Cribb v. Morse

48 N.W. 489, 79 Wis. 193, 1891 Wisc. LEXIS 103
CourtWisconsin Supreme Court
DecidedMarch 17, 1891
StatusPublished

This text of 48 N.W. 489 (Cribb v. Morse) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cribb v. Morse, 48 N.W. 489, 79 Wis. 193, 1891 Wisc. LEXIS 103 (Wis. 1891).

Opinion

Orton, J.

The firm of J. & P. Hagenah, on the 8th day of July, 1889, executed a mortgage on their stock of goods to the Citizens’ Bank of Reedsburg, an unincorporated bank owned by George T. Morse and others, to secure the sum of $3,500, their past indebtedness to said bank, and thereafter, on the same day, said firm executed a mortgage to [194]*194Hibbard, Spencer, Bartlett & Co., a corporation of the state of Illinois, on the same stock of goods, to secure the sum of over $9,000, their past indebtedness to said corporation, and assigned their book accounts to the said corporation as additional security.

On the same day the said mortgagees of both of said mortgages took possession of said stock of goods, without any arrangement as to their respective interest in the same, and said corporation left with the said bank said book accounts for collection. On the 12th, 13th, and 20th days of July, 1889, several judgment creditors of the said J. & P. Hagenah, including the said plaintiff, commenced proceedings of garnishment against Morse and others, the owners of said bank; and on the 20th day of July, 1889, the said plaintiff commenced proceedings of garnishment against Hibbard, Spencer, Bartlett & Co. The actions against the garnishees were by consent tried together in the case of the plaintiff against them, for the use of all of said judgment creditors, and all of said garnishees were represented by the same counsel. To the answers of the garnishees, denying all liability to the plaintiff' on account of said stock of goods so held and possessed by them, proper issues were made, and the main issuable facts were as to the validity of said mortgages in respect to the creditors of J. & P. Hagenah, and to that question all the testimony was directed. By their special verdict the jury found that the mortgage to said bank was not made with intent to hinder, delay, or defraud creditors, and was valid, and that the mortgage to said corporation was made with such intent and is void. From the judgment entered accordingly the plaintiff appealed to this court, but from that part thereof only that adjudged the mortgage to the bank valid, and Hibbard, Spencer, Bartlett & Co. appealed from that part of said judgment only that adjudged their mortgage void. Both of said appeals were heard together, and this court held [195]*195that, according to the testimony, the mortgage to Hibbard, Spencer, Bartlett & Co. is valid, and that the mortgage to the bank, to the extent of $2,200, which was not a partnership indebtedness, is void, and that as to the residue thereof said mortgage is valid. The judgment was reversed, and the cause remanded, with direction to render judgment accordingly. [Cribb v. Hibbard, Spencer, Bartlett & Co. 77 Wis. 199; Cribb v. Morse, 77 Wis. 322.]

The circuit court, in obedience to that direction, rendered judgment that the mortgage to Hibbard, Spencer, Bartlett & Co. is valid, and that the mortgage to the bank is void as to the sum of $2,200, and valid as to the residue thereof. The entry of this judgment satisfied the mandate of this court, and ended the case so far as it had been tried, heard, or adjudicated in this court or in the circuit court. But, in addition to this judgment, the circuit court found the owners of the bank directly liable to the garnishee plaintiffs for the said sum of $2,200 so wrongfully and fraudulently held by them, and rendered judgment in favor of the plaintiff against the owners of the bank for the amount of his judgment, interest, and costs. From this judgment the owners of the bank have appealed to this court, and this appeal is now to be considered.

It should have been stated before that the parties entered into a written stipulation, pending the garnishee proceedings, that the bank should sell the mortgaged property, and the proceeds of such sale should be held by the bank, pending all the litigation between the parties, and that any and either party might make the same claims upon the trial of all proceedings, now or hereafter to be instituted, as if the sale had not been made. This stipulation was “ by and between the parties to this cause, as well as to all other causes represented by the attorneys and counsel whose names are signed thereto.”

The learned counsel of the appellants contend: (1) That [196]*196the said $2,200 remains in the custody of the hank, under that stipulation, as any other part- of the fund, to be disposed of only on the final adjudication of all the claims of the parties, and that the bank is not liable to costs for withholding it from the plaintiff. (2) That Hibbard, Spencer, Bartlett & Co. hold the first claim to said $2,200, because the property represented by the same, if not held by the bank mortgage, becomes at once subject to their mortgage, and, their mortgage having been held valid, they have a preference to the same, as against the plaintiff. This is not the language, but the substance, as I understand it, of the contention on behalf of the appellant.

The learned counsel of the respondent contends: (1) That the corporation of Hibbard, Spencer, Bartlett & Co. had the right and opportunity to have contested the mortgage to the bank, as the plaintiff did, but it neglected to do so, and is therefore estopped from claiming any benefit or advantage from that contest; (2) that Hibbard, Spencer, Bartlett & Go. were the same, in respect to the validity of the first mortgage to the bank, as any general creditor of J. & P. Hagenah, and could not contest the validity of that mortgage, and that no one but a creditor having a judgment, and some process by which the property could be seized, could do so; and (3) that they, therefore, have no claim to the fruits of such contest made by the plaintiff ; that Hibbard, Spencer, Bartlett & Co., as the second mortgagees, have no right to the property mortgaged, represented by said $2,200 found to have been unlawfully or fraudulently included in the bank mortgage, in preference to the plaintiff in the garnishee proceedings, and that, therefore, the judgment appealed from is right.

On the motion for a rehearing of the appeal on behalf of the bank, the learned counsel of the appellant contended that said $2,200 so taken from the bank mortgage should go directly to Hibbard, Spencer, Bartlett & Co., as the nest [197]*197or second mortgagees of tbe same property, and not to tbe. plaintiff, bolding a subsequent lien tbereon, and tbis court ivas asked to so decide. It is contended that, inasmuch as tbe motion for such rehearing was denied, tbis court must have denied such claim on behalf of Hibbard, Spencer, Bartlett & Co. There was no such issue or question embraced in tbe record of tbe garnishee proceedings and- judgments before tbis court on such appeals. In those proceedings tbe issue was limited to tbe single question of tbe validity of tbe two mortgages in respect to tbe creditors of J. & P. Hagenab. Tbe plaintiff was tbe only adverse party, as to both of tbe mortgages, against tbe mortgagees as garnishees. Tbe mortgagees -were not in any sense adverse to each other, but were together defending their respective mortgages against tbe attack of tbe plaintiff on tbe ground of fraud. It was impossible for Hibbard, Spencer, Bartlett & Co. to have joined the plaintiff in bis contest of the bank mortgage. It was utterly foreign to tbe issue between tbe plaintiff and tbe garnishees. There was no such question before tbe circuit court, or before tbis court on appeal.

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Cite This Page — Counsel Stack

Bluebook (online)
48 N.W. 489, 79 Wis. 193, 1891 Wisc. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cribb-v-morse-wis-1891.