Opinion ID: 1675313
Heading Depth: 1
Heading Rank: 1

Heading: Reviewability of Consignment Defense

Text: Before discussing whether the arrangement between Bischoff and Martinez constituted a sale or return or consignment sale controlled by Code 1975, § 7-2-326, we must address the preliminary issue of whether the theory of consignment sale was properly raised below. Bischoff argues it is not before us, since Thomasson did not amend his pleadings to specifically raise the defense. We disagree. As provided in Rule 15(b), ARCP: When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings. Such amendment of the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues may be made upon motion of any party at any time, even after judgment; but failure so to amend does not affect the result of the trial of these issues. [Emphasis added.] This Court has found implied consent where an opposing party fails to object to the introduction of evidence raising the disputed issue. See McDuffie v. Hooper, 294 Ala. 293, 315 So.2d 573 (1975); Rafield v. Johnson, 294 Ala. 235, 314 So.2d 695 (1975). As noted in the Committee Comments to Rule 15, ARCP, Under the rule where evidence is introduced or an issue raised with the express consent of the other party, or without objection from him, the pleadings `shall' be deemed amended to conform to such evidence [emphasis added]. We find that evidence of a consignment sale, as defined by Code 1975, § 7-2-326(3), was introduced in the stipulation of facts without objection from Bischoff, thereby automatically amending the pleadings to raise this defense. That statutory definition is as follows: Where goods are delivered to a person for sale and such person maintains a place of business at which he deals in goods of the kind involved, under a name other than the name of the person making delivery, then with respect to claims of creditors of the person conducting the business the goods are deemed to be on sale or return. Code 1975, § 7-2-326(3). Evidence of all the elements of this definition is contained in the stipulation of facts. It is stipulated that the ring was delivered by Bischoff to Martinez by mail to be offered for sale. Paragraph 6, Stipulation of Facts. It is further stipulated to the effect that Martinez maintained a place of business at Scottsdale, Arizona, where he dealt in diamonds under a name other than Bischoff, i. e., Intergem, Inc. Paragraph 5, Stipulation of Facts. This fact is also evidenced by the stipulated exhibits, such as the letterhead of Intergem, Inc., and its financial statement listing gems as its inventory. Bischoff's argument that the diamond transactions or the pledge in this case must take place at the place of business, i. e., over the counter, is a strained construction of the statutory definition, unsupported by the case law and blind to business realities. See Vonins, Inc. v. Raff, 101 N.J. Super. 172, 243 A.2d 836 (1968). Bischoff further argues that he made a sufficient objection to the injection of the consignment issue in his trial brief. We cannot agree. On the day the stipulation of facts was submitted to the trial court, the court heard oral arguments from the parties, but rendered no final judgment at that time. As noted above, evidence of a consignment sale had already been introduced without objection. Trial briefs were then submitted by the parties. Thomasson's brief argued for the first time the law as it applies to consignment sales. In a reply brief, Bischoff objected to these arguments as being outside the scope of the pleadings, but went on to address their merits anyway. Thus, the trial court was submitted full argument on this issue. It was not until some five months later that the trial court entered its final decree on motion by both the parties. The trial court had delayed the decree to await the outcome of Bischoff's Wisconsin suit against Martinez. At no time during these five months did Bischoff seek a ruling from the trial court on the raising of the consignment issue in Thomasson's brief. Prior to requesting the trial court to render a final decision, Bischoff did not ask for the record to be reopened to put in additional evidence on this issue, nor did he request further arguments. Bischoff could have refused to join in any request for submission on the record or he could have filed a post-ruling motion to set aside the decree and reopen the record. But he took none of these steps. See McDuffie v. Hooper, 294 Ala. 293, 315 So.2d 573 (1975). Having joined in the request for submission on the record as it then stood and having failed to object to the stipulated evidence of a consignment sale, Bischoff is bound by the record and state of the proceedings at that time. He cannot now on this appeal, and for the first time, seek to exclude this defense from the case.