McKinley-Winter Livestock Commission Co. v. Fletcher

347 P.2d 248, 185 Kan. 637, 1959 Kan. LEXIS 453
CourtSupreme Court of Kansas
DecidedDecember 12, 1959
Docket41,512
StatusPublished
Cited by7 cases

This text of 347 P.2d 248 (McKinley-Winter Livestock Commission Co. v. Fletcher) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKinley-Winter Livestock Commission Co. v. Fletcher, 347 P.2d 248, 185 Kan. 637, 1959 Kan. LEXIS 453 (kan 1959).

Opinion

The opinion of the court was delivered by

Fatzer, J.:

This action was commenced by the appellee, McKinley-Winter Livestock Commission Company, a corporation, against the appellant, Joe Fletcher, for the recovery of money based upon an alleged oral agreement. Judgment was rendered in favor of the plaintiff and the defendant has appealed.

Because of their importance to questions presented, we first refer to the pleadings of the parties. The plaintiff’s petition states the subject matter of the action to be:

*638 “That on or about the 3rd day of June, 1955, the defendant, Joe Fletcher, and. one Ray Holder of Independence, Missouri, entered into an oral contract with plaintiff for the purpose of holding a Shetland pony auction in plaintiff’s sales barn at Dodge City, Kansas. That according to the terms of said contract the plaintiff was to charge a Two Dollar ($2.00) per head commission for each Shetland pony sold. That plaintiff was to bank the sale and receive payment from all purchasers of ponies or other miscellaneous items sold, and was to pay the owners of ponies and other miscellaneous items sold with plaintiff’s checks. That defendant, Joe Fletcher, and said Ray Holder were partners in this venture. That said partners were to be responsible for any less which might occur to plaintiff by virtue of the non-payment of any checks received from purchasers at this auction.
“That during the course of said auction on or about June 3, 1955, one Bob Smith purchased a number of Shetland ponies and other miscellaneous items for a total sum of Four Thousand Ninety-one and 36/100 Dollars ($4,091.36). That said Bob Smith issued his check on an Arkansas City, Kansas, bank, and that payment was refused by said bank for the reason that the said Bob Smith had no funds and no account in said bank.” (Emphasis supplied.)

Summarized, the defendant’s answer contained a general denial, and then admitted all of the allegations of the petition except the last sentence of the first paragraph italicized above; it further alleged that if plaintiff did not in fact receive payment for the ponies and other items purchased by Smith, it nevertheless delivered the ponies and items to Smith and that failure to receive payment was due to the negligence of the plaintiff, and further, that if payment was not received by plaintiff, it nevertheless delivered the items purchased without receiving payment, it being the duty of plaintiff to receive payment as alleged in the petition, and admitted in the answer. Thus, the only material allegation denied by the defendant was that “said partners were to be responsible for any loss which might occur to plaintiff by virtue of the non-payment of any checks received from purchasers at this auction.”

As to the defense of negligence, the plaintiff’s reply alleged that the defendant was estopped to claim negligence in taking the checks of purchasers because he assured the plaintiff there was no need to make inquiry concerning checks given by any purchaser at the auction.

On pretrial conference, the parties agreed that the only factual issue was the plaintiff’s allegation and its denial by the defendant that “said partners were to be responsible for any loss which might occur to plaintiff by virtue of nonpayment of any checks received from purchasers at this auction.” It was stipulated that plaintiff *639 made no investigation or inquiry concerning the validity of the checks given by Smith or his credit with the bank upon which the checks were drawn; further, that the plaintiff delivered to Smith the items purchased by him at the auction and paid for by the checks.

The action was tried by a jury upon the issues joined. The evidence showed that sometime prior to June 3, 1955, the alleged oral agreement was made with one Karl Winter on behalf of the plaintiff and by Fletcher and Holder on behalf of the defendant.. Winter testified that both Fletcher and Holder were present when the final agreement was made, whereas Holder testified that he alone made the agreement on behalf of the defendant. The point is immaterial because it was admitted that Holder was Fletcher’s partner. It was also shown that the checks given by Smith were not paid by the bank upon which they were drawn. An unusual feature of the checks was that Smith’s signature was printed.

There was testimony by McKinley-Winter’s witnesses, denied by the defendant, as to the responsibility of Fletcher and Holder for the nonpayment of checks. Winter testified that when the final agreement was made he told the defendant and his partner “our help will work for them, but that we would assume no responsibility whatever except that we would work for them and do whatever they wanted us to do in handling and putting over the sale . . . (that) . . . we didn’t know these horsemen any more and was not acquainted with pony buyers at all; that we never held a pony sale, and that if they felt any questionable characters might be buying horses or ponies there, if they would get the word into our office, that we would wire on any checks that they thought necessary,” and that the defendant and his partner said “that was O. K.” Winter also testified that Holder replied “You have no worry at all about these checks. We know all these boys and after all, there isn’t anybody but millionaires buying these ponies. Their checks will be O. K.” In this connection, the allegations of the plaintiffs petition must be accepted as true, that plaintiff was to bank the sale and receive payment from all purchasers of ponies or other miscellaneous items sold and was to pay the owners of ponies or other miscellaneous items sold with plaintiff’s checks.

At the conclusion of the plaintiffs evidence, the defendant demurred upon the ground that it was insufficient to prove the cause of action alleged, and that the alleged oral agreement violated the statute of frauds and was unenforceable. The demurrer was over *640 ruled, and the defendant introduced his evidence. At the conclusion of all the evidence, the defendant moved for a directed verdict upon the same grounds as stated in the demurrer, and for the further reason that the pretrial stipulation of the parties showed it was the plaintiff’s duty to receive payment, but that nevertheless it delivered the items to Smith without receiving payment therefor. The motion was also overruled.

The jury returned its general verdict in favor of the plaintiff, along with its answers to three special questions submitted by the court:

“1. Did the defendant or his partner, Ray Holder, tell any of the servants, agents or employees of McKinley-Winter Livestock Commission Co., a corp., that plaintiff should accept all checks given for purchases at the sale, without investigation or inquiry concerning the validity of such checks or the responsibility of the purchaser? Answer: Yes.
“2. Did defendant or Ray Holder agree to make good the bad check of any purchaser at the sale? Answer: The juiy finds no such evidence.
“3. Did plaintiff deliver the ponies and other items purchased at the sale by Hob Smith to said purchaser without receiving payment therefor? Answer: No.”

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Bluebook (online)
347 P.2d 248, 185 Kan. 637, 1959 Kan. LEXIS 453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckinley-winter-livestock-commission-co-v-fletcher-kan-1959.