Document: 348 U.S. 296 75 S.Ct. 326 99 L.Ed. 329 UNITED STATES of America, Petitioner,v.Guy W. CAPPS, Inc. No. 14. Argued Nov. 15, 1954. Decided Feb. 7, 1955. Sol. Gen. Simon E. Sobeloff, Washington, D.C., for petitioner. Mr. R. Ashburn, Norfolk, Va., respondent. Justice BURTON delivered the opinion Court. 1 In this case United States District Court directed a verdict respondent because petitioner failed to present evidence either breach contract or resulting damages sufficient sustain The Appeals, however, affirmed judgment on ground that alleged was unenforceable. For reasons hereafter stated, we agree with not contract. Accordingly, do reach pass upon other grounds discussed by Appeals. 2 1948, crops Irish potatoes in and Canada were among largest record. As result, States, § 1(b) Agricultural Act 62 Stat. 1247, 1248, 7 U.S.C.A. 1282 note, obligated itself support sale such at 90% their parity price. This program carried out through agreements Commodity Credit Corporation purchase, from eligible growers dealers all harvested before January 1, 1949, provided could be sold commercially parity. unsupported Canadian prices lower than supported it became profitable import despite tariff freight charges. Recognizing fact, Congress authorized investigations Tariff Commission, under President's direction, which might lead imposing quantitative limitations imports increasing fees. 1248—1250, U.S.C. 624, 624. 3 However, without resorting procedure, acted diplomatic channels. Its Acting Secretary State Ambassador exchanged notes November 23, purporting consummate an executive agreement effective once. text see Appendix, infra, 331. Of special significance litigation are undertakings made Canada, its place export control, withhold permits movement table stock issue shipment certified seed only specified circumstances. Those circumstances shipments limited where there legitimate demand short period normal seeding time. Permits granted exporters having firm orders users potatoes, those 'to have included any into they enter potato importer clause would give assurance diverted reconsigned purposes.' terminated June 20, 1949. 4 December Guy Capps, Inc., Virginia corporation, herein, bought 48,544 one-hundred-pound bags H. B. Willis, Charlottetown, Prince Edward Island, exporter. Before exporter's them S.S. Empire Gangway Jacksonville, Florida, wired exporter as follows: 'Certified loaded planting Florida Georgia.' arrived Jacksonville 9, 1949.1 On 11, invoiced Atlantic Commission Company '48,544 Sax Seed Potatoes @ $3.35 f.o.b.'2 5 1951, filed instant action against Eastern Virginia, claiming above constituted between benefit States. complaint further, information belief, that, respondent, violation contract, 'sold sacks purposes' damage amount approximately $150,486, 'in each quantity so imported substantially equivalent produced offered Department Agriculture, had purchased 1948.' 6 Respondent's motion dismiss failure state claim relief denied. 100 F.Supp. 30. close petitioner's after argument counsel, court Judgment entered accordingly. court's findings fact conclusions law contained oral opinion. That opinion, has been published, following highly significant statements: 'The here is American importer, specifically stipulation placed held 8 expression constituting Georgia. Now, assuming correct holding within meaning Executive Treaty assurance, called Treaty, effect purposes—I say provision no proof go jury diversion reconsignment, lack diligence care part defendant out. 9 'In first place, reconsignment Company. Now purposes. Nor does want kept, shows year Atlantic, exclusively justify drawing conclusion reckless abandonment obligation use these right rely previous experiences. 10 'But going incumbent follow up did purposes, find A & P, whom sold, sell potatoes. It true entire trade but large amount, described secondary function, sales wholesalers trade, spoken of, firms used purposes disposed equally consistent compliance assurance.' 11 Appeals disagreed points.3 international agreement, sought carry out, void. regarded contravening procedure Commission. also suit must fail cause created type injury. 204 F.2d 655, 658—661. We certiorari determine whether constitutional statutory questions necessary decision and, if so, consideration. 346 884, 74 135, 98 389. 12 examined record order preliminary trial court. See Walling v. General Industries Co., 330 545, 547, 550, 67 883, 885, 91 1088; also, Story Parchment Co. Paterson Paper 282 555, 560, 567—568, 51 248, 249, 252, 544. 