Cudd v. Farmers Exchange Bank

1919 OK 344, 185 P. 521, 76 Okla. 317, 1919 Okla. LEXIS 202
CourtSupreme Court of Oklahoma
DecidedNovember 25, 1919
Docket9001
StatusPublished
Cited by9 cases

This text of 1919 OK 344 (Cudd v. Farmers Exchange Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cudd v. Farmers Exchange Bank, 1919 OK 344, 185 P. 521, 76 Okla. 317, 1919 Okla. LEXIS 202 (Okla. 1919).

Opinion

PITCHFORD, J.

This action was commenced in the district court of Garvin county, Oklahoma, by the Farmers Exchange Bank of Lindsay, filing its petition and affidavit in replevin against the defendants, A. G. Cudd, Homer Hybarger, and Alvin Cudd, in which it was alleged that A. G. Cudd was indebted to the plaintiff bank in the sum of $900 and attorney fees, being the balance due on a promissory note for the original sum of $4,705. The note was secured by a chattel mortgage covering certain live stock described as follows, to wit:

*318 All cattle owned by A. G. Oudd and John Oudd, as follows:
93 steers, 2 and 3 years old, each of tbe value of $32, and of a total value of-$2,996.00
22 steers and beifer calves of the value of $10, each and of the total value of_ 220.00
3 yearling steers of the value of $20 each, and of a total value of_ * 60.00
42 cows and their increase, each of said cows being of the value of $25, and of the total value of_ 1,050.00
14 2-year-old heifers of the value of $25 each, and of the total value of 350.00
12 yearling heifers of the value of $20 each and of the total value of_ 240.00
2 red Durham bulls of the value of $37.50 each, and of the total value of- 75.00
1 span of dark brown horse mules, 5 and 6 years old, of the value of $125 each and of the total value of 250.00
1 dark bay horse mule, 6 years old, of the value of_ 100.00

All of said property being located upon lands controlled by A. G. Oudd, six miles east and eight miles south of Lindsay, Okla. The petition alleges that all of said property was of the value of $5,341, that plaintiff was entitled to foreclose its lien upon the mortgaged property, and that the defendants, Homer Hybarger and Alvin Cudd, claimed some right, title and interest in said property described in the mortgage; and that the defendants, and each of them, withheld said property. The defendants were served with summons. On the same day the action was instituted, an affidavit in replevin was filed against the defendants, in which affidavit the property was described as in the petition, all of the aggregate value of $5,341. The writ of replevin was executed by the sheriff’s taking into his possession three mules and 39 head of cattle. The defendants, Homer Hybarger and Alvin Oudd, gave a re-delivery bond for 28 head of the cattle taken by the sheriff under the writ. The record is silent as to the disposition of the remaining cattle, together with the mules, The only light thrown on this point anywhere in the record is the reference in the separate answer of A. G. Oudd, in which he alleges that the remainder of the cattle, together with two mules, taken under the writ, were recovered by John Oudd by replevin action in the county court. Afterwards, an alias writ of replevin was issued and executed by the sheriff, by taking into his custody one yellow Jersey steer, and after holding the same for 24 hours, no bond being given by the defendants, the same was delivered to the plaintiff.

We gather from the evidence that the defendant, A. G. Cudd, borrowed from the plaintiff bank the sum of $4,705, and executed his note for this amount, securing the same as before stated. It appears to have been the understanding between the mortgagor and the mortgagee that the mortgagor, A. G. Oudd, was authorized to dispose of the property covered by the mortgage and apply the proceeds to the indebtedness. The following letter clearly shows this fact:

“Lindsay, Okla., Dec. 7, 1914.
“Mr. A. G. Oudd, Lindsay, Okla.
“Dear Sir: Tour note of $4,705, dated June 13, 1914, shows the following credits:
9-19-14_$1,250.00
10- 8-14_ 1,992.42
11-28-14_ 630.00
$3,872.42
“These credits, according to our record, were made by the sale of 130 head of cattle covered by our mortgage, and leave a balance of some 58 or 60 head. This note has been due since Oct. 13th, and in our report is going to show up bad. We have made it plain to you on several occasions that we wish to clean up our cattle paper, and feel that you have had ample time to dispose of this to your best advantage. We would be pleased to have you clean up the balance on this note within the next ten days, or we will be compelled to foreclose on our mortgage. Please find copy of mortgage attached.
“Tours very truly,
“A. O. Bickell, Asst. Cashier.
“Approved by Board of Directors.”

The check for $630 is as follows:

“Lindsay, Okla., Nov. 25, 1914.
“The First National Bank.
Pay to_A. G. Cudd, or order_$630.00 six hundred thirty and 00/100 dollars.
26 cattle. (Signed) Homer Hybarger.”
“Indorsed: A. G. Cudd,
“Farmers Exchange Bank,
“Paid Nov. 28, 1914, First National Bank.”

The bank raised no question as to the authority of the mortgagor to dispose of the cattle in the two former sales, but rather insisted that he should dispose of them and pay the proceeds upon the indebtedness. When the payments of $1,250' and $1,992.42 were made, the plaintiff knew that these sums were for cattle covered by the mortgage. The check for $630 specified that it was for cattle purchased from the mortgagor by the defendant Homer Hybarger. The plaintiff was certainly informed by this notice that the $630 represented the value of the cattle covered by the mortgage, for the mortgage specifically stated that it covered all the cattle owned by the defendant A. G. Cudd.

Plaintiff claims now that the mortgagor had no written authority to sell to Hybarger and Cudd. Under the evidence in the record, *319 we find full authority was given the mortgagor to dispose of all property covered by the mortgage, as agent of the mortgagee. In the affidavit for replevin, the plaintiff sought to gain possession of all the property described in the mortgage, not only that portion remaining unsold, but also the portion sold, notwithstanding it had consented to the sale as admitted by the above letter to Cudd, and the proceeds of sale were paid to the mortgagee with full knowledge of the different sales. The mortgage contained the usual clause to the effect that the mortgaged property should not be sold or disposed of in any way by the mortgagor without the written consent of the mortgagee. Notwithstanding this inhibition, the mortgagee could and did constitute the mortgagor his agent to dispose of the property mortgaged, for the purpose of liquidating the indebtedness. In Phelan v. Barnhart Bros. & Spindler, 75 Oklahoma, 181 Pac. 718, it was said: ,

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

Related

Graves v. Walters
534 P.2d 702 (Court of Civil Appeals of Oklahoma, 1975)
Jones v. Big Three Welding Equipment Co.
1940 OK 475 (Supreme Court of Oklahoma, 1940)
Thomas v. Williams
1935 OK 875 (Supreme Court of Oklahoma, 1935)
Mitchell v. Dadas
1934 OK 128 (Supreme Court of Oklahoma, 1934)
Gibson Oil Co. v. Hayes Equipment Manufacturing Co.
1933 OK 142 (Supreme Court of Oklahoma, 1933)
Tippins v. Turben
1933 OK 154 (Supreme Court of Oklahoma, 1933)
Ft. Dearborn Trust & Sav. Bank v. Skelly Oil Co.
1930 OK 196 (Supreme Court of Oklahoma, 1930)
Beard v. Herndon
1921 OK 443 (Supreme Court of Oklahoma, 1921)
Gross v. Lincoln
1921 OK 110 (Supreme Court of Oklahoma, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
1919 OK 344, 185 P. 521, 76 Okla. 317, 1919 Okla. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cudd-v-farmers-exchange-bank-okla-1919.