D'Aprile v. Turner-Looker Co.

209 A.D. 223, 204 N.Y.S. 566, 1924 N.Y. App. Div. LEXIS 8591

This text of 209 A.D. 223 (D'Aprile v. Turner-Looker Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D'Aprile v. Turner-Looker Co., 209 A.D. 223, 204 N.Y.S. 566, 1924 N.Y. App. Div. LEXIS 8591 (N.Y. Ct. App. 1924).

Opinion

Seabs, J.:

On the 10th day of May, 1918, the parties to this action entered into a contract for the sale by the defendant to the plaintiff of ten barrels of Kentucky whisky in bond at the price of three dollars per gallon. On the following day the defendant made a draft upon the plaintiff for the purchase price and attached to it certificates of the bonded warehouse properly indorsed for ten barrels of Kentucky whisky. The certificates described the barrels so that they could be identified. The plaintiff refused to pay the draft and accept the warehouse certificates. The defendant herein during the month of August, 1918, brought suit against the plaintiff for the purchase price of the goods sold, under the provisions of the 1st subdivision of section 144 of the Personal Property Law (as added by Laws of 1911, chap. 571), on the theory that the tender of the warehouse receipts was sufficient tender of the goods under the contract and that the title to the whisky had passed to the buyer. The plaintiff served an answer, and after a trial the action resulted in a judgment in favor of the defendant (the seller) for the full amount of the purchase price. This judgment was affirmed both in the Appellate Division (Turner-Looker Co. v. Aprile, 195 App. Div. 706) and in the Court of Appeals (234 N. Y. 517). The judgment, following the affirmance by the Court of Appeals, was entered on March 30, 1921, and was for the sum of $1,799.45.

While that action was pending the defendant sold the ten barrels of whisky described in the warehouse receipts to a third party at ninety-five cents per gallon, making $418.81 for the ten barrels.

In the majority opinion of this court attention is called to the circumstances that the complaint in that action alleged that the seller was in possession of the whisky in question and that such was the fact at the time of the commencement of the action, and, further, that the answer on behalf of the buyer did not allege such resale as a defense, and that the buyer did not ask to amend his answer, and the opinion stated that such being the facts, the disposition by the trial court awarding the seller the full purchase price was justified under the pleadings. The opinion did, however, contain this language: “ The plaintiff had elected to bring its [225]*225action, for the purchase price and fixed the title of the whisky in the defendant, and it may be that when it sold the whisky for ninety-five cents a gallon it was selling the defendant’s whisky w ithout authority and would be hable to the defendant for all damage caused to him thereby, but that question was not pleaded or litigated. Possibly the defendant was unwise in refusing to accept the offer of the plaintiff to permit him to amend the answer and set up his damages. Having failed to do it, however, he cannot raise the objection now. The cases seem to be conclusive upon this question. (Schepp Co. v. Far Eastern Mfg. Co., 168 N. Y. Supp. 636; Stokes v. Mackay, 147 N. Y. 223.)’’

Immediately following the affirmance of the judgment in the action referred to by the Court of Appeals, the plaintiff brought the present suit alleging that the sale of the whisky by the defendant on the 11th day of April, 1919, was a wrongful conversion of the plaintiff’s property for which he was entitled to damages. The defendant served an answer in which was pleaded its judgment obtained against the plaintiff in its action for the purchase price of the goods and the case was tried before the court without a jury by consent. The trial court made findings of fact and ordered judgment in favor of the defendant on the theory that the plaintiff could not maintain this action for conversion without first paying the purchase price or tendering it, because until such payment or tender was made the plaintiff was not entitled to the possession of the goods. In so holding we think the learned trial court was in error. The title to the whisky was concededly in the plaintiff at the time the defendant sold the same to a third party. This was determined in the prior action. The basic position of the defendant throughout that litigation was that the title to the property had passed to the buyer and that the defendant was in possession by virtue of its vendor’s lien. (Pers. Prop. Law, § 135, as added by Laws of 1911, chap. 571.) If the resale by the defendant was unauthorized in law (a matter which is considered later) it constituted a wrongful disposition of the plaintiff’s property. To require a payment of the purchase price or a tender of payment as a condition precedent to recovery, after the seller has put it beyond its power to deliver the goods, would be to require a futile act. In such case an action for conversion can be maintained by the buyer against the seller without payment or tender of payment. (Smith v. Savin, 141 N. Y. 315; Mullen v. Quinlan & Co., 195 id. 109; Kavanaugh v. McIntyre, 210 id. 175, affg. 151 App. Div. 910, affg. 74 Misc. Rep. 222; Griggs v. Day, 136 N. Y. 152; Wilson v. Little, 2 id. 443.)

