Bartlett & Co. v. Commodity Credit Corp.

187 F. Supp. 889, 1960 U.S. Dist. LEXIS 3402
CourtDistrict Court, W.D. Missouri
DecidedOctober 18, 1960
DocketNo. 12240
StatusPublished
Cited by1 cases

This text of 187 F. Supp. 889 (Bartlett & Co. v. Commodity Credit Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bartlett & Co. v. Commodity Credit Corp., 187 F. Supp. 889, 1960 U.S. Dist. LEXIS 3402 (W.D. Mo. 1960).

Opinion

RIDGE, Chief Judge.

Defendant moves for summary judgment pursuant to Rule 56, F.R.Civ.P., 28 U.S.C.A., seeking dismissal of plaintiff’s complaint and judgment in its favor under Count I of its counterclaim. In its suggestions in opposition thereto, plaintiff states that it has “considered filing a cross-motion for summary judgment,” because points 1, 2, 3, and 4, proffered by it in support of its claim against defendant “raise only legal issues and do not involve factual points which are in dispute.” Because it appears to the Court that the questions presented by plaintiff under its points 5 and 6, do not raise any substantial controverted factual issue that would militate against a favorable ruling on defendant’s motion for summary judgment, we proceed to a consideration of such motion.

Plaintiff, by its complaint, seeks declaratory relief under Title 28 U.S.C.A. § 1349 and 15 U.S.C.A. § 714, to the effect that Commodity Credit Corporation, an agency and instrumentality of the United States of America (15 U.S.C.A. § 714) is entitled to no more than $179,351.47, as its pro rata share of the proceeds of insurance, collected through a judgment obtained by plaintiff, in its former name, in an action instituted by it in the Circuit Court of Jackson County, Missouri, and later sustained on appeal by the Supreme Court of Missouri. In that case plaintiff premised a claim against a number of insurance companies on three certificates of insurance issued to plaintiff as the operator of the River-Rail Elevator, located in Kansas City, Kansas, affording coverage for loss of grain stored therein, and also loss due to interruption of business. In that action a jury assessed the amount of plaintiff’s whole loss, with interest, at the sum of $769,522.74. However, when that litigation was finally concluded, judgment was entered in favor of plaintiff and against the defendants therein for $696,517.62. Of the total amount of the judgment as finally entered, $308,846.77, plus $61,169.33 interest, represented a recovery by plaintiff for loss of grain partially owned by it and by holders of “Terminal Public Warehouse Receipts” issued by plaintiff in respect to grain stored in River-Rail Elevator; which plaintiff operated under license from the State of Kansas. The facts and issues adjudicated in that action are set forth in detail in Hart-Bartlett-Sturtevant Grain Company v. Aetna Insurance Company, 1956, 365 Mo. 1134, 293 S.W.2d 913.

Concededly, defendant’s share of the grain loss supra, amounted to $258,403.-52. In respect to that loss, plaintiff, after “collecting” the amount of the above judgment, tendered a check to defendant for $179,351.41, on the theory that such amount constituted defendant’s share of the total loss of grain, less a proportion of the attorney’s fees and other expenses incurred by plaintiff in the prosecution of the above-mentioned litigation. Hence the issues on the present action, tersely stated, revolve around the question, whether defendant is to be charged with any portion of the total litigation expense and attorney's fees incurred by plaintiff in the prosecution of the above-referred-to action; or, whether defendant is entitled to the sum of $251,049.04, concededly recovered by plaintiff from insurance which offered coverage for the market value of defendant’s grain loss, with interest thereon from March 6, 1957, the date such loss was “collected” by plaintiff.

We do not deem it necessary to follow the parties in all the ramifications of the lengthy briefs filed in respect to the above issue. The salient background facts and the single issue, determination of which we find to be decisive, can be stated with comparative brevity.

[891]*891When the flood of 1951 occurred in Kansas City, Missouri-Kansas, plaintiff’s grain elevator located in Kansas City, Kansas, was one of it victims. Much of plaintiff’s own grain, as well as that of defendant, and that belonging to others holding Terminal Public Warehouse Receipts, issued by plaintiff, was destroyed. After such destruction, plaintiff was doubtful whether insurance policies obtained by it provided coverage for any such loss. However, it appeared to plaintiff, and its attorneys, that the proximate cause of the damage sustained to the grain in question, or to a large portion thereof, might have been due to the imbibition of some grain by flood waters, resulting in pressure which caused a number of explosions to occur in the elevator, releasing undamaged grain into the flood waters as a consequence of the “explosions”. Accordingly, proofs of loss were presented to the insurance companies and when no adjustment was forthcoming suit was filed by plaintiff. The case was fought vigorously, on both sides, through courts of the State of Missouri and up to a denial of certiorari by the Supreme Court of the United States, on February 25, 1957. 352 U.S. 1016, 77 S.Ct. 562,1 L.Ed.2d 548.

Commodity was at all times aware of such litigation. During pendency thereof, Commodity received a letter from plaintiff, suggesting that it either pay its share of the litigation expense, or else waive its right to share in whatever proceeds might result from the suit.1 However, plaintiff did not hear from Commodity until after the Supreme Court denied certiorari, making plaintiff’s victory in that litigation final. At that time, Commodity took the position, and maintains the same by its counterclaim herein, that it is, and was, entitled to receive a proportionate share of the insurance recovery obtained by plaintiff for grain loss, equal to the market value of its grain, which value determined a part of the total recovery made by plaintiff for Ioss of grain in such action; and this without any obligation on the part of Commodity to pay any part of the total cost of litigation incurred by plaintiff in connection therewith.

Plaintiff’s answer to the contention of Commodity takes many forms. Basically, its contention is premised in the legal proposition, that when a person expends labor and effort in the creation of a fund which inures to the benefit of himself and others, such others are obliged to bear their fair share of the expense of creating the fund as a condition of sharing in the proceeds; as laid down in Trustees v. Greenough, 105 U.S. 527, 26 L.Ed. 1157; Wallace v. Fiske, 8 Cir., 80 F.2d 897, 107 A.L.R. 726. Auxiliary thereto, and as to which plaintiff asserts a question of fact exists, is the contention that a casualty of the magnitude of the 1951 Flood and litigation of the complexity and difficulty of proof of the explosion case, were not within the reasonable contemplation of the parties at the time of the execution of the “Uniform Grain Storage Agreement” by plaintiff and Commodity, and that Commodity is estopped to contend that no charge can be made against it on account of fees and expenses of litigation incurred, for the reason that Commodity tacitly acquiesced in the prosecution of said suit, without ever claiming that plaintiff was bound to maintain the suit at its own expense, or that it was entitled to the entire amount of its loss recovered, without abatement, until after the termination of the litigation. Hence plaintiff says that the rights and liabilities of the parties in this action are to be governed by the general rule above stated, and not by any contract relation between the parties.

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Cite This Page — Counsel Stack

Bluebook (online)
187 F. Supp. 889, 1960 U.S. Dist. LEXIS 3402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bartlett-co-v-commodity-credit-corp-mowd-1960.