Nash v. Page

80 Ky. 539, 1882 Ky. LEXIS 100
CourtCourt of Appeals of Kentucky
DecidedDecember 14, 1882
StatusPublished
Cited by23 cases

This text of 80 Ky. 539 (Nash v. Page) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nash v. Page, 80 Ky. 539, 1882 Ky. LEXIS 100 (Ky. Ct. App. 1882).

Opinion

JUDGE PRYOR

delivered ti-ie opinion op the court.

This is a controversy between the proprietors of ten of the tobacco warehouses in the city of Louisville and the appellants (twenty-seven in number), who are large dealers in tobacco, and licensed by the United States and the city ■government, with authority to purchase and sell leaf and manufactured tobacco. .

It seems that these appellants were denied the right to make purchases of tobacco at the warehouses of which the [541]*541defendants are the proprietors, and they applied to the-chancellor for an injunction, asking that these warehouse-men be enjoined from refusing them permission to make purchases at their several warehouses, and from rejecting their purchases when making the highest and best bids for the tobacco offered, upon the payment of such fees as are charged to other buyers.

The appellants, or the most of them, are large dealers in tobacco, buying, as the record shows, two-thirds or more of the tobacco offered in the Louisville market; and becoming dissatisfied with the warehouse fees charged to them as buyers, they, together with other members of what is known as the Tobacco Board of Trade, demanded of the warehouse-men a reduction of the fees from $2 to $1.25 per hogshead, with four months’ free storage, and forty cents a month storage thereafter. This proposition or demand was rejected by the warehousemen, and on April the 18th, 1879, ^le appellants met and resolved, on and after the first Tuesday in May, not to purchase tobacco from these zvarehouses, at auction or otherwise, and also withdrew their membership from the board of trade. A new warehouse was opened about, or shortly after, this time by Schwartz and Johnson, and this house charged much less than the old warehouses were charging for either selling or storing tobacco. About the 1st of July, 1879, the board of trade adopted a by-law by which warehousemen, who were members of the board of trade, were prohibited from selling tobacco, publicly or privately, to any but members of the board, or to applicants for membership, and the members were also prohibited from buying at any warehouse in the city, the proprietors of which were not members. For a violation of this by-law they were subject to expulsion from the board.

[542]*542On the.loth of February, 1872, the proprietors of these warehouses, or the most of them, said to their patrons and the public, in a publication made, that they had closed their respective tobacco warehouses, and withdrawn from working tinder the law as it then existed, and would\ on the Monday following, open as commission merchants for the sale of tobacco, cotton, and other products of the soil, the fees for selling tobacco the same as heretofore, and for other pivducts the customary commissions, &c.

After the resolution passed by the appellants that they would not purchase tobacco at the warehouses owned by •the defendants, and the resolution adopted by the defendants (appellees) prohibiting them from purchasing, the appellants, ascertaining that the new house, known as the Enterprise, could not furnish enough tobacco to supply •their wants, offered to purchase of the appellees, and were denied the right, and hence this action. This, in substance, is the history of the controversy, as given by the chancellor, and verified by 'the record before us. It is a matter of history, and also a fact appearing from this record, that the tobacco trade in the city of Louisville is very large, the annual sales approximating in value six million of dollars, and the trade constantly increasing.

Since the formation of the state government, the sale of this great staple has been fostered and protected by legislation. The rights and duties of the warehousemen, the buyers and sellers, and all the officers connected with the warehouses, have been defined by statute, and no commodity has received the same protection in the way of either general •or special legislation. Nine tenths of the tobacco is áold at auction, with the right unquestioned, until the present controversy, of all parties to enter the warehouses as buyers or [543]*543•as sellers, by their warehousemen as their agents, and competition left unrestricted, save the option on the part of the •owner to approve or reject the bid. There is no provision, it is true, in any of the statutes now in force, or' that existed prior to the law as we now find it, compelling the producer ■of tobacco to take it to the warehouses in the city of Lou-# isville, or to expose it for sale at public auction; but such warehozises have been always regulated by law for the benefit of the producer, as well as those who are the proprietors of these warehouses, and the latter have assumed an obligation to the public that exists so long as they continue public ■warehousemen. They have assumed a quasi public character under the protection of the law, and will not be allowed to exercise all the privileges that have heretofore belonged to ■warehousemen, and evade all the duties and responsibilities of their position by the passage of a resolution disclaiming that they are operating their houses in the capacity of ware-housemen, but as commission merchants.

They pursue the same business, without any change as to the manner of selling or of conducting their warehouses, claiming only the exercise of a private 'right, and an entire exemption from the discharge of a public duty. Can this be done; and is the producer at the mercy of a board of 'trade claiming, regardless of the law for the protection of this great interest, the right to exclude from the warehouses of the city all persons who offer themselves as buyers because they are not members of that board? and to go further, if they see proper, and refuse to receive or sell at auction the tobacco shipped to their houses by the owner or producer? If they are to be regarded as commission •merchants only, they can exercise such a right.

[544]*544“It is a part of every man’s civil rights that he be' left at liberty to refuse business relations with any person whomsoever, whether the refusal rests upon reason or is the result of whim, caprice, prejudice, or malice. With his reasons neither the public or third persons have any legal concern.” ’(Cooley on Torts, 27.8.)

This is a safe rule, and 'a court, in discriminating between, what are public and what are private rights or duties, should be careful not to restrict the citizen in the exercise of a right that permits him to buy and sell when and to whom he pleases, if not in violation of the law of the land; Hut if, in the exercise of a private right, the citizen assumes a public duty, there is no reason why he should be permitted, at his own will and pleasure, to say that the private right exists, but the obligation to the public is abandoned]: I am, in fact, a public warehouseman for the sale of tobacco., but in name I am a commission merchant. That the producer may sell his own tobacco, or appoint an agent for that purpose, there can be no doubt, and if a commission merchant, it does not affect his right to sell; but when he undertakes to sell at public auction, and to conduct the business as a public warehouseman, he assumes an obligation to serve the entire public, and has no right to select his own bidders, or to refuse to receive the tobacco of the producer when shipped to him. This obligation exists not only by reason of the statute, but under the rule of the common law.

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Bluebook (online)
80 Ky. 539, 1882 Ky. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nash-v-page-kyctapp-1882.