Latta v. Transit Grain Co.

222 S.W.2d 467, 1949 Tex. App. LEXIS 2054
CourtCourt of Appeals of Texas
DecidedJune 20, 1949
DocketNo. 5963
StatusPublished
Cited by5 cases

This text of 222 S.W.2d 467 (Latta v. Transit Grain Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latta v. Transit Grain Co., 222 S.W.2d 467, 1949 Tex. App. LEXIS 2054 (Tex. Ct. App. 1949).

Opinion

STOKES, Justice.

During the year 1947, V. G. Petta and his partner, J. E. Duncan, owned and operated a grain elevator at Crosbyton under the trade-name of Cros-Tex Grain and Feed Company. Appellant, W. A. Latta, owned and operated a wheat farm in Crosby County and, during the months of June and July, 1947, he harvested his crop and delivered to the Cros-Tex Grain and Feed Company for storage 429,440 pounds of wheat. On July 23, 1947, he sold to Petta and his partner all of the wheat except 3,-333½ bushels and was paid therefor the market price at that time. The portion not sold was left with the grain company for storage in its elevator and in November, 1947 Petta and his partner sold appellant’s wheat, along with other wheat which they then had on storage, to the appellee, Transit Grain Company, a corporation with its office and principal place of business located at Fort Worth in Tarrant County. The testimony showed that, on April 7, 1948, appellant called for an adjustment and informed Petta that he was then- ready to [469]*469settle for the 3,333½ bushels which he had left on storage in the elevator. In the meantime Petta had bought the interest of his partner, J. E. Duncan, and a calculation between him and appellant revealed that, upon the basis of the then market price, Petta was indebted to appellant in the sum of $6,651.13. Petta assured appellant he would arrange to pay for the wheat within a short time but the record shows that ■he was unable to do so at any time thereafter. It further shows that on. May 19, 1948, Petta filed a petition in bankruptcy and was discharged as a bankrupt on September 14, 1948.

On August 11, 1948, appellant filed this suit in the district court of Crosby County against V. G. Petta; J. E. Duncan, and the appellee, Transit Grain Company, alleging they had converted his 3,333⅛ bushels of wheat and prayed for judgment, against them, jointly and severally, for its value.

Appellee filed its plea of privilege to be sued in Tarrant County which was duly ■contested by appellant and, upon a trial of the issues thus made, the plea of privilege was sustained,’ the cause of action as to it being severed and ordered transferred to the district court of Tarrant County.

Appellant duly excepted to the judgment and presents the case in this court for review, contending that the court erred in sustaining appellee’s plea of privilege be7 cause he had alleged and proved delivery ■of his wheat to the resident defendant, Petta, for storage under a contract of bailment and had shown a conversion of it by both of them through the sale by Petta and purchase by appellee. He contends, therefore, that Petta and appellee became liable to him, jointly and severally and .that, if the causes of action against them were not the same, they were so closely connected that - they, might properly be joined under the rule designed to avoid a multiplicity of suits.

At the request of appellant the court filed findings of fact and conclusions of law in which it found that the general custom in ■Crosby County and vicinity during the year 1947 for storing of grain was that the one storing it could, on any day in the future, by making demand, receive the prevailing market price as of that day for such grain; that, under such prevailing practice and custom, grain so placed in an elevator for storage was not intended to remain there but was to be handled and disposed of as the elevator, or those operating it, might desire; and that the Cros-Tex Grain and Feed Company accepted appellant’s wheat pursuant to such general custom and practice and upon its understanding that, upon demand in the future by appellant, it could pay for the wheat at the .current market price. It was further found that, in April, 1948, appellant demanded of Petta an accounting for the wheat he had stored in the elevator and Petta was unable to account for the same with the exception of 191⅛ bushels, which the record shows was all of the wheat then on storage in the elevator. The court further found that, at the time of such demand, appellant did not-expect to receive the identical wheat which he had stored in the elevator, or even an equal amount of wheat of the same grade, but was willing to receive as purchase price therefor the prevailing market price. It further found that, in August, 1947, the Cros-Tex Grain and Feed Company shipped a large amount of wheat, including appellant’s wheat, to appellee, Transit Grain Company, at Fort Worth, with directions ■that it be stored there, and that appellee arranged for its storage in the elevator ■of Burrus MÜ11 and Elevator Company at Fort Worth. It was further found that, prior to November 1, 1947, appellee purchased from the Cros-Tex Grain and Feed Company 38,843% bushels of wheat, including the 3,333⅛ bushels which appellant had left in storage with the Cros-Tex Grain and Feed Company and paid the market price therefor; that the wheat so purchased was delivered to appellee out of the mass of wheat in storage in the elevator. of the Burrus Mill and Elevator Com,pany at Fort Worth; and that Petta then intended to account to appellant for the value of his wheat at such time as appellant might make demand therefor. It was further found, and the undisputed evidence showed, that appellee had its residence, offices and principal place of business at [470]*470Fort Worth in Tarrant County and that V. G. Petta was a resident of Crosby County.

The controlling issue made by the appeal presents for determination the question of whether the transaction between appellant and the Cros-Tex Grain and Feed Company amounted to a bailment or constituted a sale of appellant’s wheat. Appellant pleaded a bailment and conversion of his wheat by Petta and appellee which he contends resulted from the shipment of his wheat to Fort Worth and the sale to, and the purchase of it by, appellee. Appellee answers the contentions of appellant by the assertion that, while appellant pleaded a bailment of his 'wheat to the Cros-Tex Grain and Feed Company, the evidence showed that a sale was effected by the transaction. ' ' ■

Whether such a transaction resulted in a bailment or a sale always presents a difficult question. It is a general rule, however, that, if the storer, or one depositing the commodity for storage has or retains the option of accepting the market price or the return of the commodity or a commodity of like kind, quality and quantity, the transaction constitutes a bailment; but, if the option to pay for the commodity at the market price or its return in like quality and quantity is with the warehouseman, or person with whom it is deposited, the transaction is a sale. Kimbell Milling Co. v. Greene, 141 Tex. 84, 170 S.W.2d 191; Stricklin v. Rice, Tex.Civ.App., 141 S.W.2d 748, and authorities there cited.

We have carefully examined the evidence and, in our opinion it amply supports the finding of the trial court that the wheat was delivered to the Cros-Tex Grain and Feed Company by appellant and accepted by it pursuant to the general custom and practice in respect to such transactions and that such general custom and practice in Crosby County and vicinity was that the one storing such grain may, on any day in the future, make demand and receive the prevailing market price therefor as of tne date of such demand.

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Bluebook (online)
222 S.W.2d 467, 1949 Tex. App. LEXIS 2054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/latta-v-transit-grain-co-texapp-1949.