Croze v. St. Mary's Canal Mineral Land Co.

107 N.W. 92, 143 Mich. 514, 1906 Mich. LEXIS 685
CourtMichigan Supreme Court
DecidedMarch 27, 1906
DocketDocket No. 11
StatusPublished
Cited by8 cases

This text of 107 N.W. 92 (Croze v. St. Mary's Canal Mineral Land Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Croze v. St. Mary's Canal Mineral Land Co., 107 N.W. 92, 143 Mich. 514, 1906 Mich. LEXIS 685 (Mich. 1906).

Opinion

Carpenter, C. J.

Plaintiff, as the assignee of a cause of action originally belonging to one Will C. Baudin, brought this action for the conversion of certain timber, and recovered verdict and judgment in the lower court. Defendant asks us to reverse that judgment.

The material facts are as follows: December 27, 1900, Baudin executed and delivered to defendant a chattel mortgage covering the timber in question to secure the payment of an indebtedness of $4,480. In the mortgage the timber was described as “all the logs and timber now [516]*516cut or that may he cut by the said party of the first part [upon certain described sections of land] excepting from the above 1,000,000 feet, board measure, of long timber 18 feet long and upward, heretofore sold out of said lot of logs to the Tamarack Mining Company.” The mortgage provided that the indebtedness should be paid July 1, 1901, and authorized the mortgagee, in case of default, to take possession, and sell at public auction “or at his option at private sale with or without notice ” sufficient'of the mortgaged property to satisfy the said debt, interest, and reasonable expenses. Baudin did not pay this indebtedness at maturity, and in September, 1901, the defendant through a deputy sheriff took possession of the mortgaged property. When this possession was taken, the logs were cut, part of them had been towed to Portage Lake, and the remainder was on the railways cn the shore of Lake Superior at Misc.y Bay, a place some distance from Portage Lake. At that time the logs belonging to the Tamarack Mining Company had not been delivered and were commingled with the logs of which defendant took possession. It is conceded, however, that the title to the same belonged to the Tamarack Mining Company. The day after defendant seized this property it and said Tamarack Mining Company entered into an agreement to have the logs' “properly boomed and towed to Portage Lake, and there properly sorted and delivered to the several respective parties entitled thereto,” and for this purpose appointed I. A. Moore as their agent and custodian. They also agreed that each party should “bear and pay each its proportion of the cost and expense based upon the number of feet the logs and timber actually sorted and delivered each.” At this time there were liens against these logs and timber aggregating a large amount. These were subsequently paid by defendant and the Tamarack Mining Company. Their precise amount is not shown in the record, nor was it shown on the trial in the court below. Mr. Moore, the joint agent of defendant and Tamarack Mining Company, [517]*517proceeded to tow the logs on the rbllways in Lake Superior to Portage Lake in conformity with the terms of said ■contract. These logs were moved between September 14 •and October 11, 1901. I think it is but fair to say that the evidence justly warranted the inference that defendant was negligent in attempting such work at that time. It was the stormy season of the year, and the jury might have found that the work was done at increased expense and resulted in the loss of many logs. Not all of the logs ■on Misc.y Bay were removed. There was left on the rollways at that place 466,000 feet, and these have never been removed. Owing to the approach of winter the logs at Portage Lake were not sorted until the spring of 1902. They were then sorted and there was delivered to the Tamarack Mining Company as its property logs to the amount of 528,358 feet. In June, 1902, defendant sold by private sale, on credit, the remainder of the logs for the sum of $7,710.53, and the testimony shows that this was less than the expense of moving the same and the amount expended in paying liens.

The question of paramount importance in this case is whether, under his declaration, plaintiff made a case entitling him to take the judgment of the jury. The declaration contains two counts.- The second count is the ordinary count in trover charging the defendant with converting the property. The first count charges that defendant converted the property by removing the same before sale from the place where it was seized, and it also charges that the timber left at Misc.y Bay was damaged by reason of defendant’s negligence in not caring for and protecting the same. The trial judge overruled plaintiff’s contention that defendant, by removing the logs to Portage Lake, thereby converted the same to its own use. We think he was right. There is no inflexible rule requiring the mortgagee to sell the mortgaged chattels at the place of seizure. See Olcott v. Bynum, 17 Wall. (U. S.) 44. The circumstances in this case forbade such a sale. Part of the property seized was already at Portage Lake. That place lay in [518]*518the direction of the market. Commingled with these logs were the logs of the Tamarack Mining Company. . Those logs had to be withdrawn before the mortgaged property could be sold, and we think, therefore, it was the duty of defendant to gather the property together at Portage Lake in the manner it attempted. This is made clear by the testimony of plaintiff’s assignor, Baudin, who says:

‘ ‘ The logs could not have been sorted out on the bank nor in the slough. * * * In order to get the Tamarack logs, it would be necessary to bring all the logs together down at Portage Lake, or to some harbor, and then sort them after they were brought down.”

It is also contended by plaintiff that defendant converted the property when it sold the same on credit. This contention was also properly overruled by the trial judge. While it is not to be denied that, in one sense, it is the duty of a mortgagee to sell for cash, it is also true that the only penalty for the breach of this duty is to hold him responsible for the damages thereby caused. That is, to charge him on the same basis as if he had received cash. See Williams v. Hatch, 38 Ala. 338; Jones on Chattel Mortgages (4th Ed.), § 800.

The trial court charged the jury that, if defendant attempted to remove the property from the shores of Lake Superior at an improper time, it thereby converted such property; that, if the defendant neglected for an unreasonable time to sell the mortgaged property after taking possession, that, too, was a conversion; and that it must be held to have converted the 466,000 feet left on the shores of Lake Superior at Misc.y Bay because it left the same there an unreasonable time. Was this charge correct? It must be conceded that it was the duty of defendant to make a sale of the property within a reasonable time after seizure and to effect its removal with due diligence, and while it does follow that it would, in some form of action, be answerable in damages for a failure to perform this duty, it by no means follows that such a failure would amount to a conversion of the property. Does it ? To maintain an ac[519]*519tion for conversion, one must either have actual possession, or the immediate right to possession. Stevenson v. Fitzgerald, 47 Mich. 166; Axford v. Mathews, 43 Mich. 327; Foster v. Mining Co., 68 Mich. 188; McGraw v. Sampliner, 107 Mich. 141. Plaintiff’s assignor did not have the actual possession. Defendant had that. Defendant was a mortgagee in possession. It had the right to retain that possession so long as its mortgage lien existed. Plaintiff had no right to possession, unless the wrongful conduct of the defendant had terminated its title to the property. Had defendant committed such a wrong as to destroy its mortgage lien, and to give plaintiff an immemediate right of possession of the mortgaged property ?

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Bluebook (online)
107 N.W. 92, 143 Mich. 514, 1906 Mich. LEXIS 685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/croze-v-st-marys-canal-mineral-land-co-mich-1906.