Howland v. Woodruff
Howland v. Woodruff
Opinion of the Court
If by any protest on our part the profession could be induced to abandon the machine-made cases which, under the present system, have taken the place of the methodical and carefully prepared cases and bills of exception of former days, the court would plead earnestly for such a reform, as it would be a great relief to every court of review, and aid in the dispatch of business and in an intelligent administration of justice. Stenographers have taken the place of the attorneys whose duty it is to prepare, and of the counsel whose duty it is to peruse and examine, and of the judge who should settle cases and exceptions for the purposes of review. The rough, ill digested and defective, and frequently unintelligible transcripts and translations of the stenographer’s minutes of the trial, without correction or explanation, are stitched together and labeled a case, or exceptions, as may suit the fancy, and the labor is thrown upon the court to wade through a mass of stuff and dig out the kernel of facts or the point of an exception which may be buried up beneath it. Some parts of the case before us are entirely unintelligible; and the exceptions taken in the course of the trial are so interjected that it is not easy to place or apply them. It is very likely that parties may sometimes suffer by this process, which, while it saves the labor of the profession, very greatly adds to that of the court, and not unfrequently embarrasses it in arriving at a certain and definite understanding of the merits. A rule of the Supreme
Without scanning very closely the precise relations between the plaintiffs and Griffin & Willets in respect to the grain in controversy, as evidenced by the documentary evidence and disclosed by the testimony, it will be assumed that the latter firm, commission merchants in Hew York, were the factors of the plaintiffs, the owners, and that the same was consigned to them for sale for a commission. It is conceded that the plaintiffs were the owners of the grain and that the defendants were merely the factors of the owners, without, so far as the case discloses, any lien upon or interest in the property, except as they might earn a commission upon its sale. The consignors might have at anytime changed the destination of the barley, or revoking the agency of the consignees, assumed the actual possession and control of it. (Mitchel v. Ede, 11 A. & E., 888.) No property was at any time vested in Griffin & Willets. The consignors did not intend to and did not by the delivery of the grain to the carrier at its place of shipment, vest the property in the consignee. During its transit there was no apparent ownership in Griffin & Willets which would have enabled them to pledge the barley to a third person; and there was no change in the possession or apparent ownership, after the arrival of the barley in New York, prior to the transaction with the defendants, which can affect the rights of the parties or give effect to the factors’ act so as to validate that transaction as against the plaintiffs. The title of the defendants must therefore rest entirely upon the provisions of the act of 1830 (chap. 179), known as the “factors’ act” (4 N. Y. Statutes at Large, 461); and unless
The first’question is as to the precise extent 'to which the plaintiffs intrusted their factors with the possession of the property,, pr the documentary evidence of title. It is claimed that Griffin & Willets pledged the "barley to defendants as a security for the repayment of a loan of money upon the faith and credit of the pledge. At common law, a factor could not pledge the goods of his principal; and the statute referred to is designed for the protection of those who in good faith and in ignorance of any defect of title in the pledgor or of the claims of others to it, advance money or incur liability upon the faith of the merchandise and the ownership thereof by the pledgor, as evidenced by the possession of the property or the documentary evidence of title with which he has been intrusted by the owner. It is the act of the owner in intrusting the factor with the possession of the goods, or the documentary evidence of ownership, the apparent ownership and right of disposal, in connection with the fact that innocent third persons deal with him upon the faith of such apparent ownership, that estops the owner from following his property into the hands of bona fide vendees or pledgees, and gives the latter a better title than their vendor or pledgor had. I am aware that there has been some criticism upon section 3 of the factors’ act, and a doubt expressed as to what phrase or subject the last words of the section, “ upon the faith thereof,” refers. But reading the section in view of the clearly expressed intent of the legislature and the general scope of the act, which was not to deprive owners of their property without any fault or act of theirs, or to protect any but bona fide purchasers for value, it is very evident that the money must be parted with upon the faith of the property and the apparent title of the party assuming the right to deal with it, manifested either by the possession of the property or the usual documentary evidence of title. The act was intended for the security of those who
The factors’ act was considered by the Superior Court of New York, in Bonito v. Mosquera (2 Bosw., 401), and an .elaborate and exhaustive opinion prepared by Ch. J. Dube, and concurred in by Justices Bosworth, Slosson and Wood-ruff. The learned chief justice reviews most of the reported cases bearing upon the construction and effect of the act, and among the propositions deduced from an examination of the .subject and formally advanced by the court is this: That the possession of goods by a factor “ not having the documentary evidence of title,” that can alone enable him to create a .pledge valid as against the owner, is an actual, as distinguished from a constructive possession. The principle was applied in that case. The decision is criticised in the same court by Ch. J. Robertson in Pegram v. Carson (10 Bosw., 505), concurred in by Judge White, and dissented from by Judge Monell. But the latter case is not in conflict witli the proposition referred “to, or with the plaintiff’s title to recover in this action. There, the factors to whom merchandise was consigned by the owner, for sale, wifli bills of lading making it deliverable to them, received the merchandise and
The judgment must be reversed and a new trial granted, costs to abide the event.
Dissenting Opinion
(dissenting). We think the judgment in this case should be affirmed on the ground that Griffin, Willets & Co. were intrusted with the possession of the barley, and the advance was made by the defendants upon the faith of such possession. The barley was consigned to Griffin, Willets & Co., and was on board the vessel when the agreement for the advance was made between Griffin, Willets & Co. and the defendants. Before any money was advanced under the agreement the vessel was, by direction of Griffin, Willets & Co., towed to the defendants’ warehouse in Brooklyn for the purpose of delivering the barley to the defendants and storing
An attempt was made to show that the consignees were not authorized to remove the barley from the boat except for delivery upon a sale. The warehouseman who shipped the barley testified that he told the captain to “ hold it until sold.” It does not appear, however, that this direction emanated from the owners of the barley or that any notice of it was given to the consignees. As the evidence of this direction was admitted only on condition that it be connected with Griffin, Willets & Co.’s, and no such connection was shown, it may be regarded as out of the case. Furthermore, by the written instrument claimed to be a bill of lading, the property was to be delivered to Griffin & Willets, 10 South street; the captain to hold the load five days without charge, and after five days to hold it at one dollar and fifty cents per day until
The fact that there was other grain on board the same vessel does not, in my judgment-, affect the case. The inquiry is, whether the consignees were intrusted with such a possession and apparent right of control over the barley in question as authorized the defendants, under the provisions of the factors’ act (4 Stat. at Large, 461, § 3), to deal with them as owners. The term “ possession,” as used in that act, means such dominion over the merchandise as enables the factor rightfully to take possession of it without any new authority or document furnished by the owners. (Pegram v. Carson, 10 Bosw., 505.) That Griffin, Willets & Co. had such dominion, appears by the evidence too clearly to admit of question. Although the actual possession, in the literal sense of the term, was in the captain of the boat, yet he held it merely as bailee of the consignees. He recognized their right of dominion, and his possession was, in contemplation of law, theirs.
The judgment should be affirmed, with costs.
All concur with Allen, J., except Rapallo and Andrews, JJ., dissenting.
Judgment reversed.
Reference
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- Slocum Howland v. Franklin Woodruff
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