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Procter & Gamble Distributing Co. v. Lawrence American Field Warehousing Corp.
New York Court of Appeals
21 A.L.R.3d 1320 (1965)
Procter & Gamble Distributing Company (P&G) (plaintiff) delivered several million pounds of soybean oil to a warehouse operated by Lawrence American Field Warehousing Corporation (Field) (defendant). Field issued non-negotiable warehouse receipts for the oil to P&G. Month-end statements issued by Field indicated that the oil was present in the warehouse. However, at some point either before or after delivery to the warehouse, the oil disappeared. Upon learning that the oil was missing, P&G sued Field for conversion. Field sought to recover the market value of the oil at the time the oil was delivered to the warehouse, which was much higher than the oil’s value at the time Field learned the oil was missing. The trial court entered summary judgment in favor of P&G for the higher market value of the oil. The appellate division reversed and remanded to the trial court to assess damages based on the value of the oil at the time P&G learned of the oil’s disappearance. Both P&G and Field appealed.
Rule of Law
Holding and Reasoning (Van Voorhis, J.)
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