Security State Bank of Tahoka v. Spinnler

78 S.W.2d 275
CourtCourt of Appeals of Texas
DecidedJanuary 7, 1935
DocketNo. 4327
StatusPublished
Cited by13 cases

This text of 78 S.W.2d 275 (Security State Bank of Tahoka v. Spinnler) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security State Bank of Tahoka v. Spinnler, 78 S.W.2d 275 (Tex. Ct. App. 1935).

Opinion

MARTIN, Justice.

A former appeal of this case is reported in 55 S.W.(2d) 128, where its important facts are recited. These will be supplemented, when thought necessary.

The alleged conversion of twenty-four hales of cotton on January 6, 1932, by appellants, which appellee alleges he either owned, or had a landlord’s lien upon, furnished the basis for the present suit. After the alleged conversion, suit was promptly filed and tried. The judgment then rendered was reversed. [276]*276See case supra. The case was again tried. A mistrial resulted. The third trial eventuated in the judgment from which the present appeal is prosecuted. It was rendered February 19, 1934. The judgment in the .first trial was for $183.95 actual and $250 exemplary; the last for $1,251.51 actual and $700 exemplary damages. The value of the cotton was alleged to be $S28.98 on the date of its conversion, and its peak price since that date 11¾ cents per pound. Its value at the peak price up to the date of the last trial was the sum found by the jury as actual damages, viz., $1,251.51. This was in response to a special issue submitted by the court, inquiring as to its peak price between the date of the alleged conversion and the date of the trial. The evidence uncontradict-edly supports the two values alleged; that is, the value on the date of the alleged conversion at $628.98 and its highest value since to the date of the trial, at $1,251.51. The jury also found that the appellants acted willfully and maliciously in converting the said twenty-four bales of cotton.

Under proper assignments, appellants vigorously contend that the facts of this record call for a different measure of damages from that submitted; that it is error to enter judgment for the highest possible value of this cotton to the date of the last trial, when it cannot be controverted that the long delay in trying the case was due to no fault of appellants, but to matters beyond their control.

On the issue of a willful conversion by the officers of appellant bank, the verdicts on the first and last trial are precisely opposite. As to a portion of this cotton, we agree with the conclusion of the first jury, as we shall presently discuss, and hold that no evidence existed which justified a finding of a willful conversion of the entire lot of cotton. The question raised, however, will now be disposed of upon the assumed hypothesis that the conversion alleged was a willful one, as to all the twenty-four bales.

What is the true measure of damages in suits for conversion of chattels of a fluctuating value has been, and is yet, the prolific source of much contrariety of judicial expression. So much so that many states have statutory enactments to clarify the subject— notably Oklahoma, California, the Dakotas, Montana, and Georgia. The subject has remained in a state of some confusion in Texas for many decades. See cases cited in 40 A. D. R. at page 1287. The apparent conflict between many of the well-reasoned opinions may perhaps be harmonized by making note of the presence therein or absence therefrom of the following important factors: (1) The volatile and erratic character of the market for the chattel under consideration; (2) the diligence in filing and prosecuting suit; (3) the perishable character of the chattel; (4) the precise issue made by the pleadings; (5) the intention and possibility of the owner holding same for any particular length of time; (6) whether or not ownership is still in the wrongdoer at the time of the trial.

There are many cases in Texas where the subject was incidentally considered or casually mentioned. Four Texas cases are apparently relied on by appellee. We have found none other where the question appears to have been seriously considered. We now notice these.

Stephenson v. Price, 30 Tex. 715, was a case of conversion of cotton by a bailee. The measure of damages therein approved was “the highest market value of the cotton from the date of the demand to the time of trial.” The time of filing suit and trial does not appear. Moreover, this decision has for its background old oxcart days when months went by without change. It was before the establishment of a cotton market in which Is immediately reflected the reaction to every important political or climatic event which may be thought to affect either the growth or consumption of this product.

Witliff v. Spreen, 51 Tex. Civ. App. 544, 112 S. W. 98, 100, is a case of conversion of chattels obtained by fraud. The rule there given is: “In a suit to recover for the conversion of property obtained by fraud, the measure of damages is the value of the property at the time it was wrongfully obtained, or its value at any time thereafter prior to the trial of the cause, and in such case it is error to charge the jury that the plaintiff is entitled to recover the value of the property as fixed by the fraudulent contract under which it was obtained.”

The suit was filed April 30,1907, and tried June 14,1907. The character of the personal property converted is not even vaguely mentioned. Obviously, if its value did not fluctuate, the measure of damages stated could not harm the defendant. No writ was applied for. This authority does not seem to control the disposition of the present question.

In Burmarsal Co., Inc., v. Lake (Tex. Civ. App.) 272 S. 'W. 582, 584, the property allegedly converted was oil-well casing. The highest intermediate value to the date of the [277]*277trial was the measure of damages given therein, where the conversion was “willful, fraudulent, or under circumstances imputing negligence to the trespasser.” The case was reversed and rendered because the evidence showed an innocent conversion. The court was therefore not called upon to pass directly upon the question under present consideration.

The only case it cited upon the present law issue is that of Early-Foster Co. v. Mid-Tex Oil Mills (Tex. Civ. App.) 208 S. W. 224, 226. The Burmarsal Case was given a W. O. J. by the Supreme Court, while a writ was refused in the Early-Foster Case. The Early-Foster Case does not, in our opinion, justify the broad statement that the proper measure is the “highest intermediate value to the (Late of the trial." (Italics ours.)

We quote from it:

“Where the conversion is not attended with fraud, willful wrong, or gross negligence, the measure of damages is the value of the property converted at the time of such conversion, with legal interest thereon to the time of the trial. But where the conversion takes place under either of these circumstances, and the property converted is of changing value, the measure of damages is the highest market value of such property between the date of conversion and the filing of the suit. Bayle v. Norris [Tex. Civ. App.] 134 S. W. 773; Witliff v. Spreen, 51 Tex. Civ. App. 544, 112 S. W. 98; Ripy v. Less, 55 Tex. Civ. App. 492, 118 S. W. 1084; Ry. Co. v. Starr, 22 Tex. Civ. App. 353, 55 S. W. 395. * * *
“In such case, the wrongdoer will not be entitled to the advantage of the fluctuation in value, but will be held to the highest value between the time of his wrongful taking and the filing of the suit, for the reason that he has deprived the owner of the opportunity of obtaining such price.” (Italics ours.)

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