Trevisol v. Fresno Fruit Growers Co.
| Decision Date | 17 March 1923 |
| Docket Number | 35127 |
| Citation | 192 N.W. 517,195 Iowa 1377 |
| Parties | TONEY TREVISOL, Appellant, v. FRESNO FRUIT GROWERS COMPANY, Appellee, et al., Appellants. UNION NATIONAL BANK OF FRESNO, Appellee, v. PEOPLES NATIONAL BANK OF ALBIA et al., Appellants |
| Court | Iowa Supreme Court |
REHEARING DENIED JUNE 22, 1923.
Appeal from Monroe District Court.--D. M. ANDERSON, Judge.
APPEAL from judgments entered in two cases between the same parties on the same state of facts. Upon the trial below the actions were consolidated and tried to the court, a jury being waived. The opinion states the facts. Affirmed as to appellant Trevisol. Reversed as to appellant Peoples National Bank.
Peoples National Bank of Albia reversed, and the interest and costs are hereby ordered taxed to the appellant Trevisol and judgment against Trevisol affirmed.
Price & Hickenlooper and Miller & Everett, for appellants.
Bates & Dashiell, for appellee.
DE GRAFF, J.
This appeal involves two actions at law which were consolidated for the purpose of trial and judgment. The first case noted in the caption, to wit: Trevisol v. Fresno Fruit Growers Co. is an action in attachment. The second case, to wit Union Nat. Bank of Fresno v. Peoples Nat. Bank of Albia, is an action by the plaintiff as payee to recover the sum of $ 611.39 from the defendant bank on a sight draft purchased by the plaintiff bank from the Fresno Fruit Growers Company. In this action Trevisol, plaintiff in the former case, intervened and pleaded substantially the same matters as were alleged by him in his attachment proceeding.
It is the claim of Trevisol and he alleges in his petition in attachment that he purchased from the Fresno Fruit Growers Company a carload of grapes on or about October 19, 1918; that the defendant agreed to divert said car at Sanger, California and that by failure of the defendant so to do the car traveled a longer distance than was necessary and was delayed for more than 10 days, and that by reason of the negligence of the defendant in this respect caused a damage to him in the sum of $ 611.39. It is further alleged that the Peoples National Bank of Albia has money in its possession belonging to the Fruit Growers Company. The Union National Bank of Fresno, California was made a party defendant since it claimed an interest in the money in the possession of the Iowa bank.
An answer was filed by the California bank in which it claims to be entitled to the money on deposit in the Peoples National Bank by reason of a telegraphic acceptance by the latter bank of a draft subsequently purchased by the California bank from the Fresno Fruit Growers Company in the sum of $ 611.39. Plaintiff Trevisol amended his petition and pleaded fraud on the part of the Fresno Fruit Growers Company in the making of the contract for the sale of the car of grapes, and that the California bank had knowledge of such fraud. By an amendment to its answer the California bank alleged that it was an innocent purchaser of the sight draft of the Fresno Fruit Growers Company in that it purchased same in good faith and for value and relying on the acceptance of the Iowa bank.
In the second case the plaintiff Union National Bank of California alleged in its petition that on the 19th day of October 1918 the defendant Peoples National Bank of Albia, signed and caused to be sent to the plaintiff bank the following telegram:
"Union National Bank
Fresno, California
Toney Trevisol deposited Six Hundred Eleven Dollars and Thirty-nine Cents for credit of Fresno Fruit Growers Co. for Muscats subject to sight draft bill of lading.
Peoples National Bank."
It is further alleged that upon receipt of this telegram, and relying thereon, the plaintiff bank bought the sight draft and bill of lading from the Fruit Growers Company paying therefor the sum of $ 611.39, and sent the draft to the Peoples National Bank for payment; that no part thereof has been paid and prays judgment against the defendant bank in the said sum with interest and costs.
The Peoples National Bank in its answer denied that it had sent the telegram as alleged; denied that the plaintiff took an assignment of the sight draft and bill of lading; denied that it was a negotiable instrument and alleged that it had been subject to garnishment by Toney Trevisol but held the sum of $ 611.39 to be paid to the legal owner thereof, as ordered by the court.
The issues thus presented were tried to the court, a jury being waived with the consent of all parties.