[226]*226We are brought, therefore, to a consideration of the question whether the resale was authorized by the statute. An unpaid seller in possession of goods, the title to which has passed to the buyer, has several remedies in addition to his lien. Among these is the right to maintain an action for the purchase price. (Pers. Prop. Law, § 144, subd. 1, as added by Laws of 1911, chap. 571.) Where the buyer has been in default in the payment of the price an unreasonable time, there is a right to resell the goods and after that to recover from the buyer damages for any loss occasioned from breach of the contract or the sale. (Pers. Prop. Law, § 141, subd. 1, as added by Laws of 1911, chap. 571.)

In the instant case the defendant first sued for the purchase price and thereby unquestionably kept alive all its own obligations under the contract. (Stokes v. Mackay, 147 N. Y. 223.) Pending the action it continued in possession of the property under its lien. Its lien was not terminated by bringing the action. Even the entry of judgment does not terminate the vendor’s lien. It continues while the seller remains in possession, until payment or tender of payment. (Pers. Prop. Law, § 137, subd. 2, as added by Laws of 1911, chap. 571; Id. § 134, subd. 1, as added by Laws of 1911, chap. 571; Id. § 135, subd. 1, as added by Laws of 1911, chap. 571; Stokes v. Mackay, supra.) During the pendency of the action for the purchase price, the defendant by resale attempted to invoke the other remedy mentioned above. It may be conceded that the buyer had been in default of payment of the price for an unreasonable time and if the two remedies, one, the suit for the purchase price, and the other for resale, are not inconsistent, both may be pursued simultaneously. (Ratchford v. Cayuga County Cold Storage & W. Co., 217 N. Y. 565.) It may be argued that the resale was but a method of foreclosing the vendor’s lien and that in making the resale the vendor fully recognized the title of the buyer and sold as the buyer’s agent with the intention of applying the proceeds of the resale upon the purchase price, (Tuthill v. Skidmore, 124 N. Y. 148; Urbansky v. Kutinsky, 86 Conn. 22.) The Sales of Goods Act (Pers. Prop. Law, §§ 82-158, as added by Laws of 1911, chap. 571), however, does not refer to such resale as a foreclosure of the vendor’s lien.

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Related

Urbansky v. Kutinsky
84 A. 317 (Supreme Court of Connecticut, 1912)
Griggs v. . Day
32 N.E. 612 (New York Court of Appeals, 1892)
Barber v. . Hathaway
61 N.E. 1127 (New York Court of Appeals, 1901)
The Turner-Looker Company v. . Aprile
138 N.E. 429 (New York Court of Appeals, 1922)
Tuthill v. . Skidmore
26 N.E. 348 (New York Court of Appeals, 1891)
Mayer v. . Monzo
117 N.E. 948 (New York Court of Appeals, 1917)
Stokes v. . MacKay
41 N.E. 496 (New York Court of Appeals, 1895)
Ratchford v. Cayuga County Cold Storage & Warehouse Co.
112 N.E. 447 (New York Court of Appeals, 1916)
Smith v. . Savin
36 N.E. 338 (New York Court of Appeals, 1894)
Loring v. Morrison
25 A.D. 139 (Appellate Division of the Supreme Court of New York, 1898)
Barber v. Hathaway
47 A.D. 165 (Appellate Division of the Supreme Court of New York, 1900)
Kavanaugh v. McIntyre
151 A.D. 910 (Appellate Division of the Supreme Court of New York, 1912)
Turner-Looker Co. v. Aprile
195 A.D. 706 (Appellate Division of the Supreme Court of New York, 1921)
Kavanaugh v. McIntyre
74 Misc. 222 (New York Supreme Court, 1911)

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Bluebook (online)
209 A.D. 223, 204 N.Y.S. 566, 1924 N.Y. App. Div. LEXIS 8591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daprile-v-turner-looker-co-nyappdiv-1924.