Dill v. Graham

530 S.W.2d 157, 1975 Tex. App. LEXIS 3218
CourtCourt of Appeals of Texas
DecidedNovember 10, 1975
Docket8534
StatusPublished
Cited by2 cases

This text of 530 S.W.2d 157 (Dill v. Graham) 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
Dill v. Graham, 530 S.W.2d 157, 1975 Tex. App. LEXIS 3218 (Tex. Ct. App. 1975).

Opinion

ROBINSON, Justice.

This is a suit for breach of contract and for conversion of the landlord’s share of a cotton crop by the tenant farmer and a cotton buyer. The trial court entered judgment upon jury findings in favor of the plaintiff landlord against the tenant farmer and the intervening cotton buyer, and denied recovery on the cotton buyer’s cross action against the tenant. The cotton buyer and tenant appeal from the judgment in favor of the landlord. The cotton buyer does not appeal from the portion of the judgment denying it recovery against the tenant. Affirmed.

The testimony is, in part, as follows: Plaintiff Faneta Graham, individually and as representative of her late husband’s estate, owned a farm in Terry County, Texas, which was farmed for her by defendant S. M. Dill pursuant to an oral agreement. Mrs. Graham was to receive one-fourth of the cotton crop as rent. Dill first farmed the land in 1972. Although Mrs. Graham had permitted him to sell her share of the 1972 cotton crop with his share on the open market after harvest, Dill had never contracted cotton from Mrs. Graham’s farm. On March 26, 1973, Dill, as seller, contracted through the Foster Gin, as agent for buyer, to sell all of seller’s 1973 cotton crop grown on Mrs. Graham’s farm to Keaton McCrary Cotton Co., Inc. The Foster Gin is owned by Keaton Acuff Company. The Mr. Keaton of Keaton Acuff is the same person as the Mr. Keaton of Keaton McCrary Cotton Co., Inc.

In October, 1973, Mrs. Graham first learned that Dill had contracted the 1973 cotton crop. In late December, after some of the cotton was ginned, she asked Dill to deliver to her the one-fourth of the “green cards,” representing her share of the crop. Dill refused and said that he could not deliver the green cards and told Mrs. Graham emphatically that he was not going to deliver any of the tickets to her at any time. In fact, 41 bales of cotton (10¼ of which represented Mrs. Graham’s share) had already been ginned and the green cards delivered to Keaton McCrary. At the time of Mrs. Graham’s demand, and when she filed this suit, most of the crop was still in the field. The landlord’s share of the cotton still in the field was 60 bales.

Keaton McCrary notified the gin that it was claiming the cotton. Adolph Hollman, Keaton McCrary’s buyer, testified that the gin manager, who was acting as Keaton McCrary’s agent, was instructed not to deliver the cotton. After the cotton in the field was ginned, and after suit was filed, the gin held the green cards on that cotton. Later, the gin delivered the green cards to *160 Dill for tender into court. Before trial, the court released three-fourths of the cotton to Keaton McCrary, and one-fourth (60 bales) to Mrs. Graham, in lieu of which Mrs. Graham posted her bond.

The jury found that Mrs. Graham and Dill had not agreed that Dill could contract the cotton for future delivery; that he agreed to deliver one-fourth of the cotton to her at the gin; and that he failed to do so. We find that Mrs. Graham’s testimony supports these findings of the jury and, after considering all of the evidence, conclude that these findings are supported by sufficient evidence and are not against the great weight and preponderance of the evidence.

Appellants contend that, because a cotton crop belongs to the tenant until it is harvested, the tenant may contract to sell the entire crop even before it is in the ground, and that, as a matter of law, Keaton McCrary, having dealt with the tenant, could not have converted cotton belonging to Mrs. Graham. Appellee contends that the tenant may not contract to sell the landlord’s one-fourth.

Unless their agreement provides otherwise, the tenant owns the entire crop prior to harvest. Nevertheless, the landlord has the fixed right to become owner of his share when the time for segregation and delivery arrives. Millingar v. Foster, 17 S.W.2d 768, 769 (Tex.Comm’n App.1929, jdgmt. adopted). To secure this right, he holds a landlord’s lien. Tex.Rev.Civ.Stat. Ann. art. 5222 (1962) provides a preference lien on the crop regardless of actual notice or lack of notice to the purchaser. The statute is notice to all persons. See Mathews v. Burke, 32 Tex. 419 (1870). The landlord may enforce his lien either by following the cotton and foreclosing the lien, or by suing the purchaser for conversion. Jarvis v. Spangler, 251 S.W. 525 (Tex.Civ.App.—Texarkana 1923, no writ). The landlord waives his lien by authorizing the tenant to sell the crop. Gilliam v. Smither, 33 S.W.984 (Tex.Civ.App.1896, no writ); Woodson v. Westbrook, 272 S.W. 821 (Tex.Civ.App.—Austin 1925, writ dism’d). If a purchaser buys the crop or a part of it on which the landlord has a lien, without the landlord’s consent or authorization to sell, the purchaser is liable in conversion to the landlord to the extent of the lesser of the value of the crop converted or the amount of rent due. Zapp v. Johnson and Dick, 87 Tex. 641, 30 S.W. 861 (1895); Farmers’ Elevator Co. v. Advance Thresher Co., 189 S.W. 1018 (Tex.Civ.App.—Dallas 1916, writ ref’d). Since one may convert personal property by receiving it pursuant to a transfer made without authority, it is thus incumbent upon the purchaser to ascertain the seller’s authority to sell, if he would protect himself from potential liability. Kimbell Milling Co. v. Greene, 162 S.W.2d 991, 997 (Tex.Civ.App.—Fort Worth 1942), aff’d, 141 Tex. 84, 170 S.W.2d 191 (1943). The exercise of dominion or control over another’s property in denial of or inconsistent with his rights is a conversion. Waisath v. Lack’s Stores, Inc., 474 S.W.2d 444 (Tex.1971); Conlee Seed Company v. Brandvik, 526 S.W.2d 795, 798 (Tex.Civ.App.—Amarillo 1975, no writ).

Applying the foregoing principles to the facts before us, we find that there is evidence that Keaton McCrary converted cotton belonging to Mrs. Graham.

We next consider whether there is sufficient evidence to support the jury findings that Keaton McCrary converted the 10¼ and 60 bales, respectively, on or about December 20, 1973. Mrs. Graham did not know the exact date in December on which she demanded the green cards. At one point in her testimony, she estimated it at December 20, 1973, and at another point, she said that it was between Christmas and New Year’s Day. In evidence is an un-cashed Keaton McCrary check for $1,370.78 tendered to Mrs. Graham after the suit was filed. The check, which was tendered as payment of the contract price for the 10¼ bales, is dated December 28, 1973, and recites that it is in payment of cotton that *161 day sold. The reasonable inference from the testimony, including that of Hollman and Dill, is that Keaton McCrary acted to exercise dominion and control over all of the landlord’s share in the latter part of December, 1973.

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Bluebook (online)
530 S.W.2d 157, 1975 Tex. App. LEXIS 3218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dill-v-graham-texapp-1975.