Rolette State Bank v. Minnekota Elevator Co.

195 N.W. 6, 50 N.D. 141, 1923 N.D. LEXIS 82
North Dakota Supreme Court·Decided July 26, 1923·Published·Cited by 12 cases

Opinion

Nuesske, J.

This action is for damages on account of the conversion of certain grain. The plaintiff in its complaint sets out and al[147] leges that it was the owner of a certain chattel mortgage covering grain rhised by its debtor Goode; that it was entitled to possession thereof by virtue of such mortgage lien for the purpose of foreclosing; that the defendant wrongfully converted the said grain, and plaintiff claims damages on account thereof. The defendant, answering, denies the mortgage lien of the plaintiff; denies that the plaintiff has been damaged by any act of the defendant; alleges that plaintiff is estopped from asserting any claim against the defendant; and alleges that the right of the plaintiff, if any, to the grain by reason of the alleged mortgage lien, is second and subsequent to the lien of the county of Rolette, and that the plaintiff was not, therefore, injured by any act of the defendant in connection with said grain. On the issues as thus made, the case was tried to a jury and a verdict returned for the plaintiff and judgment entered thereon. At the close of the plaintiff’s case, and again at the close of the whole case, the defendant moved for a directed verdiet. Subsequent to the return of the verdict, the defendant moved in the alternative for judgment notwithstanding the verdict or for a new trial, which motion was denied. This appeal is from the order denying said motion and from the judgment.

The defendant and appellant predicates error on this appeal on account of the rulings of the court during the course of the trial; on account of the trial court’s refusal to give certain requested instructions and its given of certain other instructions; on account of the trial court’s not permitting the jury, when they retired to deliberate on their verdict, to take with them certain papers which had been received in evidence; and by reason of the trial court’s denial of the defendant’s motion for judgment non obstante or for a new trial.

There is little dispute as to the facts. It appears that one Goode gave a chattel mortgage for $2,000 on his crop for the year 1921 to the plaintiff bank. In 1920 Goode had obtained seed and feed from the county of Rolette and the county had perfected a lien on account of such seed and feed so furnished. In September, 1921 Goode hauled at least a portion' of the mortgaged grain to the defendant’s elevator. The plaintiff was endeavoring to realize on its mortgage. The county of Rolette was likewise endeavoring to collect on account of seed and feed furnished in 1920. Goode, the sheriff of Rolette county, and the agent of the plaintiff, met at the defendant’s elevator, with the agent [148] in charge thereof, and made arrangements as to what should he done with the grain in controversy. It was there agreed that the grain upon which the plaintiff had a mortgage should he purchased by the defendant and that the plaintiff should waive its mortgage as against the grain, excepting as to the amount of $400, which amount should be paid to the plaintiff by the defendant from the proceeds of the grain bought by it. This was on September 3d, 1921. Subsequently the defendant bought the grain, but paid the money directly to Goode. Plaintiff was not paid. A demand was made on defendant for the grain in April, 1922, wbicb was refused, and plaintiff brought this action in conversion.

The only matter of fact in dispute among the parties is as to what the arrangement was with reference as to how and to whom the purchase price of the grain should be paid. The plaintiff’s contention is that the agreement was that the defendant should pay the $400 direct to it. The defendant’s contention is that the agreement was that the purchase price of the grain should he paid to Goode and that G'oode should pay the plaintiff. This question was left to the jury, and they found that the plaintiff’s version was the correct one.

The plaintiff’s contention is that when the defendant purchased the grain and paid therefor contrary to the arrangement as agreed upon and thereafter denied plaintiff’s claim of lien that it thereby converted the same; that although a demand was subsequently made and refused that such demand and refusal were not necessary to establish such conversion ; that the conversion took place at the time the grain was disposed of, contrary to such agreement, irrespective of any subsequent demand. On the other hand, the defendant contends that there was no conversion; that if the plaintiff has any cause of action that it. is merely one on contract for the amount that the plaintiff was to have; that if there was any conversion that it was as of the date of demand and refusal, and the value of the grain at that time is not shown; that by its conduct, the plaintiff is estopped to assert any claim to the grain as against defendant; furthermore, that the county of Eolette had perfected its seed lien against Goode for the year 1920 in an amount' greater than the value of the grain alleged to have been converted, and that the same is still unpaid; that such lien is a continuing lien as against any and all crops of every description grown by Goode during [149] the year 1920 and subsequent years, prior and superior to the lien of the plaintiff’s or any other mortgage, and though the grain in question has been disposed of contrary to the agreement, that the plaintiff suffered no injury thereby for the reason that on account of the county’s continuing lien the plaintiff's interest by virtue of the mortgage was of no value.

It will thus be seen that the questions raised by the contentions of the various parties resolve themselves into: First, as to whether there was a conversion; second, whether a demand and refusal was necessary; and third, whether under the circumstances as disclosed, the defendant can establish the alleged lien of Eolette county as a defense in this particular case. Whether the court erred in its rulings, either as to the admission of evidence or in denying the defendant’s motion, or in giving or refusing to give instructions, will depend on the answers to these questions.

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

Rolette State Bank v. Minnekota Elevator Co., 195 N.W. 6, 50 N.D. 141, 1923 N.D. LEXIS 82 (N.D. 1923).

195 N.W. 6 (Rolette State Bank v. Minnekota Elevator Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Ritter, Laber & Associates, Inc. v. Koch Oil, Inc.
2004 ND 117 (North Dakota Supreme Court, 2004)
Hochstetler v. Graber
48 N.W.2d 15 (North Dakota Supreme Court, 1951)
Regional Agricultural Credit Corp. v. Griggs County
10 N.W.2d 861 (North Dakota Supreme Court, 1943)
Hovland v. Farmers Union Elevator Co.
269 N.W. 842 (North Dakota Supreme Court, 1936)
First State Bank v. St. Anthony & Dakota Elevator Co.
250 N.W. 778 (North Dakota Supreme Court, 1933)
Fargo Loan Agency v. Larson
207 N.W. 1003 (North Dakota Supreme Court, 1926)
State v. Ehr
204 N.W. 867 (North Dakota Supreme Court, 1925)
Huether v. McCaull-dinsmore Co.
204 N.W. 614 (North Dakota Supreme Court, 1925)
Cunningham v. Lahr Motor Sales Co.
198 N.W. 347 (North Dakota Supreme Court, 1924)
Farmers State Bank v. Jeske
197 N.W. 854 (North Dakota Supreme Court, 1924)
Carson State Bank v. Grant Grain Co.
197 N.W. 146 (North Dakota Supreme Court, 1924)