Collins v. Kent Storage Co.

199 N.W. 634, 228 Mich. 137, 1924 Mich. LEXIS 760
CourtMichigan Supreme Court
DecidedJuly 24, 1924
DocketDocket No. 11.
StatusPublished

This text of 199 N.W. 634 (Collins v. Kent Storage Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Kent Storage Co., 199 N.W. 634, 228 Mich. 137, 1924 Mich. LEXIS 760 (Mich. 1924).

Opinion

Bird, J.

Plaintiff operates a retail bakery in the city of Grand Rapids. Defendant conducts a storage warehouse in the same city. On February 2, 1921, plaintiff purchased from W. S. Canfield Flour Company, a copartnership, dealing in flour in Grand Rapids, 100 barrels of Occident flour at $9 per barrel, and paid for it. The following order was given for it:

“The Collins Bakeries,

Main Office Grand Rapids, Mich.,

304 Gilbert Bldg.

“Date 2-3-191. No.

“I order the following supplies for store No....... located at........... city........... state........ 100 bbl. Occident in %’s paper delivered at Kent Storage Co., this city. At $9.00 per bbl. I to assume *139 storage charges there after February 15, 1921. Delivery to be made to me on Kent Co. 2-3-1921.

“Yours truly,

“Barker Bakery,

“S. W. Collins,

“Ordered from W. S. Canfield Flour Co.

“Order by S. W. C.”

The following day plaintiff ordered by ’phone from the defendant 40 barrels of the flour, and it was delivered to him and he receipted for it. On February 9th he ordered by ’phone 30 barrels, and this was delivered and receipted for. Later he received 4 barrels, which made 74 barrels he received out of the first lot of 100 barrels which he purchased.

On February 14th he ordered a second lot of 100 barrels of Occident flour from W. S. Canfield Flour Company, and paid $900 for the same. For this lot he received the following warehouse receipt:

“Cor. Front & G. R. & I. Ry.

“Grand Rapids, Mich., 2-14-21; Room.. .Section... Lot No. 3745.

“Received of W. S. Canfield for account of Collins Bakeries 800 bags (%) said to contain flour.

“Mark..........Car No.........Initial........ Weight 20,000.

“Checked by C. H. S. Rate............

“Kent Storage Co.,

Per “Olmstead.

“Not negotiable.

(Deliveries) ‘Occident.’

Combined public and private warehouse.

Important — Bring this slip for withdrawals.

(Read conditions on other side.)”

Soon after making this second purchase he ordered, by ’phone, 30 barrels delivered to his bakery. This was refused. Plaintiff then demanded the balance of the first lot, 26 barrels, and the whole of the second lot, 100 barrels. This demand was refused. On the following day he received a letter from the Kent *140 Storage Company, giving reasons for its refusal to deliver the flour:

“Grand Rapids, Mich.

“February 15, 1921.

“Mr. S. W. Collins,

“804% Gilbert Bldg.,

“Dear Sir: Confirming our conversation on the ’phone today, we were unable to make deliveries of ‘Occident Flour’ from stocks in storage in our warehouse for the account of the W. S. Canfield Flour Co., on account of the fact that we received written instructions from them signed by W. S. Canfield, president, not to deliver any of their ‘Tea Table’ or ‘Occident Flour’ to anyone except on the signature of Mr. W. S. Canfield.

“We also had served on us today a ‘Writ of Garnishment’ by the sheriff of Kent county attaching all flour stored in our warehouse for the account of the W. S. Canfield Flour Co., all of which prevents us from making further deliveries at this time.

“This for your information.

“Very truly yours,

“Per E. R. McCoy,

Gen. Mgr.”

Plaintiff then took out a writ of replevin, seized the 126 barrels, and transferred the same to his own warehouse. The case was tried out by the court without the aid of a jury. The trial court found plaintiff was not entitled to the possession of the flour because he did not tender a written order with the receipt, nor tender the' receipt, and because he did not tender nor offer to pay any storage charges. Also on account of the garnishee proceedings which were mentioned in defendant’s letter. The plaintiff assigns error.

The testimony shows that the W. S. Canfield Flour Company was dealing extensively with the Kent Storage Company, and that the flour company was in *141 debted to the storage company for advancements and storage charges, and that from time to time the storage company prorated the Flour Company’s indebtedness over the number of barrels of flour it had for them in storage. Then whenever flour was released the flour company was obliged to pay the amount of the prorate on each barrel. The testimony of the storage people and their books fairly show that the price the flour company was obliged to pay when plaintiff bought these two lots of flour was $7.50 per barrel. The flour company paid the defendant each time $750 after it received the orders from plaintiff.

Following the first purchase defendant acknowledged possession of the flour for plaintiff’s account by delivering to him 40 barrels on a telephone order. Later 30 barrels were delivered on plaintiff’s telephone order. Still later 4 barrels. No charges for advancements or storage were made or demanded on these deliveries. The second purchase was evidenced by a nonnegotiable warehouse receipt. No deliveries had been made on this purchase. We think it is clear that plaintiff was the owner of this flour. He purchased it from the flour company and paid for it, and the storage company, by delivering 74 barrels of the first lot and giving a warehouse receipt for the second lot, recognized his ownership of it. At the time plaintiff demanded the 126 barrels of flour the storage company did not claim to own it, neither did the flour company. We, therefore, assume that plaintiff was the owner of the flour, and the storage company simply claimed a lien on it for storage charges and advancements.

As plaintiff was the owner he claimed the right of possession. When defendant delivered 74 barrels of the first 100 barrels without demanding any storage charges or claiming any lien for advancements to the flour company, plaintiff had a right to assume that *142 there were no charges for him to pay, and when it gave him a warehouse receipt for 100 barrels of flour with no claim noted thereon for storage charges and advancements, that there were none. The statute requires a warehouseman to make a claim on the warehouse receipt for both of these items, if they exist (2 Comp. Laws 1915, § 6564, subds. (e) and (i). There being no claim indorsed on the warehouse receipt for either advancements or storage charges, plaintiff had a right to infer that there were none, but that if there were that defendant had waived its lien on the same. The correctness of this view is further shown by the fact that when plaintiff demanded the entire balance of 126 barrels, two reasons only were given why it refused to deliver it, and neither reason :was that there were storage charges or advancements.

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Bluebook (online)
199 N.W. 634, 228 Mich. 137, 1924 Mich. LEXIS 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-kent-storage-co-mich-1924.