delivered the opinion of the court.
This suit involves a contract entered into September 1, 1927, between Virginia Banner Coal Corporation and The Mathieson Alkali Works for the purchase by the Alkali Works from the Coal Corporation of the annual requirements of coal of its plant at Saltville, Virginia, for a period of ten years, commencing April 1, 1918. The cause has been before this court on three previous appeals. [See
Mathieson Alkali Works
v.
Virginia Banner Coal Corporation,
“This suit was instituted in 1921. In 1927, complainant, Virginia Banner Coal Corporation was adjudged bankrupt. By an order entered in this cause on July 16, 1929. E. W. Potts, trustee in said bankruptcy proceeding, was permitted to intervene as complainant in this suit, in the place of said bankrupt.
“The suit arises out of and is based upon a certain contract, between complainant, Virginia Banner Coal Corporation and others, and defendant, Mathieson Alkali Works, Incorporated, dated September 1,1917. This said contract has been construed by the Supreme Court of Appeals, as reported in its decision, found in
“While there are complainants in this suit, other than Virginia Banner Coal Corporation, and defendants, other •than Mathieson Alkali Works, Incorporated, the controversies upon the issues now raised, are wholly between . the trustee in bankruptcy, representing the claims of Virginia Banner Coal Corporation, on the one side, and defendant, Mathieson Alkali Works, on the other side. For convenience, the words,
complainant
and
defendant,
as
“The complainant, before the commissioner, asserted a claim of $100,607.66, with interest, being a balance alleged to be due complainant from defendant, for coal sold and delivered to defendant, at alleged cost plus twenty-five cents per ton; and also a claim for the sum of $4,975.00, being alleged profits of twenty-five cents per ton on certain coal claimed to have been wrongfully purchased by defendant from Island Greek Coal Company, and which it is contended defendant was required to take from complainant. The commissioner allowed as asserted, complainant’s claim for the sum of $100,607.66, with interest, and wholly rejected complainant’s claim for $4,975.00.
“The defendant, before the commissioner, asserted á claim for $148,582.40, with interest, being the alleged overpayment by defendant to complainant, on account of coal sold and delivered to defendant by complainant, and for which complainant was paid said amount, in excess of ‘standard cost.’ Defendant, before the commissioner, also asserted that complainant, under the contract of September 1,1917, was required to furnish defendant its requirements of coal, of the quality and kind in said contract
“Complainant has filed no exceptions to the commissioner’s report, but on the other hand has expressly requested that it be confirmed as made. Defendant’s exceptions challenge the correctness of the commissioner’s report in allowing complainant’s claim for $100,607.66 with interest, or any part thereof, and in refusing to allow defendant’s claims for $148,582.40 and $163,565.30, respectively. There is therefore no objection from either party to the rejection of complainant’s claim for $4,975.00, nor to the allowance of defendant’s claim for $9,467.76 with interest. Consideration will now be given to defendant’s exceptions to the allowance by the commissioner of complainant’s claim for $100,607.66.
“As the record now stands complainant’s said claim, allowed by the commissioner, presents the sole question of - the price to which complainant is entitled for the coal sold and delivered to the defendant. It is not and can not be contended that complainant is entitled to recover anything on any other account. It is not contended that complainant is entitled to recover anything on this account, if the proper price for said coal was and is ‘standard cost,’ plus twenty-five cents per ton. On the other hand it is asserted by defendant, is understood to be conceded by complainant, and the evidence clearly shows that defendant has already paid to complainant, sums in ex
“While the commissioner’s report allowing complainant’s said claim is excepted to by the defendant for several reasons including the contentions: that the evidence offered in support of it was not the best evidence; that it was seasonably objected to on this account and therefore cannot be considered; that the amount allowed embraces charges for coal, which the commissioner, at the same time, held defendant rightfully rejected; that it allowed complainant to recover in excess of ‘standard cost’ for coal sold and delivered during periods- when complainant admittedly was unable to furnish defendant’s requirements, that is, during periods when complainant claimed to have been excused by exempting cause and when defendant was ready, able and willing to take same; and it also excepts to said report because it contends complainant is not, in any view of the case, entitled to recover in excess of ‘standard cost’ for any of the coal sold and delivered. This is obviously an all-inclusive issue, in so far as complainant’s claim is concerned. For if complainant is not entitled to recover in excess of ‘standard cost’ for any of the coal sold and delivered to defendant, then it is not entitled to recover anything in this cause.
