Texas Whse. Co. of Dallas, Inc. v. Springs Mills, Inc.

511 S.W.2d 735
CourtCourt of Appeals of Texas
DecidedJune 26, 1974
Docket5313
StatusPublished
Cited by12 cases

This text of 511 S.W.2d 735 (Texas Whse. Co. of Dallas, Inc. v. Springs Mills, 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
Texas Whse. Co. of Dallas, Inc. v. Springs Mills, Inc., 511 S.W.2d 735 (Tex. Ct. App. 1974).

Opinion

OPINION

JAMES, Justice.

This is a suit growing out of a bailment contract by a manufacturer of sheets and pillow cases against a warehouse for damages for loss of merchandise. A trial before a jury resulted in a judgment in favor of Plaintiff-Appellee Springs Mills, Inc., against the Defendant-Appellant Texas Warehouse Co. of Dallas, Inc., for $47,253.15 plus pre-judgment interest in the amount of $18,901.26 and costs. Defendant-Appellant appeals on eighty-three points of error. We affirm the trial court’s judgment.

Plaintiff-Appellee Springs Mills, Inc., is a manufacturer of, among other things, sheets and pillow cases, with the plant manufacturing same and Consumer Service Division being located in Lancaster, South Carolina. Defendant-Appellant Texas Warehouse Co. of Dallas, Inc., is in the warehouse business, its warehouse being located in Dallas, Texas.

Springs Mills entered into a written agreement with Texas Warehouse commencing on June 1, 1964 and running until May 31, 1965, which was renewed by a letter agreement on the same terms and conditions as the original contract, and which extended the agreement another year, to May 31, 1966. The parties continued their relationship without any additional written memoranda until on or about September 15, 1966, at which last-named date their relationship was terminated.

The contract in effect contemplated and provided that Springs Mills would ship sheets and pillow cases to Texas Warehouse, and that Texas Warehouse would store same, and fill orders for shipment of merchandise from the warehouse to customers of Springs Mills. The contract also provided for the basis by which Texas Warehouse would be paid for its services, and also other details not necessary to be enumerated, except the following language which is pertinent to our controversy, to wit:

“The merchandise of Manufacturer (Springs Mills) in Service Company’s (Texas Warehouse’s) premises shall be, and remain, the exclusive property of *738 Manufacturer, it being tmderstood that Service Company is acting hereunder as the bailee of Manufacturer and subject to the obligations of keeping said property insured as provided in paragraph (1), -which shall have all the rights and be subject only to the obligations and liabilities of a bailee under the laws of the State of Texas. Service Company shall in no event be liable for more than manufacturer’s cost of any lost or damaged property nor for special or consequential damages, irrespective of how the loss or damage shall have been caused..

“Service Company shall not be liable for the delay or nonperformance hereunder resulting from acts of God, fire, the elements, strikes, labor disputes, or any other cause beyond its control.” (emphasis supplied).

The trial court submitted two special issues to the jury, which found:

(1) That during the times in question Springs Mills delivered to Texas Warehouse a quantity of sheets and pillow cases which Texas Warehouse neither returned to Springs Mills nor to any other pursuant to Springs Mills’s directions.

(2) The manufacturer’s cost of the goods which Texas Warehouse failed to return was $47,253.15.

The trial court in its judgment held that “the Defendant is liable as a matter of law, but for the dispute in the evidence as to the fact of any shortage, and the amount of the damage”, and the jury having resolved these issues in favor of the Plaintiff, the trial court pursuant to the jury verdict entered judgment in favor of Plaintiff Springs Mills against Defendant Texas Warehouse in the amount of $47,253.15 plus interest at 6% per annum from September 15, 1966 until the date of judgment (June 6, 1973) in the amount of $18,901.26, plus interest from date of judgment and costs.

In order to place Appellant’s points of error in proper context, a statement of some of the background facts is necessary.

Plaintiff Springs Mills manufactures the sheets and pillow cases at a plant known as “Grace Bleachery” located at Lancaster, South Carolina. About two-tenths of a mile from the Bleachery is Plaintiff’s “Consumer Service Division”, which employs some 780 people, and in which the financial, bookkeeping, and inventory records and computer operations are kept and carried on.

Pursuant to the contract and extensions thereof, between Springs Mills and Texas Warehouse, Plaintiff Springs Mills shipped sheets and pillow cases to Defendant Texas Warehouse from the commencement of the contract (June 1, 1964) until on or about September 15, 1966.

Charles Watford, who was at the time of trial the Comptroller of the Knit Fabrics Division of Springs Mills but who was during the times in controversy an internal auditor of Plaintiff in the Consumer Service Division, testified as follows concerning the practice pursued when shipments were made from Grace Bleachery to Defendant Texas Warehouse: The computer (an International Business Machines Model 1401) at Consumer Service Division would prepare a bill of lading, and at the same time prepare an invoice covering each shipment, from data “prepared by the various individuals that are assigned this responsibility.” One or more copies of the bill of lading and invoice would be sent to Grace Bleachery so that the items and quantities listed on the bill of lading could be physically assembled for shipment to Texas Warehouse. The Bleachery had employees called “order pickers” who took a copy of the bill of lading into the warehouse and physically picked the items in the quantities indicated and placed them on a “buggy.” In the event an item listed on the bill of lading was not available in the Bleachery, the picker marked a circle around that item. In the event a listed item was available, but not available in the quantity called for, the picker marked a change in the shown quantity to correspond with the quantity actually available *739 and placed on the buggy. Then the buggy was rolled to the loading dock where the shipment was checked by another of Plaintiff’s employees called a “checker.” The checker physically checked and counted the items on the buggy as they were loaded on the carrier for shipment. The checker likewise had in his hands one or more copies of the bill of lading, and he marked his copy or copies so as to cause same to accurately reflect the items and quantities which were actually loaded on the carrier for shipment to the Defendant.

When a given shipment was received by Defendant Texas Warehouse, the Defendant issued its warehouse receipt, at least one copy of which was forwarded to Plaintiff at its Consumer Service Division. When the warehouse receipt of a given shipment arrived at Consumer Service Division, it was matched up with the bill of lading prepared by Springs Mills of that same shipment. In the event the Defendant’s warehouse receipt showed items and/or quantities thereof different to the Plaintiff’s corresponding bill of lading, the Defendant’s count was accepted by Plaintiff as correct. In other words, any discrepancies between Plaintiff’s bill of lading and Defendant’s warehouse receipt were resolved by Plaintiff in favor of the Defendant.

Mr.

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Bluebook (online)
511 S.W.2d 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-whse-co-of-dallas-inc-v-springs-mills-inc-texapp-1974.