Elander v. KELLOGG GRAIN COMPANY

119 N.W.2d 522, 117 N.W.2d 522, 174 Neb. 782, 1963 Neb. LEXIS 265
CourtNebraska Supreme Court
DecidedFebruary 8, 1963
Docket35299
StatusPublished
Cited by4 cases

This text of 119 N.W.2d 522 (Elander v. KELLOGG GRAIN COMPANY) 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
Elander v. KELLOGG GRAIN COMPANY, 119 N.W.2d 522, 117 N.W.2d 522, 174 Neb. 782, 1963 Neb. LEXIS 265 (Neb. 1963).

Opinion

Spencer, J.

This is a conversion action brought by Alf Elander against Kellogg Grain Company, a corporation, and Theodore (Jim) Apolius, to recover a balance due of $3,000 and interest on an $8,000 note secured by a chattel mortgage on 6,000 bushels of wheat. A motion for a directed verdict or to dismiss was sustained at the close of plaintiff’s case. Plaintiff perfected his appeal to this court.

The controlling rule when a motion for dismissal or directed verdict is sustained at the close of plaintiff’s case is that every fact alleged which the evidence tends to support will, for the purposes of the motion, be considered as proved. See Canaday v. Krueger, 156 Neb. 287, 56 N. W. 2d 123.

With the above rule in mind, we determine the facts to be as set out herein. On September 4, 1957, Theodore (Jim) Apolius, hereinafter referred to as Apolius, borrowed $8,000 from the plaintiff and executed a note for that amount due March 4, 1958, secured by a chattel mortgage executed at the same time on 6,000 bushels of wheat. The portion of the chattel mortgage material to decision herein is the following: “The undersigned, of Keith County Nebraska for the purpose of securing payment of Eight Thousand & no/100 Dollars and interest according to the conditions of 9/4/57 promissory note, of even date herewith payable March 4, 1958, for $8,000.00, do hereby sell, convey and mortgage unto Alf Elander and its assigns, the following described property, now in my possession, to-wit: 6,000 Bu. Wheat - (Six Thousand) located on W-% 6-12-37 Keith County, Nebr. & on N.E. % 8-12-37 Keith County, Nebr. stored in approved (sic) Frame Grainreys (sic) owned entirely by us and free and clear of encumbrances.

*784 “This mortgage is intended to include the increase of any stock above described. The above described property is now kept on NE Quarter of Sec 8, Twp. 12, R 37, Keith County Nebraska.”

This mortgage was filed for record in Keith County September 19, 1957. The evidence indicates that the west half of Section 6, Township 12 North, Range 37 West, described above, is a misdescription. Wheat belonging to Apolius was actually stored on the east half of Section 6, Township 12 North, Range 37 West, and Apolius had no connection with the west half of said section. At the time of the execution of the mortgage, the defendant had on hand at least 13,500 bushels of wheat. His testimony is that he had 5,000 bushels stored in a frame granary on the east half of Section 6, Township 12 North, Range 37 West in Keith County, Nebraska, and 8,500 bushels stored in a frame granary on the northeast quarter of Section 8, Township 12 North, Range 37 West in Keith County, Nebraska; that in addition thereto, he had 1,000 bushels, stored in a garage on the northeast quarter of Section 8, which was used as a granary; and had 1,200 bushels stored in a steel granary on the east half of Section 6.

The Kellogg Grain Company, a corporation, hereinafter referred to as Kellogg, through the manager of its elevator at Grant, Nebraska, purchased approximately 3,500 bushels of wheat from Apolius for which it paid him $6,294.79, which was stipulated to be the fair and reasonable market value of the wheat. These purchases were as follows: October 17, 1957, approximately 2,500 bushels for $4,410.92; November 7, 1957, approximately 500 bushels for $916.12; and February 26, 1958, approximately 500 bushels for $967.75. These sales were made by Apolius without the consent or the knowledge of the plaintiff. Kellogg’s manager at Grant knew that Apolius lived in Keith County but did not check the chattel mortgage records in that county or make any inquiry to determine if the property was mortgaged. The evi *785 deuce is undisputed that Apolius also owned and farmed a half section of land in Perkins County, the county in which Grant is located. The wheat from this Perkins County farm was stored on the northeast quarter of Section 8, Township 12 North, Range 37 West, in Keith County. Apolius made the following payments on the note: October 25, 1958, $480 interest; September 26, 1959, $4,000; and March 26, 1960, $1,000, and the interest due to March 26, 1960.

The plaintiff did not see or inspect his security at any time. He made no attempt to do so until September 23, 1959, when he visited the Apolius farms and found the granaries empty. This action was commenced October 19, 1960, alleging that the mortgage had never been paid or released; that the plaintiff was entitled to the possession of the mortgaged property; that the plaintiff’s lien followed the proceeds of the wheat sold to Kellogg; and that Kellogg’s failure to pay the plaintiff constituted a conversion of mortgaged property. The evidence is undisputed that at the time Kellogg purchased the wheat, Apolius still had 6,000 or more bushels of wheat remaining in his possession in the frame granaries.

The trial court held that the plaintiff’s mortgage was void for insufficient description, and sustained the motion of Kellogg for a directed verdict and a dismissal. Kellogg argued that inasmuch as the wheat is stored in frame granaries on two different sections, and they contained much more than 6,000 bushels with no information as to the amount intended to be covered in each granary, the case is controlled by Grimes v. Cannell, 23 Neb. 187, 36 N. W. 479. In that case, the court held a mortgage on 10,000 bushels of ear corn in cribs 1 and 2 on a side track was too indefinite when the proof disclosed there were three cribs, without any designation as to numbers.

Plaintiff contends the case is governed by McCormick Harvesting Machine Co. v. Reynolds, 62 Neb. 892, 88 *786 N. W. 130. In that case, the mortgage described “ ‘Five hundred bushels yellow corn now in pile on ground on Gilman farm, * * *.’ ” There was in fact more than 1,000 bushels in the pile, but there was only one pile of corn on the farm. The court held under the circumstances in that case a valid mortgage could be given on an aliquot number of bushels, and followed the rule announced in Buck v. Davenport Savings Bank, 29 Neb. 407, 45 N. W. 776, 26 Am. S. R. 392, that: “The description of property in a chattel mortgage will as a rule be held sufficient where it will enable a third party, aided by inquiries which the instrument itself suggests, to identify the property.”

There were 8,500 bushels of wheat in a frame granary on the northeast quarter of Section 8 as well as. 1,000 bushels stored in a garage designated as a granary. There were 5,000 bushels in a frame granary on the east half of Section 6. There was also a steel granary holding 1,200 bushels on this section. No attempt was made to prove any of the granaries were “approved frame granaries.” The case was tried on the assumption the granaries with the 8,500 bushels and the 5,000 bushels were the granaries described. As we view the evidence, a decision in this case does not depend upon a determination of the sufficiency of the mortgage description. Because it is not necessary to decide the question, we will assume for the purposes of discussion the validity of the mortgage.

The only evidence offered to connect the mortgaged wheat with that sold to Kellogg is the following: “ ‘Question: Could you recall perhaps the first time after harvest when you commenced hauling wheat? Answer: Yes, I hauled wheat to make room for my corn.

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Cite This Page — Counsel Stack

Bluebook (online)
119 N.W.2d 522, 117 N.W.2d 522, 174 Neb. 782, 1963 Neb. LEXIS 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elander-v-kellogg-grain-company-neb-1963.