“This case has already been before the Supreme Court of Appeals of Virginia four times. In only one of these appeals, however, did the court express any views affecting the merits of the controversy. That was- upon the last appeal, the decision of which appears in
“The presentation of this cause to the Supreme Court of Appeals at that time was for the purpose of having it define the issues in the case, which should be submitted to a commissioner. This involved the construction of the pleadings and of the contract of September 1,1917, the determination of the existence of the other alleged contract, the nature and limitations of the rights here claimed by complainant and the character of the cross-claims asserted by defendant. It construed the
“The basis of every right of recovery under our system of jurisprudence is a pleading setting forth facts warranting the granting of the relief sought. It is the
sine qua non
of every judgment or decree. No court can base its decree upon facts not alleged, nor render its judgment upon a right, however meritorious, which has not been pleaded and claimed.
Blizzard
v.
Salyer,
“The pleadings of complainant are thought to be in some respects, indefinite and uncertain, at times lacking in the averments which would appear to he essential to state a cause of action and at other times repugnant to other averments. In attempting to analyze them, it has been difficult to reach a satisfactory conclusion as to théír
“Having in mind the Supreme Court’s decision which is believed to have held that complainant’s pleadings were only sufficient to amount to a claim for recovery under and by virtue of the contract of September 1, 1917, it would seem entirely appropriate to give consideration to the above issue at this time. But in view of the insistence of counsel for complainant that Lower Banner coal was not sold under said contract, that complainant’s pleadings allege this, and that for such coal, complainant is entitled, in this suit, to recover the reasonable value of said coal,
“Complainant’s pleadings allege that defendant had no right to have the coal from the Lower Banner seam under the contract of September 1, 1917; that complainant furnished and defendant received the coal knowing that it could not be produced at ‘standard cost,’ and under and by virtue of a ‘Supplementary Agreement,’ whereby it bound itself to pay more than ‘standard cost’ for said coal; but, as heretofore observed, it has been held that this so called ‘Supplementary Agreement,’ never in fact existed.
Mathieson Alkali Works
v.
Virginia Banner Coal Corp.,
“But even if the pleadings be held sufficient to permit recovery, it is considered that complainant’s contentions in this respect are without merit, in this case, upon the uncontradicted evidence, notwithstanding the contentions and conclusions of certain witnesses to the contrary.
“The contract itself does not specifically require the furnishing of coal from the Lower Banner seam. Complainant argues that the entire sum of $150,000.00, loaned to complainant by defendant for development of the coal was, with the approval of the defendant, expended in the development of the Upper Banner seam, and that if it had been contemplated that coal from the Lower Banner seam was to be delivered under the contract, a part of this sum would have been expended in its development. The record in this case shows, however, that a large proportion of the coal required was* to come from the Upper Banner seam and that a much smaller proportion was required from the Lower Banner seam. That this was determined only after considerable experimenting. It further appears that the cost of development was greatly in excess of what the parties believed it would be at the time the contract was executed and the loan made. It
“Having reached the conclusion that there is no basis, either in the pleadings or in the proof for recovery of Lower Banner coal sold and delivered, except under and by virtue of the provisions of the contract, the issue now to be considered, is whether or not complainant is entitled to recover under the contract, in excess of ‘standard cost,’ for any or all the coal sold and delivered. In an endeavor to state more clearly the issue which will be considered in this connection, let it be assumed that defendant wrongfully failed to take from complainant the quantity of coal which it was required to take under the contract and that complainant sustained a loss by reason thereof. In that event, and assuming that the pleadings are sufficient in this respect, it is thought complainant’s right would be to recover the price fixed by the contract for the coal delivered. It would of course, also be entitled to recover its loss as damages on account of any alleged wrongful failure of defendant to perform the contract. But this last mentioned issue will be hereafter considered. This conclusion is thought to be sound in principle and to be amply supported by the authorities. See authorities cited in defendant’s reply brief, pages 5-7. This distinction while technical and generally of no practical importance, it is thought will be helpful to bear in mind in the further consideration of this case.