13 stated telegram, read light above-mentioned correspondence Canada. recognized importations well displace commercial markets thus add burden price-support program. correspondence, nevertheless, seek exclude contrary, continuance during immediately prior addition, agreed require secure effect, stopped regular Canadian-American while preserving There suggestion open season take new extraordinary affirmative steps ultimate purchasers never ate retailer usual course business, segregated manner customary 14 undisputed showed containers markings tags identifying 'Canadian potatoes.' showing identification separated point offering some retail. was, short, time otherwise treated except dealings 15 At 'Canada Potatoes.' Most 10,000 (which, delivery company resold respondent) customers like manner.4 Company, turn, purchasers, same manner, received them, 13,627 parent company, Great Pacific Tea three points one Georgia, 1,641 Alabama. primarily foodstuffs dealt vegetables onion sets cabbage sets. home gardeners planters small acreages. remaining 24,926 over 30 separate 2,309 All consignees groceries, primary volume articles food. But testimony customarily handled not. Respondent previously channels distribution comparable instance. stock, theretofore usually area season. Exception taken designated times when made. 16 unsuitable areas designated. enough witness said 20% original consisted belonging most popular varieties grown year. 17 bad faith, neglect carelessness performing contractual obligations. intent use. freely acknowledged existence declared purpose cooperate it. 18 conceded specially suited high-grade edible quality. substantial ultimately eaten. appeared ten pounds grocery St. Augustine, two women who housewives buying few probably shipment, store P market Atlanta, 19 sum, labeled concerns normally Under circumstances, clearly error making directing shown. 1088. 20 view foregoing, occasion us consider rest them. 21 Affirmed. 22 APPENDIX. 23 Exchange 1948: 24 25 'CANADIAN EMBASSY 26 'AMBASSADE DU CANADA 27 'WASHINGTON 28 'November 23rd, 1948. 29 'No. 538 'SIR, 31 'I honour refer discussions representatives Government America regarding problems confront operation price programmes current crop year, continue unrestricted. After careful consideration various representations subject, prepared to: 32 '1. Include list commodities permit required provisions Export Import Act. 33 '2. Withhold proper, excluding Alaska. 34 '3. Issue circumstances: 35 '(a) will issued structure specific schedule. schedule designed direct draft now being jointly officials. 36 '(b) 37 '(c) survey supply class possibility giving precedence Foundation classes seed. 38 '(d) names addresses compiled periodically forwarded Government. 39 instituting system restricting exports recognizes responsibility grower certain surplus guarantee minimum return gradable cannot outlet. Although details programme finalized, anticipated announce, floor April 1st, 1949 carlot shipping East. To implement inspect holdings several counties New Brunswick, 1st undertake pay fixed every hundred found bins. actual payment understood subsequently owner forfeit assistance words, make move 40 'It should noted proposals institute control inaugurate contingent assurances that: 41 'a) impose fees 1948 exported regulating outlined herein. 42 'b) proposal, Maritime Provinces interpreted authorities indirect subsidy consequence imposition countervailing duties Section 303 1930.1 43 'If replying note accepts gives required, above, reply thereto constitute subject. 44 'Accept, Sir, renewed my highest 45 'H. WRONG 46 'THE HONOURABLE GEORGE C. MARSHALL, 47 'Secretary 48 'Washington, D.C. 49 50 'NOVEMBER 'EXCELLENCY: 52 appreciates your no. prepared, receipt establish controls therein exportation 53 adverse unrestricted programs proposal reduce interest considerations, assures proposal. 54 wishes inform respect Government's Provinces, Treasury Department, considered bestowal, directly indirectly, bounty grant manufacture, production, concerned duty would, therefore, levied, 303, 1930, result 55 agrees reference, together reply, 56 Excellency, 57 'ROBERT A. LOVETT 'Acting 58 'HIS EXCELLENCY 59 'HUME WRONG, 'Ambassador Canada.' 60 Treaties Other International Acts Series 1896, State, Publication 3474. 10, Chief Potato Division, Fruit Vegetable Branch respondent: 'Have informed ACCO (Atlantic Company) representative, you permission use, Please advise basis claim. Account disposition contrary requirement reconsignment.' reply: statement. Only put (potatoes) later, day: realize fully expect I am bringing quoting territory selling. Have quotations low 365 hundredweight Norfolk past week.' 'Less $3.65 f.o.b.' These 8,730 day Potatoes' seven lots four $3.75 $4 per cwt. 1,270 sacks. 'We little difficulty seeing breach.' page 658. 2, supra. '46 687, 1303.'

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