Wallace v. Morgan

23 Ind. 399
CourtIndiana Supreme Court
DecidedNovember 15, 1864
StatusPublished
Cited by22 cases

This text of 23 Ind. 399 (Wallace v. Morgan) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallace v. Morgan, 23 Ind. 399 (Ind. 1864).

Opinion

Elliott, J.

Morgan $ Vorhis, the appellees, sued Wallace, the appellant, for an alleged conversion of seventy-four barrels of flour, shipped by them to Wallace, as commission merchant, at Indianapolis.

The complaint, in substance, is as follows: That on the 13th day of September, 1861, the defendant being a commission merchant at the city of Indianapolis, the plaintiffs, who are partners under the name of Morgan ft Vorhis, forwarded to the said defendant, at his place of business, seventy-four barrels of flour, of the value of $370, being of the value of $5 a barrel; that the defendant received and undertook to sell the same promptly for a reasonable compensation, at the best market price, and account to the plaintiffs for the proceeds thereof. Breach, that the defendant, though specially thereunto requested on the 18th day of September, 1862, has never accounted for said flour or the proceeds thereof, but has converted the same to his own use, to the plaintiffs’ damage $500, etc.

The defendant answered in three • paragraphs: 1. That the flour was of a quality that would not sell in the city of Indianapolis, and that on the 27th of September, 1861, he shipped it to Hill, Anthony § Go., commission merchants in the city and state of New York, then known and reputed as a safe, solvent business house, and doing business as commission merchants in said city of New York; that afterward he informed the plaintiffs of said shipment, and [401]*401gave them the name of the firm to whom it was made, and that they thereupon approved the same; that Hill, Anthony ^ Go., on the 80th of October, 1861, disposed of said seventy-two barrels of flour for $320. Soon after which, and before said defendant could collect from them the proceeds of the flour, they failed, and became wholly insolvent, whereby the proceeds of the flour were lost.

3. Set-off. To these paragraphs the plaintiff replied in denial.

The second paragraph is as follows: “That on the 17th day of September, 1861, he was a forwarding and commission merchant, doing business in the city of Indianapolis, Indiana; that on the day named he received, as such forwarding and commission merchant, a shipment of flour from plaintiffs, consisting of seventy-two barrels, being the same mentioned in the complaint. By the usage and custom of commission and forwarding merchants in said city of Indianapolis, flour of a grade not suitable for market and sale in said city, was in the absence of special instructions, forwarded to the city of New York. The flour mentioned in the complaint was of a quality not suitable for market and sale in said city of Indianapolis, and no special instructions were given defendant relative to the sale of ' said flour.” The paragraph then avers that on the 27th of September, 1861, the defendant shipped the flower to Hill, Anthony § Go., of the city of Neio York, who sold it for $370; that Hill, Anthony Go. soon after the sale of the flour became insolvent, without having accounted for the proceeds, whereby the same are lost, etc. To this paragraph a demurrer was sustained, to which the defendant excepted. The issues on the first and third paragraphs were tried by a jury. Verdict for the plaintiff. Motion for new trial overruled, and exceptions. Judgment for the plaintiff. The defendant appeals.

The evidence is made a part of the record by a bill of exceptions.

[402]*402The first error complained of is the ruling of the court below in sustaining the demurrer to the second paragraph of the answer.

The paragraph of the answer to which the demurrer was sustained admits that the flour was shipped to the appellant at Indianapolis, for sale, as a commission merchant. Such a shipment, in the absence of special instructions, implies at least that the article shipped is to be sold at the place of the factor’s business; in this Case, at the city of Indianapolis. It was not sold there; but, at the expiration of six days from its receipt, the factor, without any special authority from his principals, shipped it to Hill, Anthony Co., at the city of New York, for sale by them in that market. Hill, Anthony § Co. sold it, became insolvent, and never accounted for the proceeds. The appellant attempts to justify the shipment to New York by averring that the flour “ was of a quality not suitable for market and sale in the city of Indianapolis,” and that “by the usage and custom of commission and forwarding merchants, in said city of Indianapolis, flour of a grade not suitable for market and sale in said city was, in the absence of special instructions, forwarded to the city of New York.” Do the facts thus averred constitute such a commercial usage as to justify the appellant in shipping the flour to Hill, Anthony $■ Co., and thereby require the appellees to sustain the loss? It is said that “ the usages of commerce regulate the duties and privileges of commission merchants, and generally form their contracts in business, which usages are matters of fact, and susceptible of proof.” Rapp v. Gi'ayson, 2 Blackf. 130. Commerce, in a great measure, is regulated and controlled by certain general and well-defined usages, growing out of the necessities and conveniences of trade, by which the rights and duties of parties engaged in commercial pursuits, in their different relations to each other, are defined and understood. Local customs or usages may exist and be confined to a particular locality or city, by which the trade of such place, and the rights and [403]*403duties of persons engaged therein, may be regulated and controlled. Such is the character of the custom attempted to be set up in this casé.

To render such a custom valid to control a general principle, it should be well defined, be in general use at the place by those engaged in the business to which it is applicable, and of such standing as to raise a reasonable presumption that it is knowm to those engaged in making shipments to such place. It should be uniform, and so well settled that persons in the trade must be considered as contracting with reference to it. Renner v. Bank of Columbia, 9 Wheat. 581, and note at the end of the case. And where, as in the present case, such a usage is set'up so much in conflict with general principles, we think the averments should be such as to bring the case clearly within the rule. Here there is no averment that the alleged custom is general or uniform among merchants of the class at Indianapolis, or that it had existed for any, considerable period of time; for aught that appears, it may not have been in existance at the date' of the shipment by the plaintiffs.

Two at least of the requisites laid down by Blackstone in his Commentaries, (1 vol. side p.' 78,) to make a particular custom good, we think, are applicable to commercial usages; to-wit: they must be reasonable and certain.

Tested by these rules, is the alleged custom good? First, is it reasonable ? The legal inference, arising from consignments to a local factor is, that he is to sell to the best advantage in the local market where he is doing business ; this rule is violated by the usage set up.

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23 Ind. 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-morgan-ind-1864.