“With this distinction in mind, and leaving out for the present any right which complainant may have to recover damages for any alleged breach of the contract, it would seem, unquestionably, to be true, that complainant having declared upon the contract and having elected to base its right of recovery for the coal sold and delivered upon the contract, would be bound by the terms of the contract as to the price fixed by it for said coal. The maximum price fixed by the contract is ‘standard cost.’ Complainant’s claim, allowed by the commissioner, is wholly in excess of
“The claim of complainant to recover, in excess of ‘standard cost,’ for the coal sold and delivered, on account of any alleged wrongful breaches of the contract by defendant will now be examined. In order to determine what issues are presented for consideration in this connection, as the record now stands, complainant’s pleadings will be first looked to.
“A fundamental weakness of complainant’s pleadings in this case, at this time, resulta from the obvious fact that it began this litigation upon one theory and now seeks to maintain it with the same pleadings, upon an entirely different theory. It clearly appears that the foundation of this suit was complainant’s contention that the contract was a tonnage and not a requirement contract. Complainant’s pleadings appear to have been drawn with absolute confidence in the soundness of that contention and with little thought of issues now sought to be relied upon. That contention, as before noted, has been held unsound, and complainant now seeks to base its recovery upon pleadings filed in this cause prior to said holding, .and which were founded upon the erroneous theory, then held by it, of the meaning of the contract. Some of the issues raised in complainant’s pleadings have since been eliminated by contract between the parties, others were abandoned before the commissioner, and one other was eliminated by the commissioner’s report, to which complainant did not except; leaving for consideration only the contention or issue heretofore noted. Complainant’s pleadings will be further considered with a view to determine whether they are sufficient to sustain a recovery upon this contention or issue.
“(1) That defendant did not take from complainant the quantity of coal which it should have taken under the contract, and as evidencing this, that it wrongfully took coal from others, and;
“(2) That defendant did not take the coal in approximately equal monthly installments. - An examination of the pleadings, it is believed, will disclose that these allegations are based upon the contention that the contract was a tonnage and not a requirement contract. It is also believed that when the contract is considered as a requirement contract, these allegations of complainant’s pleadings are not sufficient, either to assert the duties of defendant under such contract or to allege the breach of any duty, with reference to the issue now under consideration. These allegations are thought to be insufficient averments, that defendant did not take its bona fide actual requirements from complainant, or that it did not take its annual requirements in approximately i equal monthly installments so far as practicable and as consistent with its actual requirements, or even that it did not take its annual requirements in approximately equal ¡monthly installments. These matters will be further considered.
“Complainant, in its pleadings, has divided the time, covered by the contract, April 1, 1918 to April 1,1922, into three periods; the first of which includes the time from April 1, 1918, to January 1, 1919, the second of which includes the years 1919 and 1920, and the third of which allegedly includes the year 1921, but which for all practical purposes includes the remainder of the time said contract was in force.
Mathieson Alkali Works
v.
