Merchants State Bank v. Chicago, Burlington & Quincy Railroad

245 Ill. App. 211, 1924 Ill. App. LEXIS 15
CourtAppellate Court of Illinois
DecidedMarch 10, 1924
StatusPublished

This text of 245 Ill. App. 211 (Merchants State Bank v. Chicago, Burlington & Quincy Railroad) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants State Bank v. Chicago, Burlington & Quincy Railroad, 245 Ill. App. 211, 1924 Ill. App. LEXIS 15 (Ill. Ct. App. 1924).

Opinion

Mr. Justice Boggs

delivered the opinion of the court.

An action was instituted by appellee in the circuit court of Marion county against appellant to recover for the alleged wrongful delivery of a carload of hides, shipped under a uniform shipper’s bill of lading.

The declaration consists of two counts, and in substance sets forth that on December 7, 1921, the Block Coal Company, of Centraba, debvered to appellant a carload of hides to be shipped to South Wood River, Illinois, there to be debvered to said Block Coal Company under the terms of said bill of lading issued by appellant, with directions to notify the International Shoe Company of South Wood River; that for value received said Block Coal Company indorsed and debvered said bill of lading to appellee. Said declaration recites the duty of appellant to safely carry and deliver said goods, and charges a failure so to do. One count charges that said goods were thereby wholly lost to appellee, and the other charges that appellant wrongfully converted said goods to its own use.

To said declaration the general issue and two special pleas were filed.

A demurrer was sustained to the first of said special pleas, and the other was withdrawn by the defendant. A jury being waived, said cause came on for hearing before the court, resulting in a finding in favor of appellee and judgment against appellant for the sum of $7,048.22. To reverse said judgment, this appeal is prosecuted.

The record discloses that one Ben Gudder, a junk dealer in Centraba, became indebted to appellee on his promissory notes in the sum of $15,000, and in order to secure the same, on or about October 10, 1921, he executed and debvered to appellee a bill of sale of all beef and calf hides owned, controlled and possessed by him at his place of business in said city. Said bill of sale was duly acknowledged and was filed and recorded in the recorder’s office of said county.

Thereafter, on or about December 7, 1921, the carload of hides in question was shipped to South Wood River, consigned to the Block Coal Company, and a bill of lading therefor was issued to said coal company by appellant railroad, said bill of lading was, on the same date, indorsed and delivered to appellee. As a part of the same transaction, one Louis Wiseman of Alton, Illinois, drew a draft on the Wiseman Fur Company of Alton for $6,336.96, payable to the order of appellee. This draft, together with a like draft drawn by Wiseman on November 29, 1921, for the sum of $1,000, was delivered to appellee with the bill of lading, as above stated. Appellee forwarded said drafts, attached to said bill of lading, to the Alton National Bank of Alton for collection. A few days thereafter they were returned by said bank to appellee, as unpaid. Thereupon appellee brought suit against appellant, as hereinabove stated.

It is first contended by counsel for appellant that the court erred in its rulings on the propositions of law. Three propositions of law were tendered by appellee, and were all marked “Held” by the court. Nine propositions of law were submitted by appellant, the second and third were marked “Held” and the others were marked “Refused.”

Appellee’s first proposition of law is as follows: “The Court holds, as a matter of law, under the evidence in this case, that the plaintiff, by the acceptance of the draft with shipper’s order bill of lading attached,' and endorsed in blank, became the holder in due course of the said draft and bill of lading, and took title thereto, and title to the goods described in the bill of lading, attached to said drafts. ’ ’

As a general proposition, this unquestionably states a correct principal of law. Walsh, Boyle & Co. v. First Nat. Bank of Hiawatha, Kan., 228 Ill. 446; Anderson v. Keystone Chemical Supply Co., 293 Ill. 468-472; Means v. Bank of Randall, 146 U. S. 620. Counsel for appellant practically concede this to be true, but contend in their argument that “under the evidence we think the court erred in so holding. In order for the bank to acquire title to the- hides, some consideration must have passed from the bank to the seller, the Block Coal Co.” In other words, counsel contend that, because the record fails to show that any credit was given Gudder on his indebtedness to appellee, or that the Block Coal Company was in any way indebted to appellee bank, or that it was credited with the amount of said drafts, there was no consideration therefor, and that appellee was merely a collecting agent for Gudder or the Block Coal Company.

