Page images
PDF
EPUB

(222 S.W.)

tioner and his partner, C. M. McKoin, and that neither of said parties were charged with the duty of directing or superintending the mining operations of the petitioner and

leged wrongful acts set forth in the complaint were done by either C. A. Beggs, B. J. Malone, or Minnie Malone, or with their knowledge or under their directions.

HUMPHREYS, J. Appellee, John W. Jasper, instituted this suit against appellants, Arkoal Mining Company, a corporation, C. A. Beggs, B. J. Malone, Minnie Malone, M. A. Malone, A. M. Malone, and the New Cor-C. M. McKoin aforesaid; that none of the alonado Coal Company, a partnership, alleged to have been composed of the five last-named parties, in the Sebastian circuit court, Greenwood district, to recover damages in the sum of $55,681.50, on account of: (1) Wanton, willful, and malicious conversion of 2,820 tons of coal out of Central mine No. 5, on the southeast quarter of the southeast quarter, section 21, township 5 north, range 31 west, in said county; and (2) the wanton, willful, and malicious pulling of pillars in said mine, causing the roof to fall or squeeze down, thereby preventing appellee from mining 16,410 tons of solid coal and 10,000 tons of pillar coal.

The complaint contained an allegation, among others, that the appellants owned and operated a mine known as the "Phoenix property" just south of "Central No. 5 property" aforesaid; that B. J. Malone was general superintendent, and C. A. Beggs mine fore man, of the New Coronado Coal Company, and the members of said partnership operating the "Phoenix property"; that B. J. Malone, as such general superintendent, wrongfully directed the other employés of said company, as well as the mine foreman, and that C. A. Beggs, as such mine foreman, wrongfully directed the other employés, to make openings from the land and coal in the Phoenix property into and through the land and coal of Central No. 5 property, and, pursuant to said unlawful, willful, and wanton directions, did wrongfully take 2,820 tons of coal and cause the roof to cave in so as to prevent appellee from mining 16,410 tons of solid coal and 10,000 tons of pillar coal.

The petition to transfer the cause was overruled by the court, to which ruling appellants objected and excepted.

Thereupon A. M. Malone filed a separate answer, in which he admitted that the New Coronado Coal Company was composed of C. M. McKoin and himself, and that they mined 1,497 tons of coal out of a solid body in "Central No. 5 property," but charged that they did so in good faith, under an agreement which they believed gave them the right to do so, that he was willing to pay a reasonable royalty for the coal so mined, and in which he specifically denied all other material allegations of the complaint.

C. A. Beggs, B. J. Malone, and Minnie Malone filed separate answers, in which each specifically denied all the material allegations in the complaint.

The Arkoal Mining Company and M. A. Malone were not served and did not appear, and C. M. McKoin was not made a party and did not appear.

The proceeding was by attachment and garnishment. In response to the writs of garnishment, the McAlister Fuel Company admitted an indebtedness of $4,899.92 to the New Coronado Coal Company, and paid the amount into court; and the Merchants' National Bank of Ft. Smith admitted an indebtedness of $3,165.30 to the New Coronado Coal Company and $142.60 to A. M. Malone personally, and gave bond to pay same into court; and the Huntington State Bank admitted an indebtedness to C. A. Beggs of $142.60 and paid it into court.

A. M. Maione filed a petition and bond for removal of the cause to the United States District Court for the Western District of Arkansas, setting up that the controversy in- The cause was submitted to a jury upon volved issues between himself and appellee the pleadings, evidence, and instructions, of alone, in which appellee claimed damages the court, which resulted in a verdict and against him in the sum of $55,681.50 on ac- judgment in favor of appellee for $11,000.35 count of an alleged wrongful act of remov- against the New Coronado Coal Company, a ing and mining coal underneath land held partnership composed of A. M. Malone and by appellee under lease; that he was a non-C. M. McKoin, and against A. M. Malone and resident and appellee a resident of the state C. A. Beggs, upon the theory that said parof Arkansas; that the only residents of the ties had wrongfully converted 1,497 tons of state made defendants in appellee's suit were coal belonging to appellee, of the value of C. A. Beggs, B. J. Malone, and Minnie Ma- $3,068.85, at the rate of $2.05 per ton, the lone, who had no interest whatever in the price for which appellee had contracted to issues involved in the litigation; that they sell it on board cars, and for $7,931.15, lost were joined as defendants in appellee's suit profits on 26,413 tons of coal rendered unfor the fraudulent purpose and with the recoverable by wrongfully pulling pillars in fraudulent intent to prevent a removal of the "Central No. 5 property," thereby causing the cause from the state to the federal court; roof to cave in or squeeze down and obstruct that the mining operations of the "Phoenix the opening to the coal. The garnishments property" were under his immediate direc- were all sustained, the money deposited in tion, and that C. A. Beggs, B. J. Malone, and court in response to the writs was orderMinnie Malone were in the employ of peti-ed paid to appellee, and judgment rendered

in his favor against the garnishee and its | alleged pulling of the supporting pillars bebondsman which had not paid the fund into court. From the judgment an appeal has been prosecuted under proper proceedings to this court.

