Tyler v. KELLEY TIMBER PROD. CO., INC.

233 P.2d 777, 233 P.2d 774, 192 Or. 368, 1951 Ore. LEXIS 247
CourtOregon Supreme Court
DecidedJuly 6, 1951
StatusPublished

This text of 233 P.2d 777 (Tyler v. KELLEY TIMBER PROD. CO., INC.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tyler v. KELLEY TIMBER PROD. CO., INC., 233 P.2d 777, 233 P.2d 774, 192 Or. 368, 1951 Ore. LEXIS 247 (Or. 1951).

Opinion

LATOTJRETTE, J.

This is an action brought by plaintiff-respondent in replevin to recover 245 logs from the Kelley Timber Products Co., Inc., (hereinafter referred to as the “Kelley Company”), Wendell H. Tompkins, assignee of a mortgage given by the above company, and one Eissler, receiver appointed in the mortgage foreclosure proceedings.

The case was tried to the court without a jury; findings, conclusions and judgment were given in behalf of plaintiff, and Tompkins and Eissler appealed, a default and judgment having theretofore been entered against the said Kelley Company. The point involved on the appeal is whether or not there was substantial evidence to sustain the findings of the court that title to the logs did not pass to the Kelley Company from *370 plaintiff at the time plaintiff delivered the logs to the said Kelley Company.

Plaintiff, together with his father, felled and bucked some timber belonging to plaintiff’s father near Lebanon. Over a course of months plaintiff delivered logs to the Kelley Company, which had erected a sawmill some miles from the farm on which the timber was felled and bucked.

A partnership composed of H. Priedlander and L. Laster, of New York, doing business as the Woodex Lumber Company, originally advanced some $6,000.00 to Phillip Kelley and Kenneth B. Kelley, father and son, who were operating a sawmill as a partnership, in return for which the Kelleys turned over to them the output of the mill. Subsequent thereto, at the instance of Priedlander and Laster, the Kelley partnership was incorporated as Kelley Timber Products Co., Ine., and all of its corporate stock was transferred to the Woodex Company which placed a man by the name of McNeil in charge of the said Kelley Company under the title of “comptroller.” Thereafter all the funds, management and transactions of said company were controlled by the Woodex Company, Kelley and his son being made employees of said company.

The Woodex Company then caused the new Kelley Company to issue a mortgage to it covering the mill and all lumber and logs which belonged to said company, and which should thereafter be acquired by it, said mortgage to be security for advances theretofore made and to be made by the Woodex Company.

Loggers in the Lebanon vicinity, including plaintiff, who were dealing with the Kelley Company, believed they were dealing with the Kelley partnership, and did *371 not know that the Woodex firm had the affairs of the Kelley Company sewed up lock, stock and barrel.

Plaintiffs and others began delivering logs to the Kelley Company and for a time were paid for the logs so delivered by them. Thereafter the Woodex Company assigned the aforesaid mortgage to defendant Tompkins, who brought foreclosure proceedings and procured the appointment of Eissler as receiver under the mortgage. The record shows that at that time there were a number of creditors of the Kelley Company who were in the same business as plaintiff, whose unpaid claims aggregated some $30,000.00.

During the course of the proceedings the receiver sold the logs in question and holds the money derived therefrom, awaiting orders of the court.

The situation which prompted the present law suit was the failure of the Kelley Company to honor a check issued by it to plaintiff for the purchase of the logs aforesaid. The question before us is whether or not the transaction between plaintiff and the Kelley Company was a cash or a credit transaction. If a cash transaction, title to said logs, under the law, would not pass and would remain in plaintiff, and he would be entitled to prevail in the present case. If for credit, his action would not lie. Johnson v. Iankovetz, 57 Or. 24, 102 P. 799, 110 P. 398; Weyerhaeuser Co. v. First National Bank, 150 Or. 172, 38 P. (2d) 48, 43 P. (2d) 1078.

There was no written contract between the parties, nor was any evidence adduced as to the nature of the full transaction between him and the Kelleys. The only evidence given is that the price for the logs was “$29.00 and $27.00 per thousand,” and that payments were to be made every two weeks, the agreement being evi *372 deneed by the following brought forth on cross examination :

“Q Mr. Tyler, you first delivered logs in April under a contract to pay you $29.00 a thousand, is that right?
“A Yes, sir.
^
“Q And you were working on an arrangement where you would pick up your check every two weeks, is that right?
“A Yes.”

After the check in payment of the logs involved in the present case was dishonored, plaintiff and his father went to the mill yard of the Kelley Company and identified the logs which they had delivered, the same being piled on a side road where they had been theretofore unloaded by plaintiff. While they were there, Mr. Eissler, the receiver, arrived. The son testified that the receiver wanted to know what they were doing, whereupon the son replied, “ * * * I told him that we was scaling our logs, it was our property, and we was looking out for it.” As to the receiver’s response thereto, plaintiff testified, “Well, he didn’t say too much. He just walked off, didn’t say much of anything.”

It is the contention of the appealing defendants that the logs were not to be paid for until two weeks after delivery; therefore, this, in itself, makes the transaction one for credit rather than for cash, especially since there was no evidence in the case that the transaction was a cash deal. Section 71-142, O.C.L.A., (Uniform Sales Act) reads as follows:

“Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions; that is to say, the seller must be ready and willing *373 to give possession of the goods to the buyer in exchange for the price and the buyer must be ready and willing to pay the price in exchange for possession of the goods.”

In 46 Am. Jur., Sales, 645, § 478, we read:

‘ ‘ The fact that the check received for goods was not delivered simultaneously with the delivery of the goods to the buyer, but a short time thereafter, does not show that the sale was upon credit; it does not conclusively prove a total abandonment of title and right of possession by the seller, unless, under all the circumstances of the case, it appears that such result was intended.”

In the Weyerhaeuser case, supra, we said:

“ * * * Defendant company was entitled to a sufficient time to assemble the documents, examine the invoice to see if it conformed to their order, examine the mate’s receipt to see that it covered the lumber, and the certificate of inspection, or P. L. I. B., to ascertain if it was in proper condition.
“Where the seller gives the purchaser a short time for such purpose, it is not an extension of credit; it is a courtesy and not a right under the contract. ’ ’

Cited in the Weyerhaeuser case is Dows v. Dennistoun,

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Related

Weyerhaeuser Timber Co. v. First National Bank
43 P.2d 1078 (Oregon Supreme Court, 1934)
Johnson v. Iankovetz
102 P. 799 (Oregon Supreme Court, 1910)

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Bluebook (online)
233 P.2d 777, 233 P.2d 774, 192 Or. 368, 1951 Ore. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyler-v-kelley-timber-prod-co-inc-or-1951.