Burns v. Campbell

71 Ala. 271
CourtSupreme Court of Alabama
DecidedDecember 15, 1882
StatusPublished
Cited by91 cases

This text of 71 Ala. 271 (Burns v. Campbell) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burns v. Campbell, 71 Ala. 271 (Ala. 1882).

Opinion

SOMERYILLE, J.

The present case is an action of trespass, brought by a mortgagor against the mortgagee and another, for taking possession of certain personal property, under a power of sale contained in the mortgage. The seizure was made in January, 1875, after the law-day of the mortgage, by order of the defendant, John F. Burns, acting as the agent of his father, James IT. Burns, who is shown not to have originally authorized the act, but who is sought to be made liable upon the ground of a subsequent ratification.

1. At the time of this transaction, the principle of law prevailing in this State was, that a mortgagee of chattels could sustain an action of detinue for them after default, if any portion of the mortgage debt remained unpaid. ITis right to recover could only be defeated by showing payment or discharge of the entire debt.-Morrison v. Judge, 14 Ala. 182; Bell v. Pharr, 7 Ala. 807. It is immaterial that this principle has been since modified by legislation, so as to authorize the defendant to put in issue, in such eases, the amount due on the mortgage debt.-Session Acts, 1880-81, p. 39. If the mortgagee would be entitled to sue in detinue under such circumstances, the right must be based upon a general or special property in the goods sought to be recovered, coupled with the right of immediate possession.-Gafford v. Stearns, 51 Ala. 434; 1 Chitty’s Plead. 121.

If, therefore, at the time the mortgagor’s goods were seized, there remained any part of the mortgage debt unpaid, the mortgagee’s right to take possession of the whole of the mortgaged property under the power of sale granted in the instrument, would not be affected by reason of the partial payments previously made, unless such be' the fair inference from the language of the mortgage. In the present cáse, we discover no words or language qualifying or limiting the general power to take possession of the entire property, after default.

2. It was not competent for the plaintiff, in this action of trespass, to assail the mortgage debt for usury. Usurious contracts in this State are not absolutely void, but merely voidable [285]*285to tbe extent of the interest. — Code of 1876, § 2092. The defense must be specially pleaded, and is not available under the' general issue.-Masterson v. Grubbs, 70 Ala. 406; Munter v. Linn, 61 Ala. 492. If a debtor elect to avoid a debt for usurious taint, he may do so, by special plea, in a suit brought by the creditor to recover judgment against him for the enforcement of the debt (Code of 1876, §§ 2092, 3010,); Or he may, in a proper case, resort to a court of equity and obtain relief upon condition of paying the principal and legal rate of interest.. McGehee's Adm’r v. George, 38 Ala. 323; Uhfelder v. Carter’s Adm’r, 64 Ala. 527. But usury in a debt secured by mortgage, does not affect the validity of the mortgage, and is not available, at law, in an action founded on the mortgage.-Kelly v. Mobile B. & L. Association, 64 Ala. 501; Bradford v. Daniel, 65 Ala. 133.

The mortgage executed by plaintiff to James H. Burns, one of the defendants, was introduced in the present case as evidence of defendant’s title to the property seized under it. Neither the mortgagee, nor his agents, could be made trespassers by an effort on plaintiff’s part to collaterally assail the mortgage debt as usurious, thus imparting retrospective operation to a.n election as to- usury thus irregularly made. All the evidence, which was admitted in the trial below looking to this end, was irrelevant, and should have been excluded.

3. It is contended that the mortgage debt has been entirely extinguished by the proceeds of certain cotton shipped by the mortgagor, Campbell, to the mortgagee, Burns, and sold by the latter, or under his authority, as a cotton factor and commission merchant. If this be true, and the fact be shown satisfactorily by the evidence introduced on the trial, then such payment would discharge the mortgage, and entirely extinguish the lien intended to be secured on the property conveyed by it. Herman on Chat. Mort. § 168; Dryer v. Lewis, 57 Ala. 551. In such event the mortgagee would be chargeable as a trespasser, if he sought, either through himself or his agent, to seize the mortgaged property, for he could not show title under a satisfied mortgage, or justify taking possession under a power conferred by it.

The mortgage in question was executed by the appellee on March 3, 1874, and was given to secure a note for one hundred and twenty-five dollars, payable to James H. Burns, October-1, 1874; also such advcmees as Burns, the mortgagee, might make to Campbell, the plaintiff, during the year, to enable him to cultivate certain lands, including commissions of .two and a half per cent, for selling certain cotton agreed to be shipped by plaintiff to Burns. It conveyed all the mortgagor’s crop of' cotton and corn, to be grown during the current year in Dallas. [286]*286Gounty, together with “ all his effects of every description,” including one sorrel mare described by name. In ascertaining whether the morgage debt was paid or not, which was a‘vital issue in the case, it was of course competent to investigate the account of Burns as rendei’ed against Campbell. The proceeds of the cotton, which was subject to the lien of the mortgage, less all proper charges against it, would be a fund in the hands of the mortgagee, which the law, in the absence of a contrary agreement, would appropriate to the payment of the mortgage debt.-Schiffer v. Feagin, 51 Ala. 335. Among these proper charges, liable to be deducted, would be included the commissions agreed to be paid for selling the cotton; and no collateral investigation into their usurious character could be permitted in this action.

4. For all articles of merchandise, advanced by Burns to Campbell, he was entitled to charge such prices as may have been agreed on; or, in the absence of any agreement, a fair and reasonable market valuation, as estimated at the time and place of sale. What the prices of the goods were, as paid by Burns at wholesale purchase, at another time or place, was entirely immaterial. Fair and honest dealing-is all that the law exacts from the mortgagee, under such circumstances, in his transactions with the mortgagor. While it is his duty, on the one hand, not to oppress, he is, on the other, under no obligations to confer benefactions.

5. If a debtor, to whom an account is rendered, either admits its correctness, or retains it and makes no objection within a reasonable time, he will be bound by it as an account stated, his silence, in the latter case, being presumptively construed into an acquiescence in its justness.-Langdon v. Roane's Adm'r, 6 Ala. 518. So if one item only is objected to, this is an admission of the correctness of the other items to which no objection is interposed.-2 Greenl. Ev. § 126; Chisman v. Count, 2 M. & Gr. 307. If, therefore, Burns rendered his account to Campbell, as the evidence tends to show, and the latter, several days afterwards, objected only to the item charged for rails, this would be an implied admission of the correctness of the rest of the account.

6. It was no valid objection to the correctness of the account that one of the items advanced to plaintiff by the mortgagee, James IT. Burns, was a horse belonging to John F. Burns, provided the latter consented to such disposition of his property.

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Bluebook (online)
71 Ala. 271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burns-v-campbell-ala-1882.