tween the "Coronado property" and "Central No 5. property," appellants' witnesses, to the number of eight or nine, testified that the pillars in question were pulled by appellee in the spring of 1917, while operating the "Coronado property" in the corporate name of "Phoenix Coal Company"; that the caving of the roof occurred while witnesses were in the employ of the Phoenix Coal Company, and not after the New Coronado Company began to operate the mine; that the condition of the roof in "Central No. 5 property" at the time they testified was the same as when they pulled the pillars in the spring of 1917. Appellee's witnesses testified that the squeeze, which obstructed the entry or slope and covered the track from the "Mottu" mine into and through "Central No. 5 property" along the south side thereof to the body of coal on the east end, was caused by the pull

the line between the two latter properties; that they did not pull them; that early in the month of July, 1917, and later in the month when the Phoenix Coal Company was ejected from the "Coronado property," the pillars were intact and had been standing for 10 or 12 years.

Appellants' motion for new trial contained a request for new trial on account of newly discovered evidence of L. E. Lake. The evidence set out in the motion, to which Lake would subscribe, if present, was that he had

The record is too voluminous to incorporate a summary of the evidence of each witness in this opinion, and, for that reason, we can only make a general statement. Certain defendants were dropped from the suit for want of service and other causes, so the suit is one by appellee against C. A. Beggs, A. M. Malone, and the New Coronado Coal Company, composed of A. M. Malone and C. M. McKoin. In the fall of 1917 appellee purchased a tract of land called "Mottu property," west of "Central No. 5 property," which is a coal mine on the land heretofore described. On January 8, 1918, he leased "Central No. 5 property" for a term of two years for mining purposes, agreeing to sell the output of the mine for $2.05 per ton, on boarding of the pillars in the spring of 1918, along cars, to the owners of the property. Prior to the purchase of the "Mottu property" and the lease of "Central No. 5 property," appellee, in connection with L. E. Lake, under the corporate name of "Phoenix Coal & Mining Company," for a number of years operated the coal mine known as the “Coronado property" under lease. On July 20, 1917, the Phoenix Coal & Mining Company was ousted and the land sold, and afterwards conveyed to the Arkoal Mining Company, a nonresident corporation. A. M. Malone and C. M. McKoin leased it as partners under the part-personal charge of the mining operation of nership name of New Coronado Coal Company. The New Coronado Coal Company began to operate the mine in October, 1917. B. J. Malone was employed as general superintendent and directed the work on top of the ground. C. A. Beggs was employed as foreman and had direction of the work under ground. Between October, 1917, and June, 1918, the New Coronado Coal Company, by direction of A. M. Malone, under the supervision of the company's foreman, C. A. Beggs, crossed over the north line of the "Coronado property" onto "Central No. 5 property," min- [1-3] It is first contended that the court ed and hauled out of the solid body of coal committed reversible error in overruling the thereon 1,497 tons, taking it to the surface petition to remove the cause to the federal through the "Coronado property." After hav-court. The sole guide for a proper determiing mined that amount, the owner, Central nation of this question must be found in the Coal & Coke Company, enjoined appellants in the courts from mining more. Appellants' testimony tended to show that they mined the coal in good faith, believing appellee had surrendered his lease on the particular land from which the coal was taken, and that they had made an arrangement for exchange of coal by which they would acquire the title to the coal so mined.

Appellee's testimony tended to show that he declined to surrender his lease, and, in the face of his refusal and with full knowledge of his rights, appellants mined the coal.

the Phoenix Coal & Mining Company in "Central No. 5 property" prior to and up to May 1, 1917, and that in April of that year, the pillars in question were pulled under the supervision of Bert Agnew at his direction; that appellants had no knowledge or means of knowing, and, after making diligent inquiry, did not learn of the facts to which Lake would testify or that he resided in Newton county, until after the trial. The motion for new trial was denied over the objection and exception of appellants.

allegations of the complaint and petition for removal. The material allegations of the complaint, charging joint liability against resident and nonresident defendants, must be traversed in the petition of removal by a statement of facts conclusively showing that the plaintiff fraudulently joined the defendants in the suit to deprive the nonresident defendant of his right to a trial of the cause in the federal court. C., R. I. & P. Ry. Co. v. Schwyhart, 227 U. S. 184, 33 Sup. Ct. 250, 57 L. Ed. 473. We do not think the charge in the complaint that C. A. Malone individually,

(222 S.W.)

