Lehman, Durr & Co. v. Marshall

47 Ala. 362
CourtSupreme Court of Alabama
DecidedJanuary 15, 1872
StatusPublished
Cited by13 cases

This text of 47 Ala. 362 (Lehman, Durr & Co. v. Marshall) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehman, Durr & Co. v. Marshall, 47 Ala. 362 (Ala. 1872).

Opinions

PECK, C. J.

1. The evidence offered by appellants (defendants in the court below) to prove the alleged custom in the city of Montgomery, was properly rejected. None but good customs have any validity. A custom that has a tendency to tempt parties to acts of wrong doing, bad faith, or dishonesty, can not be a good custom; A bad [376]*376custom ought to be abolished. Malus usus est abolendus, 1 Wend. Blackst. 76.

It is certainly an act of bad faith apd dishonesty for a party intrusted with a warehouseman’s receipt for cotton, to be handed to the owner, to transfer it by delivery to a third person, without the owner’s knowledge oí consent. The offer to prove this custom was an admission that such instruments could not be transferred by delivery, either by the common-law, or the law-merchant; and that is undoubtedly the case. Furthermore, this alleged custom is inconsistent with the spirit, if not with the letter, of section 1838 of the Revised Code, which provides that “ all bonds, contracts and writings for the payment of money, or other thing, or the performance of any act or duty, are assignable by indorsement.” A warehouseman’s receipt is a contract1 for the performance of a duty, and, therefore, can only be assigned by indorsement. — Skinner v. Bedell’s Adm’r, 32 Ala. 44; Henley v. Bush, 33 Ala. 636.

2. A growing crop may be mortgaged, and when matured and gathered, if not before, the mortgagee is entitled to the possession, and may maintain an action to recover it, or its value. — Adams v. Turner & Horton, 5 Ala. 740.

3. The contract between the mortgagee and mortgagors in the fall of 1867, that if the mortgagors would deliver, in the name of the mortgagee, at a warehouse in the city of Montgomery, or Wetumpka, to be selected by the mortgagee, a sufficient quantity of ginned cotton, at eleven cents per pound, to pay the note secured by the mortgage, the mortgagee would accept the cotton in payment of the note, did not destroy the legal effect of the mortgage. Such was manifestly not the intention of the parties. At most, it only amounted to an agreement to receive cotton at eleven cents per pound, if delivered, in payment of the note, instead of money, extending the time of payment to the end of the fall, but the mortgage still remained a security for its payment.

4. As between the plaintiff and defendants, the receipts copied into the bill of exceptions were an admission, on the part of the defendants, that the cotton belonged to the [377]*377plaintiff, (Kennedy, &c., v. Strong, 14 I. R. 128,) and it was no defense that it had been shipped and sold by direction of parties who had obtained possession of the receipts from a person who had no legal right to indorse or dispose of them.

[Note by Repórter.- — -After the delivery of the foregoing opinion, appellants’ attorneys applied for a rehearing, and made the following argument in support thereof :]

5. The defence of usury can only, be set up by a party to the usurious contract, or by some one having an interest in, or prejudiced by, the same. The defendants were not parties to the contract alleged to be usurious, had no interest in it, and had not in any wise been injured or prejudiced by it, and, therefore, could not make it a defense to this action. — Cooke & Kornegay v. Dyer, 3 Ala. 643.

6. It is the province of a jury to determine the credibility of evidence, and if conflicting, it is their duty to reconcile it, if it can reasonably be done. If a fact be misstated by a witness, his evidence as to other matters is not to be altogether rejected, unless the jury believe the misstatement was wilfully and deliberately made, knowing it to be untrue. — The Sanctissama Trinidad, 7 Wheat. 338-9.

Taking these principles as the law of this case, we do not discover any available error in the charges given by the court, and excepted to on the part of the defendants.

The judgment of the court below is affirmed, with five per cent, damages. The appellants will pay the cost.

Petitioners respectfully urge, that by the rulings of the court below, they were plainly deprived of an important provision of a valid and lawful contract, without any fault, or bad faith, or breach of contract, or breach of duty on their part; and were held responsible for the misconduct of plaintiff’s own agent, of which they had no notice when they exercised their right secured -by contract to deliver the • cotton to the order of “ the bearer ” of the cotton receipts, (which are in law contracts.) — Bush v. Bradford, 15 Ala. 317.

[378]*378Bad usage is not insisted on by petitioners. Let all mere usage be put aside.

Petitioners, however, do insist that no court ought to deprive them of the benefit of any portion of a lawful contract.

Petitioners insist that no court ought to treat the contract (evidenced by the cotton receipt,) precisely as if it did not contain the words, “ or to the bearer of this cotton receipt.” The law of the land does not deny effect to such plain words when found in a lawful contract.

The supreme court, in the opinion delivered, entirely overlooked the plain and rational distinction between the case where there is “ an express agreement to return the property to the plaintiff,” and the case where, as here, the agreement is evidenced by a receipt, and is, that the bailees receive the thing bailed from the plaintiff expressly “subject to his order, or the bearer of this receipt.”

In the ease where the express agreement of the bailee is to deliver to the plaintiff, and nothing is agreed or said as to delivery to the bearer of the agreement, or other person, the delivery by the bailee, through mistake or negligence, to another person, without the consent or authority of the plaintiff, is a conversion, and renders the bailee liable. That was precisely the case in Esmay v. Fanning, 9 Barb. 190. And that is the principle asserted in sections 414 and 450 of Story on Bailments, and in the cases cited in the notes to those sections.

But when, as here, the agreement is different, a different principle or rule must govern the case. A bailee certainly has the legal right to agree with the bailor, that the bailee shall have the right to deliver the thing bailed either to the bailor or to “the bearer” of the written agreement or receipt. This -was the very agreement which the parties to this suit did make, and did reduce to writing. There was no fraud in this -written agreement. This written agreement is a lawful and binding contract, and is the sole expositor, the conclusive evidence, of the terms of their contract. — Cole v. Spann, 13 Ala. 537.

Yet, the plaintiff is permitted to recover in the very teeth [379]*379of this lawful contract. Yes, he is permitted to recover, simply because the bailees did precisely what this lawful contract secured them the right to do, that is, delivered the thing bailed to “ the bearer ” of the written agreement or receipt.

In the class of cases first above noticed, (and of which Esmay v. Fanning, 9 Barb.

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Bluebook (online)
47 Ala. 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehman-durr-co-v-marshall-ala-1872.