Sampsell

Appellant Sampsell, trustee in bankruptcy for the C. A. Reed Furniture Company, brought suit against Lawrence Warehouse Company, hereafter called Lawrence, to recover for conversion of personal property which originally belonged to the C. A. Reed Furniture Company, hereafter called Reed. The district court held that appellant’s complaint failed to state a cause of action and entered a summary judgment for Lawrence, from which this appeal is taken.

The complaint alleges that Reed borrowed money from the California Bank during the period from September 1946 to May 1947. To provide security, a field warehouse was set up on Reed’s premises: space there was leased to Lawrence, and certain of Reed’s inventories were segregated and stored therein. Lawrence then issued warehouse receipts covering such goods to the California Bank. It is alleged that none of these receipts contained any statement as to the rate of storage charges, as required by California law. Lawrence nevertheless, on "the authority of the receipts, delivered the property to the California Bank on July 3, 1947, and the Bank sold it. Reed became insolvent and Sampsell was elected trustee, whereupon he commenced the…