Finch v. Gregg

• Decision Date: 13 March 1900
• Citation: 35 S.E. 251,126 N.C. 176
• Parties: FINCH et al. v. GREGG (SEYMOURDANNE CO., Intervener).
• Court: North Carolina Supreme Court

35 S.E. 251

126 N.C. 176

FINCH et al. v. GREGG (SEYMOURDANNE CO., Intervener).

Supreme Court of North Carolina

March 13, 1900

Appeal from superior court, Nash county; Hoke, Judge.

Action by Finch, Richardson & Co. against Joseph Gregg. and the Seymour-Danne Company, intervener. From a judgment for plaintiffs, defendants appeal. Modified as to defendant Gregg, and affirmed as to the Seymour-Danne Company.

Where corn was shipped on a bill of lading with draft attached which the shipper assigned for value, the consignee can recover for defects in the corn from the assignee of the bill of lading.

Jacob Battle, for appellants.

Cooke & Cooley and F. S. Spruill, for appellees.

CLARK J.

In January, 1899, the defendant Gregg, in Chicago, Ill., sold to plaintiffs, Finch, Richardson & Co., at Springhope, N. C a car load of "good corn." Said Gregg drew a draft on plaintiffs for the price of the corn, and sold it to the Seymour-Danne Company, to which was attached the bill of lading, which was made out to his order, and which he assigned by indorsement to the purchasers of the draft. The plaintiffs paid said draft, but the car load of corn was injured, and the damage sustained there by is the ground of plaintiffs' action. Love v. Miller, 104 N.C 582, 10 S.E. 685. In May, 1899, the defendant Gregg sold another car load of corn to Finch, Richardson & Co. Springhope, N. C., and also a car load to Woodard & Copeland at the same place. As with the January shipment, the bills of lading were made out to the order of shipper, who indorsed them to the Seymour-Danne Company, with a draft attached drawn on the purchasers in Springhope. On arrival the two car loads were attached before a justice of the peace (the amount claimed being less than $200) for the damages above stated, as sustained on the January shipment. To this proceeding Joseph Gregg alone was defendant, but the Seymour-Danne Company appeared before the justice of the peace, through their attorney, and were "allowed to make themselves parties defendant, and, intervening, they defended said action." In the superior court, on appeal, the plaintiffs were allowed to amend the attachment proceedings by making the Seymour-Danne Company parties thereto. When the bill of lading, payable to order of shipper, was assigned by him, for value (i. e. cashing of draft upon purchaser attached), to the Seymour-Danne Company, the latter became owner of the corn as against all the world except the shipper, as to whom the assignment was a security for the amount of the draft. Dows v. Bank, 91 U.S. 618, 23 L.Ed. 214; Daniel, Neg. Inst. § 1734a. Upon the arrival of the corn shipped in May at Springhope, Gregg had no interest therein which could be attached (Emery's Sons v. Bank, 25 Ohio St. 360), unless, possibly, it had been shown that the amount to be paid for the corn was greater than the amount for which the Seymour-Danne Company held the bill of lading as security; but that point does not arise here. But when the Seymour-Danne Company took the bill of lading on both occasions equally, they took the contract of the shipper, and they stood in his shoes, with the same rights; no greater, no less. National Bank of Commerce of Boston v. Merchants' Nat. Bank of Memphis, 91 U.S. 92, 23 L.Ed. 208. The rights of the purchasers (the plaintiffs) "were not impaired or disturbed by the change of ownership in the property." They have the same defenses against the assignee of the bill of lading as against the shipper. Bank v. White, 65 Mo.App. 679. When the January car load arrived, the plaintiffs could either have refused to receive and pay for the corn, or they...