Farm Bureau Cooperative Mill & Supply, Inc. v. Blue Star Foods, Inc. (137 F. Supp. 486, 1956)

WHITTAKER, District Judge.

These causes, having been earlier consolidated for trial, came on before the Court for trial without a jury at Joplin on December 14, 1955, and were fully heard and were argued by counsel. Whereupon counsel for the parties asked, and were granted, leave to file briefs, which they have now done, and these causes have now been finally submitted for decision.

The facts giving rise to these actions are indeed “story book”, and are as “unbelievable” in this modern age as they are interesting. In broad outline, they are that Watson, an experienced “chicken raiser” in Washington County, Arkansas, had 25,000 young chickens which he mortgaged, to Arkansas Farm Bureau Finance, Inc., a corporation (hereinafter called the “finance company”) on May 18, 1954, as security for his note of that date, payable to the order of the finance company, in the amount of $13,-599 due August 16, 1954, which mortgage was in the usual form and was duly recorded. One Lester N. Glover of Cave Springs, Arkansas, was, and for about 20 years had been, in the business of buying chickens in northwest Arkansas from “growers” and selling them to food processors, in the surrounding community, and, for the purpose maintained a place of business in Cave Springs, and a fleet of trucks and the necessary complement of employees. It was the practice of the finance company, at least upon inquiry, to advise Glover of the names and addresses of growers who had chickens ready for market and for sale, and to suggest that Glover inspect them and try to buy them from the grower. It was also the practice of the finance company to permit its old and trusted customers (which included Watson) — and in this case it orally expressly authorized Watson — to sell the mortgaged chickens at such time, for such price, and to such purchaser, as he chose, upon the understanding or condition, however, that he would pay over the proceeds of the sale to the finance company for application upon the note secured by the mortgage.

On or about ..the 14th of August, 1955, in response to Glover’s inquiry, the finance company advised him that Watson had these chickens which should be ready for market and suggested that Glover inspect, and try to purchase, them. Accordingly, on August 14, Glover went to Watson’s place, inspected the chickens and, says Watson, “agreed to buy all” of the chickens at 23