No. 24975 | La. | Apr 24, 1922
Plaintiff has instituted this suit to recover of defendants, the Macon Ridge National Bank, $75,649.99, with legal interest thereon from judicial demand. His cause of action is based on the alleged fact that the bank, defendant herein, without authority, and even contrary to his instructions, sold at private sale 312 bales of cotton, which he had pledged to it to secure the payment of money that he had borrowed, with which to pay for the cotton. The defense is that the bank was authorized by plaintiff to sell the property pledged, and that the sale was made with the knowledge, acquiescence, and consent of plaintiff.
Plaintiff was buying cotton \in the autumn of 1918, and was in need of money for that purpose. 1-Ie applied to the defendant, and, although it had, at the time, an authorized capital of only $25,000, and a surplus of approximately $6,000, it cashed for him, within a short period, drafts, payable on demand, drawn by the vendors of the cotton on plaintiff, and accepted by him, aggregating over $40,000. To these drafts were attached the receipts of the warehouse company that held the cotton in storage. The drafts were cashed by defendant at their face value, under an agreement with plaintiff.
The contention of defendant is that, in ar-' ranging the matter, it was agreed, in the event
The cotton, a few days after this, was shipped to New Orleans to be put in marketable condition because of its damaged state, and after having been put in proper condition was sold by defendant in the open market.
The evidence on each of these points is conflicting. It will serve no useful purpose to review it. A careful examination of it satisfies us that plaintiff authorized the sale; that when demand was made upon him for additional security, because of the decline of cotton, he failed to furnish it, and then informed defendant that he would not sell, but if defendant wished to sell and. break him, it might do so. We are further satisfied that when the cotton was shipped to New Orleans to be put in proper condition plaintiff knew that it was sent there also to be sold by defendant, and made no objection at the time. We are therefore of the opinion that plaintiff’s demand should be rejected.
For the reasons assigned, it is ordered, adjudged, and decreed that the judgment appealed from be affirmed, appellant to pay the costs.