Ridenour v. Woodward

132 Tenn. 620
CourtTennessee Supreme Court
DecidedSeptember 15, 1915
StatusPublished
Cited by2 cases

This text of 132 Tenn. 620 (Ridenour v. Woodward) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ridenour v. Woodward, 132 Tenn. 620 (Tenn. 1915).

Opinion

Mr. Justice Williams

delivered the opinion of the Court.

W. S. Ridenour and C. C. Ridenour, a firm doing a mercantile business, brought this suit to recover $400 and interest, alleged to be due them because of the failure of Woodward, as bailee, to deposit in the First National Bank, of Jellieo, cheeks and money intrusted to him for deposit to their credit.

Woodward was a traveling salesman in the employ of Hackney & Company, a wholesale grocery establishment doing business in Jellieo, and on his trips through the trade territory he was accustomed to call on and make sales to the complainant firm, the store of which was located at a small railway station about sixteen miles out from Jellieo, which store was in charge of C. C. Ridenour.

Ridenour had from time to time, for a period of nine months preceding the incident that occasioned this [622]*622litigation, sent money and checks by Woodward to Jel-lico to be deposited to the firm’s credit in bank. Woodward made bis trips from Jellico to the complainants’ store by the railroad. The train’s scbednle for tbe return trip called for arrival at Jellico at seven-twenty at night, which was after banking hours. At the first Woodward began taking the money of complainant so intrusted to him to his home in the suburbs of Jellico, about one-fourth mile beyond the city limits and about one-half mile beyond the district where the streets were lighted; and the next day take the same to the bank for deposit or carry it to the establishment of Hackney & Company, his- employers, and intrust it to the bookkeeper to be deposited in bank. Woodward was cautioned by this bookkeeper that there was danger of loss attending this method, and a change was made; Woodward taking the funds to some downtown store and depositing the same in an iron safe commonly used for the keeping of valuables. Several times he had used the safe of the Smith Drug Company for that purpose, and several times other safes. He testifies, without contradiction, that he had not uniformly delivered the money from the safe to the bank on the day next succeeding such lodgment, but that at times he delayed doing so for a day or two.

On the afternoon of July 22, 1912, which was Monday, C. C. Ridenour handed to Woodward for deposit the $400 in question, which was placed that night in the safe of Smith & Company. His business called bim from Jellico on Tuesday morning before banking hours. [623]*623He returned in due course of the business of his employers on Tuesday night after banking hours. On Wednesday morning he again went to the store of Smith & Company without making inquiry as to the money, thence out of town on an early train for a short business trip, but returned to the city at ten forty-five, after the bank was opened, called at the drug store, and asked for the money that he had left there on Monday night, when on search of the safe it was-discovered that the funds had disappeared. The testimony does not disclose what became of it, though it is found by both of the lower courts that it was not purloined by Woodward.

O. 0. Ridenour informed Woodward at the time the funds were intrusted to him that he had drawn or was drawing checks on the bank against the same. Other facts are set out in the discussion which follows:

The court of civil appeals held that Woodward was liable to respond as for a conversion of the funds so lost. We have granted the writ of certiorari in order to a review of that decree.

The rule is that a bailee for the accommodation of the bailor is only answerable for his gross negligence or bad faith, the care to be taken by him to be measured, however, with reference to the nature of the thing placed in his keeping. Whitemore v. Haroldson, 2 Lea (70 Tenn.), 312; Hotel Co. v. Holohan, 112 Tenn., 214, 79 S. W., 113, 105 Am. St. Rep., 930, 2 Ann. Cas., 345; Marshall v. Railroad & Light Co., 118 Tenn., 254, [624]*624101 S. W., 419, 9 L. R. A. (N. S.), 1246, 12 Ann. Cas., 675.

The eonrt of appeals was of opinion that the'holding in the case of Colyar v. Taylor, 1 Cold. (41 Tenn.), 372, controls this case. In that case Taylor had received from a bank in Nashville money for Colyar to be delivered gratnitonsly at Winchester. After receiving the money, he took it to the public fair grounds in the vicinity of Nashville, where he met one Estill, who was prevailed upon to take charge of and make the delivery of the money. The money was counted out in public view, within a few steps of the promiscuous crowd, before it was passed to Estill. Shortly after Estill got upon the train, not far distant from the fair grounds, and soon after taking his seat discovered that his pocket had been picked. The ruling was that such parting of possession to Estill was a conversion since it was unauthorized, and also that there was gross negligence shown by the circumstances.

Accordingly, the court of civil appeals held that the placing of the intrusted funds in an iron safe of another person was without authority and constituted a conversion by Woodward.

It may be truly said that the earlier decisions go along rigid lines and show but slight, if any, disposition of the courts to indulge in inferences in favor of the bailee.

Clearly, it is not every parting with the possession by the bailee of the thing bailed that will work a conversion; there may be a parting that is qualified and [625]*625temporary, evincing no intention on the part of the bailee to exercise a dominion over the same inconsistent with the right of the owner, but consistent with a further or continued control as to the delivery designated to be made by the bailee. Spooner v. Manchester, 133 Mass., 270, 43 Am. Rep., 514; Fouldes v. Willoughby, 8 M. & W., 540.

In Jenkins v. Bacon, 111 Mass., 373, 15 Am. Rep., 33, where the conclusion was a hard ruling of liability on the part of the defendant bailee charged with a conversion, it was yet conceded that:'

If “for . . . sufficient reason it should become inconvenient or unsafe that he should retain the manual possession of the bond, he would undoubtedly be at liberty to deposit in any other place or mode, in which he . . . might deposit his own property of the like description. But, as between the original depositor and himself, he would continue to be the lawful and responsible custodian, and bound to practice that degree of care which the law requires of gratuitous bailees. ’ ’

The court of civil appeals erred in not taking note of and following the trend of the modern authorities, which is to break away from the stern rules which many of the courts of England and of this country were at one time disposed to apply to acts of a bailee’ claimed to be a deviation, and therefore to effect a conversion.

Mr. Freeman in his annotations of the case of De Tollenere v. Fuller, 1 Mill, Const. (S. C.), 117, at 12 [626]*626Ana. Dec., 616, 621, after citing with approval onr case of McNeill v. Brooks, 9 Tenn. (1 Yerg.), 73, said:

“It is certainly a hard rule to hold that slight acts of misnser, by a bailee, of the thing bailed, are to be regarded as evidence of a permanent appropriation of the property to his own nse. Perhaps a more reasonable doctrine is that of a majority of the conrt in Harvey v. Epps, 12 Grat.

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132 Tenn. 620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ridenour-v-woodward-tenn-1915.