Baker v. Farmers' Welfare Union

3 S.W.2d 155
CourtCourt of Appeals of Texas
DecidedOctober 6, 1927
DocketNo. 564.
StatusPublished
Cited by7 cases

This text of 3 S.W.2d 155 (Baker v. Farmers' Welfare Union) 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
Baker v. Farmers' Welfare Union, 3 S.W.2d 155 (Tex. Ct. App. 1927).

Opinion

GADDAGHER, C. J.

Appellee, Farmers’ Welfare Union, a corporation, instituted this suit against appellant Chas. E. Baker to recover $779.04 in money and certain personal •property which appellee alleged appellant unlawfully withheld from it, and also to recover the reasonable value of the use of such personal property during the time it was withheld. Appellant claimed all said money and property as his own.

Appellee is a marketing association, incorporated under the provisions of articles 5737 et seq. of the Revised Statutes of 1925, under the name of Farmers’ Welfare Union. Said association was formed about July 1, 1924, but the articles of incorporation were not filed in the office of the secretary of state until July 30, 1924. Prior to the organization of said association a similar association known as Farmers’ Babor Union had been organized, had functioned for a time, and had been abandoned. Appellant was its business agent until it dissolved! Appellant was a moving spirit in the organization of the Farmers’ Welfare Union and became its first business agent. The membership thereof was composed largely of members of said former association. Appellant was at the time of his employment as business agent for appellee, running a produce business. Such business had been run at one time in the name of the Farmers’ Labor Union, but the evidence is conflicting with reference to whether at the time of such employment such business was being run in that name or in appellant’s individual name.

The evidence is also conflicting with reference to whether appellant was employed by appellee only to grade, class, and market cotton for the members of the association, or whether in addition thereto he was employed to also run a produce business. During the whole term of his employment he graded, classed, and marketed cotton for the members of the association. He kept, in connection-with the discharge of such duties, a bank account in the name of said association. During the whole of said term of employment he also ran a produce business, buying and selling chickens, eggs and other farm produce. He kept in connection therewith a bank account ¾ the name of “Farmers’ Welfare Union, Produce Department.” He resigned as business agent for appellant September 1, 1926. At that time he was in possession of the personal property sued for, which consisted principally of office furniture and fixtures and equipment used in conducting said produce business. He. had at that time on deposit in the bank to the credit of Farmers’ Welfare Union the sum of $75.34, and to the credit of “Farmers’ Welfare Union, Produce Department,” the sum of $701. He tendered to appellee said sum of $75.34 on deposit in the former account, but claimed said sum of $701 on deposit in the latter account, together with. all said personal property, as his own. In this connection he claimed that all said personal property was purchased with his own funds; that said produce business| had been financed exclusively out of his individual funds; and that the same had been conducted by him on his own account and not for or on account of appellee, and that conducting the same was not within the scope of his employment by appellee.

The case was tried before a jury and submitted on special issues. The substance of the jury’s findings is as follows: (a) Appellant Baker did not invest any of his individual funds in the business of the Farmers’ Welfare Union, (b) The personal property sued for belonged to appellee and not to appellant. (c) Appellant had in his possession profits and moneys belonging to appellee in the sum of $771. (d) The reasonable rental value of said personal property was the sum of $5 per month.

None of these findings are assailed by.any assignment of error. The court rendered judgment in favor of appellee on said findings of the jury, and appellant here presents said judgment for review.

Opinion.

Appellant presents as ground for reversal the action of the court in overruling his general demurrer to appellee’s petition. He contends in this connection that since ap-pellee’s petition showed on its face that ap-pellee was organized as a marketing association without capital stock and declared that the same was organized for benevolent pur *157 poses, that appellee could not maintain this-suit to recover office furniture, the fixtures and equipment for running a produce business, and the profits alleged to have resulted from the operation of the same by- appellee for its account. .Appellee alleged in its petition that appellant was employed by it as its cotton grader, salesman, and produce agent; that under such employment appellant was its agent “in the general conduct of its business in selling the farm products of its members, and all sums and amounts of money received from the sale of such products through said agent were payable to and collected by him, and the profits thus derived were the profits and assets of the corporation.” Appellee further alleged that appellant was accountable and responsible therefor to it, and that he had on hand and withheld from appellee the money and property sued for, and, inferentially, that the same resulted from or was purchased with such profits. The articles of the statutes above referred to declare that the purpose of their enactment was to make the distribution of agricultural products between the producer and consumer direct and efficient. They declare that the term “agricultural products” includes live stock, dairy, poultry, and all other farm and ranch products. They further declare that associations organized thereunder shall be deemed nonprofit, inasmuch as they are organized not to make profits for themselves as such, or for their members as such, but only for their members as producers. They grant very comprehensive powers to such associations. Among the powers so granted is the right to engage in any activity in connection with marketing, selling, packing, storing, handling, or utilizing any agricultural products produced or delivered to it by its members, the' right to borrow money, the right to own and hold all real and personal property convenient or necessary to the operation of its business, and the right to do everything suitable, proper, and necessary for the accomplishment of the purposes of its organization. Notwithstanding appel-lee was incorporated without capital stock, it was necessary for it to have funds to defray the expenses of its operation, among which were the salary of appellee, its busi-ne&s agent, the rental of a suitable place in which to conduct its business, and the purchase of necessary equipment for conducting the same. The right to charge reasonable compensation for the services rendered by it to its members is necessarily implied to enable it to effectively exercise the powers expressly granted and to enable it to accomplish the purposes of its organization. Appellee’s suit was for the recovery of money and property to which it claimed title and which it alleged had accrued from the operation of its business. Appellee’s petition was sufficient to support the recovery prayed for therein, and appellant’s general demurrer was properly overruled.

Appellant presents as further ground for reversal the action of the court in overruling his special exceptions to appellee’s petition on the ground that it disclosed that the business conducted by appellee exceeded its charter powers and was ultra vires. We do not think that appellee’s allegations showed that it exceeded its charter powers in the manner in which it conducted its business.

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Bluebook (online)
3 S.W.2d 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-farmers-welfare-union-texapp-1927.