Rountree v. Graham

131 S.E. 193, 144 Va. 145, 1926 Va. LEXIS 237
CourtSupreme Court of Virginia
DecidedJanuary 14, 1926
StatusPublished
Cited by3 cases

This text of 131 S.E. 193 (Rountree v. Graham) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rountree v. Graham, 131 S.E. 193, 144 Va. 145, 1926 Va. LEXIS 237 (Va. 1926).

Opinion

Campbell, J.,

delivered the opinion of the court.

This was an action of assumpsit by the defendant in error, plaintiff in the trial court, against the plaintiff in error, defendant, to recover the sum of $643.40, the balance of the purchase price for a ear of peaches shipped to Norfolk.

“This ease was jointly tried upon the same evidence' and instructions as the ease of John F. Graham v. E. P. [147]*147Godwin, trading as R. S. Godwin & Company, to which, judgment this court granted a writ of error and supersedeas on the - day of January, 1925.” (Record, page 2.)

The pertinent facts are as follows: On September 28, 1923, the plaintiff, a resident of Wilson, New York, received from Kemp E. Savage, a broker doing business in Norfolk, the following telegram: “Ship RountreeHolland positively to-day minimum ear only best Elbertas, dollar sixty-five. Confirm.”

This order was accepted by the plaintiff by telegram, and on the same day the plaintiff shipped a car containing three hundred and sixty-nine bushels of peaches to his own order, with instructions to carrier to notify defendant and to permit inspection. The bill of lading with draft attached was sent to the Norfolk National Bank. The defendant, upon inspection, refused to accept the peaches, on account of their alleged defective condition and the manner of packing not conforming to the descriptive word “ring-tail,” which is descriptive of a class of peaches and the mode of packing.

Upon the refusal of the defendant to accept the peaches, they were disposed of by Savage, the broker. The net price obtained, after paying the freight and the expense of sale., was $17.05, leaving a balance alleged to be due of $643.40, for which sum a judgment was obtained by the plaintiff.

The theory of the plaintiff is that the contract is a New York contract, by reason of the plaintiff’s acceptance of the defendant’s offer On September 28th, and by reason of the further fact that the peaches were to be shipped f. o. b. Wilson, New York.

The position of the defendant is, that title did not pass upon the delivery of the peaches to the carrier, but remained in the plaintiff, as evidenced by the fact [148]*148that they were shipped consigned to the plaintiff’s own order, with instructions to notify defendant and to permit an inspection of the ear before payment of the draft with bill of lading attached, thus manifesting an intention upon the part of the plaintiff to retain title.

The general rule is that “A sale f. o. b. ears-means that the subject of the sale is to be placed on the ears for shipment without any expense or act on the part of the buyer, and that as soon as so placed the title is to pass absolutely to the buyer and the-property be wholly at. his risk, in the absence of any circumstances indicating a retention of such control by the seller as security for purchase money, by preserving the right -of stoppage in transitu.” Lawson v. Hobbs, 120 Va. 690, 91 S. E. 750; Geoghegan v. Arbuckle Bros., 139 Va. 92, 123 S. E. 387, 36 A. L. R. 399.

The operation of this general rule is, however, subordinate to the intention of the parties, and if it appears from the terms of the contract of sale or from a preponderance of the proof, where the contract is silent, that it was not the intention of the parties to-pass title f. o. b. to the consignee, then the rule is not applicable.

A strong presumption in favor of the retention of title by the seller arises in a ease where the bill of lading is taken in the name of the vendor and the goods are actually consigned to the order of the shipper. This presumption may be rebutted by circumstances and by proof of previous dealings of the parties which evidence a contrary intention.

In Greenwood Grocery Co. v. Canadian County Mill Co., 72 S. C. 450, 52 S. E. 192, 2 L. R. A. (N. S.) 79, 110 Am. St. Rep. 627, 5 Ann. Cas. 261, Judge Woods said: “The fact that the bill of lading is taken, mak[149]*149ing the goods deliverable to the order of the vendor, who is himself the consignor, is very strong prima facie evidence that the vendor, in delivering the goods to the carrier, intended to reserve the title until payment of the purchase money, and when a draft for the price is drawn on the purchaser with such bill of lading attached, the title does not ordinarily pass to him until the draft is paid.” See authorities cited.

In 35 Cyc. 333, note (d), it is said: “If where there is a consignment to the seller, his agent, or order, the bill of lading is forwarded to the seller’s agent with draft attached, to be delivered to the buyer on payment, the seller thereby manifests an intention to reserve the property in the goods, and the property does not pass until the draft is paid. And even when the buyer is named as consignee, if the bill of lading with draft attached is sent to the seller’s agent or bank for collection, the property in the goods is reserved and does not pass to the buyer until payment.”

In Dawes, et als. v. National Ex. Bank, 91 U. S. 631, 23 L. Ed. 214, it appears that wheat was purchased for the account of Smith & Co., and shipped in Smith & Co.’s boats, with bill of lading in the name of the consignor as consignee, with draft attached. The court in that case held: “These bills of lading, unexplained, are almost conclusive proof of an intention to reserve to the shipper the jus disponendi and to prevent the title to the wheat from passing to the drawers of the drafts.”

The fact that the seller shipped to his own order, or that inspection was allowed the buyer, is not of itself determinative of the question of title; we must look for guidance to the question of intention.

To take the instant case out of the general rule, plaintiff places great reliance upon the ease of' [150]*150Standard Casing Co. v. California Casing Co., 223 N. Y. 413, 135 N. E. 834. In that case, it appears that the place of shipment was San Francisco, and that delivery was to be f. o. b. there. The court held that, notwithstanding the fact that the goods were shipped to the order of the vendor, with bill of lading attached to sight draft, and inspection allowed, the contract was a California contract. An examination of this ease reveals, however, that it is not out of harmony with the weight of authority as to the general rule. In the opinion it is said: “The general rule is that, upon a sale ‘f. o. b. the point of shipment,’ title passes from the seller at the moment of delivery to the carrier, and the subject of the sale is thereafter at the buyer’s risk. Williston, Bales, section 280, page 409; U. S. v. R. P. Andrews & Co., 207 U. S. 229, 241, 28 Sup. Ct. 100, 52 L. Ed. 185; Detroit Sou. R. Co. v. Malcomson, 144 Mich. 172, 107 N. W. 915, 115 Am. St. Rep. 390. The operation of the rule is, of course, subordinate to intention. We find nothing in this contract by which an inconsistent intention is adequately revealed. The plaintiff sees in two provisions the tokens of a purpose that arrival at the point of destination shall be a condition of performance. One is the provision that after arrival at New York, the buyer may inspect. The other is that, subject to such

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Related

Birdsong & Co. v. American Peanut Corp.
141 S.E. 759 (Court of Appeals of Virginia, 1928)
Godwin v. Graham
131 S.E. 927 (Court of Appeals of Virginia, 1926)

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Bluebook (online)
131 S.E. 193, 144 Va. 145, 1926 Va. LEXIS 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rountree-v-graham-va-1926.