Jessen Liquor Co. v. Phoenix Distillery Co.

171 Iowa 505
CourtSupreme Court of Iowa
DecidedJune 21, 1915
StatusPublished
Cited by1 cases

This text of 171 Iowa 505 (Jessen Liquor Co. v. Phoenix Distillery Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jessen Liquor Co. v. Phoenix Distillery Co., 171 Iowa 505 (iowa 1915).

Opinion

Weaver, J.

— The defendant distilling company, doing business at St. Louis, Missouri, owned quantities of barrelled whisky stored in a government warehouse at that place. In July, 1912, defendant sold to the plaintiff, a dealer in Council Bluffs, eleven barrels of whisky and received payment therefor at the agreed price. The sale was made in bond and subject to the payment of the Federal revenue tax by plaintiff. The transaction was evidenced by the delivery by defendant to plaintiff of warehouse certificates or receipts for the requisite number of barrels, the intention being that the goods would be withdrawn from storage by the plaintiff at its convenience or upon its order and the payment of the revenue tax. About the time of the sale or soon thereafter, plaintiff cálled for and received six barrels of the whisky and paid the tax thereon. On September 13, 1912, plaintiff wrote to defendant, enclosing the warehouse receipts for the remaining five barrels, and saying:

‘ ‘ Enclosed find warehouse receipt for 5 bbls. Please pay tax and ship us these five bbls. reduced to 95 proof. Draw on us through the Commercial National Bank with B/L for the tax. Please do not delay as we.have the most of it sold.”

On September 11, 1912, the defendant acknowledged receipt of the letter and added:

[507]*507“To facilitate your unbonding we would kindly ask you to send us your cheek for $250.00 to cover the government tax which is approximately the amount on five barrels of whisky. Whatever "the difference may be, should there be any we shall account for same.
“The distillery is now unbonding hundreds of barrels of whisky each day which means an outlay of thousands of dollars for the government tax and they have therefore now made a strict rule that the government taxes must be sent in before the whisky is unbonded.
“Kindly send us in your check at once so that there is no delay for you in getting your goods.”

To this the plaintiff responded as follows:

“This is a unusual request we have unbonded rqany a hundred bbls. of whisky and this is the first instant that we ever was called on to advance the money for unbonding. We will pay draft with B/L and if you won’t do that send us the original warehouse receipt and we will unbond it ourself at the distillery. Hoping you will attend to this at once, and oblige.”

Thereupon, the defendant closed the correspondence with a letter to the effect that it would attend to the matter of unbonding the whisky as requested and draw on plaintiff for the amount of the tax. Defendant then proceeded to pay the tax on the liquor, $248.19, and having forwarded the shipment to Council Bluffs, sent the bill of lading, accompanied by a draft for that amount, to a bank for collection and delivery. The shipment having reached its destination, plaintiff paid the freight charges, but as it refused to pay the draft except upon a reduction of an amount to cover damages alleged to have been sustained because the first shipment was of a poorer grade or quality of whisky than it purchased, the bank declined to deliver the bill of lading and the railway company held the goods, awaiting settlement [508]*508of the controversy. The plaintiff then brought this action, claiming to be the unqualified owner and entitled to the possession of the goods, which it allegéd were wrongfully detained by the carrier under instructions from the defendant .distillery company to withhold delivery until plaintiff paid its demand. It was further alleged that the sum so demanded was not due or owing the distillery company and that the possession of the goods was wrongfully retained for the purpose of forcing the plaintiff to pay an amount of money which it did not owe. The distillery company appeared to the action and answered and pleaded the facts of the transaction substantially as we have stated them and asserted its right to withhold the delivery of the shipment until plaintiff had repaid the amount of money which defendant had advanced to take the goods out of bond. A jury was waived and cause tried to the court, resulting in judgment for defendant, as already indicated. There is little or no substantial dispute concerning the facts set out in the foregoing statement.

Upon the trial, in justification of its refusal to pay the amount of the draft, plaintiff introduced evidence tending to show that the warehouse certificates for the eleven barrels of whisky described the same as having been put in bond in the year 1909; but that when defendants, at plaintiff’s request, unbonded and shipped the first six barrels, they proved to have been bonded in 1911; and that the difference in age made a difference in the market value of the whisky to the amount of 30 cents per gallon, and plaintiff was damaged to that extent. Whether there has been any dispute or controversy between the parties over this alleged difference in age and value of the whisky is not shown in evidence, but it is conceded that plaintiff requested and procured the defendant to pay the tax upon the last five barrels for the undisclosed purpose of getting possession of them and thereby forcing the defendant to seek its remedy in the courts of this jurisdiction, if it is desired to contest the claim for damages. Upon the record so made, the trial court found for the [509]*509defendant and entered judgment against plaintiff for a return of the property taken on the writ, or in default thereof, for the recovery of the full amount of the draft and for costs.

The one question presented is whether, upon the undisputed facts, the plaintiff was'entitled to the possession of the property without paying the amount of the defendant’s draft which accompanied the bill of lading.

1' natureV of'ac-issues allow- * I. It will be observed from the foregoing statement that the issues disclose an ordinary action in replevin, in which the plaintiff asserts absolute ownership and right of possession of the goods described and the defend-ant pleads a right of possession until it is repaid the money which it advanced, at plaintiff’s request, in obtaining such possession from the bonded warehouse. The controversy between the parties over the first shipment is not mentioned in the pleadings, and plaintiff’s claim for damages in that transaction is nowhere pleaded or put in issue. Indeed, under our practice act, as is well understood, there can be no joinder of causes of actions not of the same kind in an action of replevin, nor is any counterclaim allowed. ' Code, Sec. 4164. For the double reason, then, that the question of damages to plaintiff on account of matters relating to the first shipment is not put in issue by the pleadings, and that such issue could not properly be joined with an action for replevin of the goods constituting the second shipment, it must be held that plaintiff’s right, if any, to recover damages of that nature is in no manner determinative of his right to maintain this action.

2. Principal and agent : lien of vancemeúte fd" replevin. II. The one question to be determined in replevin is the right to the possession of the property in dispute at the time the action is commenced. That plaintiff had then the general ownership may, for the purposes of this case, . be conceded, and this ownership earned with ^ right to possession unless, under the admitted facts, defendant could properly retain the possession in its own hands or in the hands of the [510]

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171 Iowa 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jessen-liquor-co-v-phoenix-distillery-co-iowa-1915.