Beebe v. Fouse

199 P. 364, 27 N.M. 194
CourtNew Mexico Supreme Court
DecidedJune 22, 1921
DocketNo. 2495
StatusPublished
Cited by9 cases

This text of 199 P. 364 (Beebe v. Fouse) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beebe v. Fouse, 199 P. 364, 27 N.M. 194 (N.M. 1921).

Opinion

OPINION OF THE COURT.

ROBERTS, C. J.

Appellee brought this suit against appellant to recover certain articles "of personal property which appellee claimed to own, and which were in the possession of appellant. Appellant based his claim to chattels upon the fact that he had purchased the same at a sale made to satisfy a landlord’s lien. The case was tried to the court without a jury, and the court found that the appellee had sold the chattels in question to one Miller some time in the months of January and February, 1917, under a title retention contract; that Miller had made certain payments upon the property; and that he subsequently, with the consent of appellee, transferred the property to one Owens. The property in question was used in a dry-cleaning establishment, and the business was carried on in a building owned by the Kent estate, of which W. P. Metcalf was agent. Owens defaulted in the payment of the rent and left the state. He had not made any payment to appellee on the contract between appellee and Miller after January 2, 1918, and this, action was not filed until .the 20th day of February, 1919. But no demand was made upon Owens by appellee, and appellee testified that Owens retained possession of the property with his consent thereafter. In other words, he did not elect to forfeit the contract.

The court found that there was no new contract entered into between Owens and appellee when ap-pellee took the goods over from Miller, and that ap-pellee did not release Miller from his obligation, but did agree to accept payments from Owens on the Miller contract. The court found the facts and stated conclusions of law in favor of appellee, and entered judgment accordingly, from which this appeal is prosecuted.

The first point made by appellant is that the agreement between appellee, Miller, and Owens in the summer of 1917, whereby Owens went into sole possession of all the chattels, was invalid as against a landlord’s lien unless acknowledged and recorded. This contention is based upon the assumption that there was a novation; otherwise it is without merit.

“A novation, then, as understood in modern law, is a mutual agreement, between all parties concerned, for the discharge of a valid existing obligation by the substitution of a new valid obligation on the part of the debtor or another, or a like agreement for the discharge of a debtor to his creditor by the substitution of a new creditor.” 20 R. C. L. p. 360.

[1] In view of the finding of the court that Miller was not released, there could be no novation. It goes without saying that if there was a conditional sale contract between Owens and appellee such a contract would, under the terms of chapter 74, Laws 1917, be required to be recorded in order to afford protection to the seller against the parties named in the statute. There is a question, which will be discussed later, as to whether a landlord’s lien would be within the protection of the statute, but as between Owens and appellee there was clearly no conditional sale, but merely an agreement or understanding between the parties that appellee would and did consent that he would accept the installments due under the Miller contract from Owens. The sale or contract existed between Miller and Owens, not between appellee and Owens. Ap-pellee did not accept Owens as his debtor, and would have had no cause of action against Owens for the debt. We quote the statute:

“Section 1. That section 2 of chapter 71 of the Session Laws of 1915, relating to chattel mortgages, be and the same is hereby amended so as to read as follows:
“ ‘Sec. 2. That hereafter all chattel mortgages, conditional sales, leases, purchase leases, sale leases, or other instruments of writing having the effect of a mortgage or lien upon personal property, or that are intended to hold the title in the former owner, possessor or grantor until the value or purchase price is fully paid, shall be acknowledged by the owner or mortgagor in the same manner as conveyances affecting real estate, and the same shall be filed or recorded as hereinafter required. The failure to so file or record any such instrument in writing shall render the same void as to subsequent mortgages in good faith, purchasers for value without notice and subsequent judgment or attaching creditors without notice;.and as against subsequent general creditors without notice such unrecorded instrument shall not be valid until the same shall be duly filed or recorded as hereinafter provided.’ ”

[2] It will be seen that under the terms of this statute it was only the conditional sale contract that had to be acknowledged and recorded. Appellant argues that this construction of the statute and the facts in this case leave the parties dealing with the apparent owner of the chattels, which are in his possession, where he holds them under an agreement with the original purchaser under the conditional sale contract, by which such apparent owner is to pay out the original contract, without any protection and subject to imposition and fraud. The answer as to this is that the legislature has not seen fit to provide against such a conting-ency, and that, however meritorious such a provision might be, it is not the province of the court to extend the terms of the statute beyond its plain language. This contract between appellee and Miller was entered into before chapter 74, supra, went into effect; consequently ap-pellee’s rights were protected under the conditional sale contract, although it had not been recorded.

Our statute (section' 3334, Code 1915) gives' to landlords a lien on the property of their tenants which remains in the house rented.' Property which is held by the tenant under a conditional sale contract, where title has not passed, is not the property of the tenant within the meaning of the statute, and the landlord’s lien would not extend to any such goods (Bingham v. Vandegrift, 93 Ala. 283, 9 South. 280).

[3] But there is another sufficient reason why appellant was not entitled to recover or retain the goods purchased by him in this case, and that is that, even though it be assumed there was an oral conditional sale contract between appellee and Owens, of course not acknowledged or recorded, the appellant claiming under a sale to satisfy a landlord’s lien, would not come within the protection of the statute. A conditional sale contract is invalidated when not recorded as to “subsequent mortgages in good faith, purchasers for value without notice, and subsequent judgment or attaching crediors without notice, and as against subsequent general creditors without notice.” Of course, if appellant held “in privity” with the landlord, and such landlord was within the protection of the statute, appellant would be protected; but the landlord proceeding to enforce his lien was neither a. subsequent mortgagee; judgment or attaching creditor, nor' a general creditor.

“General- creditors are persons who have given credit and who have no lien or security for the payment-of a debt so created.” Words and Phrases, First Series, vol. 4, p. 8058.

It cannot be- said that appellant was a purchaser for value without notice.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Khalsa v. Levinson
2003 NMCA 018 (New Mexico Court of Appeals, 2002)
Hesselden v. Karman
356 P.2d 451 (New Mexico Supreme Court, 1960)
Underwood v. Sapir
273 P.2d 741 (New Mexico Supreme Court, 1954)
City of Hot Springs v. Hot Springs Fair & Racing Ass'n
1952 NMSC 039 (New Mexico Supreme Court, 1952)
Altman v. Kilburn
116 P.2d 812 (New Mexico Supreme Court, 1941)
Nixon-Foster Service Co. v. Morrow
64 P.2d 92 (New Mexico Supreme Court, 1936)
Laws v. Pyeatt
52 P.2d 127 (New Mexico Supreme Court, 1935)
Baldwin Piano Co. v. George H. Wade & Co.
232 P. 523 (New Mexico Supreme Court, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
199 P. 364, 27 N.M. 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beebe-v-fouse-nm-1921.