The trial court decided the issues in favor of the Union National Bank in both cases and determined (1) that there was no fraud shown in the making of the contract between Trevisol and the Fruit Growers Company (2) that there was no negligence on the part of the Fruit Growers Company (3) that the telegram sent by the Iowa bank to the California bank and the purchase of the draft on the reliance of the telegram constituted an original contract between the two banks. Upon these findings the trial court dismissed the petition of Trevisol in the first case and his petition of intervention in the second case, and entered judgment in favor of the Union National Bank as against the Peoples National Bank the sum of $ 611.39 taxing one half the interest and costs to the Peoples National Bank and the other one half against Trevisol.
We deem it unnecessary to incumber this opinion with all of the telegrams sent and received respectively prior to the consignment of the carload of grapes in question. It appears that the Fruit Growers Company upon inquiry from Trevisol wired on October 9, 1918 the price F. O. B. California, time of shipment, and character of grapes. On October 10th Trevisol wired for certain information concerning the grapes to which on October 12th the Fruit Growers Company made answer. On the same day Trevisol replied by wire as follows: "Ship one car sixteen ton Muscates at once on wire from you will deposit with Peoples National Bank here amount payable on receipt your draft and bill of lading and examination if you can ship two cars on same terms explain what lugs are."
The Fruit Growers Company replied by wire:
No further communication passed between these parties until October 19th when the Fruit Growers Company sent to Trevisol the following telegram: "Ardee eight five eleven from Sanger eighteenth containing Thousand Two Lugs second crop Muscates net Twenty Seven Thousand Hundred Seventy Three Pounds Net Invoice Six Hundred Eleven Dollars Thirty Nine Cents Wire Union Natl. Bank Fresno above amount and we will divert car to you act quick."
On October 19th Trevisol wired from Albia the following:
Trevisol then went to the Peoples National Bank of Albia, Iowa and had the president of that bank prepare a message to be sent to the Union National Bank of Fresno, California. This was done and as prepared by the president read as follows: "Tony Trevisol deposited six hundred eleven dollars thirty-nine cents for credit of Fresno Fruit Growers Co., for Muscats subject to sight draft-Bill of lading and inspection.
Peoples National Bank."
Trevisol was authorized by the bank to transmit this message but before delivery to the telegraph office Trevisol without notice to the bank or knowledge on its part struck the words "and inspection" and the message as amended by Trevisol was received by the California bank. Trevisol then deposited in the Iowa bank the net invoice price, and a certificate of deposit was prepared and kept by the Peoples National Bank reading as follows:
Upon receipt of the telegram the Union National Bank notified the Fruit Growers Company thereof and relying thereon purchased from the Fruit Growers Company their draft in the sum of $ 611.39 and paid therefor by placing the amount to the credit and account of the Fruit Growers Company on October 21. This draft read as follows:
Fresno Fruit Growers Company
At Sight with Exchange Pay
To the Order of
Union National Bank Fresno Calif Six hundred eleven and 29/100 dollars $ 611.39 On arrival of car no R.D. 8511
Guarantee Peoples Nat'l Bank
Albia Iowa.
Value received and charge to account of Fresno Fruit Growers Co.
To: Tony Trevisol By; (SGD) Moore.
c/o Peoples Natl Bk.
Albia, Iowa.
(Stamped on face of Exhibit) 'Peoples Nat'l Bank, No. 22425, Albia Ia.'
[Indorsed on back of exhibit]
Pay to order of any Bank or Banker or Trust Co. All prior endorsements guaranteed. Oct. 21, 1918.
Union Nat'l Bank."
This draft attached to a straight bill of lading was immediately sent to the Iowa Bank. The record further shows that when the grapes arrived in Albia, the car having been routed in the first instance to Chicago, they were found to be in such condition that Trevisol refused to accept same and gave the Iowa Bank a written stop-payment notice "not to pay over to the Fresno Fruit Growers Company or the bank through whom draft was made nor pay said draft." The bank at this time believing that Trevisol had the right of inspection and examination of the car, and acting upon the notice given by...
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Union Nat. Bank v. Fox
...C. A.) 227 F. 145; Nat. Bank of Commerce v. Morgan, 207 Ala. 65, 92 So. 10, 24 A. L. R. 897, and annotation; Trevisol v. Fresno Fruit Growers' Co., 195 Iowa, 1377, 192 N. W. 517. In note 84 of 6 C. J. 482, Dymock v. Midland Nat. Bank, 67 Mo. App. 97, is cited with the suggested inference th......
- Trevisol v. Fresno Fruit Growers' Co., 35127.