Oklahoma Cotton Growers' Ass'n v. Hooven

1928 OK 587, 272 P. 852, 134 Okla. 47, 1928 Okla. LEXIS 791
CourtSupreme Court of Oklahoma
DecidedOctober 2, 1928
Docket18711
StatusPublished
Cited by2 cases

This text of 1928 OK 587 (Oklahoma Cotton Growers' Ass'n v. Hooven) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oklahoma Cotton Growers' Ass'n v. Hooven, 1928 OK 587, 272 P. 852, 134 Okla. 47, 1928 Okla. LEXIS 791 (Okla. 1928).

Opinion

LEACH, C.

This is an action by N. M. Hooven against Oklahoma Cotton Growers Association and United States Fidelity & Guaranty Company to recover on an injunction bpnd. Judgment was had in the district court of Carter county in favor of the plaintiff, and defendants appeal. The parties will be. referred to as they appeared in the trial court.

In March, 1921, plaintiff, Hooven, entered *48 into a written agreement with. Oklahoma Cotton Growers Association, in which he agreed to sell and deliver to the association all cotton raised by him during the years 1921 to 1927, inclusive. In 1924 th’e association filed suit against Hooven alleging he had violated the contract, and prayed judgment againstj him for damages, also for specific performance and an injunction to prevent a further and future breach of the agreement. On October 7, 1924, a temporary injunction was issued in that cause, enjoining the further sale of cotton by the defendant in that action. On October 23rd a motion to dissolve the injunction was presented and overruled; thereafter demurrer was filed to the petition and later an answer.

Upon a trial of the issues in that cause, a verdict and judgment was rendered in favor of the association, for the sum of $1 damages and the temporary injunction made permanent, from which judgment an appeal was perfected to this court, which resulted in a reversal of the judgment, with directions to dismiss the action. N. M. Hooven v. Oklahoma Cotton Growers Association, 118 Okla. 238, 247 Pac. 39. This action is to recover upon the injunction bond given in that cause ini 1924. Upon a trial of this cause a verdict and judgment was rendered in favor of plaintiff for the sum of $870 as damages arising from the depreciation in the price or value of the cotton held by plaintiff at the time of the issuance of the injunction, and for the further sum of $1,000 as attorney fees; a judgment for the total sum of $1,670 was rendered in favor of plaintiff. The damages allowed plaintiff by reason of depreciation in the value of his cotton is challenged by the defendants upon two grounds; that is, that' such loss or damage suffered by plaintiff was not caused by reason of the issuance of the injunction, but by reason of the acts of th'e plaintiff himself, or the First National Bank of Ard-more, who held a movtiage upon the cotton, and that the* measure of damages based upon the decline in value of the cotton between the date of the issuance of the injunction; and the date of the sale of the cotton as instructed by the court is incorrect. The evidence discloses that, on the date of the issuance of the injunction, the plaintiff had on hand in a warehouse 67 bales of cotton, which, according to his testimony, he had an offer to sell, came in to sell, and intended to sell on that datethat the reasonable market value on that day was 26c per pound; that the cotton' was mortgaged; that he had previously sold about 28 bales of that year’s crop; that after the injunction was granted, the bank: which he owed and which held a mortgage on the cotton, took and sold it. In answer to the question:

“Q. How did they happen to sell that cotton?” he stated, “A. I told them they had tied me up, and I wanted to pay them, and I said, ‘There it is, go ahead, I can’t.’ ”

An officer of the bank testified that the bank held a mortgage on the cotton, and that they sold the same with the consent of the plaintiff. The testimony further discloses there was a gradual decline in cotton prices, and that the cotton was sold on the 27th day of October, 1924, at 23% c per pound. It is argued by the defendant that the plaintiff, Hooven, did not exercise control over the cotton at the time the injunction was issued, nor at the time the cotton-was sold; that the bank, the mortgagee, sold th’e cotton when it thought best to sell it, and that the injunction had no effect in the matter of the sale of the cotton, or if the bank did not exercise or have absolute control over the cotton, then the plaintiff did have and could have had th’e bank sell and dispose of the cotton on the date that the injunction was granted, the same as he did 20 days later.

In support of such contention, attention is called to the rule that where there is an independent intervening cause which produces the injury, it will be regarded as the proximate cause and not thb issuance of the injunction. The plaintiff was deprived of the right to sell his property on the date of the issuance of the injunction, and there was no duty devolving upon him except to use reasonable care to avoid injury or increase of damages.

In the case of Slack v. Stephens (Colo.) 76 Pac. 741, the defendant sought to avoid liability on an injunction bond arising from depreciation in the value of certain corporate stock on the ground that the depreciation arose by reason of the loss and1 destruction of certain property of the corporation, which loss defendant contended was the proximate cause of plaintiff’s loss and not the writ of injunction. The court there said:

“* * * The authorities are that the wrongful act of defendants in securing and having served the writ of injunction, thereby wrongfully preventing plaintiff from selling the stock and realizing its value when it had a value, is the proximate cause of the damage sustained through the failure to sell.” Citing a number of cases sustaining the. rule.

*49 High on Injunction, vol. 2 (3rd Ed.) sec. 1663, is in part:

“But where an injunction operates to d&lay the sale of property, real and personal, and pending such delay great depreciation occurs in the value of the property, such loss, being regarded as occasioned by the injunction, may be properly included in estimating the damages incurred.”

See, also, Joyce on Injunction, vol. 1, sec. 195, p. 320.

The case of Whitehead v. Cook, 100 Okla. 282, 229 Pac. 254, is cited as sustaining the defendant’s contention,. That case is not analogous to the instant one, because there the defendant had entirely parted with all title and right to the judgment involved, apd clearly suffered no actual loss from restraining its collections However, the court held defendant entitled to recover nominal damages. In the instant case the title to the cotton was still in the plaintiff, and he was 'exercising control over the same. Certain other cases are also cited which we do not consider applicable by reason of difference in the facts.

The case of City of Clay Center v. Williamson (Kan.) 100 Pac. 59, is cited as sustaining the contention of defendant that the proper measure of damages was not applied in the instant case. It was held in the Kansas ease that the plaintiff was entitled to recover as damages the difference between the value of its bonds on the date of the issuance of the injunction and its dissolution. The rule there announced might be applicable and correct in the instant case had the cotton been held and retained until the injunction was dissolved, but by reason of the intervening acts and difference in the facts, the rule announced is not applicable to the. instant ease. The rule announced in the Kansas case, supra, is similar to that in the case of Slack v. Stephens, supra, and the case of Osage Oil & Refining Co. v. Chandler (C. C. A.) 287 Fed. 848, 29 A. L. R. 720. Following the next above case reported in 29 A. L. R.

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Bluebook (online)
1928 OK 587, 272 P. 852, 134 Okla. 47, 1928 Okla. LEXIS 791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-cotton-growers-assn-v-hooven-okla-1928.