Mellen Produce Co. v. Fink

273 N.W. 538, 225 Wis. 90, 1937 Wisc. LEXIS 189
CourtWisconsin Supreme Court
DecidedMay 25, 1937
StatusPublished
Cited by3 cases

This text of 273 N.W. 538 (Mellen Produce Co. v. Fink) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mellen Produce Co. v. Fink, 273 N.W. 538, 225 Wis. 90, 1937 Wisc. LEXIS 189 (Wis. 1937).

Opinion

Fowler; J.

As appears from the preceding statement of facts, the action is replevin to recover possession of lumber and the appellant's complaint was dismissed. The appellant assigns as error that the court erroneously found that the oral agreement of sale referred to in the statement of facts was made. This finding is amply supported by the evidence. Nothing more will be said relating to this assignment. The appellant also assigns as error that the court erroneously determined that its mortgage referred to in the statement of facts was invalid except as to 5,655 feet of the lumber. This assignment will be treated by first considering whether, as defendant claims, (1) the mortgage is invalid because the description therein is such that the property mentioned therein was incapable of identification, and, if sufficient, whether (2) the sale to the defendant referred to in the statement of facts was void under the statute of- frauds, sec. 121.04, Stats.

(1) Reference to the statement of facts will disclose that the description in the mortgage shows that it covers 1" and 2" pine lumber estimated at 100,000 feet, located at the time of its- execution on the forty-acre tract described. The claim of the defendant that the description is insufficient rests upon the words in the description “from woods run logs from” the specified forty acres. It is claimed that the evidence shows that the lumber located on the tract was cut from logs [95]*95from one hundred twenty instead of forty acres. The evidence as to this is rather confusing, but assuming, as the court found, that some of the lumber was from logs cut on two other forties, it appears from the evidence that prior to the execution of the mortgage Mr. Minton, the president and principal owner of the plaintiff company, acting for the company with another man, examined l" and 2" lumber piled at the portable mill on the described tract, estimated by Minton at 100,000 feet and by the other man at 80,000 feet. Evidence of the man who scaled the lumber as it was sawed shows definitely that there was then at the mill, sawed, piled, and scaled, 71,693 feet of 1" and 2" lumber. There is no doubt whatever that the parties understood and intended that the lumber then sawed, piled, and examined was covered by the mortgage. Whether it was all sawed from logs cut from the forty acres described seems immaterial. If the parties supposed it was sawed from logs so cut, and therefore inserted the phrase above quoted in the description, the insertion would not affect the lumber then actually sawed, piled, and examined. The parties may have contemplated that the mortgage would cover lumber thereafter to be sawed. 'But, if they erroneously did so consider, this would not affect the coverage of the lumber already sawed and piled. Mowry v. White, 21 Wis. *417. The words “now located” did not refer to logs because the greater part of the logs, whether cut from forty or one hundred twenty acres, were then already sawed. It referred to the lumber then sawed and piled which was then subject to identification. If the defendant, without right under his oral contract of sale, removed that lumber from the place where it was subject to identification and so mingled it with his own lumber that it could not be identified, this does not defeat the plaintiff’s action. In such case, under the rule in this state, the plaintiff may take lumber from the common mass. Wells, Replevin, § 209; Stearns v. Raymond, 26 Wis. 74; Eldred v. Oconto Com[96]*96pany, 33 Wis. 133; Young v. Miles, 20 Wis. *615; Mowry v. White, supra, p. 421. The judgment in replevin where the plaintiff is a mortgagee is for the return of the property, or, in case return cannot be made, for the amount due on the mortgage. Smith v. Phillips, 47 Wis. 202, 2 N. W. 285; Evans v. Graham, 50 Wis. 450, 7 N. W. 380. The alternative recovery in such case is of course limited to the value of the property. Klinkert v. Fulton S. & M. Co. 113 Wis. 493, 501, 89 N. W. 507.

We are of opinion that the description in plaintiff’s mortgage should be construed as limiting coverage to the lumber sawed at the time of its execution. So construed, the mortgage is valid as to such lumber, but ineffective for want of coverage as to lumber sawed thereafter out of logs cut from the described tract because such lumber was incapable of identification. We need not and do not decide whether it was also ineffective as to after-sawed lumber because such lumber was not in existence when it was executed. If, when it was executed, the oral contract of sale had not become effective through “acceptance and actual receipt” of the part of the lumber then inspected by the defendant and, pronounced satisfactory, the trial court was not in error in holding the mortgage valid as to the lumber then sawed but not inspected or in holding it ineffective as to the lumber thereafter sawed, but was in error in holding it ineffective as to the lumber that had been inspected by the defendant.

(2) The claim of appellant that the contract was void is based on the ground that it is within the statute of frauds, sec. 121.04.(1), Stats., which provides that “a contract to sell or a sale of any goods ... of the value of $50 or upwards shall not be enforceable by action unless the buyer shall accept part of the goodst. . . and actually receive the same, or give something in earnest to bind the contract, or in part payment, or unless some note or memorandum in writing of the contract or sale be signed by the party to be [97]*97charged or his agent.” Sub. (3) of the section declares that “There is an acceptance . . . when the buy.er, either before or after delivery of the goods, expresses by words or conduct his assent to becoming the owner of those specific goods.”

Here there was no payment of any part of the purchase price or earnest money, and no memorandum in writing. To constitute a valid sale under the statute there must have been an “acceptance and actual receipt” of a part of the lumber. There was no acceptance and receipt on the day the contract was made. However, to enable acceptance and receipt of part of the goods to vitalize the oral contract, it is not necessary that they occur at the time the contract was made. 27 C. J. p. 242, § 272. The defendant’s inspection of the part of the lumber sawed before the mortgage was executed and his announcement that it was satisfactory doubtless constituted an acceptance of a part of the lumber orally agreed to be sold, but the question remains whether there was also an “actual receipt.”

The: defendant contends that his acceptance of a part of the lumber as above stated also constituted an “actual receipt” and .validated the sale because sec. 121.18, Stats., provides that property in goods sold passes when intended by the parties, and sec. 121.19 (4) provides that the parties intend, unless otherwise provided by the contract, that property in the goods sold passes when the goods are in a deliverable state and are unconditionally appropriated tO' the contract by the parties. He contends that under this rule the inspection and acceptance of the lumber by the defendant passed the title to the property to the defendant, and that this constituted a receipt of goods to take the sale out of the contract. This might be correct had the contract been enforceable in the first instance. But it is pointed out in Roberts, Johnson & Rand v. Mackowski, 171 Wis. 420, 422, 177 N. W. 509, that what constitutes delivery in case of an [98]

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Bluebook (online)
273 N.W. 538, 225 Wis. 90, 1937 Wisc. LEXIS 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mellen-produce-co-v-fink-wis-1937.