Frick & Lindsey Co. v. Holbrook & Parks

259 S.W. 1033, 202 Ky. 416, 1924 Ky. LEXIS 732
CourtCourt of Appeals of Kentucky
DecidedMarch 14, 1924
StatusPublished
Cited by2 cases

This text of 259 S.W. 1033 (Frick & Lindsey Co. v. Holbrook & Parks) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frick & Lindsey Co. v. Holbrook & Parks, 259 S.W. 1033, 202 Ky. 416, 1924 Ky. LEXIS 732 (Ky. Ct. App. 1924).

Opinion

Opinion op the Court by

Turner, Commissioner

Affirming.

Appellant is a foreign corporation engaged in tbe selling of oil well supplies, and in 1920 maintained three such concerns in this state. Its principal place of business was Winchester, where it had an agent designated as such for service of process.

Appellees, Holbrook and Parks, were partners and engaged in Ohio county, Kentucky, in operating oil wells and developing oil lands. They each lived in that county.

In the fall of 1920, they were engaged in the cleaning out of some old oil wells in that county with a view to further operating and pumping them. It became nee[418]*418essary for them, in the operation of this work, to have a wire line or cable to attach to their machinery. The wells upon which they were working were about 1800 feet deep, and they needed about 2000 or 2500 feet of such line. Having failed to procure the wire line, in November, 1920, they either called appellant’s office in Winchester or were called by some one at that office over, the ’phone, and were told that appellant had such- a wire line at its Winchester store, but that it was 4000 feet long and would not be cut. In a second conversation over the ’phone appellees agreed to take the whole 4000 feet, and Rowan Holbrook, father of appellee, H. T. Holbrook, who was an officer of a bank at Hartford, guaranteed, on behalf of the bank, the payment for the shipment, and thereafter wrote a letter to appellant to that effect.

On November 16th appellant shipped the goods from Winchester over the L. & N. railroad consigned to itself (appellant) at Hartford, Ky., and at the same time sent the bill of lading to the bank at Hartford, with a draft attached for the amount of the bill. The draft was paid by appellees, the bill of lading turned over to them by the bank, and they received the goods on November 29th. They paid the freight on the shipment, had the wiro carried to their wells some miles from Hartford, and there, as claimed by them, they had the same adjusted to their machinery by experienced men, and undertook to use it.

In this action for damages by the purchasers it is alleged that when they attempted to use the wire line, and had used it for only a short time, they discovered it was rotten and had broken into numerous pieces and was absolutely worthless, and they pray for a judgment for the purchase price because of the breach of a warranty alleged to have been made by the seller at the time. Plaintiffs also sought to recover the freight paid, the expense of transportation from Hartford to the wells, and the expense of adjusting the wire to their machinery.

On the trial there was a verdict for the plaintiffs for each of these items in full, and from a judgment on that verdict this, appeal is prosecuted.

We are met at the outset with the contention that the venue of this action was in Clark county, and that the Ohio circuit court had no jurisdiction.

[419]*419Section 72 of onr Civil Code, with certain exceptions not here involved, provides:

“An action against a corporation which has an office or place of business in this state, or a chief officer or agent residing in this state, must be brought in the county in which such office or place of business is situated or in which such officer or ■agent resides; or, if it be upon a contract, in the above named county, or in. the county in which the contract is made or to be performed.”

The appellant, when it mailed the bill of lading with the draft attached to the bank at Hartford, had its unqualified endorsement on the bill of lading, and its contention is that although the goods were consigned by the shipper to itself at the place of delivery, still such an endorsement manifested upon its part an intention to part absolutely with the title to the goods, and that therefore when delivered by them to the carrier at Winchester the contract was closed, the carrier at the time becoming the agent of the purchaser. If the appellees had been the consignees in the bill of lading such delivery by the consignor to the carrier at Winchester would have been a delivery to the agent of the consignee, but when the consignor delivers to a carrier goods to be delivered to the consignor himself at another place, ordinarily, he does not part with title to nor control. over the shipment.

The argument for appellant here is that it had the guarantee of the bank through its officer, Holbrook, that its draft for the purchase price of the goods would be paid, and that therefore when it made its endorsement on the bill of lading and sent it to the bank it parted title with the property upon delivery to the carrier. But we think the facts in this case must be given a different interpretation, for if appellant had intended to part with title to the goods or control over them and rely wholly upon its guaranty, it would not have shipped them to itself; and the further fact that it had a guaranty from the bank to pay for the shipment and sent the bill of lading endorsed to the bank, thereby making that institution its agent, with a stipulation in the bill of lading that:

“The surrender of this original order bill of lading properly endorsed shall be required before the delivery of the property,”

[420]*420is convincing that it never intended its agent to part with the title to nor control over the goods until the draft attached to the bill of lading was paid. Not only so, it is shown by the evidence heard by the lower court on„ this motion it was the understanding between the parties over the telephone, including the officer of the bank, that the bill of lading should be attached to the draft and sent to the bank, and in substance that the transaction should be closed thereafter when the draft was paid and the property was delivered to the purchasers. At no time until tlie payment of the draft and delivery of the bill of lading did appellant, or its agent, the bank of Hartford, relinquish title to or control over the goods, and it seems to follow from this that the final delivery of the goods which constituted a consummation of the contract, took place in Ohio county.

As said in Swartz & Co. v. Woldert Grocery Co., 151 Ky. 748:

“‘The general rule is that where there is a consignment of goods to the seller, his agent, or order, and the bill of lading is forwarded to the seller’s agent, with draft attached, to be delivered to the buyer on payment, the seller thereby manifests an intention to preserve his property in the goods, and the property does not pass until the draft is paid.”

Other authorities are Kentucky Refining Co. v. Globe Refining Co., 104 Ky. 559; Kentucky Motor Car Co. v. Darenkamp, 162 Ky. 219.

Every fact and circumstance goes to show that notwithstanding the guaranty by the bank of Hartford, appellant by consigning the goods to itself and sending the bill of lading to its agent intended to retain the title to and control over the same until the draft was paid. That being true the title did not pass until the payment of the draft -and delivery of the bill of lading, and it is apparent it was the understanding between the parties these things were to be performed in Ohio county. No other reasonable interpretation of this transaction can be given, and we are of the opinion the lower court properly ruled it had jurisdiction.

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Cite This Page — Counsel Stack

Bluebook (online)
259 S.W. 1033, 202 Ky. 416, 1924 Ky. LEXIS 732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frick-lindsey-co-v-holbrook-parks-kyctapp-1924.