Larsen v. Housh

146 N.W.2d 314, 259 Iowa 911, 1966 Iowa Sup. LEXIS 891
CourtSupreme Court of Iowa
DecidedNovember 15, 1966
Docket52239
StatusPublished
Cited by6 cases

This text of 146 N.W.2d 314 (Larsen v. Housh) 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
Larsen v. Housh, 146 N.W.2d 314, 259 Iowa 911, 1966 Iowa Sup. LEXIS 891 (iowa 1966).

Opinion

Snell, J.

This was an action at law for the conversion of the sale proceeds of 69 head of cattle sold at auction. The proceeds were paid to the wrong man from whom there seems to be little or no chance of recovery.

Plaintiff lives at Klemme, Iowa, and is in the business of buying and selling livestock. He has a cattle buying agent in Sidney, Montana.

Ed H. Bohlman of Bismarck, North Dakota, d/b/a Bohlman Truck Line, was a trucker.

Defendant Automobile Underwriters is attorney in fact for State Automobile and Casualty Underwriters, hereinafter referred to as the insurance company, the cargo insurance carrier for Bohlman.

Defendant Charles N. Housh is the owner and operator of a sale barn in Forest City. The business is commission livestock selling. It is operated under the trade name of “The Cow Palace” and sometimes as “Forest City Auction Company.”

The controlling facts in the case appear without substantial *914 controversy and obviously were found by the trial jury to be as follows.

Early in November 1962 plaintiff, through his agent in Montana, purchased 191 head of feeder cattle and made arrangements to have them trucked from Mandan, North Dakota, to Klemme, Iowa, by Bohlman, the trucker. The cattle were paid for by drafts drawn on plaintiff’s account.

The cattle were loaded into two of Bohlman’s trucks. One truck arrived safely at Klemme. The cattle therein were unloaded and delivered to plaintiff. The other truck carrying 94 head of cattle overturned near Thompson, Iowa. Twenty-five of the cattle were killed or so injured that they had to be killed. The remaining 69 cattle were so injured and damaged as to make them unsalable as feeder cattle.

Plaintiff learned of the upset and went to the scene of the accident. He later testified: “We told them we couldn’t accept the cattle in that kind of condition. * * * We couldn’t take them down to our yard and sell them as good cattle.” The cattle had been in excellent condition when loaded.

After some difficulty because of their wildness, the surviving cattle were rounded up and taken by one of the truck drivers to The Cow Palace, the sale barn at Forest City.

The trucker’s insurance company was promptly notified by telephone of the upset and sent its local representative and attorney to investigate. Plaintiff was told by agents of the insurance company that an adjuster would be sent to take care of the loss. Plaintiff had nothing more to do with the cattle.

The insurance company’s representative investigated at the scene of the upset and then went to the sale barn. No one admits directing the sale of the cattle at an auction sale then in progress, but someone did and no one objected and the act of selling the cattle is not the present issue.

Something had to be done with the cattle to prevent further loss. The cattle were sold. After the sale defendant Housh, at the direction of the insurance company’s representative, caused a check for the amount of the net proceeds to be written payable to Ed H. Bohlman. The check was delivered to Bohlman’s truck driver who returned to Bismarck and delivered the cheek to *915 Bohlman. Bohlman cashed the check but has accounted to no one. From the record we assume that Bohlman is insolvent. The insurance company paid plaintiff for the cattle that were killed. The present controversy involves the proceeds of the auction sale and the remittances to Bohlman.

Several conferences with interested parties were sought and tentatively arranged but Bohlman never appeared.

In an action at law prior to the case at bar plaintiff sued Bohlman. Therein it was found Bohlman’s failure to pay to plaintiff the net proceeds from the sale of the cattle was wrongful. Judgment in favor of plaintiff and against Bohlman was entered. The judgment against Bohlman being uncollectible the present action against defendants Housh, the owner of the sale barn, and Bohlman’s insurance company, was instituted. This case was tried to a jury. The jury found for plaintiff and against the insurance company and for defendant Housh.

The insurance company has appealed and will be referred to as defendant.

I. Prior to trial and in this appeal defendant has urged that plaintiff’s action and judgment against Bohlman constituted an election of remedies and bars the present action. The trial court in adjudicating law points did not agree. Neither do we.

While it is, of course, true that plaintiff would not be entitled to be paid twice, he has not been paid and his action against Bohlman was not a waiver of his claim against the insurance company. The action against Bohlman was to recover money wrongfully retained. The action against defendant insurance company is for causing the money to be paid to the wrong person in the first place.

Over simplified but in substance plaintiff’s position is that he tried to recover from the man who has his money. Not getting his money from Bohlman plaintiff now pursues the defendant who caused the money to be paid to the wrong man. There is no such inconsistency as to make election of remedies a good defense. There is a chain of events but no conflict between plaintiff’s positions. There is no innocent third party involved or harmed. If plaintiff had collected on his judgment against Bohlman defendant insurance company would have been relieved. *916 Plaintiff’s attempt to collect from Bolilman being unsuccessful does not relieve defendant insurance company from responsibility for its own separate tort.

Kearney Milling and Elevator Co. v. Union Pacific Railway Co., 97 Iowa 719, 723, 66 N.W. 1059, 59 Am. St. Rep. 434, quoting from Thompson v. Howard, 31 Mich. 309, 312, says:

“ ‘A man may not take two contradictory positions, and where he has a right to choose one of two modes of redress, and the two are so inconsistent that the assertion of one involves the negation or repudiation of the other, his deliberate and settled choice of one, with knowledge, or means of knowledge, of such facts as would authorize a resort to each, will preclude him thereafter from going back and electing again.’ ‘Any decisive act of the party, with knowledge of his rights and of the fact, determines his election, in the case of conflicting and inconsistent remedies.’” (Citations)

In Zimmerman v. Robinson & Company, 128 Iowa 72, 73, 74, 75, 102 N.W. 814, 5 Ann. Cas. 960, this appears:

“It not infrequently happens that for the redress of a given wrong or the enforcement of a given right, the law affords two or more remedies. Where these remedies are so inconsistent that the pursuit of one necessarily involves or implies the negation of the other, the party who deliberately and with full knowledge of the facts invokes one of such remedies is said to have made his election, and cannot thereafter have the benefit of the other.

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Bluebook (online)
146 N.W.2d 314, 259 Iowa 911, 1966 Iowa Sup. LEXIS 891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-housh-iowa-1966.