Gamble-Robinson Commission Co. v. Whitaker
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Gamble-Robinson Commission Co. v. Whitaker
Opinion of the Court
Action in conversion to recover the value of a certain quantity of eggs alleged to have been wrongfully converted by defendant. The facts are stated in Ammon v. Gamble-Robinson Commission Co. Ill
On August 5, 1909, plaintiff, a corporation, was the owner of one hundred fifty cases of eggs then stored with the Merchants Cold Storage Company of Minneapolis. On that day it sold the eggs to the Peifer Produce Company, a corporation doing business at St. Paul. It was intended as a cash transaction, and the Peifer Company, acting through its president and manager, issued and delivered to plaintiff its check for the purchase price. At the time of the sale plaintiff, at the instance of the Peifer Company, directed the Storage Company to issue its warehouse receipt for the eggs in the name of A. C. Cameron, a commission merchant at St. Paul. Upon the issuance of this receipt the Peifer Company delivered to plaintiff its check, as just stated. The check was worthless, and was never paid, though promptly presented for payment by plaintiff. Immediately upon discovering the worthlessness of the check, and on the day of the sale, plaintiff demanded of the Peifer Company the money for the eggs, or the return of the warehouse receipt. The money was not forthcoming, and a return of the receipt was not made. The following day the receipt was sold and transferred by defendant in this action to August Ammon, and he successfully sustained his title to the eggs in an action by him agains't plaintiff to recover the same. Ammon v. Gamble-Robinson Commission Co. 111 Minn. 452, 127 N. W. 448. It appears that certain negotiations were had between the Peifer Company and defendant herein looking to the purchase of these eggs, -that the warehouse receipt was made out in the name of Cameron at the instance of defendant, that defendant presented the same to Cameron in an offer to sell the eggs on the day it was issued, and that Cameron refused to buy, not having the ready cash. Thereupon, and the day following the original transaction, Cameron having assigned the receipt to defendant, defendant sold and transferred the same to Ammon.
Defendant contends that it was a bona fide purchaser and holder
Two questions were presented for the consideration of the court below:
1. Whether defendant was a joint purchaser of the eggs, or whether they were purchased for it by the Peifer Company, and, •
2. Whether, if not so purchased, defendant was a bona fide holder of the warehouse receipt. . . v.
1. There is considerable confusion in the record in respect to the theory upon which plaintiff sought- to recover, and the precise issues were not hy the trial- court fully submitted to the jury. The first question above noted was.not submitted to- the jury at all, and the refusal of plaintiff’s request covering the point is assigned as error. In this refusal we are clear that the learned trial court was in error.
If, as contended .by plaintiff, defendant was jointly interested with the Peifer Company in the purchase, it was under legal obligations to see to it that the eggs were paid for. The transaction was upon a cash basis, and as between the parties no title to the eggs passed until payment was made. The same result follows if it be found that in the purchase the Peifer Company represented and acted for defendant. In either case the transfer of the warehouse receipt by defendant to Ammon was an unlawful conversion, for which plaintiff may recover. Por the refusal of the court to submit this feature of the case to the jury there must be a new trial.
2. In reference to the further contention that plaintiff is entitled
Order reversed, and new trial granted.
Reference
- Full Case Name
- GAMBLE-ROBINSON COMMISSION COMPANY v. JOHN L. WHITAKER and Another
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- 2 cases
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- Published