Gerde-Newman & Co. v. Louisiana Stores, Inc.

144 So. 756
CourtLouisiana Court of Appeal
DecidedDecember 16, 1932
DocketNo. 4385.
StatusPublished
Cited by1 cases

This text of 144 So. 756 (Gerde-Newman & Co. v. Louisiana Stores, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerde-Newman & Co. v. Louisiana Stores, Inc., 144 So. 756 (La. Ct. App. 1932).

Opinion

DREW, J.

Plaintiff sued for $300, the alleged purchase price of one lot of sardines and salmon. It alleged that on September 1, 1928, defendant, through its agents and brokers,' Gregg & McKenzie, Inc., ordered the said sardines and salmon, and that plaintiff sold, shipped, and delivered to defendant, f. o. b. New Orleans, La., a certain itemized lot of sardines and salmon for the price of $300; that, acting upon the instructions given by said brokers, the shipment of goods was delivered to and received in good order by the Louisiana-Arkansas Barge Service, a common carrier, by water, from New Orleans, La., to Monroe, La., for transportation and delivery to defendant at Monroe, La., under its contract or bill of lading, dated September 1, 1928.

It alleged amicable demand and prayed for judgment, in accordance with the allegations of the petition.

Defendant filed an exception of no cause of action, which was overruled. It then answered, denying the allegations of plaintiff’s petition, and averred that the goods in question were shipped on open bill of lading, shipper’s order notify, and that said bill of lading was attached to a draft on defendant and forwarded to the Ouachita National Bank, of Monroe, La., for collection; that, before said draft was presented and paid, said goods were lost by said carrier; that plaintiff filed claim with the said carrier, which is now in the hands of a receiver, for its account; and that defendant has never had possession of the bill of lading covering the goods in question.

On the issues as thus made up, the case was tried in the lower court, resulting in the demands of plaintiff being rejected. From this judgment it appealed. There is no answer to the appeal; therefore the exception of no cause of action is not before us for consideration.

In August, 1928, defendant gave an order to Gregg & McKenzie, Inc., its broker at Monroe, for the merchandise in question, which order was transmitted by them to the New Orleans brokers, who placed the order with plaintiff. Plaintiff delivered the goods in good condition to the barge line for transportation to Monroe. En route, the barge sank and the shipment of goods was destroyed.

Plaintiff drew a draft upon defendant, through the Ouachita National Bank of Monroe, for the amount of the bill, viz. $300, and attached thereto the bill of lading with instructions to the bank not to deliver to defendant until the draft was paid. The bill of lading shows the shipper to be the plaintiff and consigned to the shipper, the plaintiff, notify the defendant. On the bill of lading there is the notation, “allow inspection.” The draft was never paid by defendant, and therefore the bill of lading was never given into its possession.

After the loss, plaintiff made a claim on the barge line for the price of the lost goods, without success. On October 3, 1928, plaintiff wrote the barge company as follows: “With reference to the conversation with you about the sinking of the barge which contained a shipment of ours going to the Louisiana Stores Company, Inc., amounting to $300.00, we enclose herewith bill for $300.00 and original order notify bill of lading. We ■understand that these goods Were insured for ten per cent more than the invoice, plus the freight, if any was paid. We would thank you to make arrangements to let us have your Check.”

This letter was followed by letters to the barge company on October 26th, November 6th, November 15th, and November 22d. It is always spoken of as “our claim.” On September 13, 1928, prior to the filing of the claim, plaintiff wrote to defendant as follows:

“Louisiana Stores Co. Inc., Monroe, La.
“Gentlemen: Mr. Trapani has handed us our invoice against you of September 4 for $300.00:
“We have gotten in touch with the Louisiana-Arkansas Barge Line. They admit that *757 the barge was sunk and that the bill of lading carries insurance. As there is no other insurance on these goods their insurance company will pay to the owner of the goods the amount the goods cost the owner.
“We must have the original bill of lading for this insurance claim as these goods were sold FOB New Orleans, La. We would thank you to take up this draft at the bank and send us the original bill of lading. If you do not take up this draft and become the owner of these goods, all that we can recover is the amount that the goods cost us, we being the owner. We would appreciate your doing this at once as these were your goods at the time we obtained the clean receipt from the carrier. There is no question but that your claim will be paid. We will file it for you.
“Yours truly,
“Gerde-Newman & Company.”

And on September 24, 1928, wrote again as follows:

“Louisiana Stores Co. Inc., Monroe, La.
“Gentlemen: We would appreciate an answer to our letter of September 13th. If you do not propose to pay this draft, please notify us. It will simply mean a loss of money to us. As a matter of absolute truth, these goods belonged to you at the time that the •boat sank. ' However, if you don’t take this view of it, please let us know. We must get the money from somebody.
“Yours truly,
“Gerde-Newman & Company.”

The record discloses that the draft was not paid because inspection was impossible, and that inspection of the goods was contemplated by all parties to the transaction. Also that defendant had no particular arrangement with the broker, paid them no commission, and always required inspection before acceptance of like goods and payment for same.

Act No. 94 of 1912, § 40, known as the Uniform Bill of Lading Act, in dealing with the form of bill as indicating the rights of the buyer and seller, reads as follows:

“Where the goods are -shipped by the consignor in accordance with a contract or order for their purchase, the form in which the bill is taken by the consignor shall indicate the transfer or the retention of the property or right to the possession of the goods as follows:

“(a) Where by the bill the goods are deliverable to the buyer or to his agent, or to the order of the buyer or of his agent, the consignor thereby transfers the property in the goods to the buyer.
“(b) Where by the bill the goods are deliverable to the seller or to his agent, or to the order of the seller or of his agent, the seller thereby reserves the property in the goods. But if, except for the form of the bill, the property would have passed to the buyer on shipment of the goods, the seller’s property in the goods shall be deemed to be only for the purpose of securing performance by the buyer of his obligations under the contract.
“(e) Where by the bill the goods are deliverable to the order of the buyer or of his agent, but possession of the bill is retained by the seller or his agent, the seller thereby reserves a right to the possession of the goods, as against the buyer.

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

Related

C. W. Greeson Co. v. Harnischfeger Corp.
93 So. 2d 221 (Supreme Court of Louisiana, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
144 So. 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerde-newman-co-v-louisiana-stores-inc-lactapp-1932.