Schwab v. Oatman

56 Misc. 393, 106 N.Y.S. 741
CourtNew York Supreme Court
DecidedNovember 15, 1907
StatusPublished
Cited by3 cases

This text of 56 Misc. 393 (Schwab v. Oatman) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwab v. Oatman, 56 Misc. 393, 106 N.Y.S. 741 (N.Y. Super. Ct. 1907).

Opinion

Giegerich, J,

The plaintiffs, claiming title to forty-one bales of cotton duck cloth, have brought an action in replevin against the defendants, who, as warehousemen, were in possession of the same. The plaintiffs purchased the goods in question, together with others, from a corporation known as the James Freeman Brown Company, which acted as selling agents for various cotton mills. The contract took the form of a letter or memorandum, dated March 28, 1903, signed by the company just named and reading as follows: “From James Freeman Brown Co. Mill selling agents. Original. Our No. 1251. New York, March 28, 1903. Sold to Messrs. S. M. Schwab, Jr., & Co., 46 White St., City. Code or brand — 'Carson.’ Description — 37Jin. 2.45 yard duck. Put up of goods — Cuts of 120 yards as far as practicable. Quantity — 50,000 yards. Price—6J cents per yard. Terms— Cash 10 days less 3 p. c., or 2 p. e. 10 days, 60 extra, freight paid to finishing works. Tailings and seconds clause void -—■ In addition buyer to take tailings, not to exceed 10 per cent., if contract is not renewed; buyer to take seconds, not to exceed — per cent’., at — cents' per yard less than contract price. To be delivered — 5,000 yards promptly; balance about April 15, 1903. To be shipped to (via) — First 5,000 yds. to Aspinook-Co., Jewett City, Conn. Please send directions for balance. We record your order as above, same to be mutually binding. Please carefully note the' following clauses. If the production of the mill accepting this contract be curtailed by strikes, or lockouts to counteract strikes, or any unavoidable accident, the deliveries shall be proportioned to the production. If anywise incorrectly stated please-notify us at once, otherwise we shall consider this order confirmed by [395]*395you. A duplicate of this contract goes by this mail to the mill. James Freeman Brown Company. James M. Cur-ran, P.” The plaintiffs conducted what is known as a cotton converting business, which consists in taking the goods in their original gray condition and printing them in colors. It was shown by the evidence that it was a custom in the business for the mill or the agent to hold the goods purchased until called for by the purchasers and then to ship them to the print works designated. The invoices, however, are forwarded promptly as the goods become ready for delivery at the mills, and the contract price becomes payable upon the specified date after the receipt of the invoice by the purchaser according to the period of credit allowed. The custom on the part of the mills or agents to hold goods subject to the instructions of the buyer for forwarding was shown by the evidence to be an elastic one as to time, having no fixed limit of duration. The first shipment by the James Freeman Brown Company under the contract was one of 5,810 yards sent as therein provided to the Aspinook Company, Jewett City, in Connecticut, on or about April 15, 1903. The invoice for this shipment was received' by the plaintiffs on or about April 20, 1903, and payment was made by them about June 27, 1903. Subsequently the plaintiffs received five additional invoices from the James Freeman Brown Company on successive dates from June 13 to July 18, 1903, such invoices covering forty-two bales, numbers 1 to 42, inclusive, which invoices were paid by the plaintiffs within the period of credit fixed in the contract. In the meantime the goods in question had been forwarded to the James Freeman Brown Company, whose place of business, as well as the place of business of the plaintiffs and defendants, is in Hew York city, and, with the exception of bale 42, had been placed by that company in the warehouse of the defendants, who issued warehouse receipts therefor and made loans thereon. Subsequently the James Freeman Brown Company became insolvent, and when the plaintiffs sought the goods which they had purchased and paid for they found them in the possession, of the defendants, who refused to deliver them up except upon payment of the [396]*396amount of their advances on the goods in question and their storage charges on the goods in question, and also on other goods which had been stored with them by the said company. The question is whether title to the goods vested in the plaintiffs in such manner as to entitle them to possession from the defendants without complying with the latter’s demands for reimbursement. The absolute good faith of both the plaintiffs and the defendants in the entire transaction is conceded. Neither is there any dispute as to any of the facts except as to the existence of the custom of mills and selling agents to hold goods subject to the shipping instructions of purchasers, and on this point I find in favor of the plaintiffs, as above stated, namely, that such a custom exists and that the duration of the period during which goods will be so held is an elastic one and has no fixed -limit. The first question to be considered is whether the facts are such as to show an appropriation of specific goods to the plaintiffs, notwithstanding the fact that possession still remained in the selling company, in such manner as to transfer title to the plaintiffs. On this point we have the following facts: That the number “1251” appears on the written contract or memorandum above referred to, the words being “ Our To. 1251.” This number appears on the various invoices forwarded to the plaintiffs from time to time by the selling agents, sometimes in the form of the expression “Tour Order To. 1251,” but more generally in the form “ Our Contract Tb. 1251.” The invoices further bear the words “ Detailed Invoice of Merchandise Bought of James Freeman Brown Oo., Mills Selling Agents,” and contain a list of the numbers of the respective bales and the varying quantity in yards which each contained, together with a statement of the kind of goods. Each invoice also bore an invoice number to which reference will be made later. The facts above referred to, without reference to anything else or any discussion, indicate sufficiently, I think, that it was the intention to segregate and appropriate to the plaintiffs as their property the bales thus specified by the bale number and the amount in yards and the brand word or designation of the goods. Another significant circumstance in this connection, [397]*397-if anything else was necessary, is found in the fact that hale number 42 never came into the possession of the defendants, but was found in the possession of the James Freeman Brown Company and bore a tag containing, among other things, the following words written by the shipping clerk of the James Freeman Brown Company, to wit: “Held for S.’ M. Schwab.” There is still other evidence indicating with equal strength that the goods were deemed to belong to the plaintiffs. Furthermore, most of the invoices bore the statement that the bill was payable to Ladenburg, Thalman & Company, and a direction that checks should be made payable to the order of that company, and mailed direct, and, on the strength of such invoices and the credit and liability of the plaintiffs as purchasers of the goods therein specified, the James Freeman Brown Company obtained advances from Ladenburg, Thalman & Company on the several invoices. There is still further evidence contained in the books and other records of the James Freeman Brown Company with respect to these various invoices, (including the retention and repetition of the invoice number and consequent tracing and identification of each invoice thereby) all going to corroborate the evidence above referred to and to strengthen the proof that these specific goods had been set aside and treated by the seller as goods of the purchaser, the plaintiffs.

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

Related

James Talcott, Inc. v. Stagg Warehousing & Distributing Co.
43 Misc. 2d 864 (New York Supreme Court, 1964)
San Angelo Wine & Spirits Corp. v. South End Warehouse Co.
61 P.2d 1235 (Appellate Division of the Superior Court of California, 1936)
State Bank v. Almira Farmers Warehouse Co.
212 P. 543 (Washington Supreme Court, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
56 Misc. 393, 106 N.Y.S. 741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwab-v-oatman-nysupct-1907.