Company, became a joint tort-feasor with B. J. Malone and C. A. Beggs on account of their acts, respectively, as general superintendent and mine foreman, in ordering their employés to mine coal and pull pillars in appellants' mine, was sufficiently traversed. It is true A. M. Malone in the petition attempts to controvert joint liability by alleging that the wrongful acts charged "were not done or suffered to be done by either the said Beggs, B. J. Malone, or Minnie Malone, nor were they done with their knowledge or under their directions, and that they are in no way responsible for the alleged damages"; in other words, it is charged in the petition for transfer that A. M. Malone himself directed the employés, including Beggs and B. J. Malone. It is not denied in the petition to transfer that B. J. Malone was superintendent and C. A. Beggs mine foreman of the New Coronado Coal Company, composed of A. M. Malone and C. M. McKoin. Without such denial, the traverse was insufficient because A. M. Malone, individually and as a partner, would be liable jointly with either or both for acts done by them within the scope, or apparent scope, of their authority. In order to effect the transfer of the cause, the petition of removal should have precluded every theory of joint liability of the resident and

nonresident defendants. There was no error in overruling the petition to transfer.

saying they were standing as late as July 7, 1917.

[4, 5] It is impossible to read the evidence without concluding that either appellants or appellee pulled the pillars in question. The evidence just detailed was substantial testimony from which the jury were warranted in concluding that appellants pulled the pillars which caused the squeeze that cut appellee off from his coal, and was sufficient in this particular to support the verdict.

(2) Because there is no evidence to show a wrongful conversion of the coal taken or a wrongful pulling of the pillars. The testimony offered by appellee with reference to the conversion of 1,497 tons of coal tended to show that it was converted after several futile attempts to get appellee to surrender his right thereto under lease from the owners of “Central No. 5 property," and that appellants continued the trespass until restrained by court order; and that offered with reference to wantonly pulling the pillars, that they were pulled with knowledge as to the location of the line between the two properties, and that the effect of pulling them would be to destroy appellee's entry, cover up his track of 800 or 900 feet, over which he was hauling coal from the east end of his mine, and to permanently cut him off from it and the pillar coal in the mine. This evidence was sufficient upon which to base an inference

It is next insisted that the evidence is in- that the aces were wanton, wilful, malicious sufficient to support the verdict:

(1) Because there is no evidence to show appellants pulled the pillars which produced the squeeze that obstructed appellee's passage-way to his coal in “Central No. 5 property." Appellee testified that in April, 1918, he laid a track from the "Mottu property" on the west in an easterly direction through the old workings in "Central No. 5 property" to a solid block of coal on the east side thereof for the purpose of mining it; that the New Coronado Coal Company was at the time working in the "Coronado property" immediately south of No. 5 aforesaid; that the pillars were standing when he built his track; that he did not pull them; that they were pulled, which caused the roof of "No. 5" to cave in, cover his track, and obstruct his passageway to the solid body of coal on the east. Marvin Repass testified that he helped appellee lay the track; that it was 800 or 900 feet long; that the squeeze, which covered it up and shut appellee out from the solid body of coal, came after the track had been laid, and the caving of the roof came from the direction where the New Coronado Coal & Mining Company, or Malones, were mining; that none of the pillars were pulled by appellee or his employé. The two mine inspectors, Boyd and Shaw, testified that the pillars along the line between the two properties were standing in the spring of 1917, Boyd

ones, and therefore enough legal, substantial evidence to support the verdict in this regard.

[6] It is next insisted that the court erred

in permitting the complaint and other proceedings to be read to the jury in a suit filed November 17, 1917, by the Central Coal & Coke Company against C. A. Beggs and others to prevent them from taking coal off of the tract of land in question. This evidence was offered and admitted by the court for the sole purpose of showing that C. A. Beggs, foreman of the New Coronado Coal & Mining Company, knew the location of the dividing line between "Central No. 5 property" and the "Coronado property" at the time the pillars in said No. 5 were pulled. C. A. Beggs testified to the nature of the injunction suit and disposition made of it, thereby showing a knowledge of the contents of the complaint. We think the complaint and proceeding admissible for the purpose offered.