Virginia Banner Coal Corp.,
“As to the second period, embracing the years 1919 and 1920. Complainant avers that it was aggrieved and injured by complainant’s misconduct during this period; that defendant failed and refused to take approximately 200,000 tons of coal annually from it during this period, and that.it failed and refused to take this amount in approximately equal monthly installments. It alleges the amount actually taken for those years, but it nowhere alleges that the quantity taken during this period was insufficient to supply the actual
bona fide
wants of defendant. Not only is its pleading lacking in any állégation of this character, but it avers that in spite of defendant’s alleged wrongful acts, it has been enabled to produce the coal sold and delivered to defendant, during this period within ‘standard cost,’ and that the amount which it is seeking to recover for the coal sold And delivered during this period is within ‘standard cost/ It is true that in'its answer to defendant’s cross-bill, comjplainant; while again .averring that its invoices upon which -it seeks to'recover, ‘were within or certainly not ma'teriálly higher’ than “standard cost,’ does allege, that ‘standard cost’ has no
“For the third and last period, beginning with the year 1921, and extending to April 1, 1922, complainant’s claim to recover in excess of ‘standard cost’ for the coal sold and delivered during this period is based wholly upon the so-called ‘Supplementary Agreement.’ But this so-called agreement, for the purposes of this case, has never had any existence. Its allegations of failure of defendant to take the quantity of coal required in equal monthly installments, are based upon its own error as to the meaning of the contract and are insufficient as allegations of breaches of the contract according to its true meaning. It seeks no increase in the price of the coal delivered during this period, on account of any of these attempted allegations of breach of duty, but as above stated rests its right to recover in excess of ‘standard cost,’ for the coal sold and delivered during this period, solely upon the provisions of the so-called ‘Supplementary Agreement.’
“In view of the contentions of counsel for complainant that the decision of the Supreme Court does not construe the provision of the contract, with reference to the delivery of the coal, ‘to be delivered as specified by the Alkali Works, in approximately equal monthly installments,’ and in view of their earnest contentions that defendant was thereby required, to periodically, in advance, specify its annual requirements and to take the specified amount, in approximately equal monthly installments, this provision will now be briefly considered, and in so far as the supposed duty to specify its requirements in advance is concerned, will be hereafter further considered.
“The contentions that the contract required defendant to specify its annual requirements in advance and
“The conclusion has already been expressed that complainant’s pleadings are thought to be insufficient to entitle it to recover in excess of ‘standard cost’ for the coal delivered, by reason of defendant’s failure to take the amount of coal required. But even if it be conceded that such conclusion is incorrect, it is thought, it could not avail complainant in this case. This case is now before this court upon the commissioner’s report. The commissioner has found: That defendant did not take from complainant its full requirements under the contract; thát this was not due to any bad faith on the part of the defendant; that it resulted from the acts and omissions of both the complainant and the defendant; that there was a mutual waiver of this requirement, and that complainant is not entitled to recover any damages against defendant on this account. The commissioner also held that complainant was not entitled to any damages on account of coal purchased by the defendant from others. To these findings' of the commissioner, complainant has not only failed to except, but it has expressly affirmed their correctness by asking for the confirmation of the commissioner’s report. The report in this respect certainly can not be said to be erroneous upon its face. In this respect it appears to be fully warranted by the evidence, and it is binding upon complainant. No issue is made by complainant as to its incorrectness in this respect. It is presumed to be correct as to the principles determined and to be supported by the evidence. Under well-settled rules of procedure, it is, the duty of the court to confirm it.
Peters
v.
Neville’s Trustee,
26 Gratt. (67 Va.) 549;
“It is believed what has been heretofore said disposed of all questions with reference to complainant’s claim allowed by the commissioner, which would properly require consideration. But counsel for complainant make other contentions, and the commissioner in his report states his reasons or some of them, upon which he allowed his claim. These will now be considered.
