Moderie v. Schmidt

Citation6 Wn.2d 592,108 P.2d 331
Decision Date13 December 1940
Docket Number27493.
PartiesMODERIE v. SCHMIDT et al.
CourtUnited States State Supreme Court of Washington

Department 1.

Action by Joseph Moderie against Arthur Schmidt and others copartners doing business as the Spokane Livestock Commission Company, to recover portion of selling price of plaintiff's cattle, sold through defendants. From judgment for defendants, plaintiff appeals.

Judgment reversed with directions to enter judgment for plaintiff.

Appeal from Superior Court, Spokane County; Louis F. Bunge, judge.

Graves, Kizer & Graves and J. W. Greenough, all of Spokane, for appellant.

Randall & Danskin, of Spokane, for respondents.

ROBINSON Justice.

Joe Moderie, a Montana rancher, delivered eighteen head of cattle to R. C. Byers. At the time of the delivery, Moderie and Byers executed the following instrument in triplicate:

'To whom it may concern:
'This will certify that Joe Moderie of Arlee, Montana, is shipping 18 head of cattle to Clark and Snow, Portland Oregon. Upon arrival of the cattle, $447.15 of the total selling price is to be mailed to Joe Moderie and the balance is to be paid to the drover, R. C. Byers.
'Joe Moderie
'R. C. Byers
'Witnesses:
'Edgar Grinolds
'W. J. Boyer

'State of Montana

'County of Lake}ss.

'Subscribed and sworn to Before me this 5th day of November, 1936.
'(Notarial Seal)
'Ailsen Jensen
'Notary Public for the State of Montana, Residing at Arlee, Montana.'

Moderie retained one copy, Byers, another, and the third was forwarded to Clark and Snow, at Portland. Byers paid Moderie $150 at the time. Byers trucked the cattle to Paradise Montana, where they were delivered to a railroad company with other cattle, all consigned to Clark and Snow, Portland, by Byers as consignee.

The defendants were doing business at Spokane as livestock commission merchants. Learning of the shipment, they persuaded Byers to divert it to the Spokane stockyards. The cattle were delivered to the defendants at the Old Union Stockyards at Spokane, and by them sold to the Carstens Packing Company. The defendants received the purchase price and paid it over to Byers, less their commissions and charges, and he absconded.

It is not contended that there was anything irregular or wrongful in the diversion to Spokane. Such diversions were customary in order to take advantage of favorable market conditions; nor is there any contention that the cattle were wilfully converted. The state of Montana maintained at the stockyards a brand inspector, named Bruns, who was familiar with the Montana brands and to whom the commission merchants operating at the stockyards looked for information regarding ownership. It appears that he construed the instrument quoted at the beginning of this opinion as a bill of sale from Moderie to Byers.

Moderie, receiving no money from Clark and Snow, traced the cattle through the railroad company and learned that they had been unloaded at Spokane. Being somewhat hard of hearing, he had a friend telephone the defendants to inquire what had occurred. Shortly after the telephone conversation, the Spokane Livestock Commission, that is, the defendants doing business under that name, wrote the following letter:

'Spokane Livestock Commission Co.
'Bonded for Your Protection

Phones: Lakeview 2780, Lakeview 2715

Old Union Stock Yards

Spokane, Washington

November 17, 1936

'Mr. Joe Maudry

'% Heron Lumber Company

'Arlee, Montana

'Dear Friend Joe:
'Replying to our telephone conversation regarding R. C. Byers of Grangeville, Idaho, will state that he is doing business with the Spokane & Eastern Trust Company here at Spokane.
'We have had some dealings with him in the past but do not know a great deal about him, only that he is married and lives at Grangeville, Idaho. He came in here with a load of cattle on a Sunday evening late, and was compelled to feed here. As our market was good while he was here, he decided to sell and turned them over to us.
'Regarding the bill of sale we do not ask for them as it is up to the Montana brand inspector to get them and clear the cattle or hold the proceeds, whichever may be the case according to the information he gets and whether or not they have proper bills of sale to correspond with the cattle. This is about all the information we can give you at this time. Only that I have heard Byers is again in western Montana this week, I am told, but he did not show up here with any stock.
'Hoping you will get this matter straightened out in time without any losses on your part, we remain

'Yours very truly,

'Spokane Livestock Com. Co.