[7-9] It is next insisted that the court erred in giving appellee's instruction No. 1: (1) Because the jury was directed to find against the New Coronado Coal Company for 1,497 tons of coal. This was the coal A. M. Malone and C. A. Beggs admitted taking from "Central No. 5 property" for the partnership and for which they offered to pay a reasonable royalty. The contention is made that the instruction is in conflict with the rule of law that a partnership cannot be sued as an entity and judgment rendered against

it as such. The suit was not against the partnership as a legal entity, nor was judgment rendered against it as such. The suit was against the New Coronado Coal Company, a partnership composed of A. M. Malone and C. M. McKoin. Judgment was rendered against it as an association of persons. There being no personal service on C. M. McKoin, the other partner, the effect of the suit and judgment was to bind A. M. Malone personally and as a partner, as well as the partnership fund impounded by attachment and garnishment. We are unable to see how any prejudice resulted to A. M. Malone, the only partner served, by the direction given to the jury of which complaint is made.

(2) Because the instruction assumed without justification that there was testimony from which the jury could find that C. A. Beggs directed the employés of the partnership and of A. M. Malone to remove the pillars from appellee's mine. We do not think the instruction assumed that there were separate employés of Malone and the partnership, and that C. A. Beggs directed all of them to do the wrongful act. The instruction in effect told the jury that A. M. Malone was liable individually and as a partner if the foreman wrongfully directed the employés, meaning one set of employés, to pull the pillars which caused the roof in said mine No. 5 to fall. If there was any doubt as to whether the court meant one or two sets of employés, appellants should have made a specific objection challenging the instruction on account of ambiguity.

owed the Central Company on a past transaction, so it would have been improper to deduct this amount from the damages assessed against appellants for willful conversion.

[10] It is also insisted that the court erred in giving appellee's instruction No. 2, by charging therein that the measure of damages was the profit that appellee would have netted on the unrecoverable coal lost by the wrongful removal of the pillars. The contention is made that the correct rule for the measure of damages was the value of the leasehold estate, if destroyed by a wanton act of appellants, and not the profit which appellee might have made. It seems allowable as a general rule to award profits as damages resulting from tortious acts, if ascertainable with reasonable certainty. 8 R. C. L. 508; 17 C. J. p. 785. In the instant case the proof showed that appellee lost 27,800 tons of coal, 1,389 tons more than he claimed, on account of the squeeze, which the jury found was occasioned by appellants' wanton act of pulling the pillars in "Central No. 5 property," which was contracted to be sold at $2.05 per ton on board cars, with expense of $1.70 per ton for mining and placing same on top at pit mouth; that the entire amount, with reasonable effort, could have been mined before the expiration of appellee's lease. Appellee's net profit would have been 35 cents on each ton claimed, or a total of $9,244.55, if placing the coal on top at pit mouth meant on board cars at pit, and there is nothing to show to the contrary. The jury awarded a much less amount as damages. The damages allowed were reasonably well established by the evidence.

(3) Because the instruction was misleading in that it was impossible for the jury to determine from the wording which Malone was [11] Lastly, it is contended that the court the servant and which the master. The fail- erred in not granting a new trial on account ure to insert the initials "B. J." before Ma- of the newly discovered evidence of L. E. lone could not have misled the jury. The un- Lake, who was a stockholder and manager of disputed evidence showed that B. J. Malone the Phoenix Coal & Mining Company in 1917, was the superintendent or employé, and by when, according to appellants' contention, the another instruction he was exempted from pillars were pulled and roof caused to fall by liability, so there could not have been a mis- said company. C. A. Beggs, one of the appelunderstanding that A. M. Malone was intend-lants, must have been cognizant of Lake's ined by the use of the word "master" in the in- terest in and management of the Phoenix struction.

(4) Because there was no evidence to warrant the submission of the issues as to whether appellants wrongfully removed the pillars in question. We ruled otherwise in the discussion of the question whether there was sufficient legal evidence to support the verdict.

(5) Because the instruction permitted a recovery for coal wrongfully converted at its reasonable value at the mouth of the shaft without deducting 25 cents per ton provided for in his contract of sale thereof to the Central Coal & Coke Company. The deduction provided for was a means adopted by appellee to pay an indebtedness of $1,139.03 he

Company, as he worked for the company as foreman for a long time and during the spring of 1917. Lake was not far away. No effort was made to get him or his evidence before the trial. The only excuse offered is that appellants had no idea what Lake would testify to until after the trial. Beggs' former connection with the company ought to have suggested that Lake, the former manager, could testify favorably for them. Sufficient diligence was not shown before the trial, and it cannot be said the court abused its discretion in refusing the motion for a new trial on account of newly discovered evidence.

