Livestock Producers, Inc. v. Littleton

748 So. 2d 537, 1999 WL 1044500
CourtLouisiana Court of Appeal
DecidedNovember 19, 1999
DocketNos. 32,273-CA, 32,274-CA
StatusPublished

This text of 748 So. 2d 537 (Livestock Producers, Inc. v. Littleton) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Livestock Producers, Inc. v. Littleton, 748 So. 2d 537, 1999 WL 1044500 (La. Ct. App. 1999).

Opinion

I,GASKINS, J.

This case involves the sale of stolen cattle. The trial court allowed recovery to those who were damaged by the wrongful conduct of the cattle seller, but also applied the principles of comparative fault to reduce their recovery. Most of the parties have appealed the trial court judgment or have answered the appeal. For the following reasons, we reverse in part and affirm in part the trial court judgment.

FACTS

For a number of years, Danny Smith and Charles Glasscock, Sr. had a partnership known as McDade Cattle Company, which engaged in raising cattle in Bossier Parish. In 1992, Mr. Glasscock died and his children, Robert Edward “R.E.” Glas-scock, Charles W. Glasscock, Jr., and Dorothy Ann Glasscock Dupree, were substituted as partners. R.E. Glasscock, a resident of Houston, was mainly involved in managing the partnership with Smith. He also engaged in a cattle operation with Smith separate from the McDade Cattle Company. This operation was conducted at Shady Grove Farm, located on property owned by the Glasscock family in Bossier Parish. Smith leased the Shady Grove property from the Glas-scock family for $12,000, and was paid by Mr. Glasscock for the use of this property in their enterprise. Under their arrangement, Mr. Glasscock provided all the money and property for a cow/calf operation and Mr. Smith supplied the labor. The profits were then divided between the two.

In 1994, Danny Smith told B.L. Little-ton, an out-of-state rancher, that he and R.E. Glasscock owned 250 head of Bran-gus cattle that were for sale. Actually, Glasscock was the sole owner of the cattle which were at the Shady Grove farm. These cattle were not connected with the McDade Cattle Company. After Littleton provided bull semen to artificially inseminate the cows, he then purchased the 200 cows that were pregnant. This sale occurred on August 1, 1994. | ¡.Littleton paid $150,000 for the cows. Smith asked for two checks, one for $75,000 to Danny Smith Farms and the other for $75,000 to R.E. Glasscock. However, it appears that Smith gave Glasscock the entire proceeds from the sale. When the cows began calving earlier than expected, Littleton and Smith entered into an agreement whereby the cattle were to stay at the Shady Grove farm from November 1, 1994 until February 28, 1995. In exchange for pasturing the cattle, Littleton paid Smith $11,000. Shortly after the purchase of the cows in August 1994, Littleton re-branded them with his “BL” brand, which is registered in Texas. He also placed ear tags on the cows, sequentially numbered from one to two hundred.

At about this time, Smith began experiencing financial difficulties caused largely by a gambling problem. Without Little-ton’s knowledge or approval, Smith began selling Littleton’s cows at Livestock Producers, Inc., (LPI) an auction business run by Ronnie Stratton. A total of 126 cows, some with their calves, were disposed of by Smith. This was accomplished in several separate sales, beginning in September 1994. In January 1995, Smith contacted Stratton, anxious to quickly dispose of the remaining 74 cows. On January 16, 1995, Stratton personally purchased the cows and was reimbursed by LPI, which immediately resold them to Don Sonnier. The cows were taken to Sonnier’s farm.

On February 16, 1995, Littleton received an anonymous phone call at his office in Hot Springs, Arkansas, that the cows were [540]*540gone and that Danny Smith had disappeared. A criminal investigation ensued and Danny Smith was arrested and charged with theft. The Bossier Parish Sheriffs Office determined that the 74 cows should remain on the Sonnier farm until the matter was settled. When the ownership of the cows was called into question, LPI refunded Sonnier’s purchase price. Then, the two civil suits at issue here were instituted.

hOn February 23, 1995, LPI and Ronnie Stratton filed a petition for a temporary restraining order, injunction, declaratory judgment, or in the alternative, money damages. LPI claimed to be the owner of the 74 cows purchased from Smith on January 16, 1995. LPI sought an injunction prohibiting the removal of the cattle until ownership could be determined by the court. In the alternative, LPI and Strat-ton sought money damages if they should be determined not to be the owners of the cattle or if the cows were encumbered with a priming security interest. Named as defendants were B.L. Littleton, Danny Smith d/b/a Smith Farms, McDade Cattle Company and R.E. Glasscock, individually.

Littleton answered and filed a cross-claim against Danny Smith d/b/a Smith Farms, and against McDade Cattle Company, asserting that Smith and McDade fraudulently sold the 200 cows he had previously purchased. He sought to recover the $150,000 purchase price as well as expenses incurred in the keeping of the cattle. He also asserted his ownership right to the 74 cows remaining with Sonnier and sought reimbursement from LPI and Stratton for the other cows that were disposed of at auction.

The Glasscocks and McDade Cattle Company answered, claiming that the partnership with Smith was dissolved. They contended that LPI did not buy the 74 cows from McDade and that McDade got no money from that sale.

On February 6,1996, B.L. Littleton filed suit against LPI, Ronnie Stratton, Danny Smith, McDade Cattle Company as well as R.E. Glasscock, individually. Littleton alleged that LPI and Ronnie Stratton sold the cows without checking their ownership, even though the cows had a new and unfamiliar brand and even though Danny Smith was not a regular customer of the auction. He further alleged that Smith and Glasscock were partners in McDade Cattle Company and that they 14wrongfully received the proceeds from the sale of the cattle and should return the money to him.

On May 8, 1997, Donald E. Sonnier filed a petition of intervention naming as defendants LPI, Ronnie Stratton, B.L. Littleton, Danny Smith d/b/a Smith Farms, McDade Cattle Company and the Glasscocks, seeking to recover expenses for the 74 cows left in Sonnier’s care. He later amended his petition of intervention to add as a defendant Larry Deen, Bossier Parish Sheriff, asserting that the sheriffs office determined that the cows should remain on Mr. Sonnier’s farm. The claim against the Bossier Parish sheriff was severed from these proceedings at trial because it had not been filed in time for the sheriffs office to respond.

Trial Court Judgment

The two suits were consolidated and the trial was held on June 10, October 10 and October 15, 1997. During the trial, the court entered an order dissolving the restraining orders and injunctions and authorizing release of the 74 cows to B.L. Littleton. On May 7, 1998, the trial court issued its original opinion in this case. It found that R.E. Glasscock and Danny Smith occasionally purchased cattle for a cow-calf operation in a business venture separate from McDade Cattle Company. The court found that Glasscock received the entire $150,000 that Littleton paid for the 200 cows. According to the court, Ronnie Stratton and LPI believed that Smith was acting in his capacity as partner of either the Smith-Glasscock venture or the McDade Cattle Company when he sought to sell cattle at the auction. The court also found that when the ownership [541]*541of the 74 cows purchased by Stratton for LPI and sold to Sonnier came into dispute, Sonnier’s purchase price was refunded.

|sThe court noted that during the time Sonnier kept the 74 cows, some calves were born, were sold and $39,000 was invested in a certificate of deposit.

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Bluebook (online)
748 So. 2d 537, 1999 WL 1044500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/livestock-producers-inc-v-littleton-lactapp-1999.