Louisiana Oil Refining Corp. v. Noble-Trotter Rice Milling Co.

158 So. 654
CourtLouisiana Court of Appeal
DecidedJanuary 21, 1935
DocketNo. 1419.
StatusPublished

This text of 158 So. 654 (Louisiana Oil Refining Corp. v. Noble-Trotter Rice Milling Co.) 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
Louisiana Oil Refining Corp. v. Noble-Trotter Rice Milling Co., 158 So. 654 (La. Ct. App. 1935).

Opinion

LE BLANC, Judge.

This suit is directed by plaintiff, as the ad-vancer of supplies to a rice farmer, named De Witt Lewis, on whose crop it had a lien and privilege arising out of a pledge, against the operator of the rice mill which purchased and milled the rice and disposed of the pro-. *655 ceeds without giving full effect to the pledge of which it had actual knowledge. The claim is one in damages for the sum of $793.82, the difference 'between the full amount of the advances alleged to have been the sum of $1,-644.18, and the amount received by plaintiff from the proceeds of the rice, to wit, the sum of $S50.36. In addition thereto, plaintiff claims interest at the rate of 8 per cent, from October 1, 1932, the date of the note given to represent the advances, and also 10 per cent, of the amount of the unpaid indebtedness as attorney’s fees, as provided for in the said note.

The gist of the plaintiff’s petition is contained in those paragraphs in which it is alleged that, notwithstanding its full knowledge of the pledge on the rice, defendant milled and disposed of the same and converted the same into money and evidences of debt which it has placed beyond the reach of plaintiff under its pledge and that it has failed and refused to pay plaintiff in the manner provided by said pledge. It is alleged that the acts so committed by defendant were unlawful and in violation of plaintiff’s rights under its pledge, preventing it from enforcing its rights thereunder, and thus causing it the damage which it claims to have sustained.

From the numerous exceptions that were died by the defendant, one would be led to be-' Heve that the case presents manifold issues involving rather complicated propositions of law and of pleading. The mass of testimony submitted on the trial of the ease also would indicate that there is a rather intricate problem in accounting involved. However, the exceptions appear to have ail passed out of consideration, and there seems to be no serious dispute as to figures and accounts. In fact, a careful reading of the record reveals that, after all, there is a simple issue only, one of, fact, which arises out of the answer of the defendant which partakes of the nature of a plea of estoppel. The defense rests on the proposition that the distribution of the proceeds from the sale of the rice, which was covered by the plaintiff’s pledge, was made with the full knowledge and acquiescence of Mr. Harry Woosley, plaintiff’s agent, who was personally present, assisting and agreeing to all that was done.

‘There was quite a sharp conflict of testimony. The learned trial judge, who has since died, did not decide the ease on the credibility of the witnesses. He held that the presump-' tion created by the issue of fact, that a man does not lightly surrender or abandon a valuable right, is one which should yield only to a very positivé preponderance of evidence. This burden, he held,«had not been carried by the defendant, and he accordingly rendered judgment in favor of plaintiff. He found however, that there was a certain amount of the proceeds paid out by defendant which was justly chargeable to labor, which was a ranking privilege over that of the plaintiff, and he therefore reduced the amount awarded to that extent. The judgment was for the sum of $366.30 with 8 per cent, interest from October 4, 1932, with no allowance for attorney’s fees as demanded. Defendant has appealed.

De Witt Lewis, the farmer, rented the lands cultivated to make this rice crop from the Coastal Farms, Inc., of which Mr. Edwin F. Gayle, attorney for the defendant herein, is president and general manager. He ’had about 300 acres under lease on a crop share basis; his interest being four-fifths and that of the landowner, one-fifth. The 300 acres were described, in the act of lease, as being in sections 19, 29, and 30, in township 12 south, range 6 west, in Cameron parish. In the act of pledge from Lewis to plaintiff, it is to be noted that the crop lien is declared to be granted upon four-fifths of the crop of rice to be grown and harvested on 250 acres situated in the south half of section 19, township 12 south, range 6 west. On September 26, 1932, long after all advances had been made by plaintiff, we find it obtaining a second pledge from Lewis to secure the additional sum of $1,000 on the crops to be made and harvested on the balance of the land that was not included in the first pledge. It appears, more-, over, that there were other lands than those of the Coastal Farms, Inc., which Lewis cultivated, and, although the advances made by plaintiff may have been used by him in making the whole crop which he harvested, and it may be that the lien covered it all, nevertheless, the circumstances herein mentioned may well be taken as an indication of some doubt which might have arisen in the mind of a layman as to the real extent of the pledge, and it may have had some bearing on the alleged conduct of plaintiff’s agent and representative at the .time the distribution of the proceeds of the crop was made.

There is incorporated in the defendant’s answer a detailed account of the sale of the rice and of the distribution of the proceeds as made after each sale. The distribution shows invariably there was an amount devoted to the payment of rent, next to the payment of harvesting expenses, and the. remainder to plaintiff on account of advances.

*656 It is claimed by Mr. Gayle, manager of tbe Coastal Farms, Inc., the.landlord, and by Mr. Jack Gardner, buyer for tbe defendant rice mill, as also by Mr. Tbos. S. Tyler, bookkeeper and cashier of tbe defendant corporation, that Mr. Woosley knew and agreed to the distribution of the proceeds as made. On the other hand, Mr. Woosley denies that there was any understanding of agreement on his part, and his testimony in that regard is supported to some extent by De Witt Lewis.

Messrs. Gayle, Gardner, and Tyler do not all agree as to the different meetings or conferences which Mr. Woosley attended and participated in, but their testimony leaves no doubt in our minds that he was present on some occasions, and Mr. Gayle’s testimony in particular makes it certain that, if not at the conferences mentioned, or at least on numerous other occasions, Mr. Woosley was fully informed by him, discussed the matter of harvesting expenses with him, and acquiesced in all that was done. Among the items referred to as harvesting expenses are includ-ed a good many outside of actual labor costs, such as sacks, twine for the rice binder, etc., as to which plaintiff’s lien was superior. It appears, however, from the testimony of Mr. Gayle, that all of these items were taken into account in his discussions with Mr. Woos-ley, who at times agreed with him that the harvesting bills appeared a bit large, but said to “let it go at that.”

A circumstance which adds weight to the testimony of the defendant’s witnesses lies in the’fact, as admitted by Woosley, that it is customary in the rice business, when the mill pays off, to make the checks in the name of all parties having some interest in the crop, so that each may protect himself when presented with them for indorsement, which custom, however, was deviated from in this instance and tlie cheeks made to each of the parties individually. From the fact that Mr.

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158 So. 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-oil-refining-corp-v-noble-trotter-rice-milling-co-lactapp-1935.