Peck v. Augustin Bros. Co.

279 N.W.2d 397, 203 Neb. 574, 26 U.C.C. Rep. Serv. (West) 889, 1979 Neb. LEXIS 888
CourtNebraska Supreme Court
DecidedMay 29, 1979
Docket42160
StatusPublished
Cited by4 cases

This text of 279 N.W.2d 397 (Peck v. Augustin Bros. Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peck v. Augustin Bros. Co., 279 N.W.2d 397, 203 Neb. 574, 26 U.C.C. Rep. Serv. (West) 889, 1979 Neb. LEXIS 888 (Neb. 1979).

Opinion

Boslaugh, J.

This is a replevin action initiated on September 29, 1967. On that date, 315 head of cattle were replevined by the plaintiff-seller, Ernest Peck, from the defendant-buyer, Augustin Bros. Co. of Shelby, Nebraska. Subsequent to the replevin, the defendant was adjudicated a bankrupt. The action remained pending on a special appearance filed by the defendant until May 31, 1977. The bankruptcy proceedings were completed on November 30, 1975.

After a trial on the merits in April 1978, the trial court directed a verdict for the plaintiff, except for the amount of defendant’s downpayment. The defendant has appealed.

The evidence shows two contracts between the parties dated July 22, 1967, for the sale of cattle, with delivery to be made between September 15-20 “F. O. B. trucks” in Burlington, Kansas. A downpayment of $3,180 was given toward the purchase price of the cattle which were delivered by the plaintiff in Burlington, Kansas, on September 18, 1967. On the following day, the cattle arrived at the defendant’s yards near Shelby, Nebraska. On that same day the seller prepared a draft on the defendant for the remainder of the sale price, $56,785, and deposited the draft at his bank in Thayer, Kansas. The draft was forwarded through normal banking channels and arrived in Columbus, Nebraska, on or about September 25, 1967. At about the time the draft arrived at the defendant’s bank in Columbus, Nebraska, the defendant’s line of credit was revoked and the draft *576 was dishonored by the defendant. The plaintiff came to Shelby on September 26, 1967, and demanded payment for the cattle or return of the cattle. When the defendant refused, the plaintiff commenced this action. The cattle were returned to the plaintiff on September 29, 1967.

The assignments of error allege that the trial court erred in finding that the plaintiff owned the cattle and had demanded payment or return of the cattle prior to replevin. The defendant also contends there was no valid service of summons upon the defendant; the plaintiff had no right to possession after delivery; the plaintiff had no security interest in the cattle and was not a secured creditor; the replevin was a voidable preference in bankruptcy; and the 1967 replevin procedure was unconstitutional. Finally, the assignments of error allege the trial court erred in refusing to allow damages to the defendant for its expenses in transporting and caring for the cattle and for interest on its downpayment.

After the defendant’s special appearance had been overruled, the defendant answered and prayed for affirmative relief including damages. This constituted a general appearance and waived any objections to jurisdiction over the defendant’s person. Schleuter v. McCuiston, ante p. 101, 277 N. W. 2d 667; Tietsort v. Ranne, 200 Neb. 651, 264 N. W. 2d 860 (1978); Swick v. Coslor, 194 Neb. 781, 235 N. W. 2d 639 (1975); Abel v. Southwest Cas. Ins. Co., 182 Neb. 605, 156 N. W. 2d 166 (1968); Graff v. Graff, 179 Neb. 345, 138 N. W. 2d 644 (1965). It is unnecessary to consider the defendant’s contentions in regard to the special appearance.

The defendant argues that the Nebraska replevin statutes in 1967 were unconstitutional based upon the decision in 1972 in Fuentes v. Shevin, 407 U. S. 67, 92 S. Ct. 1983, 32 L. Ed. 2d 556 (1972). The defendant has not cited any case that would apply Fuentes, a *577 1972 decision, to a 1967 transaction. Constitutional invalidity is generally held to be prospective because ‘‘a retroactive application of Fuentes v. Shevin, supra, would work an injustice and a hardship upon [parties] who have lawfully acquired vested rights in the form of their state judgments.” Douglas-Guardian Warehouse Corporation v. Posey, 486 F. 2d 739, at p. 743 (10th Cir., 1973). See, also, Kacher v. Pittsburgh Nat. Bank, 545 F. 2d 842 (3rd Cir., 1976). Furthermore, the replevin statutes as they existed in 1967 have since been amended and the constitutionality of the 1967 statutes is now a moot question. See §§ 25-1093 to 25-10,110, R. R. S. 1943 (Reissue 1975).

In deciding that the plaintiff had the right to reclaim the cattle, the trial court found that the plaintiff owned the cattle at the time of sale and had demanded their return prior to replevin. The defendant contends these findings are erroneous.

The record shows the plaintiff had purchased the cattle from a rancher in Kansas. The plaintiff then entered into a sales contract with another cattle feeder, Jay Crofoot of Lubbock, Texas. Crofoot testified at the trial that he had agreed to release the plaintiff from the contract for a share of the profits from the sale to the defendant. After the replevin, Crofoot purchased the cattle from the plaintiff. The evidence sustains the finding that the plaintiff owned the cattle and had demanded their return prior to the replevin.

The trial court also found that the sale was a credit transaction; that the seller was entitled to reclamation under the Uniform Commercial Code; that the seller had a perfected purchase money security interest in the cattle; and that the replevin was not a voidable preference under the Bankruptcy Act.

We reach the same result as the trial court did but for a different reason. The transaction was not a *578 credit sale. The contract provided the “balance of purchase price to be paid upon completion of contract.” There was no extension of credit contemplated. Payment was due upon delivery and a statement for the balance due accompanied the cattle. The evidence is undisputed that both parties contemplated payment would be made by a draft drawn on the defendant by the plaintiff.

The concept of conditional payment by check is recognized by the Uniform Commercial Code. See §§ 2-507 (2), 2-511 (2), 2-511 (3), U. C. C. See, also, § 2-511, U. C. C., Comment 4: “This article recognizes that the taking of a seemingly solvent party’s check is commercially normal and proper and, if due diligence is exercised in collection, is not to be penalized in any way. * * * Similarly the reason of this subsection should apply and the same result should be reached where the buyer ‘pays’ by sight draft on a commercial firm which is financing him.” The code supplements “private agreements, including course of dealing, usage of trade, and course of performance.” White & Summers, Uniform Commercial Code, § 2, p. 7 (1972). And the commercial meaning of the parties’ agreement or conduct should reflect both their expectations as evidenced by their “course of dealing” and the understanding imparted to persons involved in particular commercial transactions in a given locality as a “usage of trade.” See § 1-205, U. C. C., and Comments.

The plaintiff introduced evidence of his prior dealings with the defendant. All prior sales had been paid by drafts drawn by the plaintiff upon the defendant. Every draft had been deposited at the plaintiff’s bank, forwarded through regular banking channels, and had always been paid. Glen Augustin, defendant’s vice president, testified that all of its cattle purchases were paid by such customer drafts. The result in this case would have been the same if the defendant had paid for the cattle by its *579

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

Related

Badgett v. Security State Bank
807 P.2d 356 (Washington Supreme Court, 1991)
Badgett v. Security State Bank
786 P.2d 302 (Court of Appeals of Washington, 1990)
Rowse v. Platte Valley Livestock, Inc.
604 F. Supp. 1463 (D. Nebraska, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
279 N.W.2d 397, 203 Neb. 574, 26 U.C.C. Rep. Serv. (West) 889, 1979 Neb. LEXIS 888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peck-v-augustin-bros-co-neb-1979.