J. H. Richardson & Co. v. Nathan

Citations

• 167 Pa. 513
• 31 A. 740
• 1895 Pa. LEXIS 941

Syllabus

<p>Bill of lading — Foreign attachment — Sale—Acts of June 13, 1874, and Sept. 24, 1866.</p> <p>An owner of goods delivered them to a railroad company in Chicago, and received a bill of lading which he indorsed “ Deliver to the order of J. H. Richardson & Co.” He drew a draft on Richardson and Co., which a bank discounted, taking the bill of lading as collateral security for the payment of the draft. The draft was sent to Richardson & Co. at Pitts-burg, who refused to pay it, and it was returned to Chicago, with the bill of lading. The indorsement on the bill of lading was canceled, and a blank indorsement made. Subsequently Richardson & Co. attached the goods in Pittsburg under a foreign attachment. The bank obtained leave to intervene as garnishee, and gave bond as provided by the act of June 13, 1874, P. L. 285. The bank having obtained the goods by dissolution of the attachment, sold them without an order of court, at public auction, after having given due notice to Richardson & Co. of the time and place of sale. The goods brought less than their actual value. In an action by Richardson & Co. against the bank to recover the difference between the actual value of the goods and the price obtained at the sale, Held (1) that the indorsements on the bill of lading did not affect the rights of the bank; (2) that as the intention of the parties was to make the goods a pledge for the repayment of the sum advanced on the draft, delivery without indorsement was sufficient to accomplish the purpose intended; (3) that the effect of the delivery was to invest the bank with the rights of a purchaser of the property, so far as it might be necessary -to exercise such rights for the bank’s protection; (4) that under the circumstances an order of court was not neee'ssary to authorize and validate the sale.</p> <p>After the seizure and prior to the dissolution of the attachment, the property was in custodia legis and could not be lawfully sold without an order of the court, but af