Coburn v. Watson

67 N.W. 171, 48 Neb. 257, 1896 Neb. LEXIS 57
CourtNebraska Supreme Court
DecidedMay 6, 1896
DocketNo. 6511
StatusPublished
Cited by5 cases

This text of 67 N.W. 171 (Coburn v. Watson) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coburn v. Watson, 67 N.W. 171, 48 Neb. 257, 1896 Neb. LEXIS 57 (Neb. 1896).

Opinion

Harrison, J.

This action was commenced in tbe district court of Douglas county by John L. Watson on the bond of William Coburn, as sheriff of Douglas county, against William Coburn as principal and the other defendants as his sureties. The alleged cause of action was the conversion of a stock of furniture and musical instruments. A trial of the issues resulted in ’a verdict and judgment in favor of Watson, from which both parties prosecuted error proceedings to this court. The former judgment was by this court reversed and the cause remanded to the district court. (For the former decision see 35 Neb., 492.) In the district court, in a second trial, Watson was successful and received a verdict and judgment, and the case is presented here by the other parties for review of the proceedings during the second trial.

It appears that a corporation named the New York Storage & Loan Company was, or had previous to February 28, 1888, been engaged, in business in the city of Omaha, and was the owner of the property the alleged conversion of which was the basis of this action, and on the day just stated the corporation, being indebted to John L.'Watson for money borrowed by it of him, executed and delivered to him a chattel mortgage covering its stock of furniture and musical instruments, etc., to secure the payment of the debt. Watson then took possession of the goods and conducted the business, and was, under and by virtue of his lien, in possession of the stock on April 24 of the same year. During the afternoon of the last mentioned date, Coburn, as sheriff, levied an execution in favor of W. L. Hall, and against the New York Storage & {man Company, on the stock and took possession of it, and subsequently levied a writ of attachment in an action wherein Dell R. Edwards was plaintiff and the corporation defendant. George C. Wheeler, who was president of the New York Storage & Loan Company, it appears also did business under the style of New [260]*260York Music Company, New York Storage Company, New York Piano Company, G. C. Wheeler, and G. C. Wheeler, manager. After the levy of the writ of attachment in favor of Dell R. Edwards, she brought suit against W. L. Hall and the New York Storage & Loan Company, the object being to enjoin the' collection of the judgment in favor of Hall and to have it declared void. Afterwards she instituted another action, against John L. Watson, W. L. Hall, the New York Piano Company, the New York Music Company, the New York Storage & Loan Company, G. C. Wheeler, manager, and others, in which she pleaded that the mortgag’d to Watson was fraudulent and void, and prayed that it be so declared by the court, and further prayed for an accounting by all the defendants and the appointment of a receiver to' take charge of the property of the New York Storage & Loan Company and sell or dispose of it. A consolidation of these suits was had. Watson filed an answer in the action after the consolidation of the several suits, declaring on his mortgage and asserting his lien upon the stock of goods by virtue thereof, and stating his possession at the date of the levies of execution and attachment by the sheriff. The court appointed a receiver and ordered the sheriff to deliver to the receiver such of the goods as then remained in his possession and had not been taken from him under process, which the sheriff did, and the goods were sold by the receiver and the sale was confirmed. After issues were joined in the consolidation, the cause was referred to A. S. Churchill, Esq., who was to take the testimony and report to the court his findings both of fact and law. It was determined and reported by the referee that the mortgage to Watson was valid and made in good faith and for a sufficient consideration; that Watson had taken possession of the stock of goods under it and was in possession when the sheriff took possession under the writs; that such mortgage was the prior and superior lien and Watson entitled to its enforcement, and to subject to its payment the entire stock of goods seized under [261]*261the writs; that tbe sum due on tlie mortgage was $4,493.62. Tbe referee further determined tbe W. L. Hall judgment to be fraudulent and void, from wbicb be further concluded that neither Hall nor tbe sheriff derived any right or title to the property seized under tbe writ issued on such judgment, and that Dell R.. Edwards did not have any cause of action against tbe New York Storage & Loan Company and hence no right to tbe attachment, and tbe levy thereof was set aside and held of none effect. Tbe report of the referee was, on motion on behalf of Watson, confirmed. Tbe present case was brought by Watson tAvo days previous to tbe .appointment of tbe receiver in tbe consolidation of actions.

One of tbe contentions of plaintiffs in error herein, both in pleading and in argument, was and is that by tbe proceedings and determination in tbe case in wbicb tbe receiver was appointed, all matters in issue in tbe present case were fully adjudicated and determined, and such adjudication constitutes a bar to this action. Counsel for plaintiffs in error outlines tbe questions Avhich be desires to urge in bis brief as follows:

“When an officer levies on a stock of goods in tbe possession of tbe mortgagee, at tbe instance of a creditor of tbe mortgagor, and, shortly thereafter, a receiver of tbe property of tbe mortgagor is appointed on tbe application of certain of tbe creditors of tbe mortgagor, in wbicb action the mortgagee is a party, and tbe sheriff is ordered by tbe court to surrender tbe goods to tbe receiver, wbicb be does, and said receiver sells those goods, wbicb sale is confirmed by tbe court, and tbe mortgagee’s lien is held to be a first lien on said goods and be is entitled to tbe money received from said sale. Quaere: Under such circumstances, is the officer liable as and for a conversion of said stock of goods?

“2. When certain of tbe goods contained in tbe mortgage and levy are held by tbe mortgagor on commission, and after tbe levy tbe mortgagee releases said goods from bis mortgage, and the officer from bis levy. Quaere: Is [262]*262it error of the court to refuse to allow evidence to shoAV that fact for the purpose of showing that those goods were not converted?

“3. Did the mortgagee, having a judgment for certain costs, and permitting those costs to be paid out of the sale by the receiver, estop himself from claiming from the officer and his sureties on his bond the money so paid out?

“4. Was the judgment according to the weight of the evidence?”

The first of these questions, in all its bearings on the issues in the present case, was considered on the former hearing in this court, and it was said in reference thereto by Non val, J., who wrote the opinion: “The first question we will consider is as to the sufficiency of this defense. It is a rule, sustained by judicial decisions in this country, that where one’s goods are converted by another, the owner may sue for their value, or recover the property, but he cannot pursue both remedies. It is equally well settled that the subsequent recovery or return of the property does not extinguish the owner’s right of action against the wrong-doer for the conversion, but only goes in mitigation of damages. (Gibbs v. Chase, 10 Mass., 125; Brady v. Whitney, 24 Mich., 154; Western Land & Cattle Co. v. Hall, 33 Fed.

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Bluebook (online)
67 N.W. 171, 48 Neb. 257, 1896 Neb. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coburn-v-watson-neb-1896.