'By Art Schmidt, Mgr.'

'as mo

Shortly after the Spokane Livestock Commission, through E. A. Jones, its 'Salesman & Field Mgr.,' wrote the plaintiff the following letter:

'Old Union Stock Yards

Spokane, Washington

November 25, 1936

'Mr. Joe Moederie

'Arlee

'Montana

'Dear Sir:
'In regard to your cattle that were released on a sales contract by Mr. B. Bruns, local inspector for the State of Montana Livestock Commission.
'Mr. Bruns has put in our hands as escrow $447.50 to protect you from subsequent loss on your cattle. We are, with the cooperation of Mr. Bruns and the sheriff of your county, doing everything humanely possible to locate this man, R. C. Byers, and protect ourselves from any loss in this matter.
'We have been advised that you have knowledge of Byer's disposition of his truck and will appreciate any information you can forward us.
'In view of the protection you have been afforded in this matter, we would appreciate a reasonable extension of time and ask that you direct your correspondence to us, or Mr. Bruns, instead of through the Montana Livestock Commission.

'Yours very truly,

'E. A. Jones.'

The plaintiff, pursuant to the request of the last paragraph of the above letter, made no complaint to the Montana Livestock Commission, but the defendants later redelivered the $447.50 therein mentioned to Bruns.

In this action, the plaintiff sought a recovery of that sum on three theories: Conversion, wrongful violation of escrow, and estoppel. We need consider the first theory only.

In resisting the conversion theory, the defendants contended first, that the cattle actually belonged to Byers; and, second, and in the alternative, that the defendants, constituting, as they did, a 'market agency' under the Federal Packers and Stockyards Act of 1921, 7 U.S.C.A. § 181 et seq., could not lawfully be held liable for a conversion...

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12 cases
  • In re Samuels & Co., Inc.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • October 31, 1973
    ...Sig Ellingson & Co., 205 Minn. 537, 286 N.W. 713, cert. denied, 308 U.S. 599, 60 S.Ct. 130, 84 L.Ed. 501 (1939), and Moderie v. Schmidt, 6 Wash.2d 592, 108 P.2d 331 (1940) market agent liable for sale of mortgaged or stolen cattle; Birmingham v. Rice Bros., 238 Iowa 410, 26 N.W.2d 39, 2 A.L......
  • Citizens State Bank of Dalhart v. Farmers Union Livestock Co-op. Co.
    • United States
    • United States State Supreme Court of Kansas
    • May 8, 1948
    ...N.W. 416, where there was a chattel mortgage on sheep shipped to and sold to the market agency. It was followed also in Moderie v. Schmidt, 6 Wash.2d 592, 108 P.2d 331, where the market agency was held liable to the owner having paid a drover from whom it received cattle the full purchase p......
  • East Cent. Fruit Growers Prod. Credit Ass'n v. Zuritsky.
    • United States
    • United States State Supreme Court of Pennsylvania
    • January 29, 1943
    ...v. Siman, 65 S.D. 514, 275 N.W. 347; Crosby v. Fresno Fruit Growers' Co., 30 Cal.App. 308, 158 P. 1070; Moderie v. Schmidt, 6 Wash.2d 592, 108 P.2d 331; Hoven v. McCarthy Bros. Co., 163 Minn. 339, 204 N.W. 29; Ellestad v. Northwestern Elevator Co., 6 N.D. 88, 69 N.W. 44; Four County Agricul......
  • Birmingham v. Rice Bros.
    • United States
    • United States State Supreme Court of Iowa
    • May 9, 1947
    ...in the first part of this opinion. The Supreme Court of Washington decided the same proposition in Moderie v. Schmidt, 6 Wash.2d 592, 108 P.2d 331, 334, holding a commission company liable in conversion to the owner of cattle after said factor paid the proceeds of the sale to the drover fro......
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