Mathé v. N. O. Sugar-Shed Co.

32 La. Ann. 631
CourtSupreme Court of Louisiana
DecidedMay 15, 1880
DocketNo. 6392
StatusPublished
Cited by2 cases

This text of 32 La. Ann. 631 (Mathé v. N. O. Sugar-Shed Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mathé v. N. O. Sugar-Shed Co., 32 La. Ann. 631 (La. 1880).

Opinion

[632]*632The opinion of the Oourt was delivered by

Poché, J.

The Sugar-Shed Company is appellant from a judgment condemning it to pay to plaintiff the sum of two thousand dollars, as the alleged value of twenty-six hogsheads of sugar stored for account of plaintiff in one of the sheds of the company, and subsequently removed therefrom and disposed of without this authority or consent.

The company for defense urges its discharge from any liability to plaintiff, on the following grounds:

1st. That the sugar had been stored by one J. J. Martin, who really was the owner of the same, although the receipts bad been taken by him in the name of plaintiff, but that Martin had always retained the control and disposition of said sugar.

2d. That the sugar having been thus stored, as a collateral security for a debt due by Martin to plaintiff, the latter had authorized and empowered Martin to sell and withdraw the sugar, so as to raise the funds necessary to pay and settle his indebtedness to plaintiff.

3d. That subsequently Martin or some one on his behalf had offered to pay plaintiff in full.

The first question to bo considered is the refusal of the District Judge to grant a new trial to defendant, on the ground of newly discovered evidence.

The president of the company, in support of the motion for a new trial, swears that since the trial he had discovered that while testifying before a committing magistrate in this city, in a criminal prosecution against Martin, on a charge growing out of these identical sugar transactions, plaintiff had-made the following statement in reference to this very matter : “ After the note came due, Martin came to my office, and he says : ‘ Mr. Mathé, I am going to Vicksburg, and I can’t pay you that note, because I did not sell that sugar yet. I am going there to get some money, and I wish you would renew that note for me one month more.’ I did so.”

Appellant urges that this statement shows consent on the part of plaintiff to the withdrawal of the twenty-six hogsheads of sugar by Martin, and that this would change the result of the litigation.

We do not think so. The receipt under which the sugar was stored reads in substance as follows :

" New Orleans Sugar-Shed Company,
“ New Orleans, May 25, 1875.
“ Deceived for account of Mr. Louis Mathó fourteen hogsheads of sugar, marked J. B., twelve hogsheads sugar, marked B.
“John L. Monies, Clerk,”

The company, under its charter, is subject to the operation of Act No. 150 of the Legislature of 186S, regulating the issue of receipts or [633]*633bills of lading by cotton-presses, wharfingers, and others receiving produce and other goods in storage. And its rights and liabilities in this ease are to be tested under section four of said act, which reads as follows :

“ That no cotton press, wharfinger, or other person shall sell or incumber, ship, transfer, or in any manner remove or permit to be shipped, transferred, or removed beyond his control any goods, wares, merchandise, grain, flour, or other produce or commodity for which, a receipt shall have been given by him as aforesaid, whether received for storage, shipping, grinding, manufacturing, or other purpose, without the written assent of the person or persons holding such receipt.”

Admitting, for the sake of argument, that the verbal consent of plaintiff could operate a discharge of the company under this stringent rule, we are of opinion that the statement of Mathé, relied upon by appellant for a new trial, does not establish such a consent. It could at most show consent to sell the sugar before enforcing payment of the note which it was intended to secure, but it cannot be construed to mean an authority to withdraw the sugar from the shed before payment of the debt.

It would be folly for a creditor to take such security for debts, and allow the debtor, by his own act, to cancel the receipt and the security by disposing of the property thus stored in the name of his creditor, as a security for his debt.

Besides, we see that plaintiff had been questioned by counsel touching this very statement, which he had made before the committing magistrate, and he explains it in a manner which is conclusive against appellant’s construction of his statement; and this interrogatory by appellant’s own counsel suggests the surmise that the evidence was not entirely discovered after the trial of this case.

The motion for new trial was therefore properly overruled.

On the merits, we see no strength in the defense set up by the company :

1st. On the first ground, as to the ownership of the sugar, the evidence shows that the company received the sugar for account of Louis Matlié, and it cannot be allowed to deny its own formal receipt. Mathé was the party holding the company’s receipt, and under the law he must be protected as the owner of the sugar.

The fact that Martin, who was a sugar-broker, stored the sugar, cannot affect the rights of plaintiff or modify the responsibility of the company. The fact that he frequently stored sugars in the sheds, taking receipts in his own name, and that on this occasion he took the receipt in' the name of Matlié, was ample notice to the defendant that [634]*6343ao one but Mathé could control, remove, transfer, or otherwise dispose «of the goods thus stored.

2d. The second ground of defense, the alleged authority of plaintiff ■‘-to Martin, empowering him, at his will and discretion, to remove the jsugar, is not better substantiated by the evidence.

Martin himself does not swear positively that he was thus authorized, for, on cross-examination, in answer to a direct question on this ¡point, .he says: I so understood it.” And, on the other hand, Mathé repeatedly and positively denies having given any such authority. The fact of his exacting from Martin the company’s receipt for twenty-six 'hogsheads sugar in his own name, as a condition precedent and “ sine qua non” of his lending him the §2000, and the ordinary prudence characterizing the conduct of money-lenders, strongly corroborated his testimony, and allows no reason to even suspect or presume such a consent.

In this connection, defendant introduced, and the court a qua admitted, notwithstanding plaintiff’s objections, the testimony of several witnesses for the purpose of proving the existence of a habit or custom .heretofore prevailing among sugar dealers and brokers on the levee •cand the Sugar-Shed Company, under which goods stored in the sheds ■were usually delivered to agents, brokers, and clerks, without the express authority, written or otherwise, of their principals, or employers, or of those holding the company’s receipts. This ruling of the judge was manifestly erroneous. No evidence can be admitted to show habits ■ and usages of trade contrary to law, and especially to a law so positive and prohibitory in its character as Act No. 150 of 1808, which goes so .Mar as to provide criminal penalties for its infraction.

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Bluebook (online)
32 La. Ann. 631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathe-v-n-o-sugar-shed-co-la-1880.