Dubuque Fire & Marine Insurance v. Union Compress & Warehouse Co.

143 F. Supp. 128, 1956 U.S. Dist. LEXIS 2915
CourtDistrict Court, W.D. Louisiana
DecidedJuly 30, 1956
DocketCiv. A. Nos. 4607-4613
StatusPublished
Cited by1 cases

This text of 143 F. Supp. 128 (Dubuque Fire & Marine Insurance v. Union Compress & Warehouse Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dubuque Fire & Marine Insurance v. Union Compress & Warehouse Co., 143 F. Supp. 128, 1956 U.S. Dist. LEXIS 2915 (W.D. La. 1956).

Opinion

BENJAMIN C. DAWKINS, Jr., Chief Judge.

These consolidated cases, tried without jury, are the aftermath of a disastrous fire which occurred at Delhi, Louisiana, on November 12, 1953, destroying more than 3,000 bales of cotton, worth about $450,000, and two fairly large buildings, one of which was insured jointly by plaintiffs. They contend that defendants are responsible to them for the loss they thereby sustained.

The background facts are these: About 1940 or 1941, a group of public-spirited citizens of Northeast Louisiana, taking note of the advantages to be derived from a change in the former one-crop economy that had prevailed in the area for many generations, organized a non-profit corporation which they named Northeast Louisiana .Livestock Show, Inc. (called “Livestock”).

The principal purpose of the corporation was to educate the farmers of the area as to the profits and other advantages to be had in utilizing at least part of their lands for raising, and up-grading, livestock of all kinds.

To that end, the officers and board members of the corporation carried on an educational campaign among the people, high-lighted by a series of livestock shows. At first these shows were held in an old, unused warehouse at Delhi, loaned by Union Compress and Warehouse Company, Inc. (called “Union”), which operated a cotton compress and warehouse there. After several years the shows had outgrown the warehouse, and larger facilities were needed. In 1946, working with like-minded citizens in other areas of the State, they succeeded in obtaining from the Louisiana Legislature an appropriation in favor of Louisiana State University and Agricultural and Mechanical College (called “L. S. U.”), in the sum of $150,000, which was to be divided equally and used for erection of livestock exhibit buildings at Delhi, in North Louisiana, at Alexandria, in the central part of the State, and at Arabi, in South Louisiana.

The appropriation was made in the General Appropriations Act of 1946, and direction as to the development and maintenance of the facilities was contained in Act No. 174 of 1946, LSA-R.S. 3:2041 et seq. The Statute provided for donation of land, upon which the buildings were to be erected, by the Parishes of Richland, Rapides, and St. Bernard, and the Police Juries of the respective Parishes were required to maintain them. Following this legislative action, and through Livestock working with the Agricultural Extension Division of L. S. U., headed by Dean G. J. Lee of the College of Agriculture, a quonset-type cattle barn was erected at Delhi, on land acquired by the Richland Parish Police Jury, and donated by it to L. S. U. In order to stretch the available money as far as possible, Livestock’s officials called upon the local citizenry and governing authorities for contributions in the form of labor, free use of Police Jury and municipal trucks, and other such items. The structure was completed in 1947, and the first of a series of expanded livestock exhibits was held that year, under the joint auspices of Livestock and L. S. U.

Later, in about 1952, the shows having outgrown the L. S. U. building, Livestock erected its own building, partly on L. S. U.’s land, of a gable-roof type of construction, immediately adjacent to, and abutting, L. S. U.’s building. Thereafter, the two buildings actually were regarded and used almost as one, large doors leading from one to the other. The L. S. U. building was 120 feet wide and 160 feet in length, and Livestock’s building was of the same width, and 135 feet long. Both were of metal frame construction, with a common connecting' wall, but with different types of roofs.

Besides serving their primary purpose for livestock shows, the buildings were utilized by the community generally, as might have been expected in a small town with no other facilities for accommodating large crowds, for church gatherings, [131]*131political rallies, soil conservation meetings, and other public purposes.

While maintenance responsibility was placed in the Parish Police Jury by the Act of 1946, actually that body, which sat at Rayville, about seventeen miles away, never had anything to do with L. S. U.'s building other than to acquire and donate the land on which it was erected. No one from L. S. U. attempted to exercise any direct control of its upkeep, and, by more or less common consent, Livestock managed its foster brainchild as a proud and loving pater familias would have done. It even had a small office building on the premises, immediately adjacent to the barns, from which such operations were directed.

Under this loose, informal arrangement things went along quite happily until the early fall of 1953. In that year, notwithstanding the program of cash-crop diversification promoted by Livestock, and planting controls imposed by the Federal Department of Agriculture, the farmers of the area, like their brothers all over Dixie, brought forth a bumper cotton harvest of nearly overwhelming proportions. All regular warehouses were filled to capacity and freshly-ginned cotton was standing in the open. The rub of this was that prices for cash sales of the commodity were running well below “parity” loan values, and loans could be gotten only upon negotiable warehouse receipts. To get these valuable chits, the farmers had to have a place to store their cotton.

A real emergency thus was presented. Farmers, suppliers, bankers — all were threatened with financial ruin, as was indeed the entire economic life of the area. In such circumstances, and in characteristic American fashion, the people sought to improvise. Looking about for covered storage space, their eyes naturally lit upon the two large livestock barns, which were not then being used for their designed purpose and together were capable of holding approximately 3500 bales. Pressure was put upon Union’s officials, who in turn contacted Livestock’s board, making inquiry as to availability of the barns. Immediate consent was obtained for use of Livestock’s building as a temporary cotton storage warehouse, but its President, Mr. W. P. Martin, advised Union that proper permission would be necessary before L. S. U.’s barn could be put to such extraordinary use. There is a conflict in the testimony as to whether Dean Lee, of L. S. U.’s Agricultural School, granted such permission. However, after considering all the evidence on the point, as more fully shown later herein, we are convinced that, after being advised by Mr. Martin of the serious situation prevailing, the Lean authorized use of the L. S. U. building for that purpose. This happened about October 9, 1953.

Later, on October 27, 1953, a final agreement was reached whereby, for use of the buildings until February 15, 1954, Union would pay Livestock $500, to be used for promoting exhibits, and would pay the excess in fire insurance premiums, above normal rates, required by such extra-hazardous use of both facilities. No rental consideration was to be paid to L. S. U. On October 28th, Mr. Martin called Dean Lee by telephone, advised him that Union had begun that day to move cotton into the buildings, told him of Union’s agreement to pay the additional insurance premiums, and was informed by the Dean that he would notify L. S. U.’s fire insurers of the arrangement.

Storage of cotton proceeded at the rate of about 300 bales per day. By November 12th, L. S. U.’s building was full and work was going forward toward filling Livestock’s. About 3,000 bales had been stored when fire broke out, flashed through both buildings, and quickly destroyed cotton, buildings and all else in them.

Plaintiffs paid L. S.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
143 F. Supp. 128, 1956 U.S. Dist. LEXIS 2915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dubuque-fire-marine-insurance-v-union-compress-warehouse-co-lawd-1956.