Askey v. Oliver Chilled Plow Works

57 S.W.2d 210
CourtCourt of Appeals of Texas
DecidedNovember 19, 1932
DocketNo. 12734.
StatusPublished
Cited by6 cases

This text of 57 S.W.2d 210 (Askey v. Oliver Chilled Plow Works) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Askey v. Oliver Chilled Plow Works, 57 S.W.2d 210 (Tex. Ct. App. 1932).

Opinion

DUNKLIN, Justice.

This is the second appeal of this case; the disposition of the first appeal being by the Court of Civil Appeals at Eastland, as shown in 22 S.W.(2d) 743, 744. On the former appeal the suit was instituted by Askey against the Oliver Chilled Plow Works for the sum of $2,416.93 for conversion of certain promissory notes and farming implements. .The judgment on that appeal was reversed and the cause remanded because of lack of proof to establish the alleged conversion. After the remand of the case, plaintiff filed a second amended original petition and he has prosecuted an appeal from the judgment of the trial court sustaining a general demurrer to that petition and dismissing his suit, after he had refused to amend.

According to allegations in plaintiff’s petition he was engaged in the retail hardware implement business in the city of Decatur, and that he entered into a contract in writing with the defendant, by the terms of which it agreed to sell and did sell certain farming implements and machinery to him, which he in turn sold at retail to his farmer customers and received from them in part payment therefor some 97 promissory notes which he delivered to the defendant as collateral security for his indebtedness to it, and which defendant had wrongfully converted to its own use, without accounting to him for the balance due him after deducting therefrom the amount of his indebtedness to it, to wit, the sum of $602. It was alleged that the written contract, under which the parties dealt throughout all the transactions and in which contract defendant was designated as the first party and plaintiff as the second party, embodied this provision:

“Title to and ownership of all goods furnished by first party to second party on hand with and not sold or otherwise disposed of at retail by second party, in the ordinary and usual course of trade, shall remain vested in first party until all accounts pr evidence of *211 debts due therefrom to first party shall be fully paid, and in addition thereto to secure all claims and demands against second party held by first party, or their assigns, whenever created, whether evidenced by open accounts, or notes, said first party reserves a lien upon all goods furnished by them to second party heretofore, now 0» hereafter and on hand with second party, or not Sold by second party at retail in the regular course of business.”

The contention presented in the amended petition is that the quoted provision of the contract showed an agreement to sell to the plaintiff all merchandise furnished to him with the retention thereon of a mortgage lien in favor of the defendant to secure any and all indebtedness which plaintiff might owe to defendant accruing under and by virtue of the terms of the contract. And in the amended petition the claim was made that the 97 prom-, issory notes which plaintiff took in the sale of the machinery to his customers were delivered to defendant as collateral security only. Attached to the petition as an exhibit was a list of all of those notes with the names of the respective makers and the amount of each, aggregating more than $4,000, all of which plaintiff alleged defendant had collected and converted to its own use; and plaintiff sought a recovery of the balance remaining of that sum after deducting there-from as a credit the sum of $602 which plaintiff admitted he owed to defendant.

As shown in the opinion of the Court of Civil Appeals on the former appeal of this case, the suit as theretofore instituted was to recover the value of 39 promissory notes representing purchase money for farming implements furnished to plaintiff by defendant and which notes plaintiff had transferred to defendant by written assignment, copied in that opinion, containing recitals, in substance, that the same were made as collateral security for plaintiff’s indebtedness to defendant. The suit was for damages for the wrongful conversion of those notes which it was alleged belonged to plaintiff; and also for conversion of three farming implements belonging to plaintiff of the aggregate value of $39.50; and the judgment of the trial court awarding plaintiff the damages so claimed was reversed on the first appeal. In the opinion of Justice Leslie on that appeal, this is said:

“The very gist of an action for conversion is in the right of property or possession, and such an action cannot be maintained for the conversion of chattels by one who does not own the same or have an interest therein, or the right of possession. [Citing cases.]

“With these principles in mind, we pass to a direct consideration of the testimony relied on by the plaintiff. It discloses that he at no time, in his pleading or testimony, claimed to be more than a local agent of the defendant, selling machinery and implements in a locality for a commission. He testified that the notes he here charges to have been converted were turned over by him to the defendant as collateral security on his obligations to them. In disposing of the implements the plaintiff appears to have taken in part payment therefor numerous customers’ notes. Such are the notes here alleged to have been converted. In delivering them to the defendant, he made a character of' written assignment in this language: [Then follows a copy of the written assignment indorsed on the several notes reciting that the same were transferred to the defendant company as collateral security for plaintiff’s indebtedness to the defendant.]”

The opinion then sets out the following testimony given by the plaintiff on the trial, with the final conclusions of the court with respect to the issue of conversion;

“ ‘All the goods I handled of the Oliver Chilled Plow Works was on the consignment basis. * * * I did not object when they came up here collecting the notes, renewing the notes, and repossessing machinery. I' wanted the notes collected, and I wanted the' machinery sold and the proceeds applied on the notes. I went with Mr. Sadler. He took the notes I had taken from the various farm-erg. * * * i had this stuff for sale on commission. * ⅜ * The contract was made back in 1924. At that time I made a commission contract with them. * * * They did not sell me goods just as a wholesaler. * ⅜ * .They said they would put the goods up here and for me to sell them; if I sold them on a credit, to send them the notes and' they would collect them. That is the reason I turned the notes over to them. They said they would do the collecting. I would not have let them take those goods (new machinery) out of the house, but the goods were theirs. The only interest I had in them was the amount of my commission. * * * They shipped the goods up here; they were their property.’

“It would serve no useful purpose to further lengthen this opinion by quoting the testimony relied upon by the plaintiff. So far as the plaintiff’s right of recovery for conversion of the 39 promissory notes is concerned, the evidence, to our mind, is conclusive against the plaintiff’s ownership thereof, or any part thereof, as well as his right to possession of the same at the time of the Alleged conversion. He failed to prove such' general or special property right in the notes as would entitle him to a judgment. The verdict and judgment based upon the conversion of the notes we hold to be unsupported by any testimony. We so hold upon the authority of Joske v. Irvine, 91 Tex. 574, 44 S. W. 1059.

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57 S.W.2d 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/askey-v-oliver-chilled-plow-works-texapp-1932.