Graham v. Frazier
Graham v. Frazier
Opinion of the Court
By an amendment to its answer the defendant Cotton Oil Company set up that (1) it had advanced to the Farmer’s Exchange Inc. the money with which to purchase the peanuts involved in this litigation and same were purchased from the growers with its money and therefore the title to same was in it and not vested in said exchange; that (2) there was no valid transfer of the receipts and notes by said Hartford Accident & Indemnity Company to the plaintiff, Frazier, same being merely a subterfuge in order to substitute Frazier as plaintiff in the place of said insurance company, and the real plaintiff is the indemnity company and not Frazier, who has no interest in any recovery; and that (3) Frazier was during the
Even if it appears that the court, upon demurrer interposed by the plaintiff, improperly sustained same and struck a portion •of the defendants’ amended answer, and there is a final judgment and verdict for the plaintiff, such ruling on the demurrer will not result in a reversal, where it appears that evidence was introduced tending to substantiate the facts set out in the stricken portion of the amendment to the answer and therefore the defendant obtained the full benefit of the defense or contentions made by the defendant in the portion of the amendment to the answer, which was stricken. See Fidelity & Deposit Co. v. Norwood, 38 Ga. App. 534 (144 S. E. 387). See also Northwestern Mutual Life Ins. Co. v. Suttles, 201 Ga. 84, 105 (38 S. E. 2d, 786), and cit. It appears from the record, and as appears from this opinion as a whole, that the defendant received the full benefit of the three contentions or defenses of the Southern Cotton Oil Company embodied in the portion of the amendment to the answer stricken by the court. In these circumstances, we make no ruling as to whether or not the order of the trial judge striking such portion of the amended answer was erroneous, but we do hold that even if error, no harm re-' suited therefrom to the defendant or either of them and the case will not be reversed for that reason. Had these portions of the
The defendants insist that the evidence did not authorize a verdict in favor of the plaintiff and that the verdict rendered by the jury against them for. $25,228.91 was therefore contraiy to law and without evidence to support it.- As we have noted, this case is now in this court for the second appearance. The first time the case was here the judgment excepted to was the overruling by the trial court of certain general demurrers to the petition of the plaintiff, as amended, and this court affirmed that judgment, holding that the plaintiff was entitled to proceed in trover against the defendants for the peanuts in that the plaintiff obtained title to the peanuts and right to possession thereof by virtue of the issuance by the Farmer’s Exchange Inc. of the warehouse or custodian receipts, which were transferred to the plaintiff along with the notes to secure same, the peanuts having been pledged and the receipts issued. There was evidence tending to support the allegations of the plaintiff’s petition, as amended.
The evidence for the defendants tended to show that the defendant Southern Cotton Oil Company, by virtue of certain contracts1 between it and the Commodities Credit Corporation, and pursuant to War Food Order 130, issued by War Food Administrator, under which the cotton oil company became a “handler” and duly authorized to purchase peanuts, furnished the money to the Farmer’s Exchange Inc. to purchase peanuts. The defendants contend that the above being true, and it not appearing that the Farmer’s Exchange Inc. nor the Bank of Commerce, nor the Hartford Accident & Indemnity Company, nor the plaintiff, had any such authority to purchase peanuts, that the title to the peanuts purchased by the warehouseman and placed in its warehouse never vested in the warehouseman, and that it, therefore, could not convey any title to the Bank of Commerce. The defendants contend that as a matter of law the plaintiff had no title or right to possession of the peanuts
The evidence, tending to support the allegations of the petition of the plaintiff, as amended, therefore authorized the verdict in favor of the plaintiff. The evidence did not demand a finding in favor of the defendants. The fact that Frazier had worked for the Farmer’s Exchange Inc., and had himself signed some of the receipts, and the fact that there was evidence to the effect he had seen the president of the exchange removing some of the peanuts, after they had been pledged to the bank, and before he had severed his employment with the warehouseman and before he had become the holder of the legal title to said peanuts upon the transfer to him of the warehouse receipts by the indemnity company, as evidence of ownership of the peanuts, does not render the verdict contrary to law and does not demand a verdict for the defendants. The fact that the Southern Cotton Oil Company, through Graham as its agent, obtained the peanuts does not alter the situation. The exchange did not have title. The defendant did not acquire any more than the exchange had. There is nothing in the decision of the U. S. Court in Bank of Commerce v. Hartford Accident & Indemnity Company, and Richard Frazier, 164 Fed. 2d, 149, s. c., 170 Fed. 2d, 94, adjudicating the law and the facts hereof to such an extent as to require a different verdict from that rendered and demanding a verdict for the defendants. On the question whether or not Frazier, while in the employ of the warehouseman, and while he had custody of the peanuts, was guilty of such fraud as against the Bank of Commerce in permitting the removal of the peanuts, after the. receipts had been issued by the warehouseman and delivered to the bank, as would render the verdict in his favor in the present action void, this court ruled that Frazier was entitled to maintain trover, having acquired the title of the Bank of Commerce to the peanuts, by virtue of the transfer to him by the indemnity company of the peanuts evidenced by the warehouse receipts. The plaintiff is proceeding here by virtue of the
There is no merit in the general grounds of the defendants’ motion for a new trial.
