Grays Harbor County v. Bay City Lumber Co.

289 P.2d 975, 47 Wash. 2d 879, 1955 Wash. LEXIS 426
CourtWashington Supreme Court
DecidedNovember 22, 1955
Docket32925
StatusPublished
Cited by45 cases

This text of 289 P.2d 975 (Grays Harbor County v. Bay City Lumber Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grays Harbor County v. Bay City Lumber Co., 289 P.2d 975, 47 Wash. 2d 879, 1955 Wash. LEXIS 426 (Wash. 1955).

Opinions

Rosellini, J.

This is a damage action for the conversion of certain timber owned by the respondent, Grays Harbor county, referred to herein as “the county.” The original trespass and conversion were committed by the cross-appellants, who are referred to as “the loggers.” The county elected to bring its action against the party to whom the loggers sold the timber after it was cut, Bay City Lumber Company, the appellant, referred to herein as “the lumber company,” which interpleaded the loggers as cross-defendants.

The logs in question were taken from the north half of section 12, township 20 north, range 11 west W. M., Grays Harbor county, owned by the county. The north half of the southwest quarter of this section is owned by W. C. Abel, who, prior to the trespass, sold to the loggers, for a consideration of four thousand dollars, the right to cut the merchantable timber growing thereon. At the time of this sale, Abel represented to the loggers that the only merchantable [881]*881timber in that vicinity was located on the eighty-acre tract owned by him and that the timber stood in four distinct areas or patches.

The tract being unmarked, the loggers attempted to secure the services of a surveyor employed by Rayonier, Inc., a company which conducts extensive timber operations in Grays Harbor county. They were told that the surveyor would not be available for several weeks. Deciding that they could not afford to wait that length of time, the loggers attempted to survey the land themselves. Referring to a Metsker map and a Geodetic survey map, using a compass and a length of rope, and starting from a point which they believed to be a recognized marker, they attempted to locate themselves on their property. They established a north cutting line, beyond which they did not cut. They observed approximately one hundred feet of merchantable timber lying beyond this cutting line. An aerial photograph (taken after the logging operation was finished), showing four distinct patches of timber within the area which their attempted survey established, was introduced in evidence by the county.

All of these facts were included in the trial court’s findings. There were findings that the value of the timber was $8 per thousand board feet at the time and place of the original conversion (stumpage value), and $35 per thousand board feet at the time and place of conversion by the lumber company—the difference being the value added by cutting and transporting the logs to the lumber company’s place of business.

For the 431,300 board feet converted by the lumber company, judgment was given for the county against the lumber company and for the lumber company against the loggers in the sum of $15,095.50, being $35 per thousand board feet, together with interest at six per cent per annum from the date of the last conversion, the court having found as a fact that the taking of the logs by the loggers was “heedless and wanton, not unintentional and inadvertent,” and that the loggers, by their conduct, showed that they recognized the need of a survey but decided to proceed without one.

[882]*882While, as the appellants contend, this court has said many times that punitive damages are not recoverable in the absence of á statute expressly authorizing them, we are also committed to the rule denying to the subsequent converter the right to deduct the value added by the labor and expenditures of the original converter when the original conversion was willful. The rule was first recognized in Chappell v. Puget Sound Reduction Co., 27 Wash. 63, 67 Pac. 391, and most recently stated in Watkins v. Siler Logging Co., 9 Wn. (2d) 703, 116 P. (2d) 315, as follows:

“If the original conversion was in mala fides, then damages in an action against a subsequent converter should be based upon the market value of the property as of the time and place the defendant first exercised control and dominion over it, and this rule applies even though the subsequent converter is an innocent purchaser for value. Wooden-Ware Co. v. United States, 106 U. S. 432, 27 L. Ed. 230, 1 S. Ct. 398; United States v. Perkins, 44 Fed. 670; Central Coal & Coke Co. v. John Henry Shoe Co., 69 Ark. 302, 63 S. W. 49; Tuttle v. White, 46 Mich. 485, 9 N. W. 528, 41 Am. Rep. 175.”

No reference was made to earlier Washington cases.

The principal question to be determined on this appeal is whether the trial court was justified in finding that the acts of the loggers were willful and in mala fides within the meaning of the quoted rule of damages. In its memorandum decision, the court made it clear that it had found no actual intent to trespass on the part of the loggers, but felt that they must be held to have acted in bad faith, as a matter of law, when they went into unmarked territory and proceeded to cut timber without benefit of a survey made by a “qualified” surveyor.

The essence of the court’s conclusion is that, in proceeding without a survey, the loggers knowingly ran the risk of trespassing, that is to say, they recognized the possibility that the line which they drew might lie beyond the true boundary of the land on which they had a right to cut timber. If this knowledge rendered the resulting trespass-willful or in bad faith within the meaning of the pertinent [883]*883rules of damages, the judgment of the trial court must be upheld.

We have been unable to discover any statute imposing upon one who purchases timber in unmarked territory the duty to obtain a survey by a licensed or qualified surveyor, and we have found no case which deals with the precise problem presented here. As McCormick on Damages 497, § 126, has commented: “Classifying trespassers as ‘innocent’ and ‘willful’ is easy, but actually distinguishing the sheep from the goat is not so easy.” Before laying down such an unswerving fine of demarcation, it is well to examine the theory of damages and the cases in which the higher measure has been imposed.

['2] This court early committed itself to the view that the doctrine of exemplary or punitive damages is unsound in principle and that such damages cannot be recovered except when explicitly allowed by statute. We have so held from Spokane Truck & Dray Co. v. Hoejer, 2 Wash. 45, 25 Pac. 1072 to Anderson v. Dalton, 40 Wn. (2d) 894, 246 P. (2d) 853, 35 A. L. R. (2d) 302. However, we have adopted the punitive measure of damages where a trespass or conversion is willful or in bad faith. Fischmaller v. Sussman, 167 Wash. 367, 9 P. (2d) 378; Watkins v. Siler Logging Co., supra; Parks v. Yakima Valley Production Credit Ass’n, 194 Wash. 380, 78 P. (2d) 162; Glaspey v. Prelusky, 36 Wn. (2d) 592, 219 P. (2d) 585. In the latter two cases, the converted goods were of fluctuating value, and the measure of damages imposed was the highest market value within a reasonable time after the taking. See, also, United States v. Kelly, 3 Wash. Terr. 421, 17 Pac. 878.

It was recognized in the early case of Bailey v. Hayden, 65 Wash. 57, 117 Pac. 720, an action brought under the treble-damage statute (now RCW 64.12.030, 040), that the wrongdoer is punished and the owner more than compensated when no allowance is made for the value added by the former’s labor and expenditures.

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Bluebook (online)
289 P.2d 975, 47 Wash. 2d 879, 1955 Wash. LEXIS 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grays-harbor-county-v-bay-city-lumber-co-wash-1955.