Clement Grain Co. v. Border Wholesale Commission Co.

237 S.W. 596, 1922 Tex. App. LEXIS 212
CourtCourt of Appeals of Texas
DecidedDecember 21, 1922
DocketNo. 6643.
StatusPublished
Cited by1 cases

This text of 237 S.W. 596 (Clement Grain Co. v. Border Wholesale Commission Co.) 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
Clement Grain Co. v. Border Wholesale Commission Co., 237 S.W. 596, 1922 Tex. App. LEXIS 212 (Tex. Ct. App. 1922).

Opinion

COBBS, J.

This suit was instituted by L. Villegas & Co. against Border Wholesale Commission Company and the Clement Grain Company, a corporation. It was alleged that the Border Wholesale Commission Company was engaged in the brokerage business as agent of the Clement Grain Company, and, without disclosing its principal, by written contract of February 28, 1918, agreed to sell and deliver to L. Villegas & Co., f. o. b. Laredo, Tex., one carload of No. 3 white sacked corn at $2.62% per bushel, to be shipped with draft and bill of lading attached with the right of inspection upon the arrival of car of corn, and, if corn was found to be of the kind and quality purchased, Villegas & Co. were to take up draft and bill of lading.

On March 23, 1918, Border Wholesale Commission Company informed plaintiffs of the arrival of the car of corn, and presented samples taken from the car, and, plaintiffs being satisfied, it was of the grade ordered and relying upon the representation that all the corn in the car came up to the samples presented, paid the draft, $2,869.16, and began unloading the car and placing same in the warehouse, and, when 433 sacks had been' unloaded, plaintiffs discovered that the bulk of the com was not up to the samples, but damp, hot, musty, of bad odor, and unfit for human food. Tbe plaintiffs refused to further unload or accept the balance of the corn, notifiecj appellee, and demanded the return. of the money. Appellant wired plaintiffs to unload the corn and they would protect them.

In the alternative plaintiffs prayed, if mistaken as to Clement Grain Company being principal and Border Wholesale Commission Company agents, then Border Wholesale Commission Company breached their "contract in not furnishing the corn they obligated themselves to furnish and are liable in damages, asked judgment for the $2,869.19 erroneously paid, less $664.23, amount realized from sale of corn. Plaintiffs also prayed for damages for keeping the com in their warehouse until April, 1920, as rent, the sum of $360.

Appellee admitted plaintiffs’ allegations, but denied that it was the agent of appellant, but after making the contract of sale of the corn to plaintiffs it purchased the corn from appellant, who agreed to deliver the said carload of corn of said grade and class, f. o. b. Laredo, Tex. After said carload was accepted and paid for by the plaintiff upon the sample exhibited, and after said Border Wholesale Commission Company had notified appellant of the complaint and request to indemnify plaintiffs against any loss and after plaintiffs accepted the proposition and unloaded the corn and placed the same in their warehouse, it ceased to have anything further to do with it. But, if appellee be held liable to plaintiffs, it prays judgment over against appellant for any recovery had against it.

The appellant’s defense was that it was not an undisclosed principal of its codefend-ant, but sold the corn direct to appellee, who received it, and that when delivered to j;he carrier in Waco to be shipped to Laredo it was in good condition, and, if damaged, it was because the corn was permitted to remain with the carrier too long in a tight car, where it became heated and thereby damaged.

Appellant also pleaded, by way of cross-action against appellee, that an order was given it for two cars of white sacked corn N'o. 3, which appellant purchased in bulk in Kansas City and shipped to Waco, where it was sacked and delivered to the carrier for ap-pellee of the proper grade. The corn was in transit some 12 days in a tight box car where the heat was so great as to damage some of the sacks, and, if it did not arrive in Laredo in the same good condition as it was when delivered at Waco, it was chargeable to the negligence and want of care of appel-lee and his carrier. Furthermore, the damage was slight, and, had it been handled with care, the damage' would have been diminished.

Appellant sought to recover of appellee on a contract of March 2, 1918, the price of two cars of white com at $2.15 per bushel. It was alleged that one of said cars was accepted and the other rejected, which forced ap *598 pellant to .take said corn and sell the same at a loss of $1,268.70; also sought to recover on a contract of February 18, 1918, the purchase price of three cars of white corn sacked at $2.20 per bushel, to be delivered at Laredo, which arrived at Laredo and remained in the car of the carrier on its tracks 'for IS days, causing the corn, on account of the great heat in the car, to become damaged, and appellant was forced to take said car, treat it, and sell it at a loss of $1,540.74.

On March 15, 1918, appellee ordered two cars of bulk white shelled corn, grade No. 3, at $2.03 per bushel, to be delivered at Laredo, .Tex., which appellant purchased in the open market and paid for and advised ap-pellee that it was ready to ship said com, hut, the market having declined, appellee refused to receive the corn, and appellant was forced to go into the market and'Sell it at a loss of $518.57. Appellant prayed for damages on account of the alleged breach and refusal of appellee to accept said corn in the sum of $3,328.01.

Appellee’s answer to the cross-action was that it was rejected because the corn tendered was not No. 3 white corn and not fit for human consumption on its arrival at Laredo, because it was hot and musty; that appellant had not complied with its contract, and out of five cars shipped three of the cars had not been of the class and grade ordered by appellee. One of said cars appellee agreed to accept and have screened on condition appellant would pay the cost of screening, which amounted to the sum of $348.81; that appellant refused to pay; so appellee asks judgment for said sum of money.

Trial was before a jury, and the court instructed the jury to return a verdict against L. Villegas & Co., as to the defendant, Clement Grain Company, and against the Border Wholesale Commission Company, in favor of L. Villegas & Co., for the sum of $2,744.68, and the verdict was as instructed; and the verdict was, further, that the Border Wholesale Commission Company have and recover of and from the Clement Grain Company the sum of-$1,332.56.

Appellant conténds that, when the corn was delivered in good condition on the car at Waco to the carrier to be shipped to ap-pellee, it had fully complied with its contract for the delivery of the same. No question of venue or jurisdiction is involved in this case depending upon the place of delivery. It is well settled, and the general rule is in said cases, that the delivery is complete when made to the carrier who takes charge for transportation and thereby becomes the agent or bailee of the buyer. Guinn v. Texas Drug Co., 219 S. W. 507; J. & G. Lippman v. Jeffords-Schoenmann Produce Co., 184 S. W. 534; Burton & Beard v. Nacogdoches Crate & Lumber Co., 161 S. W. 25; Robinson & Martin v. Houston & T. C. Ry. Co., 105 Tex. 185, 146 S. W. 537.

.In this case the terms were cash, and the contract provided the delivery and payment were “subject to inspection arrival draft.” The terms, therefore, were such as to permit the right of inspection before acceptance. Hence the contract, containing words of direction, in this case, in connection with the delivery, does not come under the general rule that the delivery is complete when made to the carrier at the place where the goods are received, but it is where the inspection and payment is to be made. Watson v. Landa Cotton Oil Co., 228 S. W.

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Bluebook (online)
237 S.W. 596, 1922 Tex. App. LEXIS 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clement-grain-co-v-border-wholesale-commission-co-texapp-1922.