“Counsel for complainant, in their arguments, insist that complainant is entitled to recovery in excess of ‘standard cost,’ for these reasons: (1) Because the provision as to ‘standard cost’ was induced by defendant’s misrepresentation, that defendant would take approximately 200,000 tons of coal per year. (2) Because of defendant’s waiver of the ‘standard cost’ provision of the contract, by receiving complainant’s hill of actual cost plus twenty-five cents per ton, paying some of them and failing to object to any of them. (3) Because of defendant’s failure to give, in advance, accurate specifications of
“(1) As to the contention that complainant is entitled to recover in excess of ‘standard cost’ on account of fraud in the procurement of the contract, that is, that this provision was incorporated into the contract by reason of the representations of defendant and the understanding of complainant, that the defendant’s requirements would be approximately 200,000 tons of coal per year. There is no pleading upon which this contention can rest. Fraud, when it is to be relied upon, must be expressly and clearly charged. It can not be the subject of trial until it is brought in issue by the pleadings. See Virginia and West Virginia Digest (Michie) vol. 5, pages 34, 35, and numerous authorities there cited. One who intends to repudiate a contract upon the ground of fraud must act promptly.
White
v.
Bott,
“(2) The contention that defendant waived the ‘standard cost’ provision of the contract is likewise without merit. Not only are the pleadings lacking in averment necessary to raise any issue upon this contention
“(3) As to the third contention above stated, it is not an issue in this case. No duty is alleged to have existed upon the part of defendant to give complainant accurate periodical specifications of the approximate ton-
“(4) The fourth contention is likewise wholly without foundation in complainant’s pleadings. Neither the existence of any such supposed duty, nor any facts which would constitute a breach of it are alleged. In its answer to the defendant’s cross-bill, ‘B,’ page 120, it denies that defendant has ever specified its monthly requirements as provided in the contract. The duty of defendant under the contract, in this respect has already been considered. When the contract is considered as a requirement contract, it is thought the evidence in this case shows that defendant reasonably complied with this provision of the contract. ,
“(5) There is no complaint in the pleadings that defendant failed to take the coal in the ratio of one-third lump to two-thirds nut and slack, or that it took the coal in some other ratio or that it took crushed coal instead of that provided for in the contract. In its pleadings it alleged that all the coal delivered (its insufficient and repugnant allegation as to the coal from the Lower Banner seam has already been considered), was delivered pursuant to and in performance of the contract. It did not
“(6) There is no allegation in the pleadings that the contract was impossible of performance. And even if it were that is merely a matter of excuse for nom performance. It would not warrant increased compensation for the part of the contract performed. Complainant not only fails to allege that the contract was impossible of performance, but on the other hand it expressly alleges its performance of the contract except so far as excused by exempting causes or prevented by the acts of defendant, in the past and aver both its willingness and ability to perform it in the future. It is true this allegation was made under a misapprehension as to the meaning of the contract. This misunderstanding might with some reason be urged as an excuse for failure to perform, but complainant is certainly not entitled to profit thereby. Nor is the contract impossible of performance.
Lehigh Portland Cement Co.
v.
Virginia S. S. Co.,
“For reasons above stated, this court is of opinion that complainant is not entitled to recover in excess of ‘standard cost,’ for any of the coal sold and delivered to defendant, the price whereof is here in issue; that the commissioner erred in allowing complainant’s claim for $100,607.66 with interest, as shown by the commissioner’s report; and that complainant is not entitled to recover any amount from defendant, in this suit. The exceptions of defendant to the commissioner’s report, allowing complainant’s claim, are therefore, sustained.
“Having reached the conclusion that complainant is not entitled, in this suit, to recover anything from defendant, it now becomes necessary to determine the rights of defendant, as to the cross-claims asserted by it and disallowed by the commissioner. The only complainant against whom these cross-claims are attempted to be or could be asserted, is the Virginia Banner Coal Corpora
“It is therefore obvious, and it is conceded by defendant, that owing to the insolvency of complainant, the small value of its assets and the large amount of its indebtedness, these cross-claims of defendant are, for all practical purposes, purely defensive measures. Defendant’s brief, page thirteen. In view of the conclusion reached as to complainant’s claim, these cross-claims, for all practical purposes, present moot issues. Courts do not undertake to decide moot questions.
