Charlesworth v. Whitlow

85 S.W. 423, 74 Ark. 277, 1905 Ark. LEXIS 443
CourtSupreme Court of Arkansas
DecidedFebruary 18, 1905
StatusPublished
Cited by5 cases

This text of 85 S.W. 423 (Charlesworth v. Whitlow) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charlesworth v. Whitlow, 85 S.W. 423, 74 Ark. 277, 1905 Ark. LEXIS 443 (Ark. 1905).

Opinion

Wood, J.

i. The complaint stated facts sufficient to give the chancery court jurisdiction. The purpose of the complaint was to require • appellants to discover and account for lumber, or the proceeds thereof, which appellees alleged appellants had received under a certain contract of agency, the terms of which are set •forth in the complaint, and it was alleged that the transactions between appellants and appellees were multifarious and complicated, and could not be reached at law. It was alleged that, “by mistake, oversight or fraudulent connivance” of Robert Fletcher and the defendants, Charlesworth & Yount, much of the lumber belonging to the plaintiffs was credited to the individual account of the said Robert Fletcher. The complaint alleges that appellees do not know the value of the lumber, but they are informed and charge that appellants received lumber to the value of $1,500 in excess of what they had accounted for. There was a prayer for an accounting. The chancellor was correct in assuming jurisdiction. Trapnall v. Hill, 31 Ark. 345; Story, Eq. § § 441-443, 457; Adams, Eq. 431; State v. Churchill, 48 Ark. 435.

2. There is nothing in the evidence to show that appellees are bound by an “account stated.” There is proof to justify the conclusion that after the 21st day of December, 1898, appellants knew that Robert Fletcher had ceased to be the agent and representative, of appellees at the mill.. That after that date he was acting on his own responsibility, and not as the agent of the appel-lees ; that appellees had sold the mill to hini, and that certain lumber and logs on the ground at the time of the sale remained the property of appellees. That the logs were to be converted into lumber, and the lumber was to be sent to Pettigrew. That appellees were not to be represented in this winding up of their affairs at the mill by Fletcher, but by some one else. That in this mátter the interests of appellees and Fletcher were somewhat antagonistic. Therefore whatever accounts, after December 21, 1898, were rendered to Robert Fletcher were not statements of accounts to appellees, and what Fletcher said or did with reference to these could not bind appellees, unless, with full knowledge of the statements, and of appellants’ intention, appellees approved them. But the proof tends to show that appellees, through Stuckey, notified appellants that the account was much larger than was expected, but expressed the probability that when the “lumber and everything came out” the account would be all right.

Two things are necessary, according to the definition of Mr. Anderson, in an account stated: “that there be a mutual examination of each other’s items, and that there be a mutual agreement as to the correctness of the allowance and. disallowance of the respective claims, and of the balance on final adjustment.” Anderson, Daw Diet. p. 17.

It is not disputed that Fletcher was the agent of appellees up to the time the mill was sold to him by appellees, about the 8th of December, 1898. It is not contended that'appellees would not be bound by monthly statements of account rendered to and approved by him while he was appellees’ agent. But the proof that such agency of Fletcher ceased after the 21st of December, 1898, clearly preponderates any evidence to the contrary. If he acted for appellees at all after that time, it was not with reference to the lumber and logs at the mill reserved to appellees when they sold the mill to Fletcher. Appellees are seeking to recover only for lumber that was received by appellants, as the agents of appellees.

3. The answer admits, and the proof, by both Stuckey and Charlesworth, shows, that Charlesworth & Yount were the agents of appellees at Pettigrew for the purpose of receiving their lumber, after the sale of the mill to Fletcher. It is not shown conclusively when this agency began, but it was not earlier than the 8th nor later than the 21st of December, 1898. There is some conflict in the evidence as to whether Charlesworth & Yount were to represent appellees at the mill as well as at Pettigrew; but we are of the opinion that the weight of the evidence shows that they were agents only for the lumber that should come into their hands at Pettigrew, and that appellees were represented at the mill by Dennis.

The consideration for the contract, according to the testimony of Stuckey, was the profit which appellants expected to receive from the sale of goods, which they were enabled to make by reason of handling the business of appellees in connection with the winding up of their sawmill and lumber interests at Kingman and Pettigrew. There is no very clear and satisfactory proof of what compensation appellants received or were to receive. But whether appellants were remunerated agents, or merely gratuitous bailees, is not material. For in either case they should be held to discover and account for the lumber which came into their hands, and they would be liable for its value unless they could show that they still had the lumber or could account for its loss. For not to be able to account in some manner for lumber that had come 'into their hands under the circumstances would be evidence of gross negligence or fraud, and in either event they would be liable for its value, even as gratuitous bailees. 1 Am. & Eng. Enc. Law (2d Ed.), p. 1070; Beardslee v. Richardson, 11 Wend. (N. Y.), 25; Gulledge v. Howard, 23 Ark. 61; Tracy v. Wood, 3 Mason (U. S.). 132.

4. What is the amount and value of the lumber that was received by appellants of appellees at Pettigrew for which appellants have not accounted ? This is purely a question of fact, and its proper solution has been rendered exceedingly difficult because the chancellor neither referred the matter to a master for statement of account, nor favored us with any special findings of his own. We have thus been compelled to go through a voluminous record to ascertain whether the chancellor’s general finding is correct. The proof shows that about December 8, 1898, or sometime between that date and the 21st of December, an inventory or estimate was taken of the lumber of appellees at Pettigrew and the lumber and logs at the mill. This estimate is not disputed by either side. It shows the following:

Lumber at-Pettigrew.64,551 feet
Lumber at the mill.43,716 feet
Logs at mill.76,000 feet

It was shown that the logs when converted into lumber would make a little more than 76,000 feet. But it is calculated that the logs made 76,000 feet of lumber. There was then at the mill after the logs had been converted into lumber 119,716 feet of lumber. How much of this lumber was hauled to Pettigrew and received by appellants ? The exhibit to Charlesworth’s deposition, showing the account between Whitlow, Lake & Company and Charlesworth & Yount, reveals that appellees were charged as follows:

1898, December 31, Lumber checks 8,610 feet.$ 34.44
1898, December 31, Lumber checks 18,837 feet. 75-34
1899, January 3, Lumber checks 5,000 feet. 20.00
February 2, Lumber checks 22,976 feet. 91.00
February 28, Lumber checks 2,026 feet. 8.10
February 28, Lumber checks 25,991 feet..... 103.96

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Bluebook (online)
85 S.W. 423, 74 Ark. 277, 1905 Ark. LEXIS 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charlesworth-v-whitlow-ark-1905.