Pacific Wool Growers v. Draper & Co., Inc.

73 P.2d 1391 · Oregon Supreme Court · 1937

Facts

Pacific Wool Growers, a co-operative, sued Draper & Co. for conversion of wool purchased from grower members who had marketing agreements with the co-op. Draper & Co. bought the 1935 wool clip directly from the growers while it was in their possession, without the co-op having taken physical possession. The co-op claimed absolute title under its contracts, while Draper & Co. asserted it was a bona fide purchaser and that the co-op was estopped.

Issue

Did the co-operative marketing agreements vest absolute title in the association, making Draper & Co. liable for conversion, or was Draper & Co. protected as a bona fide purchaser or by the doctrine of estoppel?

Holding

The court affirmed the dismissal of the co-op's claims, finding Draper & Co. was either a bona fide purchaser without notice for some wool or that the co-op was estopped by its conduct and representations regarding other wool.

Rule

Under the Uniform Sales Act, a seller remaining in possession after a sale can transfer good title to a subsequent bona fide purchaser for value without notice. Additionally, an organization can be estopped from asserting its contractual rights if its actions or statements lead a third party to reasonably believe a transaction is permissible.

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Case brief last reviewed 2026-04-02. Prepared by CaseReader from the published opinion.