Newton v. L. W. Culver Storage & Transfer Co.

157 S.W.2d 656, 1941 Tex. App. LEXIS 1039
CourtCourt of Appeals of Texas
DecidedDecember 23, 1941
DocketNo. 11066
StatusPublished
Cited by1 cases

This text of 157 S.W.2d 656 (Newton v. L. W. Culver Storage & Transfer Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newton v. L. W. Culver Storage & Transfer Co., 157 S.W.2d 656, 1941 Tex. App. LEXIS 1039 (Tex. Ct. App. 1941).

Opinion

NORVELL, Justice.

This is an action for damages resulting from the alleged conversion of certain household furnishings, equipment and appliances which were stored by appellant, Elizabeth Newton, with the appellees, doing business as L. W. Culver Storage and Transfer Company. The property was sold by appellees at public sale under the provisions of the Uniform Warehouse Receipts Act, Articles 5612 to 5665, inclusive, Vernon’s Ann.Civ.Stats.

The jury, in answer to special issues, found that:

(1) Appellees had not extended the time of payment of appellant’s storage account until March 1, 1939, as alleged by her.

(2) A registered letter received by appellant on or about January 6, 1939, did contain a notice of the proposed sale of appellant’s property to be held at public auction on February 15, 1939.

(3) That appellee’s general manager had not sold appellant’s property with the fraudulent intention of wrongfully depriving her of said property.

(4) That the sale of appellant’s property on February 15, 1939, was conducted in good faith by the L. W. Culver Storage and Transfer Company.

(5) That the actual value to appellant on February 15, 1939, of the property sold upon said date was $1,350.

Judgment was entered upon the jury’s findings that appellant take nothing.

Appellant presents her appeal upon three points. The jury findings are not directly attacked as being without support in the evidence, but appellant’s position seems to be that the invalidity of the sale is shown as a matter of law by undisputed evidence, and consequently it was only necessary to submit to the jury an issue as to the value of the property.

Appellant contends that the sale was void because, (1) certain of appellant’s goods and effects were sold in the containers in which they were placed at the time they were stored, and (2) a part owner of the storage company, without the consent of appellant, purchased a part of her property for - an inadequate price at said sale. Appellant’s third point combines the two preceding contentions as the basis for a conclusion that the sale is void and appellees, as a result, are to be regarded as trespassers ab initio and liable to appellant as such for the total value of all of appellant’s property sold at said sale.

The following facts are conclusively established by the evidence and jury findings:

On February 22, 1938, appellant stored with appellees a number of boxes, crates and barrels containing various items of household furniture and personal effects for which she took non-negotiable warehouse receipts. Certain effects were removed by appellant, but at the time of the sale there remained in appellees’ warehouse fifty-four containers of appellant’s property.

Appellant failed to pay the storage charges which had accrued in the sum of $57.50, whereupon appellees, by registered mail and newspaper advertisement, gave notice of a proposed sale of appellant’s property to be held on February 15, 1939. Said sale was conducted in appellees’ sales room by an auctioneer in the presence of some thirty-five or forty persons who were [658]*658prospective purchasers. Some three hundred and forty-four pieces or containers of property and effects belonging to appellant as well as others were sold at the time. Appellant’s properties were sold in the containers in which they had been stored and as described in the warehouse receipt. These containers were not broken into or opened prior to or at the time of the sale. The total amount realized from the sale of appellant’s effects amounted to $33.10. Roland Smith, an appellee and part owner and manager of L. W. Culver Storage and Transfer Company, acting through an agent, bid in a part of appellant’s property at the sale. One barrel purchased by him for $1.50 contained Haviland china, which had a value far in excess of the amount bid.

It also appears that E. C. Brown, an employee of appellees, had assisted appellant in packing the containers. This circumstance is relied upon by appellant in showing that the Company had notice of the value of the goods and effects stored by her. Concerning the extent of Brown’s participation in the packing operations there is a conflict of testimony. According to Brown, his participation was limited to the packing of one barrel with glassware. The nature of the contents of the sealed barrels and boxes was not shown by the warehouse receipt. Smith denied that he had knowledge of the contents of said barrels and boxes at the time of the sale.

We are not here concerned with the exact wording of proper jury issues in a case of this nature, which involves a legal situation of bailor and bailee as well as one. having some characteristics of trustee and cestui que trust. We are obliged to give full effect to the jury holding that the sale was not fraudulent, but, on the contrary, was conducted in good faith and upon proper notice.

Judged in the light of jury’s finding, the price received for appellant’s property at the sale in question was certainly inadequate, but it has been held that mere inadequacy of price alone is not a sufficient ground for setting aside a sale of the nature here involved. Thornton v. Goodman, Tex.Com.App., 216 S.W. 147; Reisenberg v. Hankins, Tex.Civ.App., 258 S.W. 904.

In addition to the inadequacy of price, we have, however, two additional circumstances which we next consider, namely, the fact that the containers were not opened and the contents thereof exposed to the public at the time of the sale, and the fact that the storage company was in effect a purchaser of a portion of the property sold.

The Uniform Warehouse Receipts Act directs that a foreclosure of the lien provided for in the Act may be had by means of “a sale of the goods by auction.” Article 5644, Section 4, Vernon’s Ann. Civ. Stats. It will be noted that said Article 5644 contains detailed directions as to the notice required for a proposed sale under the Act. The necessary contents of the notice are prescribed as well as the method of service upon the owner. Notice by advertisement in a newspaper is specifically required and details relating thereto are prescribed.

In contrast to the detailed instructions as to notice, the directions as to the conduct of the sale are meager. “A sale of the goods by auction” is all that is required by the statute. If these words be given their plain ordinary meaning it would seem that the statute was complied with in this particular. Furthermore, it seems to have been the legislative intention that the rights of the owner were to be afforded protection by the rather elaborate and detailed requirements as to notice.

Appellant contends that the wording of the statute in this particular must be construed with reference to the common law meaning of the term “sale by auction,” Article 1, Vernon’s Ann.Civ.Stats.

The cases of Stief v. Hart, 1 N.Y. 20, and Shimer v. Mosher, 39 Hun, N.Y., 153, are. cited in support of appellant’s argument. Neither authority, of course, deals with the particular kind of a sale here involved, but they are authority for the proposition that at common law sales of personal property under court process were void unless the property sold was within the view of the bidders at the sale.

Appellees cite the case of Scott v. A. Arnold & Sons Transfer & Storage Co., Inc., 273 Ky. 163, 116 S.W.2d 296

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Bluebook (online)
157 S.W.2d 656, 1941 Tex. App. LEXIS 1039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-l-w-culver-storage-transfer-co-texapp-1941.