Bank of Litchfield v. Elliott
| Decision Date | 14 June 1901 |
| Docket Number | 12,583 - (144) |
| Citation | 86 N.W. 454,83 Minn. 469 |
| Parties | BANK OF LITCHFIELD v. JAMES K. ELLIOTT and Another |
| Court | Minnesota Supreme Court |
Action in the district court of Hennepin county to recover $470 damages for the conversion of a carload of wheat. The case was tried before Brooks, J., who found in favor of defendant. From a judgment entered pursuant to the findings, plaintiff appealed. Affirmed.
Shipment by Carrier -- Presumption of Ownership.
Upon shipment of goods through a carrier to a third party, with the delivery to the shipper of a bill of lading, the consignee is prima facie the owner of the property; but this presumption of ownership may be rebutted by proof of facts showing the actual intent of the shipper at the time the goods were delivered to the carrier.
Pledge of Bill of Lading to Third Person.
Evidence in this case considered, and held, that where a bill of lading was issued, but retained by the shipper, who hypothecated the same to a third party, after the shipment had been made, the evidence reasonably tends to support the finding of the trial court that it was the intention of the shipper to vest the title of the property in the consignee at the time the same was delivered to the carrier.
Judgment upon Findings.
Under the facts found, as to the hypothecation of the bill of lading, after the shipment, for the purpose of securing payment of a draft drawn and cashed in connection therewith the party who cashed the same acquired no right to the property described in the bill of lading.
Charles A. Willard, William A. Lancaster, and Charles Donnelly, for appellant.
Benton & Molyneaux, for respondents.
Action to recover for a car load of wheat shipped from Litchfield to defendants, upon the claim that the plaintiff bank was entitled to the possession of the wheat, of which it had been deprived by defendants. The cause was tried to the court, who found for defendants. Judgment was entered thereon, from which plaintiff appeals.
One Thompson was a wheat buyer at Litchfield. On May 11, 1900, he had a conversation over the telephone with defendants, who were engaged in the commission business at Minneapolis. This conversation was substantially to the effect that Thompson would forward a car load of wheat to them, but would have to draw for $450, to which defendants assented. At the time of the conversation over the telephone, Thompson stated that he had a car of wheat which he was filling, that he would ship the same to defendants, but must have money to pay for the same, which he procured through the draft. On May 14 Thompson finished loading the car, and on May 15, shipped it over the Great Northern road, consigned to defendants, receiving a bill of lading therefor in the usual form, with the exception that upon its face were the words, "Not negotiable unless delivery is to be made to the consignee or order." Thompson, on May 16, the day after he received the bill of lading, drew a bill of exchange on the defendants for $1,000, attached the draft to the bill, and presented the same to the plaintiff bank, at Litchfield, for discount; representing to the bank that he was the owner of the wheat described therein. The plaintiff discounted the draft, paid the cash realized thereon to Thompson, and sent the draft forward to Minneapolis for collection, but defendants refused to pay it. Among other things, the trial court found, in substance, that in delivering the wheat to the Great Northern Railway Company, and receiving the bill of lading, Thompson, the shipper, intended to deliver the wheat to defendants, and that the railway company, until the delivery, should hold possession thereof as the agent of defendants, and not otherwise.
The only issue that arises in this case necessary for consideration is whether the facts found by the trial court are supported by the evidence, which is fairly summarized above in essential respects. From the fact that Thompson had received advances from his factor in...
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