Soto v. Sea-Road International, Inc.

942 S.W.2d 67, 1997 WL 59351
CourtCourt of Appeals of Texas
DecidedMarch 13, 1997
Docket13-95-177-CV
StatusPublished
Cited by27 cases

This text of 942 S.W.2d 67 (Soto v. Sea-Road International, Inc.) 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
Soto v. Sea-Road International, Inc., 942 S.W.2d 67, 1997 WL 59351 (Tex. Ct. App. 1997).

Opinion

OPINION

RODRIGUEZ, Justice.

Luciano S. Soto, defendant below, appeals from an adverse judgment in a suit brought by Sea-Road International, Inc (“Sea-Road”). Sea-Road, a transportation service company, sued Soto for conversion resulting from a breach of implied contract for bailment. Following a bench trial, the court rendered judgment for Sea-Road and ordered that it recover $85,000 in damages with prejudgment interest and costs. By seven points of error, Soto challenges the legal and factual sufficiency of the trial court’s findings of fact and conclusions of law. We affirm.

BACKGROUND

This lawsuit arises from the sale of 100,500 yards of fabric by Dae Uk Trading Co., Ltd., a South Korean company, to The Textile Corporation (“Textile”). Textile never received the fabric and Dae Uk was never paid. Result: Dae Uk sued its shipping/transportation provider, Sea-Road International, forcing it to pay back 70% of the freight’s value ($82,750 plus attorney’s fees and interest). Sea-Road, in turn, sought restitution from Soto, the customs agent working on behalf of Textile. 1

The fabric was first transported from Seoul to Los Angeles pursuant to a “Combined Transport Bill of Lading” issued by Sea-Road to Dae Uk Trading. According to the bill of lading, the fabric was consigned to the order of The Textile Corporation. The fabric was accepted in Los Angeles by Sea-Road International, Inc., the “stateside” transportation service company, which then arranged, at the oral request of Textile, to forward the fabric to Luciano Soto’s warehouse in Brownsville, Texas. The fabric was transported to Soto pursuant to a “Delivery Order” indicating that the shipment of goods was from Sea-Road to Soto “C/O SEA ROAD INTL/TEXTILE CORP.” The order instructed the destination warehouse (Soto) as follows: “YOU MUST CHECK WITH SEA ROAD INT’L BEFORE RELEASING ANY MERCHANDISE.” Both parties acknowledge that the fabric was received and stored by Soto. The parties also agree that Soto subsequently released the fabric to a third party trucking company without first notifying Sea-Road. After its release, the fabric disappeared.

The dispute focused on the storage and release of the fabric while in Soto’s possession. K.W. Kim, Sea-Road’s general manager, testified that Sea-Road had not released the cargo to Soto, but rather, had merely transferred it to Soto’s warehouse for storage. This transfer was documented in the delivery order that specifically required Soto to notify Sea-Road before releasing the fabric. Kim conceded that they transferred the cargo without first receiving the bill of lading, which would have been the preferred document by which to transfer possession of the fabric, but since Textile wanted the fabric stored at Soto’s warehouse, the release restrictions were put on the delivery order as a “guarantee to [them that] the cargo [would] remain at the warehouse of L.S. Soto.” After the fabric had been stored with Soto for *70 three months, Sea-Road sent Soto an inventory request to which Soto did not respond. Five months later, Sea-Road sent letters and faxes to Soto inquiring about the fabric and demanding entry into Soto’s warehouse to inventory the cargo. Sea-Road later learned that Soto had released the goods to Textile but that Textile never received them.

Soto acknowledges that the goods were received by Santiago Trevino, his employee and attorney-in-fact. He also confirms that Trevino signed the delivery order executed by Sea-Road and initialed by the special instructions on the order. Nevertheless, he testified that he did not have to notify Sea-Road or get its release before surrendering the goods because the instructions merely said to “check with Sea-Road.” Soto testified that after the goods arrived at his warehouse, he presented them to customs under an immediate export document and then released the goods to Armando Míreles. Soto testified that he did not know who Míreles worked for but that he could only assume that either Sea-Road or Textile instructed him to release the goods to Míreles. He conceded that he had never received any documentation by way of a power of attorney or representation letter showing that Míreles was Textile’s agent, but that, with respect to “the goods,” “[w]ho they went to or who they belonged to was not [his] concern.”

In finding for Sea-Road, the trial court made the following findings of fact:

1. Plaintiff, Sea-Road International, Inc., delivered certain property (the “Goods”) that are the subject of this suit to the warehouse of Defendant, Luciano S. Soto, doing business as L.S. Soto Customs Broker, (the “Defendant”) in Brownsville, Texas on October 14, 1988.
2. Defendant’s employee signed the Delivery Order covering and pertaining to the Goods and assumed possession of the Goods. The Delivery Order signed by Defendant’s employee contained the following instruction:
TO: DESTINATION WAREHOUSE. YOU MUST CHECK WITH SEA ROAD INTERNATIONAL BEFORE RELEASING ANY MERCHANDISE 370 S. CRENSHAW BLVD. # E-205 TORRANCE, CA 90503 SOPHIA SONG-YANG.
3. Defendant knowingly and voluntarily accepted delivery and assumed possession of the Goods subject to Plaintiffs instructions as shown on Plaintiffs Delivery Order.
4. Plaintiff Sea-Road International, Inc. delivered the Goods to Defendant’s warehouse with the intention and expectation that Defendant would not release the Goods without its authorization as per instructions at the time of delivery to Defendant’s warehouse.
5. After accepting the Goods, Defendant assumed possession, dominion and control of the goods thereby creating a contract of bailment, and Defendant subsequently converted the Goods to his own use & purpose by delivering the Goods to a third party without prior notice to Plaintiff and without Plaintiffs authorization and consent.
6. Defendant has failed to return the Goods- to Plaintiff upon Plaintiffs demand for return of said Goods.
7. Plaintiff did not discover and could not reasonably have discovered that Defendant had released the Goods to said third party, without its authorization, until May 11, 1989 [seven months after delivery to Defendant].
8. Defendant’s actions were the proximate cause of Plaintiffs actual damages of $85,000, which is the sum of money the Plaintiff had to pay to the owner of the Goods as compensation for the loss of the Goods.

The trial court’s conclusions of law are as follows.

1. Defendant, LUCIANO S. SOTO, doing business as L.S. SOTO CUSTOMS BROKER, -wrongfully breached its contract of bailment with Plaintiff and has wrongfully converted Plaintiffs property to its own use and purpose;
2. Plaintiff, SEA-ROAD INTERNATIONAL, INC. shall have and recover from Defendant, LUCIANO S. SOTO, as damages for said wrongful breach of its contract of bailment and conversion *71 of Plaintiffs property, the sum of $85,-000 in U.S. Dollars, together with prejudgment interest at the rate of ten (10) percent per annum from and ... after June 23,1989, until the date preceding the entry of Final Judgment;

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Bluebook (online)
942 S.W.2d 67, 1997 WL 59351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/soto-v-sea-road-international-inc-texapp-1997.