The defendants assign error in a special ground of their motion for new trial upon the following excerpt from the charge of the court: “ . . The plaintiff, Richard Frazier, has filed in this court, his petition as amended, in which he alleges and contends that the defendants, Frank A. Graham and the Southern Cotton Oil Company, received the peanuts to which the plaintiff has title or right of possession, said peanuts, as plaintiff contends, being of the value of $70,000. The defendants have come into court and filed their answers, as amended, in which they deny the contentions of the plaintiff, and contend that they have title to the peanuts in question, and contend that they are not indebted to the plaintiff in any amount.”
The defendants contend that the trial court erred in the above charge in which the court undertook to summarize the entire petition of the plaintiff and the entire contentions of the defendants in a single sentence “in that said instruction was an incorrect statement of the contentions of the plaintiff and of the defendants and did not, moreover, state the full contentions of the defendants based upon their answer and the evidence adduced in support thereof.”
There is no merit in the above contention of the defendants. The charge, as given, did not incorrectly state the contentions of either the plaintiff or the defendants. There was no request for fuller instructions as to the contentions of the parties. The court, immediately after instructing the jury as above set out, charged “ . . what has just been said, states briefly the contentions of the parties in this case. You will have the pleadings in the case out with you, and you may read them, if you like. However, the court instructs you that pleadings are not evidence, except when they are introduced as such, or when admissions are made therein. What has been said expresses no opinion of the court, because the court has no opinion as to what has been proven or what has not been proven.” In Jones v. Batts, 45 Ga. App. 326 (164 S. E. 462), the court stated to the effect
In special ground 5 error is assigned by the defendants upon the failure of the court to instruct the jury upon their contentions to the effect that the Southern Cotton Oil Company set up in its amended answer that through three contracts between it and the Commodity Credit Corporation, made pursuant to War Food Order 130, under which peanuts were bought and sold during 1945 through governmental control -and regulation, it was appointed a “handler” of peanuts in said year 1945; that in that year said oil company entered into an agreement with the Farmer’s Exchange Inc. for it to purchase for the oil company under the terms of said three contracts between it and said Commodity Credit Corporation, the oil company furnishing the money with which to purchase the peanuts, and using the required forms No. 316 of the said Commodity Credit Corporation; that pursuant to this agreement the Farmer’s Exchange Inc., commencing in September 1945 and into January 1946, acquired the 1945 farmer’s stock peanuts; that the title to the peanuts thus acquired and delivered to it was in the oil company from the moment the same were acquired from the farmers, and title thereto never vested in the Farmer’s Exchange Inc:, and therefore it could convey none by said receipts or otherwise;
The jury had the amended answer out with them. The court had charged them that the defendants denied that the plaintiff had title to or right of possession to these peanuts and also in effect charged that they denied that the plaintiff had a valid transfer of the notes and receipts referred to, and further denied that the Bank of Commerce had ever acquired any right or title to these peanuts from the Farmer’s Exchange Inc. and, therefore, could convey none, and, therefore, that the purported title of the bank, transferred to the indemnity company, and then by it to the plaintiff did not convey any right or title thereto 'as against it. The court also informed the jury that the defendants contended that they had title to these peanuts and were therefore due the plaintiff no amount, and then the court charged that the jury would have the pleadings out with them and could read the same. This ground of the amended motion shows no error. These contentions of the defendants, which it is stated constituted a vital issue in the case, substantiated by the proof, were
This ground shows no error for any of the reasons assigned.
In the sixth special ground error is assigned upon the following charge of the court: “The plaintiff . . has elected as his form of recovery, in the event you think him entitled to recover, the highest proved value of the peanuts between the time of the conversion of the peanuts to which he claims title or right of possession, if there was a conversion, and if plaintiff has title or right of possession, both of which are questions for you to decide, and at time of the trial, the plaintiff has a right under the law to make such election.” While it appeared that these peanuts had no real or substantial value after September 1, 1949, there was evidence tending to show that in 1945 and' at the time the Southern Cotton Oil Company acquired these peanuts, adversely to the bank, the indemnity company, and the plaintiff, same were worth 'from $190 to $195 a ton, and worth more than the amount of the verdict rendered, to wit, $25,228.91. A plaintiff in trover may elect to recover the value of the property sued for and is entitled to the highest proven value between the time of the defendant in trover’s receipt of the property, adversely to the plaintiff in trover, and the trial of the trover proceedings. ‘ See Pippin v. Watts, 145 Ga. 140 (88 S. E. 567); Code § 107-105. It is true that the plaintiff did not acquire the right to proceed in this action until the transfer from the Hartford Accident & Indemnity Company, under date of August 26, 1949, of the notes and receipts, which this court has ruled to be valid in the decision of this case on demurrer (Graham v. Frazier, supra), and it is likewise true that this plaintiff made no formal demand upon the Southern Cotton Oil Company until September 1, 1949. However, this defendant had long prior to that time received said peanuts and exercised over the same complete control and ownership as its own. The above excerpt
It is likewise true that the court did not err in charging the jury, as complained of in the 7th special ground, same being upon request by the jury for a recharge, that “in estimating the value of the property unlawfully detained, the plaintiff may recover the highest amount which he shall prove between the time of the conversion' and the trial. However, in this case, the plaintiff can not recover for a higher amount than the total value of the notes introduced in evidence in this case by the plaintiff, which notes were executed by the Farmer’s Exchange Inc. to the Bank of Commerce of Americus.”
