Neillsville Shipping Ass'n v. Lastofka

274 N.W. 280, 225 Wis. 350, 1937 Wisc. LEXIS 220
Wisconsin Supreme Court·Decided June 21, 1937·Published·Cited by 7 cases

Opinion

Nelson, J.

The trial court did not find the material and ultimate facts involved in this controversy. Such failure was probably due to the fact that upon the trial there was no dispute or conflict in the evidence. The plaintiff is a duly organized Wisconsin co-operative association with its principal plage of business in the city of Neillsville. The defendant is [352] a cattle dealer residing in said city. On April 1, 1931, the plaintiff association entered into a “shipping agreement” with one John Galbreath of Clark county, which substantially complied with the pi-ovisions of sec. 185.08 (2), (3), Stats,, wherein and whereby the said Galbreath, as producer, for a term of not more than five years, agreed to market all of his livestock, with certain exceptions not here material, through the association, and wherein and whereby the association agreed to market Galbreath’s livestock upon certain terms and conditions therein mentioned. The agreement was duly filed in the office of the register of deeds of Clark county on December 15, 1931. Upon the filing of the agreement in the office of the register of deeds it was listed alphabetically under the letter “(G)” in the chattel mortgage record book as follows:

“No. 6423. Galbreath, J. Neillsville. Neillsville Shipping Association, Neillsville. Dated April 1, 1931. Shipping Agreement. Filed Dec. 15, 1931, at 4:00 P. M.”

No separate book was kept by the register of deeds for the purpose of alphabetically listing or indexing the names of member makers and associations who had entered into such contracts which had been filed with the register of deeds. On August 20, 1935, the defendant purchased from John Gal-breath certain livestock of the value of $80. Prior to the purchase of the stock by the defendant, Galbreath told him that his time had expired and he was out of the association and asked him to come down to his place and look at his stock.

The defendant apparently contended in the court below that the record of the Galbreath agreement was not in compliance with the provisions of sec. 185.08 (5), Stats., and therefore it did not give constructive notice of the existence of that agreement. The defendant also apparently contended that since there was no proof tending to show that the defendant maliciously induced, attempted to induce, aided in [353] the breach of the contract, or maliciously interfered with it, the court was free to exercise its discretion as a court of equity and refuse to grant a permanent injunction. The trial court did not in its decision express an opinion as to whether the record was. sufficient to give constructive notice of the existence of the contract. All that it said in its decision on that point is as follows :

“The merits of this case, without considering the effect of filing the contracts or regarding it as a constructive notice, will warrant the court to exercise its equitable powers to refuse the granting of the permanent injunction prayed for in plaintiff’s complaint, as disclosed from the evidence in the case.”

The plaintiff assigns as error, (1) the failure of the court to grant a permanent injunction restraining the defendant from thereafter purchasing livestock from its members; and (2) the failure of the court to render judgment in favor of the plaintiff for $80. The defendant contends in his brief that the only question for decision is whether the Galbreath contract or agreement was properly recorded in the office of the register of deeds so as to give constructive notice of its existence.

Did the court err in refusing to grant a permanent injunction restraining the defendant from thereafter purchasing livestock from the plaintiff association’s members? The court apparently was of the view that since the defendant did not intend to interfere with the plaintiff’s contract, did not act maliciously in purchasing stock from Galbreath, and had no actual knowledge that the contract was still in force and effect (having been informed by Galbreath that he was no longer a member of the association), the temporary injunction should not be made permanent. Sec. 185.08 (6), Stats., provides:

“Where any contract exists between an association and a member, any person who, with knowledge or notice of the [354] existence of the contract, induces or attempts to induce or aids in the breach thereof by any means, shall be liable to the aggrieved party for damages on account of such interference with said contract and shall also be subject to an injunction to prevent the interference or further interference therewith.”

It was under this subsection that this action was brought and the question is, Did the court err in refusing, under the undisputed facts, to make the temporary injunction permanent? The court was apparently of the view that it had a discretion either to grant or to refuse an injunction. In our view, sub. (6) does not so provide. Sub. (5), in part, provides :

“. . . From and after the date of such filing the same shall constitute notice to any and all persons that an interest in the title to all property so agreed to be sold by the maker of such contract during the term of such contract is vested in the said association. In case of a purchase thereafter of any such property by any party other than the association from any party other than the association, no title of any kind or nature shall pass to such other purchaser, and the said association may recover the possession of such property from any and all such other parties or from any party in whose possession the same may be found, by replevin action, or may sue for an injunction.”

These two subsections just hereinbefore quoted, construed together, quite clearly show that a co-operative association has several remedies for the protection of its business: (1) Replevin, when the property may be found in the possession of some person; (2) an injunction^ and (3) an action to recover damages for interfering with its contract.

It appears without dispute that at'the time of the purchase of Galbreath’s stock by the defendant the former was still a member of the association, his contract not having expired according to its terms, nor having been canceled by mutual agreement in writing or by the final judgment of a court in an action to annul the same. Sec. 185.08 (7), Stats.

Free access — add to your briefcase to read the full text and ask questions with AI

Neillsville Shipping Ass'n v. Lastofka, 274 N.W. 280, 225 Wis. 350, 1937 Wisc. LEXIS 220 (Wis. 1937).

274 N.W. 280 (Neillsville Shipping Ass'n v. Lastofka) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Forest County v. Goode
579 N.W.2d 715 (Wisconsin Supreme Court, 1998)
Gruen Industries, Inc. v. Biller
608 F.2d 274 (Seventh Circuit, 1979)
Pure Milk Products Cooperative v. National Farmers Organization
219 N.W.2d 564 (Wisconsin Supreme Court, 1974)
Sweeney v. Stenjem
74 N.W.2d 174 (Wisconsin Supreme Court, 1956)