Traders Compress Co. v. Precure

1924 OK 884, 231 P. 516, 107 Okla. 191, 1924 Okla. LEXIS 663
CourtSupreme Court of Oklahoma
DecidedOctober 7, 1924
Docket14785
StatusPublished
Cited by18 cases

This text of 1924 OK 884 (Traders Compress Co. v. Precure) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Traders Compress Co. v. Precure, 1924 OK 884, 231 P. 516, 107 Okla. 191, 1924 Okla. LEXIS 663 (Okla. 1924).

Opinion

NICHOLSON, J.

On November 11, 1921, the cotton compress of the Traders Compress Company at Shawnee, together with about 9,000 bales of cotton, was destroyed by fire. Of this cotton so destroyed. O. K. Precure was the owner of seven bales, which was stored with the compress company, and this action was brought by him, as plaintiff, against the compress company, as defendant, to recover the value of said cotton,, which it was stipulated at the trial was 12% cents per pound, amounting to $461.25.

The plaintiff, in his petition, alleged, in substance, that the defendant was a warehouseman of his cotton; and its destruction by fire while in the custody of the defendant; and based his right of recovery upon the alleged failure of the defendant to insure said cotton for the full value thereof for plaintiff; and upon other alleged acts of negligence on the part of the defendant, in certain particulars, as to the construction of' the warehouse, in not providing sufficient equipment and apparatus for extinguishing fires, and insufficient number of watchmen in the nighttime. The defendant answered, denying these allegations, and pleaded other defenses. The reply was a general denial.

The cause was tried to a jury and- resulted *192 in a verdict in favor of tire plaintiff for the sum of $461.25, to review which this proceeding in error is prosecuted.

Numerous assignments of error are presented, hut they all lead to the inquiry of whether the defendant owed the plaintiff the duty of insuring, for his benefit, against loss or damage by fire, the cotton stored with it by him, and whether there was sufficient competent evidence of negligence on the part of the defendant to support the verdict and judgment against it.

At common law, in the absence of an agreement expressed Or implied, a warehouseman is under no duty to keep stored goods insured. 40 Cyc. 432. There was no allegation or proof of such an express agreement, nor proof of facts from which such an agreement could be implied; hence, if the duty to insure rested upon the defendant, it must have been placed there bsr statute.

The first legislation pertaining to warehouses and warehousemen was passed by the Legislature of 1907-8, and appears as sections 11106 to 11116. inclusive. Comp. Stat. 1921. Said section 11106 provides that:

“All persons, firms, companies or corporations incorporated under the laws of Oklahoma who shall receive cotton, or broom corn, under the provisions of this article, shall be deemed and taken to be public ware-housemen, and all warehouses which shall bo owned or controlled, conducted and managed in accordance with the provisions of this article, shall be deemed and taken to be public warehouses. * * *”

Section 11113, supra, requires the owner of each public warehouse for storage 'of cotton and broom corn to carry insurance on cotton and broom corn against loss by fife equal in amount to the value of 50 per cent, of the actual capacity of said warehouse, and in case of loss, to pay when collected to each holder of a receipt three-fourths of the market value of his cotton or broom corn as shown by said receipt on the date said cotton or broom corn was destroyed.

Section 11116, supra, provides that nothing in the act contained shall apply to private warehouses.

In 1915, the Legislature passed an act entitled : “An act to make uniform the law of warehouse -receipts.” Session Laws 1915, page 668 (secs. 11123 to 11183, inclusive, Comp, Stat. 1921.)

Section 11143, supra, renders a warehouseman liable for any loss or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful owner of similar goods would exercise; and section 11149, supra, gives thp warehouseman a lien for all lawful claims for money advanced, interest, insurance, transportation, labor, weighing, coopering, and other charges and expenses in relation to such goods, but these provisions impose no duty upon a public warehouseman to insure stored goods against loss or damage by fire. The section of the statute which gives a lien was merely intended to be for the protection of a warehouseman where he procures insurance in accordance with an agreement with the owner so to do, and puts the expenses of such insurance upon the same standing as the charges for storage. Farmers’ Union Warehouse Co. v. Sturdivant. 127 Ark. 453, 192 S. W. 377.

The next legislation upon the subject is contained in sections 11117 to 11122, inclusive, Comp. Stat. 1921, which is the act of the Legislature approved April 5, 1919, entitled: “An act defining public warehouses and warehousemen and prescribing duties, and declaring an emergency”. Section 1 of this act (sec. 11117 of the Statutes) provides that all persons, firms, companies, or corporations, who shall receive cotton, tobacco, wheat, oats, rice or any kind of produce, wares, merchandise of any description, or personal property in store for hire under the provisions of this act, shall be deemed and taken to be public warehouse-men, and all warehouses which shall be owned or controlled and managed in accordance with the provisions of this act shall be deemed and taken to be public warehouses, etc.

Section 2 of the act (section 11118 of the Statutes) requires the owner, .proprietor, lessee, or manager of any public warehouse, before transacting any business in such public warehouse, to procure from the county cleric of the county in which the warehouse is situated a certificate that he is transacting business as a public warehouseman under the laws of the state of Oklahoma, and such certificate! shall give authority to carry on and conduct the business of a public warehouse within the meaning of the act, and the person receiving such certificate shall file with the county clejrk granting the same a bond payable to the state of Oklahoma in the’ sum of $5,000, conditioned for the faithful performance of his duty as a public warehouseman.

By section 3 of the act (section 11119 of the Statutes), a warehouse commission was •created, whose duty it was to supervise the bonded warehouses of the state; and sec *193 tion 4 of tlie act (section 11120' of the Statutes) conferred upon the warehouse commissioners the authority to establish a public or state warehouse under the regular fee system at all points having compresses, and provided that all compresses storing cotton for a specified term, and not milling in transit should be known' as a public warehouse, and the same rules and regulations shall apply to it as to any other bonded warehouse.

Section 6 of the act (section 11122 of the Statutes) provides that:

“All business firms, companies or corporations who shall receive products for storage, shall carry a sufficient amount of insurance at all times to cover all products stored.”

It will be observed that sections 1 and 2 of the Act of 1907-8 (sections 11106 and 11107 of the Statutes) and sections 1 and 2 of the act of 1919 (sections 11117 and 11118 of the Statutes) are in substantially the sam^ language; the only material difference being that the former refers only to the storage of cotton and broom corn, while the latter refers to cotton, tobacco, wheat, oats, rice and all kinds of produce, wares, merchandise of any description or personal property.

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Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 884, 231 P. 516, 107 Okla. 191, 1924 Okla. LEXIS 663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/traders-compress-co-v-precure-okla-1924.