboratory could have been rejected for the same reason. More importantly, however, the trial Justice would have been fully warranted in rejecting Raymond's argument that the contract called for an independent laboratory. Raymond bases this argument on its purchase order of October 15, 1969 and Blue Rock's responsive letter of November 3, 1969. Raymond contends that the purchase order was an offer and the response an acceptance, because the response thanked Raymond for the order and did not expressly object to the language of the offer which referred to an independent testing laboratory. Raymond's reading of the evidence is, we believe, overly selective. For one thing, undue emphasis is placed on that portion of Blue Rock's response which thanked Raymond for the order. The letter in question is the one which went on to point out a couple of errors, and in discussing the errors, Blue Rock clearly indicated its reliance on the 2300 pound factor. An express reliance upon one factor would implicitly negate acceptance of another factor to be determined by a third party. A specific answer to Raymond's argument which confines itself to these two documents, would require an analysis of the application of section 2-207 of the Code to these two evidentiary items. Raymond, however, has not cited this section and Blue Rock relies only on the comment thereto. The difficulty which other Courts have had in interpreting this section, and the divergent opinions which have resulted from the courts' attempts to apply it, attest to the fact that this is one of the most intricate provisions of the Code. See, Dorton v. Collins & Aikman Corp., 1972, 6 Cir., 453 F.2d 1161; Construction Aggregates Corp. v. Hewitt-Robins, Inc., 1968, 7 Cir., 404 F.2d 505, cert. denied, 395 U.S. 921, 89 S.Ct. 1774, 23 L.Ed.2d 238; RotoLith, Ltd. v. F. P. Bartlett & Co., 1962, 1 Cir., 297 F.2d 497; Rite Fabrics, Inc. v. Stafford-Higgins Co., Inc., 1973, S.D.N. Y., 366 F.Supp. 1; American Parts Co., Inc. v. American Arbitration Ass'n, 1967, 8 Mich.App. 156, 154 N.W.2d 5. In the present case, our decision need not include an extended analysis of section 2-207 and we do not feel compelled to engage in an abstract discussion thereof, especially without benefit of argument by the parties. Raymond again has viewed the evidence too selectively. Even if we were to assume, without deciding, that the two documents on which Raymond relies do reveal a contract calling for an independent laboratory, it would still be true that Raymond's subsequent conduct and follow-up purchase order amounted to a waiver of that provision. Under section 2-208(3) of the Code, a course of performance inconsistent with any term of the contract is relevant to show a waiver of that term under section 2-209. See, Resource Engineering, Inc. v. Siler, 1972, 94 Idaho 935, 500 P.2d 836; Gulf Chemical & Metal. Corp. v. Sylvan Chem. Corp., 1973, 122 N.J.Super. 499, 300 A.2d 878, aff'd, 126 N.J.Super. 261, 314 A.2d 73; All-Year Golf, Inc. v. Products Investors Corp., 1970, 34 A.D.2d 246, 310 N.Y.S.2d 881. Raymond's interpretation of the agreement would necessarily imply that, at the time of the transactions in question, there had been no price per ton established since no independent laboratory had then been retained. Raymond, however, continued to pay for the sand and the price paid was computed on a cost-per-ton basis. When Raymond sent its follow-up purchase order, it expressly stated that the price would be a specific amount per ton. The price was inversely proportionate to the conversion factor and by stating that prices shall be one price, Raymond's order necessarily negatived any theory that a third party was still to ascertain the proper conversion factor. Thus, Raymond's course of performance was completely inconsistent with what Raymond contends to have been the terms of the agreement and from this the trier of fact would certainly have been warranted in concluding that the provision for an independent laboratory had been waived, even if such a provision had once been part of the agreement. Since the presiding Justice, relying on this other evidence, could still have found a contract the terms of which were other than those urged by Raymond, it would be pointless to attempt to apply section 2-207 to the particular evidence on which Raymond relies and we therefore decline to do so. When Raymond's suggested conversion factors are discarded from consideration, the factor of 2374 is the only one remaining which purports to show an accurate relationship between tons and cubic yards truck measure. Despite other areas of disagreement, the parties do agree that at all times they shared the intent to equate one price with the other and we are not prepared to say that the Justice was clearly wrong in using the only factor which fit the equation established by the parties. Our conclusion on this point also controls Raymond's argument that the damages were excessive. The damages were not excessive once this factor is adopted to ascertain the price of the sand admittedly delivered to, and accepted by, Raymond.