While these peanuts were in the warehouse of the Farmer’s Exchange Inc., the warehouseman secured various loans from the Bank of Commerce with these peanuts, executing its warehouse or custodian receipts to secure the same, and this court has held that such receipts were negotiable and when the warehouseman delivered same to the bank, there was a constructive delivery thereby of the peanuts, and that title to the peanuts passed to the bank. See Graham v. Frazier, supra.
The verdict in this case-being for $25,228.91, which was a less amount than the jury were authorized to find that the peanuts were worth in 1945, or between the receipt thereof by the Southern Cotton Oil Company and the trial of the case, the above recharge was not erroneous because the trial judge stated therein that the plaintiff could not recover for a higher amount than the total value of the notes executed by the warehouseman to the Bank of Commerce, which permitted the jury to return a verdict for the plaintiff in an amount higher or greater than the evidence permitted. The amount of the verdict rendered was not higher than the evidence warranted and even if the above recharge is subject to the criticism urged, the same was not harmful to the defendants and was corrected by the verdict.
Neither was said recharge subject to the criticism that “under said pleadings and the said evidence taken in connection with the said instruction of the court, the jury was authorized to return a verdict against the defendants, when under the pleadings and the evidence no verdict could properly be returned against the defendants.” The court did not by said recharge
No error appears in the seventh special ground for any of the reasons assigned.
The defendants assign error 'in the eighth special ground of their motion for new trial, as amended, upon the following charge: “ . . in this case if you believe by a preponderance of the evidence that the warehouse receipts in this case, were issued to the Bank of Commerce covering peanuts involved here, prior to the time the defendants purchased said peanuts, then that would be sufficient to place title or right of possession in the plaintiff. The burden of showing, by a preponderance of the evidence, these facts, rests upon the plaintiff.”
The principle of law embodied in this charge was correct, and said instruction was applicable. This court'has ruled, and such ruling became the law of this case, that the warehouse or custodian receipts issued by the warehouseman covering certain peanuts and pledged to the Bank of Commerce to secure loans, represented by notes in favor of the bank, passed title to the peanuts represented by the receipts to the bank and any transferee of the bank. See Graham v. Frazier, supra. It was not harmful for the court in effect to instruct the jury that the burden was on the plaintiff to show by a preponderance of the evidence that such receipts were issued by the warehouseman and delivered to the Bank of Commerce, this constituting constructive delivery of the property pledged and passing title thereto, and that all such receipts issued and delivered prior to the time the defendants “purchased said peanuts” would be sufficient to place title or right of possession in the plaintiff, the transferee of the Hartford Accident & Indemnity Company to whom the Bank of Commerce had made a valid transfer of such receipts.
Said charge was not error for any of the reasons assigned.
In the ninth special ground of the amended motion for
In the tenth special ground of the amended motion for new trial the defendants insist that the court erred in failing to instruct the jury upon the question of “commingling.” The defendants contend that same “was an issue in the case made by the opening statement” of the plaintiff’s counsel “upon which issue there was conflicting evidence.” This statement by plaintiff’s counsel is as follows: “We expect to show you that Southern Cotton Oil Company, and they bought what we shall call ‘seed peanuts’ that was 70 or better; they were put in separate warehouses and separate piles, never commingled, never mixed.” The plaintiff introduced evidence to the above effect. However, the defendants introduced evidence tending to show that “the peanuts purchased by Farmer’s. Exchange Inc. for Southern Cot
No such facts appear from the evidence here as to require a charge ón commingling, particularly without a request, as contended by the defendants. There is nothing in Ellis, McKinnon & Brown v. Hopps, 30 Ga. App. 453 (118 S. E. 583), nor in Spikes v. Sassnett, 19 Ga. App. 479 (91 S. E. 789), nor in Camp v. Casey, 110 Ga. 262 (34 S. E. 277), to the contrary of what we now rule. It is true that “there can be no recovery for the corn, if it shall appear that it had not been segregated from the other portion of the corn withheld by the defendant, the plaintiffs not suing for the whole.” Ellis, McKinnon & Brown v. Hopps, supra. No error of law appears from this special ground.
No error of law appears from any of the several special grounds of the defendants’ motion for new trial, as amended, and there being evidence tending to substantiate the allegations of the plaintiff’s petition, as amended, and authorizing the verdict in favor of the plaintiff and against the defendants, Frank A. Graham and Southern Cotton Oil Company, for $25,228.91, the trial court did not err in overruling the motion for new trial of said defendants, as amended, and in denying to them a new trial.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.