Coerver v. Crescent Lead & Zinc Corp.

286 S.W. 3, 315 Mo. 276, 1926 Mo. LEXIS 737
CourtSupreme Court of Missouri
DecidedJuly 30, 1926
StatusPublished
Cited by11 cases

This text of 286 S.W. 3 (Coerver v. Crescent Lead & Zinc Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coerver v. Crescent Lead & Zinc Corp., 286 S.W. 3, 315 Mo. 276, 1926 Mo. LEXIS 737 (Mo. 1926).

Opinion

*281 ATWOOD, J.

Appellants, who were plaintiffs below, are the owners and holders for value of a $50,000-bond issue dated and issued on or about September 1, 1918, by respondent Crescent Lead & Zinc Corporation, a Missouri corporation, having its chief office at Kansas City in Jackson County, Missouri. The bonds were secured by a mortgage deed of trust, Peoples Trust Company of Kansas being named therein as trustee, on the corporation’s mining plant, machinery and lease in Jasper County, Missouri, and plaintiffs went to trial before the court on their second amended petition seeking an accounting and a personal judgment against said corporation, the foreclosure of said mortgage, a deficiency judgment, the appointment of a receiver, and for general equitable relief.

Other outstanding facts pleaded and in evidence are that in November, 1920, respondent Boyer-Rhodes Machinery Company, claiming a mechanic’s lien against said mining plant, machinery, equipment and lease of said Crescent Lead & Zinc Corporation, filed its lien statement in the office of the Circuit Clerk of Jasper County, Missouri, and afterwards, on November 17, 1920, filed its petition to enforce the same, making only the Crescent Lead & Zinc Corporation and Peoples Trust Company of Kansas City parties defendant; tliat after service was had upon these defendants default judgment was entered against them on September 22, 1921, in favor of said Boyer-Rhodes Machinery Company in the Circuit Court of Jasper County, Missouri, in the sum of $1130.35, the same being declared a lien on said lease, mining plant, machinery and equiqment, prior to the lien of defendant Peoples Trust Company, as to said mining plant, machinery and equipment, and subject thereto as to the lease. Under special execution»issued on this judgment, returnable at the January, 1922, term of said court, the mining plant, machinery and equipment *282 were on November 18, 1921, sold by the sheriff at public sale upon ten days’ notice as-in sales of personal property under execution, and respondent Machinery & Supply Company became the purchaser for the sum of $1500, which amount ivas paid to the sheriff, .who after paying the debt and costs booked a balance of $225.90 as a refund to defendants, and duly made return of said execution.

Defendant Crescent Lead & Zinc Corporation filed its written entry of appearance, waiver of service of process, and separate answer herein admitting its incorporation, the execution and delivery of said deed of trust and bonds, and non-payment of the indebtedness evidenced thereby, and Peoples Trust Company of Kansas City filed written waiver of service of process upon it in said cause and entered its appearance.

Defendants Boyer-Rhodes Machinery Company and the Machinery & Supply Corporation filed separate answer, denying each and every allegation of plaintiffs’ petition, except that they were Missouri corporations having their principal offices at Joplin, Missouri. Further answering they said that between April 10, 1920, and September 8, 1920, the said Boyer-Rhodes Machinery Company sold to defendant Crescent Lead & Zinc Corporation, mining machinery, fixtures- and personal property which entered into and became a part of the buildings and mining plant erected upon the lease of the said Crescent Lead & Zinc Corporation, with the knowledge and consent of plaintiffs and the Peoples Trust Company. Further answering they specifically pleaded said mechanic’s lien suit, foreclosiire and sale, alleging that all persons having an interest of record in the property were made parties to said suit, as provided by statutes relating to mechanics ’ liens, and that the judgment rendered therein was a final adjudication as to all persons claiming rights in said property. Further answering, said defendants, alleged that the mortgage here sued on and referred to in plaintiffs’ petition was a chattel mortgage, neither filed nor recorded in the office of the Recorder of Deeds of Jackson County, Missouri, the residence of said Crescent Lead & Zinc Corporation, and these defendants had no notice that any of the plaintiffs were interested in said property, and none was disclosed by any public record. Further answering they alleged that said mortgage and bonds were illegal and void; that their issue was never authorized by the stockholders or directors of the Crescent Lead & Zinc Corporation, and that they were issued in violation of the Constitution and statutes of Missouri; that said plaintiffs gave their consent to the improvement of said property and the creation of said lien, and said Peoples Trust Company was, by the terms of sa-id mortgage, nominated and appointed as the attorney in fact .of all the holders of said bonds, and was authorized to pay all mechanics’ liens and other liens superior to said mortgage lien, and at the time *283 said mechanics ’ lien was filed, if there were any bonds outstanding, the same were due and in default, and if said mortgage had any validity said Peoples Trust Company was the record owner of said property, and that none of said plaintiffs have any interest in or lien upon the same; that the Machinery & Supply Corporation of Kansas purchased said property at said execution sale and thereafter sold it to the Machinery & Supply Corporation of Missouri, which is now the owner and in possession of said property, and that neither the Boyer-Rhodes Machinery Company, nor any of the plaintiffs, has any interest therein.

Plaintiffs filed reply denying each and every allegation of the above answer, and further answering, plaintiffs said that the defendants, especially the Boyer-Rhodes Machinery Company, had actual knowledge of said mortgage prior to the filing of said lien statement, that said mortgage was actually recorded in the office of the Recorder of Deeds of Jasper County, Missouri, where said lease and improvements were situated, and defendant Boyer-Rhodes Machinery Company with such knowledge having made the trustee in said mortgage a party defendant and having caused judgment entry to be made in said lien suit determining priorities, said defendants are estopped to deny the validity of said mortgage.

The circuit court found the issues in favor of the plaintiffs and' against defendant Crescent Lead & Zinc Corporation and found .that said corporation is indebted to plaintiffs on the bonds in the sum of $65,380.57, decreed judgment, and directed that execution issue therefor. The court further decreed that in the event said corporation should fail to pay said judgment on or before June 15, 1923, the mortgaged premises described in plaintiffs’ petition should be sold at public vendue for cash, plaintiffs first giving twenty days’ notice of the time and place of sale by advertising in a daily newspaper as provided by law for the sales of real estate. It was further decreed that if the mortgaged property sold as aforesaid be not sufficient to satisfy said debt, damages and costs, that the residue be levied out of other goods, chattels, lands and tenements of said Crescent Lead & Zinc Corporation, and that on the sale of such property said Crescent Lead & Zinc Corporation and all persons claiming by, through or under it be forever barred and foreclosed of all right, title, claim, lien or equity of redemption in said mortgaged premises.

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Bluebook (online)
286 S.W. 3, 315 Mo. 276, 1926 Mo. LEXIS 737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coerver-v-crescent-lead-zinc-corp-mo-1926.