Luse v. Crispin Company

344 S.W.2d 926
CourtCourt of Appeals of Texas
DecidedMarch 9, 1961
Docket13631
StatusPublished
Cited by10 cases

This text of 344 S.W.2d 926 (Luse v. Crispin Company) 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
Luse v. Crispin Company, 344 S.W.2d 926 (Tex. Ct. App. 1961).

Opinion

WERLEIN, Justice.

This suit was brought April 6, 1957 by Union City Transfer, sometimes referred to as Union herein, in the nature of an interpleader action with the Crispin Company, herein referred to as Crispin, and W. P. Luse, as defendants. Other defendants were Transcontinental Oil Company of Oklahoma, which filed a disclaimer, and C. P. Suce and C. P. Luce, admittedly nonexistent and later dismissed. Pleas of privilege filed by appellant Luse were overruled, and the judgment was affirmed in an opinion by the Court of Civil Appeals at Waco, Luse v. Union City Transfer et al, 324 S.W.2d 935, writ dismissed.

The interpleader had to do with some 18,843.37 feet of oil well casing that was in possession of Union as a claimed stakeholder at its warehouse in Beaumont, Texas. On March 11, 1958, the casing or pipe was, by agreement approved by the court, released to Luse at an agreed value of $35,704.07, which was substituted for the pipe.

The case was tried to a jury. At the close of the evidence the Trial Court overruled appellant’s motion for a directed verdict against Crispin, and submitted the case to the jury upon 14 special issues, thirteen of which relate to the controversy between Crispin and Luse. After the verdict, appellant filed a motion for judgment against Crispin (a) notwithstanding the verdict, (b) upon the uncontroverted evidence and the verdict of the jury, and (c) upon the uncontroverted evidence and findings of the jury in response to Special Issues Nos. 3, 4, 5 and 9, and in disregard of the findings in response to Special Issues Nos. 1, 2, 7, 8, 10, 11, 12 and 13. Appellant’s motions were overruled, and judgment rendered upon the verdict for Crispin against appellant in the sum of the agreed value of the released pipe.

Appellant Luse under his first six Romts, briefed together, asserts in essence that the Trial Court erred in overruling his motion for a directed verdict and judgment against Crispin Company because under the undisputed evidence Crispin authorized Transcontinental Oil Company, herein referred to as Transcontinental, to sell the pipe to Luse and so acted with full knowledge of all the facts, including information that Transcontinental was buying the pipe to sell to Luse, as to estop itself from asserting its retention of title; and also because the loss against which Crispin had the means of protecting itself by avoiding the sale to Transcontinental, or otherwise, should fall upon Crispin which shipped the pipe to the warehouse in Beaumont as the essential step of delivery and transfer of title to Luse, thereby consenting thereto and estopping itself from questioning Luse’s title. A determination of these contentions necessitates a careful examination of the record.

The evidence shows that Williams, vice president of Crispin, and the person who represented it in the transaction, having learned that Transcontinental was interested in purchasing some pipe, called Buf-fum, president of Transcontinental, in Oklahoma, with respect to selling it pipe. No sale was then completed, but at such time Buffum informed Williams that he would have to check with his customer as to the price and would call Williams. In the afternoon of the same day, February 21, 1957, Buffum called Williams and an oral sale of the pipe in question to Transcontinental was consummated at an agreed price of $2.31 per foot F.O.B. Houston. Williams testified that Buffum said, “We will make it a cash transaction. I will pay you immediately upon receipt of your invoice.”

Williams testified that in his telephone conversation with Buffum, Buffum told him that he wanted to buy the pipe and sell it to Luse. Williams told Buffum that because óf the small margin it would have *928 to be a cash transaction, and Buffum said, “Send- me your invoice and I will send you a check right away.” The invoice made by Williams, dated March 1, 1957, reads, “Terms: net cash receipt invoice”.

Prior to sending such invoice dated March 1, 1957, Crispin shipped the pipe in question by Newsom Truck Line, Inc., on a series of open bills of lading, one for each truck, reading, “Consigned to Transcontinental Oil Company % C. P. Luce % Union City Transfer Company, destination Beaumont, Texas.” Delivery was made to the Beaumont warehouse of Union on February 23, and February 25, 1957, for the -account and credit of Luse, and the pipe was there racked, collared and tallied in the name of Luse. The evidence shows that due to error the name in the bills of lading was written “C. P. Luce” and in one instance “C. P. Suce” instead of W. P. Luse, known to be the proper party. On February 26, 1957 Luse paid Transcontinental’s draft drawn on him which was accompanied by invoice in the discounted sum of $46,931.50, being the amount he agreed to pay Transcontinental for the pipe.

On March 1, 1957, four days after the completion of delivery of the pipe to the Beaumont warehouse where it had been tallied and credited to the account of W. P. Luse, and three days after Luse had paid the draft drawn on him, Crispin mailed its invoice for the pipe to Transcontinental, together with a uniform straight bill of lading of the same date, not signed by the consignee. On March 5, 1957, no remittance having been received, Williams, of Crispin, called Buf-fum who told him that “he was a little short and hadn’t collected his money from W. P. Luse.” He called again on March 11 and was again put off. On March 27 he received from Transcontinental a customer’s draft dated March 25, 1957, payable to Crispin on April 1, 1957 in the sum of $43,236.87. Although duly deposited, payment was refused on the .draft on April 4, 1957, whereupon Crispin sent a telegram to Union’s warehouse asserting its claim to the pipe in question and on the same day notified Luse of its claim, this being the first notice to Luse of such claim except for a telephone call the day before from one of Crispin’s attorneys.

The written purchase order, executed by Luse to Transcontinental on December 5, 1956, and under which the pipe was shipped, expressly provided that, “You will please ship all of the above tubular goods to W. P. Luse c/o Union City Transfer Company, Beaumont, Texas.” The invoice accompanying the sight draft drawn on Luse called for a sight draft with bill of lading to be attached, but no bill of lading was attached thereto or received by Luse prior to such payment. Bostick, Luse’s office manager, first learned of delivery of the shipment on February 25, 1957, when a Dallas bank called him about Transcontinental’s draft. Bostick requested and was given an extension of a day in which .to pay the draft. After then making a long distance call to Union and learning that the pipe had been shipped on straight bills of lading, prepaid and no advance charges, and also after calling Buf-fum and being informed by him that he had bought the pipe on open account and it was being shipped on open or straight bills of lading, Bostick, on February 26, 1957, approved payment of the draft in the discounted amount of $46,931.50, being the amount owing Transcontinental after Buffum agreed to a discount of 50 cents per foot because of an overshipment of 6,000 feet of pipe. Bostick testified that at such time he didn’t know Crispin Company existed and that Buffum didn’t disclose where the pipe came from and he did not know or inquire; that he relied on Union and Buffum and acted in good faith, relying upon their statements that the pipe was consigned to Transcontinental for the account of Luse on a straight or open bill of lading.

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Bluebook (online)
344 S.W.2d 926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luse-v-crispin-company-texapp-1961.