In the case of
Mills
v.
Green,
“In view of complainant’s bankruptcy the right of a State court to adjudicate upon a claim against the bankrupt would appear to depend upon the action of the particular Federal court having jurisdiction of the bankruptcy proceeding. Claims against a bankrupt’s estate are not to be settled or liquidated in the State court, unless the judge or referee so directs.
U. S. Compiled Statutes,
918, section 9595 (11 U. S. C. A. section 29);
In re McCollum
(D. C.)
“The petition of the trustee in bankruptcy asking to be admitted as a party to this suit has not been found among the papers submitted in this cause. The order of July 16, 1929, is the only available record of that proceeding. It does not disclose just what, if any, action was taken by the United States district judge or by the referee in bankruptcy in this respect. However, counsel for both complainant and defendant have advised that the referee has directed the adjudication of these cross-claims in the State court.
“Not without serious doubt as to the necessity or even the propriety of doing so, brief consideration will be given to the claims of defendant, disallowed by the commissioner.
“(1) As to defendant’s cross-claim of $148,582.40, being the amount paid by defendant to complainant in excess of ‘standard cost,’ for the coal sold and delivered during the existence of the contract. From what has been heretofore said it sufficiently appears this court is of opinion that complainant was not entitled to receive any amount in excess of ‘standard cost’ for any of the coal sold and delivered to defendant. It of course follows that any amount received by complainant in excess of ‘standard cost’ was wrongfully received by it and that it is liable to defendant for such amount. Defendant’s pleadings sufficiently assert its right to recover upon this claim. The evidence introduced establishes its correctness. Decree may, therefore, be entered for defendant against complainant for the sum of $148,582.40, with interest thereon from June 1,1922, that being the first day of the month, next after defendant’s cross-bill was filed asserting this claim. Defendant’s exceptions to the commissioner’s report on account of the failure to allow this claim will therefore be sustained.
“As heretofore noted, defendant excepts to the com
“The period over which such purchases was alleged to have extended was from April 1, 1918, to December 13, 1920. As to the portion of this period from April 1, 1918, to January 1,1919, it is thought there is evidence sufficient to sustain the commissioner’s report disallowing this claim on the ground that complainant was excused by exempting causes. As to the portion of this period from January 1, 1919 to December 13, 1920, it is thought that evidence shows: that at times during this period complainant did not furnish defendant its requirements of coal; that as to certain of said times this failure on the part of complainant was caused by things and conditions beyond its control and that as to such times complainant was excused from performance in this behalf; that at other times during this period complainant wrongfully failed and refused to deliver defendant’s requirements of coal and that it is liable therefor. The commissioner’s views upon this issue, not having been in accordance with the views entertained by this court, he makes no report determining it, in accordance with the court’s views. The evidence introduced is thought to be insufficient to determine the issue in accordance with the views held by this court. As illustrating this court’s views upon this issue it is thought the evidence shows that complainant, was at times prevented from performing on account of shortage in railroad cars. Under the contract, this is deemed a valid excuse for non-performance. Other causes thought to excuse non-performance also appear to have prevailed during this period.
“To repeat, the conclusions reached upon the issues here presented, are to sustain defendant’s exceptions to the commissioner’s report allowing complainant’s claim and also to sustain defendant’s claim for the sum of $148,-582.40, with interest as above indicated, and in all other respects to overrule said exceptions and confirm said commissioner’s report.
“The defendant, Mathieson Alkali Works, will recover of complainant, Virginia Banner Coal Corporation, all costs accruing prior to the intervention of the trustee in bankruptcy, and as to all costs accruing since his said intervention it will recover said costs of the said E. W. Potts, trustee in bankruptcy for Virginia Banner Coal Corporation.”
The decree is affirmed.
Affirmed.
