Bank of Huntington v. Napier

23 S.E. 800, 41 W. Va. 481, 1895 W. Va. LEXIS 110
West Virginia Supreme Court·Decided December 7, 1895·Published·Cited by 14 cases

Opinion

Dent, Judge:

This suit grows out of the claim of C. Crane & Co., a corporation, made to fourteen rafts of timber levied on by the sheriff of Wayne county under an execution issued January 5, 1895, against W. S. Napier. The timber levied on was in Twelve Pole creek, near the mouth thereof, and was claimed by C. Crane & Co. The Bank of Huntington claimed the property as W. ¡3. Napier’s, and gave a bond of indemnity to the sheriff, and Crane & Co. gave a suspending bond to suspend the sale until the rights of the property could be determined, and on the 7th day of February, 1895, Crane & Co. filed their petitiou, claiming the property. To this petition the Bank of Huntington filed its answer, and on the 6th day of February a jury was impaneled to try the rights of the property, which jury, on the 7th day of February, returned a verdict in favor of the claimants, which verdict the execution creditor, the Bank of Huntington, asked to be set aside as contrary to the law and evidence. This was refused, and judgment rendered against the right of the bank to levy the execution upon the timber, and to such judgment of the Circuit Court of Wayne county, the Bank of Huntington obtained a writ of error.

In argument the following errors are insisted on, to wit: (1) The giving of the three instructions for defendent in error; (2) the refusal to give instruction No. 4 for plaintiff in error; (3) the overruling of the motion to set aside the verdict as contrary to the law and evidence.

[483] The facts, as adopted from the brief of Campbell & Holt, attorneys for defendant in error, are as follows, to wit: C. Crane & Co., a copartnership of Cincinnati, Ohio, engaged on a large scale in the lumber business, on the 10th day of June, 1891, entered into a contract in writing with M. B. Goble and W. S. Napier, whereby the hitter sold to C. Crane & Co. certain timber to be hauled in Twelve Pole for certain prices specified, and among other stipulations it was especially agreed that said timber should be branded with a brand of C. Crane & Co., and when measured and so branded the timber should become and be the property of’C. Crane & Co. Considerable timber was gotten out, measured and branded under this contract up to the 11th clay of November, 1891, when M. B. Goble failed in business. Goble’s failure necessitated his dropping out of the contract. Accordingly, on the 11 day of November, 1891, another memorandum of agreement was made, whereby it was agreed“that all further transactions in regard to said timber contract shall be directly between C. Crane & Co. and W. S. Napier, instead of between M. B. Goble and W. S. Napier.” When this contract was signed, to wit, on the 11th day of November, 1891, C. Crane & Co. had measured and branded twenty seven thousand dollars worth of timber, and paid for it. In operating under the contract of June 10, 1891, C. Crane & Co. would send out their agent each month to inspect, brand, and receive the timber, and make up a proper statement of the amount due therefor, and these amounts were paid to M. B. Goble. After Goble failed, and had dropped out of the contract, the same method was pursued for three or four months with W. S. Napier, when C. Crane & Co. learned that W. 8. Napier had become insolvent by reason of his indorsements of Go-ble’s paper prior to his failure, and that when money was sent to W. S. Napier by C. Crane & Co. to pay for the timber, certain of Napier’s creditors seized on it, thus preventing it from going to the haulers and producers of the timber, and disabling Napier from carrying out his contract. The haulers and producers of the timber would not deliver the timber to W. S. Napier till they received their pay. Thereupon the mode of transacting the business was [484] changed so that the price of the timber delivered under the contract was paid direct by C. Crane & Co. to the haulers. This change was necessary in order to continue the business.

C. Crane & Co. bought other timber in Twelve Pole; some from S. S. Vinson,—about eight thousand logs; and some from Asbury Jackson,—about six thousand Logs. W. S. Napier was in no way connected with these purchases, except he agreed to drive, raft, and deliver it at Cincinnati for a price.

C. Crane & Co. also bought a large number of standing trees—about fourteen thousand — and branded them. Most of these—about eleven thousand—were cut and hauled into Twelve Pole. W. S. Napier had no money or interest in these standing trees, except to drift when put into the water.

C. Crane & Co., on finding Napier without means, entered the creek, and paid directly to laborers and others the money for drifting, splashing, booming, rafting, and towing all the timber gotten out. Napier invested nothing in any of this timber except labor in procuring people to haul, and in helping to drift, etc.

In January, 1895, about fifteen thousand of these logs were run out to the boom at the mouth of Twelve Pole, and were being rafted preparatory to being towed to Cincinnati, when they were levied on under the executions aforesaid as the property of W. S. Napier.

The question presented to the court is whether the timber in controversy at the time of the levy was in good faith the property of C. Crane & Co., or whether the arrangement between said company and W. S. Napier was entered into and carried on as a device to hinder, delay, and defraud the creditors of the latter. As to the former question, the burden is on the plaintiff company ; as to the latter, it is on the defendant, the Bank of Huntington.

The following are the contracts under which the logs are claimed, to wit:

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Bank of Huntington v. Napier, 23 S.E. 800, 41 W. Va. 481, 1895 W. Va. LEXIS 110 (W. Va. 1895).

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