No error appearing, the judgment is affirmed.

(222 S.W.)

G. H. HAMMOND CO. v. JOSEPH MERCANTILE CO. (No. 404.)

(Supreme Court of Arkansas. May 17, 1920.

Rehearing Denied June 7, 1920.)

1. Principal and agent 119(2)-Presumption as to authority to sell goods in own name stated.

Where agent is engaged in an independent business, authority to sell in his own name goods consigned and delivered to him for sale is presumed from the nature of the business, but such presumption does not extend to agent who is engaged exclusively in selling his principal's goods.

2. Factors -Nature of the business of a "factor," stated; "commission merchant."

A factor or commission merchant is one engaged in an independent calling, and who buys and sells on commission any personal property left with or consigned to him for sale.

[Ed. Note. For other definitions, see Words and Phrases, First and Second Series, Commission Merchant; Factor.]

3. Principal and agent 103 (8)-Authority to sell "overs" as agent's own goods held not to apply to exchanged goods of principal.

That plaintiff packing company permitted its agent to sell "overs," the increase in weight of meat shipped to such agent resulting from salt put on it, or to sell his own goods on his individual account, did not justify or authorize his sale of meat of plaintiff for which he had exchanged "overs" without plaintiff's knowledge or consent.

When dry salt meat was shipped to Perkins in carload lots, there would be some meat left over by reason of the meat being salted and sacked out. This would occur because Per

kins only accounted to the plaintiff for the meat by weight. Perkins would put this left-over meat to one side in the house where he kept the plaintiff's meat, and was accustomed to sell it as his own. In May, 1918, he had a quantity of this dry salt meat, and asked the representatives of the defendant to purchase it from him. They told him that they could not use the dry salt extras, but that they could use some bacon extras if he had it. Perkins went back to the warehouse and exchanged the dry salt extras, which he claimed for bacon extras belonging to the plaintiff of equal value, and sold the bacon extras to the defendant as his own. The defendant paid Perkins for the bacon extras. On cross-examination the president of the defendant company testified that he knew that Perkins was a broker for the plaintiff company, and that he had no right to sell the plaintiff's goods in his own name and receive payment therefor. He further stated, however, that he thought the goods he bought belonged to Perkins, and that he had frequently bought goods from Perkins which were called "overs," and which he understood belonged to Perkins. The bacon in question in this case was packed in the original boxes when it was delivered to the defendant. After it was delivered to the defendant, Perkins' warehouse burned down. The plaintiff did not know that Perkins claimed what he called the "overs" from carload lots, and that he

Appeal from Circuit Court, Greene County; sold the same on his individual account. The R. H. Dudley, Judge.

Action by the G. H. Hammond Company against the Joseph Mercantile Company. Judgment for defendant, and plaintiff appeals. Reversed and remanded.

The plaintiff, G. H. Hammond Company, alleges in its complaint that it is a Michigan corporation duly authorized to do business in the state of Arkansas; that on the 6th day of May, 1918, the defendant, Joseph Mercantile Company, a domestic corporation, took into its possession and converted to its own use 1,165 pounds of bacon extras, be longing to the plaintiff, and of the value of $308.10. The defendant answered, denying the allegations of the complaint. The facts are substantially as follows:

Ray Perkins of Paragould, Ark., entered into a written contract with the plaintiff for the sale of its meat, to be consigned to Perkins and kept by him in a storehouse in Paragould, Ark., and sold by him for the plaintiff. Perkins agreed to keep the goods in a suitable building and not mingle them with other merchandise, and to sell the same without expense to the plaintiff, except the commission he was to receive.

plaintiff demanded payment of the bacon extras from the defendant, and payment was refused by the defendant. Hence this lawsuit.

There was a verdict and judgment for the

defendant, and the case is here on appeal. D. G. Beauchamp, of Paragould, for appellant.

Huddleston, Fuhr & Futrell, of Paragould, for appellee.

HART, J. (after stating the facts as above). It is earnestly insisted by counsel for the plaintiff that the court erred in giving instruction No. 7, which is as follows:

"If the plaintiff authorized or knowingly permitted its factor, Perkins, to sell 'overs,' or any other of its goods, or his own goods, on his individual account as individual owner to customers, and said Perkins sold the bacon in fendant, acting in good faith, and in ignorance question to defendant in that way, and the deof the rights of the plaintiff, and in the exercise of such care as an ordinary prudent person would use under the circumstances to ascertain whether said Perkins was selling his own goods or those of the plaintiff, and at the time

For other cases see same topic and KEY-NUMBER in all Key-Numbered Digests and Indexes

« PreviousContinue »