Boswell v. First National Bank of Laramie

92 P. 624, 16 Wyo. 161, 1907 Wyo. LEXIS 45
CourtWyoming Supreme Court
DecidedDecember 7, 1907
StatusPublished
Cited by35 cases

This text of 92 P. 624 (Boswell v. First National Bank of Laramie) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boswell v. First National Bank of Laramie, 92 P. 624, 16 Wyo. 161, 1907 Wyo. LEXIS 45 (Wyo. 1907).

Opinions

Pottrr, Chirk Justicr.

This is a replevin action brought by the First National Bank of Raramie, to recover possession of fifty head of neat cattle. Upon the giving of an undertaking for that purpose as provided by statute, the property was re-delivered to the defendant below, plaintiff in error here, by the officer who executed the writ. The plaintiff below claimed to be entitled to the possession of the property by virtue of an alleged special ownership under two chattel mortgages purporting to have been executed to the plaintiff by Thomas Bird, William J. Bird and Julia A. Bird, co-partners doing-business under the firm name of Bird Brothers. The defendant below was in possession, claiming the property under a sale by the sheriff acting as receiver of the property and effects of Bird Bx-others in a proceeding in aid of execution instituted by a creditor of that firm subsequent to the execution and recording of plaintiff’s mortgages.

[179]*179The court instructed the jury that upon the evidence the plaintiff was entitled to recover the value of the property at the date of the commencement of the action, together with interest from that date at eight per cent per annum. The jury returned a verdict for the plaintiff, assessing its damages at the sum of $1,830. Judgment was rendered upon the verdict to the effect that the plaintiff have and recover from the defendant the said sum, with costs of suit. The defendant brought the case here on error. The other material facts will be referred to in discussing the points involved in a disposition of the case.

1. In the first place it is contended that the mortgages held by plaintiff were not properly executed to create a lien upon partnership property. That contention is based upon the fact that the names of two of the partners, Julia A. Bird and William J. Bird, were signed to the mortgages by Thomas Bird, the other' partner, as their attorney in fact. It is urged that this is not a compliance with the statute declaring it to be necessary for each and every member of a co-partnership to execute and acknowledge an instrument intended to operate as a chattel mortgage for and on behalf of the partnership. (R. S. 1899, Sec. 2808.) But we think that position cannot be sustained. Construing the statute referred to, it has been held essential to a valid chattel mortgage of partnership property that each partner should sign it. (Lellman v. Mills, 87 Pac., 985; Thomas et al. v. Schmitz, 87 Pac., 996; Ridgely v. Bank, 75 Fed., 808.) The plaintiff introduced in connection with the mortgages a power of attorney antedating them purporting to be executed by Julia A. Bird and William J. Bird, in substance and effect expressly authorizing'their co-partner, Thomas Bird, as their true and lawful attorney, for them respectively and in their respective names, to'mortgage any and all chattel property belonging to the partnership of Bird Brothers, to secure any and all indebtedness of said partnership or the members thereof, then or théreafter existing, and for such purposes to make, execute and acknowledge in [180]*180their names or otherwise any' and all such conveyance or mortgage as may be needful or proper; and, by such written power, said Thomas Bird was expressly granted full power and authority to do and perform all and every act and thing requisite and necessary in the premises, as fully, to all intents and purposes, as the persons executing the same could do if personally present. Certain objections were interposed to the power of attorney which are to be considered, but for the purpose of the present question its proper execution and competency as evidence may be assumed. If it was not properly executed, or if for any other reason it was improperly admitted in evidence, then there would be no authority shown for the signing by Thomas Bird of the names of his co-partners, and his signature alone with that of the firm name signed by him would be insufficient to render the mortgages valid as liens upon the partnership property. But there is nothing in the statute nor any peculiar feature of the partnership relation, which prevents a partner, if under no legal disability, from appointing another, by means of a' duly executed power of attorney, to act for him and in his name in the execution and acknowledgment of a partnership chattel mortgage, and we perceive no reason why the agent or attorney so appointed may not be a co-partner. The execution of the instrument by the attorney under such a power is to be regarded 'as the act of the principal, as much so .as though he had been personally present and had signed by his own hand. Indeed, in Thomas & Schmitz v. Schmitz, supra, we took occasion to say that we suppose^ oiie partner might by a properly executed power of attorney authorize a co-partner as well as another person to sign his name to a chattel mortgage of partnership property and acknowledge it for him.

2. Error is assigned upon the court’s refusal 'to permit proof on the part of defendant that the notary public who took the acknowledgment to each of the mortgages was at the time of taking the same a stockholder of the plaintiff bank, the mortgagee. Evidence to that effect was offered [181]*181for the purpose of showing that the officer was disqualified by reason of interest, which fact it is contended would render the acknowledgment void. A similar offer of proof was made as to the notary who administered and certified to the oaths to certain affidavits which had been filed as provided by law to continue the chattel mortgages in force as against third parties.

That an officer who is financially or beneficially, interested in the transaction is incompetent to take and certify the acknowledgment to an instrument is a well settled and commendable rule, and is to be sustained if for no other reason upon the ground of public policy. By the great weight of authority the • interest of a stockholder in - a corporation is held to disqualify him to take an acknowledgment where the corporation is a party to the instrument. (First Nat. Bank v. Citizens’ State Bank, 11 Wyo., 32.) It is generally stated that an acknowledgment is void when taken and certified by an officer disqualified by reason of interest, and that where an acknowledgment is essential to the validity of the instrument itself, the latter is also void if acknowledged before a disqualified officer — as in the case of a wife’s conveyance of the homestead under our statutes. (Id.) The statement occasionally to be found in judicial decisions to the effect that an acknowledgment taken before an officer disqualified on account of interest is void for all purposes is not, we think, entirely accurate if intended to apply in all cases. Its correctness may be conceded in respect to instruments which are absolutely void without a proper acknowledgment, and also instruments which disclose the defect upon .their face or the face of the certificate of acknowledgment. Where, however, the infirmity is not apparent upon the face of the deed or instrument or certificate of acknowledgment, but the acknowledgment appears to be fair and regular and to have been properly taken, and the instrument is one which would not be invalidated as between the parties to it by a defective acknowledgment, the recording of the instrument in the proper office will operate as con[182]*182structive notice thereof, notwithstanding- the latent defect. This rule is sustained by abundant authority and is founded upon public' policy to carry out the purpose of the recording-acts and preserve the reliability of the public records of transfers and conveyances.

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Bluebook (online)
92 P. 624, 16 Wyo. 161, 1907 Wyo. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boswell-v-first-national-bank-of-laramie-wyo-1907.