John Flannery Co. v. James

79 S.E. 912, 13 Ga. App. 425, 1913 Ga. App. LEXIS 184
CourtCourt of Appeals of Georgia
DecidedSeptember 16, 1913
Docket4616
StatusPublished
Cited by6 cases

This text of 79 S.E. 912 (John Flannery Co. v. James) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Flannery Co. v. James, 79 S.E. 912, 13 Ga. App. 425, 1913 Ga. App. LEXIS 184 (Ga. Ct. App. 1913).

Opinion

Hammond, J.

John Flannery Company is a cotton-factorage corporation located in Savannah, Georgia. James is a cotton grower, cotton buyer, and shipper, located in Blakely. John Flannery Company sued James in the city court of Blakely for $8,250.32 upon an account, claimed to be due for advances made to him on 834 bales of cotton, commissions, storage charges, insurance, etc. James filed an original plea to the suit, in which he denied that he owed the.amount claimed for-storage, insurance, and interest. He set up a special contract made with an agent of John Flannery Company, by the terms of which he was to be charged only twenty cents a bale for storage and insurance, and six per cent, interest on advances, and alleged that the difference in his favor between the amount of these items as claimed in the suit (except the difference as to interest, which was waived) and the amount due under contract was $2,641.50; and he asked that this amount be deducted from the account. In his plea he admitted that he owed the balance of the account, to wit, $5,608.82; and this amount was tendered in full settlement and payment. The plea alleged also certain facts in reference to this tender, which was set up as an accord and satisfaction of the account. Subsequently, during the same term of the court, the defendant filed an amendment to his answer, in which he alleged that at the time the 834 bales of cotton were shipped to John Flannery Company it was distinctly and ex[427]*427pressly agreed between them that the cotton was to be sold by the plaintiff for the defendant whenever the price in the Savannah market reached 11% cents a pound, but the plaintiff, in violation of this agreement, failed and refused to sell the cotton at this price, although the cotton did reach this price per pound in the Savannah market and the plaintiff could have sold it for this price; and the plaintiff subsequently, in violation of the defendant’s instructions and the agreement, did sell 820 bales of the cotton at 11 cents per pound, and 14 bales of the cotton at 9 cents per pound, and thereby the defendant lost, and the plaintiff became indebted to the defendant, the sum of $2,273.07, being the sum which would represent the difference in the value of the cotton at 11% cents per pound and the price at which it was sold by the plaintiff. The amendment set up also that the plaintiff had lost all right to storage, insurance, . and interest claimed, because of its negligent failure to carry out the defendant’s instructions in reference to the sale of the cotton. The plea set out the amounts which it was claimed should be deducted from the account sued on. On the trial of the issues thus formed a verdict was found for the defendant. On motion of the plaintiff a new trial was granted.

On the second trial the answer was further amended by adding the following allegations in substance: That the plaintiff’s disregard of the instructions as to the sale of this cotton when the market price was 11% cents per pound, and its failure to comply with its duty as factor, arose out of the negligence and careless failure and omission of the plaintiff to properly grade and correctly classify the 834 bales of cotton, which lot of cotton graded as high as “Liverpool middling,” but was negligently and carelessly undergraded by the plaintiff, and the plaintiff made no attempt to sell the cotton as “Liverpool middling” while the price of that grade of cotton remained as high as 11% cents per pound, and did not discover its negligent mistake in undergrading the 'cotton, until the market price had declined and it was impracticable to sell the cotton' for this price in compliance with the instructions from the defendant. On the second trial the verdict was for the defendant, and the plaintiff filed a motion for a new trial, based upon the general grounds, and several special assignments of errors of law in the admission of evidence, and in excerpts from the charge of the court and in refusals to charge. 'This motion was denied, and the case is [428]*428here for review. We will first discuss the case as made by the evidence pertinent to the issues, and we will then consider, in the light of the evidence, the special assignments of errors of law.

1. The defense relied upon in the original plea and answer — that the plaintiff was entitled to only 20 cents per bale for storage and insurance, as per the terms of a special verbal .contract made with the agent of the plaintiff, was proved by the defendant and his son. It was strenuously denied by the agent with" whom the contract was alleged to have been made. On the law as applicable to this question we state .the general rule. Whenever an agent is empowered to do a particular thing he is also empowered to use all lawful means necessary to accomplish it, and when an agent is sent out to solicit shipments of cotton to his principal, he is a general agent for that purpose, and presumptively is fully authorized to make terms upon which the cotton may be shipped, received, stored, sold, and handled by the principal. Bass Dry Goods Co. v. Granite Mfg. Co., 119 Ga. 124 (45 S. E. 980); French Piano Co. v. Cardwell, 114 Ga. 340 (40 S. E. 292). This rule would not be altered by any secret instructions given to the agent by the principal, unknown to the shipper. Civil Code, § 3595.

2. The second defense relied upon in the first amendment to the plea and answer is that the plaintiff negligently failed and refused to comply with the instructions given by the defendant to sell his cotton when it reached the market price of 11% cents per pound. The instructions are admitted by the plaintiff, but it is insisted that they could not have been complied with, for the simple reason that cotton of the grade of defendant’s cotton never reached 11% cents per pound in the Savannah market. True, the defendant introduced some evidence, not of much probative value, that the cotton could have been sold for 11% cents per pound; but the daily market reports of the Savannah Cotton Exchangé were sent to this defendant by the plaintiff every day, and he had knowledge from these reports that at no time had cotton reached 11% cents, per pound in Savannah for cotton of the grade of his cotton in the hands of the plaintiff. No reason is given why the plaintiff could not have complied'with the instructions. On the contrary, the facts prove that it had every reason to make a sale as promptly as possible. When the cotton was first shipped by James he drew drafts for its value on the John Elannery Company. These drafts [429]*429were honored even before the cotton had been received, and there never was a time when the factor did not have a greater pecuniary interest in the cotton than the owner. Besides, the record contains many letters from the John Flannery Company urging James to sell because of the improbability of the cotton reaching 11% cents per pound. To many of these letters James made no reply. The record shows also that the John Flannery Company needed the money which had been advanced to James on the cotton, and made frequent requests for payment. James did make some payments, but never sufficient to make the John Flannery Company' safe, looking alone to the value of the cotton. It seems wholly, inconceivable that a factor who had advanced on cotton more than its value, and who needed the repayment of its advances, should negligently or arbitrarily fail or refuse to sell the cotton, when by doing so his debt would be paid.

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Bluebook (online)
79 S.E. 912, 13 Ga. App. 425, 1913 Ga. App. LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-flannery-co-v-james-gactapp-1913.