Beaver Creek Consol. Coal Co. v. Porter Min. Co.

60 F.2d 602, 1929 U.S. Dist. LEXIS 1160
CourtDistrict Court, E.D. Kentucky
DecidedFebruary 22, 1929
StatusPublished
Cited by4 cases

This text of 60 F.2d 602 (Beaver Creek Consol. Coal Co. v. Porter Min. Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beaver Creek Consol. Coal Co. v. Porter Min. Co., 60 F.2d 602, 1929 U.S. Dist. LEXIS 1160 (E.D. Ky. 1929).

Opinion

ANDREW M. J. COCHRAN, District Judge.

This suit is before me on the claim of the Jeffrey Manufacturing Company and Ridgeway Dynamo Engine Company to a lien, and their right to a lien depends on whether their mortgages were recorded in the proper county. They were both recorded in Ployd county. Section 495, Carroll’s Kentucky Statutes (6th Ed. 1922), provides that “all deeds and mortgages * * * shall be recorded in the clerk’s office of the * * * county in which the property conveyed, or the greater part thereof, shall be.” This legislation goes back to the act of 1820. It will be noted that no distinction is made between real and personal property. The same requirement is made as to the one as to the other. In the case of Vaughn v. Bell, 9 B. Mon. 447, it was said: “The language used in this last named act [i. e. act of 1920] applies more appropriately to land, than to personal property.”

As to real property, what the statute calls for is actual location. It cannot be anything else. Such property always has an actual location. It cannot have a constructive location. Though personal property can have a, constructive location, as the same language is used as to it as to real property, it would seem that what is called for as to it is actual location and not constructive. The language used contemplates actual location. The mortgage as to it is to be recorded in the county where such property “shall be,” i. e. where it actually is. That such is the thought is made certain by the fact that the requirement is that such a mortgage shall be recorded in the county “in which the [603]*603property conveyed or the greater part thereof” shall be. This contemplates the possibility that personal as well as real property may be located in two counties, in -which case the requirement is that the mortgage therein shall be recorded in the county where the greater part thereof is located. Now personal property can be constructively located in but one county. It can be located in two counties actually only. According to tho literal requirement, therefore, of the statute it is that a mortgage on personal property shall be recorded in the county where such property is actually located at the time of the execution of the mortgage. This negatives the idea that constructive location has an> thing to do "vvitli tlie place of recordation.

But, in view of the fact that personal property is movable, it is possible for it to be temporarily in one county, but usually in auother, as, for instance, at'the place ol the residence of tho owner. The Court of Appeals of Kentucky was early confronted with the questions as to where a mortgage should he recorded when, at the time of its execution, tho personal property covered by it was ternporarily in a county different from the mortgagor’s residence. It was held that in such a case the mortgage should bo recorded in the county of the mortgagor's residence. It was so held in the following cases, to wit: Singleton v. Young’s Ex’rs, 3 Dana, 559; Vaughn v. Bell, 9 B. Mon. 447; Coppage v. Johnson, 107 Ky. 620, 55 S. W. 424; Day & Congleton L. Co. v. Mack Stadler & Co., 139 Ky. 587, 69 S. W. 712; Burbank & Burbank v. Bobbitt, 157 Ky. 524, 163 S. W. 457.

The basis of the holding was that what the statute had in mind was permanent location, not temporary. Personal property is permanently located where it usually is and it usually is at the residence of tho owner, It was driven to this view by the necessity of certainty as to the place where the mortgage is to he recorded.

The ease of Singleton v. Young, involved a mortgage on slaves. It was said: “Lands,, being permanent, indicate with certainty their own neighborhood as the proper place of preserving the evidences of title. But personal property, being movable and liable to frequent changes of position, its actual position at the time of making a conveyance, furnishes no useful indication of tho place for recording the evidences of transfer. The owner, also, may change his residence, but his personal property is still more liable to change its position; and it is less easy to trace it through its various localities than to trace the owner through his changes of residence.” Again it was said: “It must, however, be admitted, that neither the residonee of the mortgagor, nor the position of the property, at the date of the mortgage, furnishes so certain an index to the place where the record of the instrument ought to be and may be found, as is furnished in the ease of a conveyance of land; * * * but we think the residence of the party being more permanent, and more easily traced than the locality of his moveable property, is more appropriate to the purposes of the law, and answers as well to its literal requisition.”

The case of Vaughn v. Bell involved a mortgage on a horse. It was said: “Whether^ therefore, the act of 1820, has or not produced any change in the law as it was Die time of its passage in reference to Dm place of recording a mortgage on personal property, when tho property is situated J'or some permanent purpose, in a county different from that in which the mortgagor resides at the time, (which we do not now decide,) we are well satisfied that no such change is produced by it, when the property usually remains in the county where the mortgager resides,, and happens to be in another county for some temporary purpose merely, Die time tho deed is executed.”

The case of Coppage v. Johnson, 107 Ky. 620, 55 S. W. 424, 425, also involved a mortgage on a horse. It was said: “Any other rule would leave the place of record too uncertain.”

The case of Day & Congleton L. Co. v. Mack, Stadler & Co., 139 Ky. 587, 69 S. W. 712, 713, involved a mortgage on a portable engine. It thus generalized the three preceding eases cited: “In the eye of the law Die situs of personal property is the domicile of its owner. It has, therefore, been uni-i'ormly held in this state that the recording of a mortgage of personal property to be valid as constructive notice, must be in the county f the owner’s residence if he have a I^ee of residence m this state.”

The case of Burbank & Burbank v. Bobbitt, 157 Ky. 524, 163 S. W. 457, involved a mortgage on an automobile. It was said: “Under this statute, it has been consistently held by this court that a mortgage on personalty should he recorded in the county of Dm residence of the owner thereof, that county being, in legal contemplation, the situs the property.”

The statement in the quotations from these last two cases that tho holding of the preceding three that the mortgage should be [604]*604recorded in the county of the residence of the owner of a mortgaged property was because such is the situs thereof is broader than such holding warrants. They do not deal with the situs of personal property. They simply interpret the requirement of the statute that a mortgage thereon shall be recorded in the county where the personal property covered by it shall be, i. e., is at the time of the execution of the mortgage. The meaning is that it shall be recorded where such property is permanently located, which is where it “usually remains,” which is at the mortgagor’s residence and not where it may temporarily be. This gives reasonable certainty as to the place of recordation of personal property, as near to the certainty as to the place of recordation of a mortgage on real estate as it is possible to have it.

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Bluebook (online)
60 F.2d 602, 1929 U.S. Dist. LEXIS 1160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beaver-creek-consol-coal-co-v-porter-min-co-kyed-1929.