Union Petroleum Co. v. Oklahoma, N. M. & P. Ry. Co.

1925 OK 877, 242 P. 1027, 114 Okla. 21, 1925 Okla. LEXIS 1003
CourtSupreme Court of Oklahoma
DecidedOctober 27, 1925
Docket14464
StatusPublished
Cited by7 cases

This text of 1925 OK 877 (Union Petroleum Co. v. Oklahoma, N. M. & P. Ry. Co.) 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
Union Petroleum Co. v. Oklahoma, N. M. & P. Ry. Co., 1925 OK 877, 242 P. 1027, 114 Okla. 21, 1925 Okla. LEXIS 1003 (Okla. 1925).

Opinion

BRANSON, Y. C. J.

The judgment of the lower court in this cause was in favor of the plaintiff. The plaintiff was the Oklahoma, New Mexico & Pacific Railway Company, a corporation. The-cause was tried to a jury, resulting in a verdict in the sum of $7,068.98, which the trial court approved, and on which it entered judgment. The issue as presented by the plaintiff’s petition was fraud to its damage in the sum recovered. The -alleged facts charged were in substance and intendment as follows, to wit:

The defendant Union Petroleum Company, a corporation, was -represented in Carter county by its agent, one Cook. The said Cook was also in control of the Ardmore Producing & Refining Company, a corporation, the business of which was refining petroleum products, and marketing the same. Among other things marketed by the last-named 'corporation, wag gasoline. Among its purchasers of gasoline was the Universal Petroleum Company, a corporation of Tulsa, Okla., which last-named company, for the purpose of purchasing gasoline from the said Ardmore Producing & Refining Company, carried with said company a large cash balance, which by understanding gasoline shipments made to it or its order were to be charged. In the autumn of 1918, the said Universal Petroleum Company had a balance with the said Ardmore Producing & Refining Company far in excess of an amount sufficient to pay for the gasoline hereinafter mentioned. Said Producing & Refining company delivered to the plaintiff as a common carrier, for which five bills of lading were received, billed at the instance of the Universal Petroleum Company, five cars of gasoline, the originals of the five bills of lading being delivered by the plaintiff carrier to the Ardmore Producing & Refining Company, which in turn were mailed by it to the Universal Petroleum. Company at Tulsa, Okla. The said Universal Petroleum Company in turn sold said bills of lading to the Fred G. Clark Company, for value.

The said Cook, agent as aforesaid of the Union Petroleum Company, in control as aforesaid of the Ardmore Producing & Refining Company, directed that duplicares of the bills of lading with sight draft to the value of said cars attached be sent for collection through the American National Bank of Tulsa, Okla., on the Universal Petroleum Company. The Universal Petroleum Company did not honor said draft, for that it was not in accordance with the aforesaid agreement to charge shipments against deposit on hand with the said consignor. On the pretext that the Universal Petroleum Company had failed to pay for the five cars of gasoline by honoring the drafts made for ■the same, and therefore was refusing the shipment, the «aid Cook, in control as aforesaid of, and for, the Ardmore Producing & Refining Company, directed one Kinman, representing the plaintiff carrier, to divert said cars of gasoline to the defendant Union Petroleum Company, at Chicago, Ill. To secure said diversion, he represented to the said Kinman the substance of the facts as above set out, as to the refusal of the Universal Petroleum Company to pay for said gasoline. Relying on the representations of the said Cook, agent of the defendant Union Petroleum Company, that, the said Universal Petroleum Company had refused payment, and that the original bills of lading would be returned to the Ardmore Producing & Refining Company, and delivered to the plaintiff, he caused the said five cars to be *23 diverted from their original consignment to the Union Petroleum Company, which said company received said five cars of gasoline to its own use and profit.

The said Kinman, sometime thereafter, closed his file relative to said shipments, and the -same apparently was not called to his attention again until sometime in November, 1920, at which time the said Fred G. Clark Company, as purchaser in good faith of the original bills of lading, so mailed as aiore-said by the Ardmore Producing & Refining •Company to the Universal Petroleum Company of Tulsa, sued the plaintiff carrier for the sum of $7,0(38.98, which suit plaintiff pleaded presented its first-hand information of the fraud of the defendant Union Petroleum Company and the defendant Cook in securing the said diversion of the cars of gasoline.

It further appears that at the time of his machinations incident to securing the said diversion, tile said defendant Cook well knew that the Ardmore Producing & Refining Company was wholly insolvent; that the said company had induced the Union Petroleum Company of Chicago, sometime theretofore, to advance the sum of $50,-000 to them, for which the said Union Petroleum Company had up to that time received no shipments of gasoline. It further appears that within three days after securing of the diversion of said ears of gasoline, the said Cook had caused the Ardmore Producing & Refining Company to be adjudged insolvent, and himself appointed receiver thereof, and later appointed trustee in bankruptcy. The liability of the plaintiff to the Fred G. ('lark Company, assignees of the original bills of lading of said cars of gasoline, being clearly established, the plaintiff paid its claim, and took an assignment of all of its rights. This briefly states the facts.

Pldintiff’s position and theory, as clearly apparent from its petition, which is rather lengthy, is that there was actual fraud perpetrated upon it. to its damage, in the said sum, in that material misrepresentations had been made to it, resulting in its otherwise unwarranted action in diverting the gasoline; that it relied upon the said misrepresentations, and that the consequent damages were the amount it was forced to pay the Fred G. Clark Company.

The evidence in the ease on the material issues was somewhat in dispute, but the verdict of the jury resolved the disputed questions of fact in favor of the plaintiff.

To reverse the judgment, the defendants make several assignments, some of which are argued in their briefs; the others must be considered as waived. Demurrers were filed to plaintiff’s petition apparently on two grounds: First, for its alleged failure to state a cause of action; and second, because, as the defendants contended, the petition showed on its face that if any cause of action ever existed in its favor, it had been stricken down by the statute of limitations. The assignment, and argument based thereon which seeks a reversal on these grounds is untenable. The petition states facts constituting a cause of action in tort, by reason of fraud, material, relied upon, and damage resulting. The petition affirmatively pleads that the plaintiff was not conversant with the said fraud until November, 1920, when it was sued by the said Fred G. Clark Company. The instant suit was brought within less than two years thereafter. This takes the case, if the facts pleaded were true, out of the bar of section 185, C. O. S. 1921, and the subdivision thereof, which the aefend-ants present in their argument.

Again, the defendants contend, in effect, that the plaintiff, after the Fred G. Clark Company suit was filed, paid said company, and secured from it an assignment of its rights of action against the defendants herein, and that the Clark Company well knew, long prior to the time it filed its suit against the plaintiff as aforesaid, of the alleged fraud, and its knowledge is binding on its assignee, the plaintiff herein, citing in support thereof, among other authorities, 25 Cyc. 1009-10 (note); Adams v. San Antonio Life Ins. Co. (Tex.) 185 S. W. 610.

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Bluebook (online)
1925 OK 877, 242 P. 1027, 114 Okla. 21, 1925 Okla. LEXIS 1003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-petroleum-co-v-oklahoma-n-m-p-ry-co-okla-1925.