Joseph Goldberger Iron Co. v. Cincinnati Iron & Steel Co.

154 S.W. 374, 153 Ky. 20, 1913 Ky. LEXIS 760
CourtCourt of Appeals of Kentucky
DecidedMarch 19, 1913
StatusPublished
Cited by11 cases

This text of 154 S.W. 374 (Joseph Goldberger Iron Co. v. Cincinnati Iron & Steel Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph Goldberger Iron Co. v. Cincinnati Iron & Steel Co., 154 S.W. 374, 153 Ky. 20, 1913 Ky. LEXIS 760 (Ky. Ct. App. 1913).

Opinion

Opinion op the Court by

Judge Miller

Affirming.

This suit for trover and conversion by the appellee against the appellant arose out of tbe following facts: By a written contract of July 26, 1909, The Cincinnati Iron & Steel Company sold to Joseph Goldberger, who was then doing business in Cincinnati under tbe name of Joseph Goldberger Iron Company, a shear for cutting all kinds of iron and steel. The machine was to be paid for in installments as the work progressed; tbe first payment [21]*21being due on or before September 1,1909. Some question having arisen about the terms of the contract, it was finally agreed between the parties that Goldberger should not be required to pay for the machine until after it had been installed. By this verbal arrangement, the steel company agreed to accept Goldberger's note for $4,800.00, that being the purchase price of the machine, the title thereof to remain in the steel company. As the machine weighed about 175,000 pounds, it was necessary to make an extensive concrete foundation work for its reception. On November 9, 1909, Goldberger appeared at the office of the steel company, and, having stated that the machine had been installed and was satisfactory, he gave the following note for the purchase money:

“$4,800. Cincinnati, November 9, 1909.
“Four months after date we promise to pay to the order of the Cincinnati Iron & Steel Company, four thousand and eight hundred dollars, at five per cent. Value received. Jos. Goldberger Iron Co.
“Jos. Goldberger.
“No. 102, due March 9, 1910.”

Some time in January, 1910, Goldberger began the formation of a corporation to take over his business and to be known as “The Joseph Goldberger Iron Company.” The incorporation was effected about February 8, 1910. when the charter was applied for, and it was actually engaged in business as early as February 19, 1910.

Joseph Goldberger was the owner of and used in his business certain real estate in Cincinnati, adjoining the Pennsylvania station, on East Front Street, known as the “old waterworks plant.’5 He sold his business to the new corporation, including the real estate and all the assets of the former business, such as a leasehold, stock, scrap-iron and steel on hand, and all the machinery. He became the president of the new corporation, owning practically all of its stock, and remained in complete charge thereof until it failed and went into the hands of a receiver on October 6, 1911. It is contended by appellant that Goldberger did not sell the shear in controversy to the new corporation, although he sold and turned over to it all the motors, pulleys and machinery connected with the shear. It is reasonably certain, however, from the proof, that the corporation used the machine from about February 19th, and perhaps earlier, until its failure; and during [22]*22this period the machine cnt about three million pounds of .scrap-iron and steel. When Goldberger’s note matured on March 9, 1910, it was not paid, and on April 2, 1910, The Cincinnati Iron & Steel Company filed a suit against Goldberger in Cincinnati on the note; and, at the same time, it filed another suit in the same court in Cincinnati against “The Joseph Goldberger Iron Company” for the conversion of the shear. Subsequently, on July 14, 1910, the steel company filed this action in the Kenton Circuit .Court in Kentucky against “The Joseph Goldberger Iron Company” for the conversion of the machine, and took an attachment against the corporation’s property in Kentucky. On April 18, 1911, the two actions in Cincinnati were dismissed without prejudice, nothing having been done therein except the filing of the petitions and answers. The steel company then proceeded to try this action which had been filed in the Kenton Circuit Court. .It resulted in a verdict and judgment for $4,800.00 for appellee against appellant, and from that judgment this appeal is prosecuted.

For answer, “The Joseph Goldberger Iron Company” presented the following defenses: (1) there could not have been a conversion on February 3, 1910, as alleged in the petition, since the corporation was not organized and was not capable of doing any corporate act until February 8th, 1910; (2) the steel company could not re.cover because it failed to show a demand for the return of the machine and a refusal on the part of the defendant, both being necessary, according to appellant’s contention, to establish a conversion; (3) that appellee failed to show that it was actually possessed of the shear alleged to have been converted, at the time of the conversion, or that it had the right to the immediate possession thereof; and (4) that in electing to sue Goldberger on the note, the steel company is bound by its election of that -remedy and is estopped from suing the corporation for conversion which was based upon the inconsistent claim that the title to the shear remained in the steel com.pany; and that by suing Goldberger it had waived its •right to take the property back. This last defense is based upon the theory that the suit against Goldberger in Ohio necessarily conceded that the title to the machine had passed to Goldberger. We will notice these several grounds of defense in the order stated.

1. We do not understand the rule to be that In •order to recover in trover it is necessary for the plaintiff [23]*23to allege or prove the precise day of the conversion; on the contrary, the action may be sustained upon proof that the conversion was committed on a day other than that alleged in the petition. Peacock v. Feaster, 51 Fla., 269; Hixon v. Pixley, 15 Nev., 475; Aldrich v. Higgins, 77 Conn., 370; Dietus v. Fuss, 8 Md., 48. In the case at bar the first instruction authorized the jury to find against the appellant if it converted the machine to its own use on or before February 19, 1910, with interest from the day of the conversion; and in response to that instruction the verdict gave interest from February 19, 1910, until paid. In this verdict the jury found as a fact that the corporation converted the machine to its own use on the day it began business; and this finding is fully supported by the evidence. There is no error here.

2. Was a demand on “The Goldberger Iron Company” for a return of the machine necessary before the plaintiff could maintain an action for its conversion? It is claimed by appellant that such a demand was necessary upon the theory that trover will not lie against one who comes lawfully into possession of property, until after demand'for its return and a refusal thereof; and as appellee neither alleged a demand in its petition nor proved it, the judgment should have gone peremptorily for the appellant. The rule is that where an actual conversion is alleged, as here, an averment of demand and refusal is not required. Or, as stated by Chitty:

“In the case of a conversion by wrongfully taking it is not necessary to prove a demand and refusal; and the intent of the party is immaterial; and if defendant acted under the supposition that he was justified in what he did, or as the servant of, and for the benefit of, another person, he will be equally liable to this action.” 1 Chitty’s Pleading, 153. 1

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Cite This Page — Counsel Stack

Bluebook (online)
154 S.W. 374, 153 Ky. 20, 1913 Ky. LEXIS 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-goldberger-iron-co-v-cincinnati-iron-steel-co-kyctapp-1913.