Fries v. Anderson, Clayton & Co.

190 Cal. App. 2d 667, 12 Cal. Rptr. 336, 1961 Cal. App. LEXIS 2353
CourtCalifornia Court of Appeal
DecidedMarch 29, 1961
DocketCiv. 6096
StatusPublished
Cited by14 cases

This text of 190 Cal. App. 2d 667 (Fries v. Anderson, Clayton & Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fries v. Anderson, Clayton & Co., 190 Cal. App. 2d 667, 12 Cal. Rptr. 336, 1961 Cal. App. LEXIS 2353 (Cal. Ct. App. 1961).

Opinion

*670 COUGHLIN, J.

The second amended complaint in this matter alleges a class action, brought on behalf of the two named plaintiffs and all others similarly situated, who were cotton growers, against the defendant, which operated cotton gins, to declare it a constructive trustee of 40,000 tons of cottonseed obtained through ginning the plaintiffs’ seed cotton as their agent for which the defendant had not accounted. Seed cotton, which is cotton picked from the cotton plant, consists of cottonseed with the cotton lint attached thereto and incidental debris, such as other parts of the cotton plant, grass, weeds and dirt. Hereinafter seed cotton will be referred to as “cotton,” cottonseed will be referred to as “seed,” and cotton lint will be referred to as “lint.” The second amended complaint was patterned after that approved by this court in Fanucchi v. Coberly-West Co., 151 Cal.App.2d 72 [311 P.2d 33], After a trial on the merits, judgment was entered in favor of the defendant, and the plaintiffs appealed.

For many years the defendant has been engaged in the business of ginning cotton and the processing of cottonseed; during the cotton ginning season of 1952-1953 operated 77 cotton gins in the San Joaquin Valley to which 5,102 cotton growers, including the plaintiff Herluf Fries delivered their cotton for ginning; and during the 1953-1954 season operated 75 cotton gins to which 4,144 cotton growers, including both of the named plaintiffs, delivered their cotton for the same purpose.

Each grower delivered his cotton to one of these cotton gins in trailers; the loaded trailer was weighed on certified scales; thereupon the cotton was removed; then the unloaded trailer was weighed; and the net weight of the cotton was obtained by subtracting the latter from the former weight.

Thereafter the cotton was ginned by machines which separated the lint, seed and debris; the lint was discharged at a designated location, weighed upon scales, processed and baled; the lint from each grower’s cotton was kept and weighed separately from that of other growers; the seed was removed from the gin by blowers to another location and stored in bunkers and large piles; the seed of all the growers at the particular gin was intermingled in these bunkers and piles; it was not weighed; and the debris was discharged at a third location.

It was understood that the grower sold and the defendant purchased the seed derived through this operation; in due *671 time the seed was transported by truck to the defendant’s cottonseed oil mills for processing; and the purchase price therefor was credited to the grower’s account.

The picking and ginning of cotton must be accomplished in a comparatively short season; it is necessary that the ginning should be done with dispatch; and this need for speed, apparently, accounts for the fact that the seed is not weighed before being placed in the bunkers or stacked in piles. None of the defendant’s gins were equipped with scales to weigh the seed. The named plaintiffs and the other growers in question knew these facts and also knew that their seed was not being weighed or separately stored. The testimony indicated that it would be impracticable to keep separate or to weigh the seed of each grower after it was removed from the gin; that the time consumed in doing so would detrimentally delay the ginning process.

As a consequence, pursuant to a custom of the cotton ginning industry which had been in existence for many years, the quantity of seed in each delivery of cotton, for the purpose of determining the price to be paid therefor, was calculated by the use of a formula and the result expressed in units of weight. The formula defined three categories and prescribed a ratio between the amount of seed and cotton in these different categories. If the scale weight of lint turned out by ginning exceeded 36 per cent of the scale weight of the cotton delivered for ginning, the formula directed that a deduction of 4 per cent of the scale weight of the cotton should be allowed for debris and the estimated weight of the seed would be the difference between the scale weight of the cotton when delivered less the combined weight of the lint and the estimated weight of the debris; if the lint turnout was less than 36 per cent and more than 30 per cent of the cotton, the scale weight of the lint was multiplied by 1.6 and the result constituted the estimated weight of the seed delivered; if the lint turnout was less than 30 per cent, its scale weight was multiplied by 1.5 to arrive at the seed estimate.

For each delivery of cotton the defendant rendered a ginning statement which set forth the weights of the cotton and the lint; stated the percentage of lint turnout, and if the percentage was under 36 per cent, carried the figure 1.6 or 1.5; accounted for the debris by listing it as 4 per cent and a stated number of pounds if the lint turnout percentage was *672 over 36 per cent, otherwise listed only the stated number of pounds which was determined by deducting the total of the lint scale weight and the seed estimated weight from the cotton scale weight; itemized their total expenses for which the grower was charged; and showed the credit allowed for the seed purchased by the defendant. The latter item was set up by completion of the following form:

“Cottonseed......Lbs. @$......per ton-$.....”

The figure used to denote the quantity of seed was that computed in accord with the formula heretofore detailed. The price per ton was that posted at the time the cotton was delivered to the gin. This was the current market price. The total credit was determined by the use of these two figures.

Eventually the seed was transported from the gin to the oil mill by truck. The truckers were paid on a per-ton haul basis. For this reason the seed was weighed when it arrived at the mill. The method of weighing was to cause the truck and seed to be placed on a scale and weighed; to empty the truck; to weigh the empty truck; and then determine the net weight of the haul by deducting the latter weight figure from the former. These are referred to as mill weights; the defendant maintained a record thereof; but this information was not conveyed to the growers. There was testimony that the seed became heavier after it was separated from the cotton and stacked in piles or stored in seed bunkers at the gin because of weight added by moisture. The plaintiffs contend that this evidence was improperly admitted. However, their objection goes to the weight of the evidence rather than its admissibility.

For the ginning seasons of 1952-1953 and 1953-1954 the total of the mill weights for all seed sent to the defendant’s oil mills from all of its cotton gins exceeded the total of the estimated weight of the seed as indicated on the ginning lists sent to its growers by 24,559,071 pounds.

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Bluebook (online)
190 Cal. App. 2d 667, 12 Cal. Rptr. 336, 1961 Cal. App. LEXIS 2353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fries-v-anderson-clayton-co-calctapp-1961.