Phillips Petroleum Co. v. Cunningham

169 S.W.2d 628, 293 Ky. 514, 1943 Ky. LEXIS 668
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedMarch 9, 1943
StatusPublished
Cited by1 cases

This text of 169 S.W.2d 628 (Phillips Petroleum Co. v. Cunningham) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips Petroleum Co. v. Cunningham, 169 S.W.2d 628, 293 Ky. 514, 1943 Ky. LEXIS 668 (Ky. 1943).

Opinion

*515 Opinion op the Court by

Judge Ratliff

Affirming.

Appellant, a corporation, and appellees, a partnership composed of W. M. Cunningham and R. G. Cunningham, doing business under the name of Cunningham Oil Company, are engaged in the distribution of petroleum and petroleum products and operating filling-stations in Ballard, Carlisle, and Hickman counties, Kentucky. For several years previous to December 11, 1939, the Illinois Oil Company was likewise engaged in the same business in the same counties, and perhaps-other adjacent or nearby counties, and maintained and supplied service stations at various points. It owned, a “bulk plant” at Bardwell, Kentucky, from which it supplied various retail stations, some of which were-owned by it and others owned by local merchants and. operated in connection with stores and perhaps other-business enterprises which it supplied with petroleum-products under oral contracts.

In the latter part of the year 1939 the Illinois Oik Company had some negotiations with appellant looking-to the sale of its products and equipment in that territory, but they failed to agree on the purchase price, but at a later date, December 11, 1939, it sold to appellees its property and business including the bulk plant at Bardwell, at a purchase price of $5,000. It appears that the Illinois Company had previously offered to sell to-appellant, and perhaps others, the same property it sold, to appellees, exclusive of the bulk plant at Bardswell, for $3,300. Soon after appellees purchased the property of the Illinois Company it contacted R. M. Copeland who-had been the agent for the Illinois Company and offered to employ him to work for or represent them in the same-territory in which he had formerly represented the Illinois Company, but they failed to agree on the salary.. On the next day Copeland applied to appellant for a position with it, stating that he thought the accounts previously handled by him for the Illinois Company could, be secured for appellant if it would employ him, which it did. Mr. Copeland, together with L. O. Scheer, a representative of appellant, immediately contacted the service station operators for the accounts, patronage and business connections which they formerly had with the Illinois Company and secured contracts with them to purchase products from appellant instead of appellees, who-had purchased the interests of the Illinois Company. Ap~ *516 jpellant then began servicing these station operators using the gasoline tanks and equipment which had previously supplied the Illinois Company aüd which were included in the property sold by the latter company to .appellees. After appellant had secured the contracts from these various operators, it sent letters to appellees .advising them that appellant had secured contracts with these various operators and was servicing the accounts ■pending receipt of appellees’ invoices for the pumps, tanks, etc., and further stated that if the price listed did .not meet appellees’ approval to so advise appellant by return mail and arrangements would be made to replace the equipment. Appellees wrote appellant attaching invoices for the equipment but appellant declined to pay the price asked. No further negotiations were had and appellees brought this suit in April, 1940, alleging the purchase of the property and business of the Illinois Company, and that in December, 1939, it was the owner •of and in possession of the property and business pursuant to its purchase of the same from the Illinois Company and that appellant had wrongfully seized and converted the property, and because of such wrongful seizure and conversion it impliedly promised to pay for the same and prayed to recover of appellant the sum of $2,-416.25, the alleged value of the property. It was further alleged that “the defendant in a high-handed and unlawful manner took possession of said property and converted it to their own use in the places where it was installed for use by these plaintiffs, in their competitive business and by their acts in this manner and by the ■said conversion these plaintiffs have sustained damages in the sum of $550.00, all of which is due to the wilful, wrongful, unlawful and high-handed actions as herein-above set out of the defendant in the conversion of this property at the places where these plaintiffs had it for their use and for their acts in depriving these plaintiffs -of the possession and use of the said property, which .said damage of $550 is over and above the actual value of the property so converted by the defendant. ’ ’

Appellant filed its answer denying that the value of the property converted was $2,416.25 and denied the alleged value of each item was itemized by appellees, but admitted that it converted a portion of the property specified in the petition, of a value of $1,077, and offered to ■confess judgment for that amount accompanied by a .tender which appellees refused to accept. By agree *517 ment of the parties a jury was waived and the law and facts submitted to the court and pursuant to a motion for a separation of law and facts the court made such separate findings and awarded judgment in favor of appellees in the sum of $2,365.75, representing the value of the property converted, but denied appellees’ claim, of $550 for the wrongful conversion, or, in a sense, punitive damages. Appellant h‘as appealed from that part, of the judgment over and above $1,077, the amount which it tendered in full satisfaction of the property, and appellees' have cross-appealed from that part of the judgment disallowing extra or punitive damages for the conversion.

There are no questions of law involved. It is admitted by appellant that the court applied the proper measure of damages, namely, the fair market value of the property at the time and place of the conversion. It is insisted, however, that the evidence is insufficient to-sustain the court’s finding of values of the property or a part of it, and further, that the evidence is insufficient, to show that the Illinois Oil Company owned two certain air compressors involved, one at Columbus, Kentucky, and the other at Lovelaceville, Kentucky, and did not sell the same to appellees, and hence no conversion of them by appellant. The parties are in agreement as to the value of the air compressors, the dispute going-only to the ownership of them. Appellant also insists-that the .Illinois Oil Company did not own a certain truck tank involved, valued by appellees at $550, and by appellant at $200, and did not sell same to appellees and there was no conversion of it by-appellant. It is not. disputed that the truck upon which the tank was mounted belonged to it. M. Copeland but the chassis was painted red, the color of the Illinois Oil Company property,, and it is described in the bill of sale by which the Illinois Oil Company sold all the equipment to appellees. R. M. Copeland testified that he offered to take the tank to-Clinton and unload it and that Cunningham, one of theappellees, told him he would tell him when he was ready for it, and not being able to receive any definite directions from Cunningham he asked Mr. Scheer, a representative of appellant, whát to do with the tank and Scheer told him to take it off the truck and mount one of appellant’s tanks on it and that he did so and placed it in a garage at Bardwell and advised Cunningham where it *518 was located. He was further asked and answered these •questions:

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

Related

Lindon v. Potter
208 S.W.2d 515 (Court of Appeals of Kentucky (pre-1976), 1948)

Cite This Page — Counsel Stack

Bluebook (online)
169 S.W.2d 628, 293 Ky. 514, 1943 Ky. LEXIS 668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-petroleum-co-v-cunningham-kyctapphigh-1943.