Tobacco Growers Co-Operative Ass'n v. L. Harvey & Son Co.

189 N.C. 494
CourtSupreme Court of North Carolina
DecidedApril 22, 1925
StatusPublished
Cited by5 cases

This text of 189 N.C. 494 (Tobacco Growers Co-Operative Ass'n v. L. Harvey & Son Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tobacco Growers Co-Operative Ass'n v. L. Harvey & Son Co., 189 N.C. 494 (N.C. 1925).

Opinion

Adams, J.

In reference to tbe second assignment of error (tbe first having been abandoned) tbe plaintiff cites Ransom v. Shuler, 43 N. C., 304, as authority for tbe position tbat a motion to dissolve an injunction before tbe answer has been filed is premature. There an injunction was granted upon tbe bill and at tbe first term tbe defendant demurred for want of an equity; tbe demurrer was set down for argument at tbe next term and then tbe defendant’s counsel moved to dissolve tbe injunction. Tbe Court said, “There is an obvious inconsistency in such a course, for tbe motion to dissolve must be founded on tbe defects and insufficiency of tbe bill itself, and therefore it involves precisely tbe same questions of equity which must arise on tbe demurrer when brought on for argument and decision. It is, therefore, an attempt to obtain by tbe summary action on a motion a declaration of tbe court as to tbe equity between tbe parties, which is to come up for solemn determination on tbe demurrer.” It is now provided tbat a motion to vacate or modify an injunction may be made upon tbe complaint and affidavits on which it was granted or upon affidavits filed on tbe part of tbe defendants, with or without answer, and tbat a verified answer shall have only tbe effect of an affidavit. C. S., 856 et seq. Tbe time when tbe affidavits should be filed was a matter largely within tbe discretion of tbe judge. This is true likewise as to tbe matters involved in tbe third, seventh, and eighth exceptions; and for this reason all these exceptions must be overruled. Tbe fourth, 'fifth, and sixth present tbe chief controversy between tbe parties.

Tbe plaintiff first contends tbat tbe affidavits raise an issue of fraud which requires tbe intervention of a jury. Tbe allegations relating to this issue are substantially as follows: (1) Tbe lienors took possession of tbe tobacco crop at tbe request of tbe lienees; (2) all parties knew tbat tbe restraining order bad been issued; (3) tbe liens were executed tbe same day and filed together for registration; (4) tbe lienors knew tbat tbe lienees were members of tbe plaintiff association and tbat [498]*498they bad previously delivered tobacco to it under their marketing agreement; (5) the principal lienee had not theretofore mortgaged his crop to secure advances and it was unnecessary for him to execute a lien or mortgage for this purpose; (6) the amount secured by the liens was in excess of the advancements; (7) the prices charged were in excess of those authprized by C. S., 2482; (8) the lienors took possession of the crop of tobacco but did not take possession of the other crops; (9) the acts complained of were the result of a fradulent scheme to enable the lienees to evade their obligations to the plaintiff association.

We are not inadvertent to decisions holding that where the pleadings raise material issues of fact or where the relief sought is not .merely ancillary, but is itself the principal relief demanded, the restraining order will be continued to the^ final hearing if a prima facie case is made out. Marshall v. Comrs., 89 N. C., 103; Jones v. Lassiter, 169 N. C., 750; Cobb v. R. R., 172 N. C., 58; Byrd v. Hicks, 184 N. C., 628. But it is by no means clear that the allegations recited above, considered separately or collectively are sufficient to constitute actionable fraud, the last (ninth) assuming the character of a legal conclusion. If the several acts set out were not illegal or fraudulent in themselves they were not made so merely because prompted by an alleged evil motive which the defendants deny. We had occasion to. consider this question in Bell v. Danzer, 187 N. C., 224, and there decided that the exercise of a right which does not infringe the legal right of another is not actionable even when prompted by malice, and that the motive is immaterial if the act is otherwise lawful. If the lienors actually made advancements to enable the lienees to produce their crops and were entitled to the possession of the tobacco for the purpose of enforcing the liens, a sinister motive would not in itself defeat the legal right. It is important to note that there-is no allegation that the lienors’ claims are fictitious or that the secured debts were not contracted, although the amount really advanced is in controversy. True, the plaintiff alleges upon information and belief that the lienors charged more than ten per cent over the retail cash price of the advances in breach of C. S., 2482; but the lienors deny this upon oath and affix an itemized statement of the advances.

In Riggsbee v. Durham, 98 N. C., 81, 87, it is said: “ 'But,’ as was said by Bynum, J., in Perry v. Michaux, ‘it is also a well-settled rule, that when by the answer of the defendant, the plaintiff’s whole equity is denied, and the statement in the answer is credible and exhibits no attempt to evade the material charges in the complaint, an injunction, on motion, will be dissolved.’ Perkins v. Hollowell, 40 N. C., 24; Sharpe v. King, 38 N. C., 402. This is clearly so, if, upon the complaint, answer and affidavits, it appears that the plaintiff’s claim to have [499]*499tbe restraining order continued, is fully met.” In our opinion tbe injunction should not be continued for sucb alleged fraudulent collusion, especially in view of tbe admitted solvency of tbe lienors.

Tbe decisive question, therefore", is this: Is tbe legal relation of tbe lienors to'the other parties to tbe suit sucb as to require tbe collection of their claims through tbe plaintiff association according to tbe method by which it usually distributes tbe proceeds arising from a sale of tbe crops under tbe marketing agreement, or may they foreclose their liens independently of tbe marketing agreement?

Tbe agreement between tbe association and its members contains these sections: (2) Tbe association agrees to buy and tbe grower agrees to sell and deliver to tbe association all of tbe tobacco produced by or for him or acquired by him as landlord or lessor, during tbe years 1921, 1922, 1923, 1924, 1925. (4a) All tobacco shall be delivered at tbe earliest reasonable time after picking or curing, to tbe order of tbe association. (11) Tbe grower shall have tbe right to stop growing tobacco and to grow anything else at any time at bis free discretion; but if be produces any tobacco, as landlord or lessor, during tbe term hereof, it shall all be included under tbe terms of this agreement and must be sold only to tbe association. (12) Nothing in this agreement shall be interpreted as compelling tbe grower to deliver any specified quantity of tobacco each year; but be shall deliver all tbe tobacco produced by or for him. (13a) This agreement shall be binding upon tbe grower as long as be produces tobacco directly or indirectly, or has tbe legal right to exercise control of any commercial tobacco or any interest therein as a producer or landlord during tbe term of .this contract. (13c) If tbe grower places a crop mortgage upon any of bis crops during tbe term hereof, tbe association shall have tbe right to take delivery of bis tobacco and to pay off all or part of tbe crop mortgage for tbe account of tbe grower and to charge tbe same against him individually. Tbe grower shall notify tbe association prior to making any crop mortgage and tbe association will assist tbe grower in any sucb transaction as far as it deems proper.

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Bluebook (online)
189 N.C. 494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tobacco-growers-co-operative-assn-v-l-harvey-son-co-nc-1925.