Carson v. Hawley

122 F. 55, 58 C.C.A. 237, 1903 U.S. App. LEXIS 4742
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 13, 1903
DocketNo. 1,830
StatusPublished

This text of 122 F. 55 (Carson v. Hawley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carson v. Hawley, 122 F. 55, 58 C.C.A. 237, 1903 U.S. App. LEXIS 4742 (8th Cir. 1903).

Opinion

SANBORN, Circuit Judge.

At the trial the jury sustained the defense which has been stated, and no complaint of the proceedings relative to the trial of the issue which this defense presents is made. But counsel for the plaintiff insist that the court erred because it did not-give an instruction to the jury that the plaintiff was entitled to a verdict for the value of the goods taken by the sheriff, and that the sheriff was estopped from asserting the fraudulent character of the sale to the plaintiff by the fact that the trustee in bankruptcy of Crittenden’s estate had subsequently recovered of one of his creditors as a preferential payment a part of the proceeds of that sale, which Crittenden had received and paid to that creditor at the time of the sale. The contention is that the receipt of this portion of the proceeds of the sale by the trustee was an affirmance of the sale not only by the trustee, but by all the creditors of Crittenden, and especially by Kellogg, Johnson & Co., the plaintiff in the attachment. This question was properly raised and preserved in the court below by offers of testimony, rulings, and exceptions, which it is unnecessary to state in detail. The essential facts which condition it are these: The sale by Crittenden to the plaintiff, Carson, was made on October 25, 1898, and out of the proceeds of that sale, which were paid to him by the plaintiff, Crittenden paid to R. P. Smith & Sons Company, one of his creditors, a debt of about $679, which he owed to this creditor. On December 1, 1898, Kellogg, Johnson & Co. commenced its action against Crittenden, and issued the writ of attachment under which the sheriff seized the goods then in possession of Carson. Before the sheriff made the levy, Kellogg, Johnson & Co. fully indemnified him against all loss or damage which might result to him on account of his seizure of the property under the writ. On January 25, 1899, Crittenden was adjudged a bankrupt, and about February 10, 1899, L. W. French, the secretary, treasurer, and credit man of Kellogg, Johnson & Co., was chosen his trustee in bankruptcy at a meeting of creditors in which Kellogg, Johnson & Co. participated. French then and at all times thereafter knew the fraudulent character of the sale by Crittenden to Carson, and that it was voidable at the election of the creditors. On October 19, 1899, he commenced an action as trustee in bankruptcy against Smith & Sons* Company (1) to recover as a fraudulent preference the $679 which Crittenden had paid to Smith & Sons Company out of the proceeds of his sale to Carson, and (2) to recover $2,150.24 for the conversion by Smith & Sons Company, of that portion of the personal property which Carson had received from^Crittenden and had sold before the attachment was levied, on the theory that Carson was in reality the agent of Smith & Sons Company. About April 15, 1901, Smith & Sons Company offered, and French, as trustee, accepted, judgment in this action for $679, the alleged preferential payment, and this judgment was paid [57]*57to the trustee by Smith & Sons Company. On -June 24, 1901, the action in hand was commenced, and the contention of counsel for the plaintiff is that the sheriff was estopped from defending it on the ground of the invalidity of the sale to Carson, because French, the trustee, and the representative of Kellogg, Johnson St Co., a creditor, affirmed the sale by accepting the $679 derived from its proceeds. They argue that as to the plaintiff, Carson, and the vendor, Crittenden, the sale of October, 1898, was valid; that this sale was voidable by creditors only; that no creditor could affirm it in part and avoid it in part; that the acceptance by any creditor of a part of the purchase price of the sale as Crittenden’s property was an affirmance of the sale; that French, after .his election as trustee, was the representative of all the creditors, and, among others, of Kellogg, Johnson & Co., the plaintiff in the attachment, and that his action was their action; that French’s acceptance of the $679 as the repayment of a fraudulent preference of Smith & Sons Company, effected by the payment to Smith & Sons Company by Crittenden of a part of the money which he had derived from the sale to Carson, was an affirmance of the validity of that sale, which estopped French, the trustee, and Kellogg, Johnson & Co., the attaching creditor, from maintaining its invalidity; and that this estoppel of the trustee and of Kellogg* Johnson & Co. also estopped the sheriff from defending the action of conversion against him upon the ground that that sale was fraudulent and voidable and entitled the plaintiff, Carson, to a verdict in his favor in this action.

Conceding, without deciding, that the action of the trustee in 1901 in accepting the return of the preferential payment estopped him and Kellogg, Johnson & Co. from thereafter asserting the invalidity of the sale to the plaintiff, Carson, did that estoppel have the effect to deprive the sheriff of the right to defend this action against him upon that ground? The gravamen of this action—the allegation of the complaint upon which it is based—is that on December 1, 1898, under a writ of attachment against Crittenden in an action brought by Kellogg, Johnson & Co. against him, this sheriff seized and converted the goods of the plaintiff, Carson. The plaintiff alleged that the cause of action accrued on December 1, 1898, and, if it did accrue at all, it accrued on that day. The rights of the parties on that day, therefore, and not their rights at any other time, condition the existence or nonexistence of this alleged cause of action. It is not an action to recover the goods, and hence the subsequent rights of the parties to the property have no relevancy to the issue which the plaintiff, Carson, has tendered in his complaint, and which is to be determined in this action. This is an action for conversion on a given day. Its basis is the wrongful seizure on December 1, 1898. If the sheriff had the right to levy upon and take this property into his custody on that day, the plaintiff, Carson, has no cause of action. If the sheriff had no right to seize these goods under his°writ on December 1, 1898, then the plaintiff can maintain this action. The instant this seizure was made, the damages alleged in this action accrued, if the seizure was wrongful.

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

Cite This Page — Counsel Stack

Bluebook (online)
122 F. 55, 58 C.C.A. 237, 1903 U.S. App. LEXIS 4742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carson-v-hawley-ca8-1903.