Court Opinion

ID: 9466012
Source: CourtListenerOpinion
Date Created: 2023-08-05 01:02:52.755953+00
Date Added: 2024-06-11T17:39:29.678975
License: Public Domain

WIDENER, Circuit Judge,
dissenting:
I respectfully dissent because the district court failed to give any effect to an operative provision in the agreement which limited the seller’s liability for late deliveries. As a result, the case was tried on the wrong theory and should be remanded for further consideration.
The contract in this case was not in the form of a document prepared and signed by the parties. It consisted of a bid by plaintiff (seller) which defendant (buyer) accepted on July 24th by attaching its purchase order to plaintiff’s bid. The bid did not contain a delivery schedule, but did contain the following provisions:
Deliveries:
All items as required except dishwasher, food cutter, vegetable peeler and extension tables which will be 45 days shipping.
Deliveries are based on receiving award by 23 July, 1975. Beyond this date, we cannot be held responsible for delivery dates being delayed.
Deliveries are based on best information at this time and predicated on prior order received in house.
The purchase order in its original form had no delivery dates, but during a meeting between the parties on July 24th, the buyer penciled in what it claims to be delivery dates furnished by seller. The parties disagree on the legal effect of these dates on the purchase order. The buyer felt that they were firm delivery dates, while the seller views them as merely goals. The district court allowed the parties to present extrinsic evidence to support their respective interpretations of the dates. The court found neither view entirely convincing and ultimately held that delivery was required within a reasonable time.1
*303In so holding, the district court went beyond the operative provisions of the contract quoted above, in which the seller promised to deliver “as required,” but disclaimed all responsibility for late deliveries if the award were made after July 23rd. The award admittedly was made after that date. If the written contract is to be given any effect, and no reason was given by the district court why it should not be (certain parts were enforced by the district court), then it controls the seller’s responsibility with respect to deliveries and an effort to vary or expunge written contract terms by extrinsic evidence violates the parol evidence rule.2 South Carolina Code § 36-2-202. Thus, I think the district court erred by varying the terms of the written agreement by reason of extrinsic evidence. The court should have based its decision on an interpretation of the “as required” language and the disclaimer, both integral parts of the section of the contract on “deliveries.”
I would remand the case for application of the proper legal theory. While it is conceivable that the district court might reach the same result as before, based on the evidence now in the record I suggest that such is doubtful. The seller expressly disclaimed any liability for late deliveries if awarded the contract after July 23rd, and it is uncontradicted in the record that this date was not arbitrarily selected but was based on seller’s experience with summertime slowdowns by its manufacturers. Indeed, this is precisely what occurred, for the district court found that the seller “failed to deliver because he could not secure such equipment from the manufacturers as he had expected.”
The buyer admittedly was concerned about delays due to the tight deadline in its contract with the Navy, but if it wanted to protect itself it could have either awarded the contract before July 24th, or asked for a written provision in the contract requiring deliveries to be made by dates certain. The failure of the buyer to so protect itself, especially in light of the express disclaimer by the seller, makes it clear that the district court’s opinion requiring delivery within a reasonable time, which imposes on the seller the stringency of the buyer’s deadline when the buyer chose not to either so burden the seller in a contract or award it in time, was in error. Furthermore, even if the contract might be read, without reference to extrinsic evidence, to impose some other duty unaffected either by the clear language in the disclaimer or by the failure of the buyer to pass its deadline on to the seller, e. g., best efforts or general good faith, a point on which I express no opinion, it appears from the record now before us that the seller met this duty. However, I would yet remand the case in order to give the district court the first opportunity to interpret the contract in the light of the evidence now at hand or such as might be produced on remand.

. The majority holding is based in large part on its statement that “[t]he district court construed the purchase order as showing three consistent delivery terms each appearing on the writing.” It found the parties agreed to two separate ranges of delivery times: one “as required” by defendant’s hurried work schedule, and the other an outside delivery date term set by the time periods noted by hand. The third delivery term found by the majority was the disclaimer. I respectfully suggest the district court did not find such facts. While the first and third items marked are in the written agreement, in its opinion the district court expressly did not decide whether the penciled-in dates were agreed to by the parties, for it stated: “. . likewise, whether the time notations on the various copies of the purchase order were guarantees or aspirations is immaterial.” It found, I contend, there were two possible delivery times in the contract, and chose neither of them, rather a “reasonable time,” which it measured by the penciled notes.
I also note that even if the penciled-in dates were agreed to before the signing of the con*303tract, that fact would not effect the result in this case, since, in all events, the disclaimer would apply equally to the penciled-in dates if they were part of the contract as it was signed.
The only way the penciled-in dates could have any effect would be if they were a change in the contract made after its execution, a fact the district court did not find.

. The parol evidence rule is a rule of substantive contract law and not merely a rule of evidence. Therefore, South Carolina law governs. Rock-Ola Mfg. Corp. v. Wertz, 282 F.2d 208, 210 (4th Cir. 1960); see United States v. Bethlehem Steel Co., 215 F.Supp. 62 (D.Md. 1962), affirmed on the opinion of the district court, 323 F.2d 655 (4th Cir. 1963); 1A Moore’s Federal Practice fl 0.313.