Leech v. Farmers Tobacco Warehouse Co.

188 S.W. 886, 171 Ky. 791, 1916 Ky. LEXIS 437
Court of Appeals of Kentucky·Decided October 31, 1916·Published·Cited by 12 cases

Opinion

Opinion op the Court by

Judge Carroll

Reversing.

[793]*793This is a suit brought by the Farmers Tobacco Warehouse Company against J. S. Leech, J. S. Thomas, John Smith, individually and as agent of the J. P. Taylor Tobacco Co., Charles W. Stewart, individually and as agent of the E. J. 0 ’Brien Company, and W. P. Judy, individually and as agent of the E. J. Eeynolds Tobacco Co., to recover damages on account of an alleged conspiracy entered into by the persons named in their individual capacities to injure the business of the company. The Taylor Company, the O’Brien Company and the Eeynolds Company were made defendants upon the theory that these companies were liable for the acts and conduct of their agents, Smith, Stewart and Judy, in their efforts to destroy the business and property of the tobacco company.

The petition was filed on March 2, 1914, and after setting out that, the Farmers Tobacco Warehouse Co. was a corporation organized for the purpose of receiving, storing and selling on the floor of its warehouse, located in Eichmond, Ky., tobacco of farmers who brought their tobacco to this house for sale, charged, in substance, that Leech and Thomas as individuals, and the Taylor Company through its agent, Smith, the O’Brien Company through its agent, Stewart, and the Eeynolds Company through its agent, Judy, were engaged in 1913 and 1914, and had been for .several years prior thereto, in the business of buying tobacco on the tobacco market in Eichmond. That during the tobacco season of 1913-14 there were besides it two other tobacco warehouses in Eichmond, to-wit: The Madison Tobacco Warehouse Co., and the Home Loose Leaf Warehouse Co., engaged in competition with each other in conducting the same character of business

That the defendants “did in January, 1914, maliciously, unlawfully and wickedly conspire, combine, confederate and agree together, between and among themselves to estrange and alienate the patrons of this plaintiff, both growers of tobacco and buyers of tobacco, and to oppose and ruin the trade with, and the good will towards the plaintiff; and to destroy it; and to drive the plaintiff completely out of business by circulating and causing to be circulated false and injurious reports against the plaintiff, such as that it should not be in the market at Eichmond; that it was not needed; that it ought to be put out of business; that it would be put [794]*794out of business before a certain time; that the farmers should bring their tobacco to the Madison Tobacco Warehouse and the Home Loose Leaf Warehouse, as they could get a better price for their tobacco there; and that the plaintiff’s officers and stockholders were thieves and robbers. That the defendants did on the 29th day of January, 1914, go out to the plaintiff’s warehouse, for which day a sale of tobacco was scheduled, and by agreement, understanding and conspiracy by, between and among themselves, refused to bid reasonable prices for tobacco, made ridiculously low bids on tobacco that day, so as to make the sale at the plaintiff’s house a perfect joke and a farce, and to -embarrass the plaintiff’s business and drive its patrons to the other two warehouses, and to discriminate against this plaintiff, to the benefit of the other said warehouse companies. That when said ridiculously low prices were bid by defendants, their bids were rejected by the growers, or those in charge of the sale, in accordance with the latter’s rights. The defendants, without any fault on the part of the plaintiff, walked out of plaintiff’s warehouse in a body, held a meeting later in the day, at which they agreed and conspired among and between themselves not to return to buy at the plaintiff’s warehouse, and notified the plaintiff of that fact.....

“That as a result of said action and conspiracy on the part of the defendant buyers a great deal of the tobacco, in fact, the greater part of it, on the floor and in the shed of the plaintiff company’s warehouse for sale there was removed and taken to the other two said warehouses in the Richmond, Ky., market, for sale, and in which latter said warehouse companies some of said defendants had pecuniary interest. That growers, who had arranged to sell their tobacco- at the plaintiff’s warehouse, lost confidence in the market there on account of the unlawful acts of the defendants as herein-before described and hereinafter to be described, and naturally took their tobacco elsewhere for sale, thus unlawfully and maliciously drawing away from the plaintiff, its patrons and its business, preventing it from handling and» selling many thousands of pounds of tobacco over its floors, which it would otherwise have sold, thus causing great,, permanent, continuing and irreparable injury to this plaintiff. That said injurious reports originated and circulated by the defendants, and the re[795]*795ports of said unlawful acts of the defendants have been circulated and have reached far and wide over Madison and many other counties, and to the tobacco growers of said counties, so as to have destroyed, ruined and impoverished this plaintiff in its business.....

“That said combination, agreement, conspiracy and acts, as above alleged on the part of the defendants, was entered into and done by them for the purpose of wrongfully discriminating against the plaintiff in. favor of the two other said warehouse companies on the Richmond tobacco market, and for the purpose of regulating, controlling and fixing the price of loose leaf tobacco; and that said combination, agreement, understanding and conspiracy was entered into by said defendants for the purpose, and having the effect, of placing the whole management and control of the loose leaf tobacco business on the said Richmond tobacco market in the hands of the Madison Tobacco Warehouse Company and the Home Loose Leaf Warehouse Company with the intent and to have the effect to limit, fix, or to establish, or to change the price and the sale of all the loose leaf tobacco on the said Richmond tobacco market. . . .

“That by reason of said unlawful and malicious agreement,. understanding, conspiracy and acts of the defendants, as hereinbefore alleged, the plaintiff’s trade and good will to its business has suffered permanent and irreparable injury; its business has been in effect completely destroyed, ruined and impoverished, to this plaintiff’s damage in the sum of forty thousand dollars.”

By consent of parties the petition was traversed of record, and thereafter the case went to trial before a jury, with the result that there was a verdict and judgment against Leech for two thousand dollars, against Thomas for two thousand dollars, against Smith and the Taylor Tobacco Co. for two thousand dollars, against Stewart and the 0 ’Brien Company for two thousand dollars, and against Judy and the Reynolds Tobacco Company for two thousand dollars. From that judgment this appeal is prosecuted.

A number of grounds for reversal are presented by counsel for the appellants, but as we have reached the conclusion that the motion made and overruled, to direct the jury to return a verdict in their favor, should have been sustained, we will confine the opinion to a [796]*796statement of the reasons that have induced us to come to this conclusion.

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Leech v. Farmers Tobacco Warehouse Co., 188 S.W. 886, 171 Ky. 791, 1916 Ky. LEXIS 437 (Ky. Ct. App. 1916).

188 S.W. 886 (Leech v. Farmers Tobacco Warehouse Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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