In answer thereto, appellee insists that while Gudder was indebted to appellee as above stated, he executed a bill of sale to it of the hides then owned by him, and while said transaction may not have amounted to a chattel mortgage as to third parties, it was valid as between Gudder and appellee. Appellee further insists that while said bill of lading was executed by the Block Coal Company, which was not directly indebted to appellee, yet the fact that appellee permitted said coal company to execute said bill of lading and dispose of said property was a sufficient consideration for the drafts in question and for the indorsement to appellee of the bill of lading. McCagg v. Heacock, 42 Ill. 153-156; Beasley v. Henry, 6 Ill. App. 485-487; Allmendinger v. Malcolm McDonald Lumber Co., 82 Ill. App. 166-167.

We are of the opinion that appellee’s point is well taken, and hold that the transaction in question evidences a valuable consideration for the drafts and the assignment of said bill of lading. We therefore hold that the court did not err in its ruling on said proposition.

Appellee’s second proposition, was a general holding that the evidencie, in the case warranted a finding in its favor. Whether the second proposition was correct or not depends on whether or not appellee was entitled to recover.

Appellee’s third proposition states as a matter of law that the measure of damages, in case of a recovery, is the reasonable market value of the goods at the place of destination, with interest from the time they should have been delivered, less the unpaid transportation charges, if any. This proposition states a correct principal of law, and the court did not err in so holding.

By the appellant’s first refused proposition of law, it asked the court to hold that appellee did not in good faith purchase the bill of lading in question, and did not acquire title to the property in the same. We have already sufficiently disposed of the ruling of the court thereon.

The fourth proposition of law tendered by appellant asked the court to hold that there was no consideration for said bill of sale. In our judgment the court did not err in its ruling on this proposition, for the reason that a pre-existing debt is valid consideration for the execution of a bill of sale or a chattel mortgage. Butters v. Haughwout, 42 Ill. 18; McIntire v. Yates, 104 Ill. 491-500; McLeish v. Hanson, 157 Ill. App. 605-608; First Nat. Bank of Crown Point, Indiana v. Davis, 146 Ill. App. 462-469.

In their fifth proposition, the court was asked to hold that in order for an extension of time on the indebtedness held by appellee to be a sufficient consideration for said bill of sale, said extension must have been for a definite period.

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Related

Means v. Bank of Randall
146 U.S. 620 (Supreme Court, 1892)
Great Western Railroad v. McComas
33 Ill. 185 (Illinois Supreme Court, 1864)
Butters v. Haughwout
42 Ill. 18 (Illinois Supreme Court, 1866)
McCagg v. Heacock
42 Ill. 153 (Illinois Supreme Court, 1866)
McIntire v. Yates
104 Ill. 491 (Illinois Supreme Court, 1882)
Walsh, Boyle & Co. v. First National Bank of Hiawatha
81 N.E. 1067 (Illinois Supreme Court, 1907)
Edgerton v. Chicago, Rock Island & Pacific Railway Co.
88 N.E. 808 (Illinois Supreme Court, 1909)
Anderson v. Keystone Chemical Supply Co.
127 N.E. 668 (Illinois Supreme Court, 1920)
Beasley v. Henry
6 Ill. App. 485 (Appellate Court of Illinois, 1880)
Allmendinger v. Malcom McDonald Lumber Co.
82 Ill. App. 166 (Appellate Court of Illinois, 1899)
First National Bank of Crown Point v. Davis
146 Ill. App. 462 (Appellate Court of Illinois, 1909)
McLeish v. Hanson
157 Ill. App. 605 (Appellate Court of Illinois, 1910)
Charles D. Stone & Co. v. New York Central Railroad
214 Ill. App. 483 (Appellate Court of Illinois, 1919)
Garden City Fan Co. v. Pittsburgh, Cincinnati, Chicago & St. Louis Railway Co.
220 Ill. App. 126 (Appellate Court of Illinois, 1920)

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Bluebook (online)
245 Ill. App. 211, 1924 Ill. App. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-state-bank-v-chicago-burlington-quincy-railroad-illappct-1924.