Evans-Snider-Buel Co. v. McFadden

105 F. 293, 1900 U.S. App. LEXIS 3830
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 19, 1900
DocketNo. 1,403
StatusPublished
Cited by15 cases

This text of 105 F. 293 (Evans-Snider-Buel Co. v. McFadden) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evans-Snider-Buel Co. v. McFadden, 105 F. 293, 1900 U.S. App. LEXIS 3830 (8th Cir. 1900).

Opinions

THAYER, Circuit Judge,

after stating the case as above, delivered the opinion of the court.

Among the numerous chapters of Mansfield’s Digest of the Laws of Arkansas which were extended over and put in force in the Indian Territory by the act of congress of May 2, 1890 (26 Stat. 81, 95, c. 182), was chapter 110, entitled “Mortgages,” which chapter contains, among others, the following sections:

“See. 4712. All mortgages, whether for real or personal estate, shall be proved or acknowledged in the same manner that deeds for the conveyance of real estate are now required bylaw to be proved or acknowledged; and When so proved or acknowledged shall be recorded — if for lands, in the county or counties in which the lands lie, and, if for personal property, in the county in which the mortgagor resides.
“Sec. 4743. Every mortgage, whether for real or personal property, shall he a lien on the mortgaged property from the time the same is filed in the recorder’s office Cor record, and not before; which filing shall be notice to all persons of the existence of such mortgage.”

Prior to the adoption of tho chapter concerning mortgages as the law of the Indian Territory, it had been decided by the supreme court of Arkansas in Main v. Alexander, 9 Ark. 112, that by force of the aforesaid sections a mortgage on personal property executed in that state was good as between the parties thereto, though not acknowledged and recorded; but that it constitutes no lien upon the [296]*296mortgaged property as against strangers until it is acknowledged and recorded in the mode prescribed by the statute, although they have actual notice of its existence. The doctrine last stated had been recognized and enforced in the state of Arkansas in several other cases prior to May 2, 1890, but in some cases — notably in Mitchell v. Wade, 39 Ark. 377, 386, Martin v. Ogden, 41 Ark. 186, 192, and in Ford v. Burks, 37 Ark. 91, 94 — it had been criticised as harsh ánd unjust, and not in harmony with equitable principles as they prevail elsewhere. It had also been decided as early as 1886 in Watson v. Lumber Co., 19 Ark. 83, 4 S. W. 62, that a foreign corporation, not being a resident of that state, could not execute a mortgage on personal property located in that state which it owned, and, by placing it of record, create a lien which would be good as against strangers. In Main v. Alexander the controversy arose between a mortgagee whose mortgage was recorded, but'not properly acknowledged, and a creditor of the mortgagor, who had attached the mortgaged property. subsequent to the execution and record of the mortgage; and it was decided that the lien of the attaching creditor was paramount. In the case of Watson v. Lumber Co. the controversy arose between a mortgagee who held á mortgage executed by a foreign corporation that was recorded in' the county, where the property was situated and certain judgment creditors of the mortgagor company who had caused executions to be levied on the mortgaged property subsequent to the execution and recording of the mortgage, and it was held that the lien of the judgment creditors was paramount to that of the mortgagee. Oh February 3, 1897 (29 Stat. 510, c. 136), congress passed an act to the following effect:

“That .section forty-seven hundred and forty-two of Mansfield’s Digest' of the Laws of Arkansas, heretofore put In force in the Indian Territory, is hereby amended by adding to said section the following: ‘Provided, that if the moijgagor is a non-resident of the Indian Territory the mortgage shall be recorded in the judicial district in which the property is situated at the time the mortgage is executed. All mortgages of personal property in the Indian Territory heretofore' executed and recorded in the judicial district thereof in .which the property was situated at the time they were executed are hereby validated.’ ”

As this statute "in express terms validated all mortgages theretofore made by nonresidents of the Indian Territory on personal property there located which had been recorded in the judicial district where the property was situated, and therefore embraced and validated the two mortgages that had been executed by J. R. Blocker in favor of the Evans-Snider-Buel Company, one of the principal questions discussed before this court concerns the power of congress to enact the statute aforesaid, and give to it such retrospective operation. It will be observed that William McFadden & Son, hereafter referred to as the attaching creditors, caused the writ of attachment in the action brought by them against J. R. Blocker, the mortgagor, to be levied on the cattle that were conveyed by the mortgage, about seven months before the act of congress validating the mort gage was approved;’ also that the judgment by default was entered in that case against the attached debtor five days before the law was enacted. But when the act was approved the interplea of the [297]*297Evans-Snider-Buel Company in the attachment suit was still pending and undetermined, as well as when the judgment by default was taken, and no trial of the issue existing between the interpleader and the attaching creditors was had until several months thereafter, to wit, on April 20, 1897.

We deem it wholly unnecessary to indulge in any extended discussion of the question which has been mooted whether the act of congress aforesaid impairs the obligation of a contract, and is for that reason void First, because the inhibition against the exercise of such a power which is contained in section 10. art. 1, of the federal constitution, is not addressed to the national legislature, but to the legislatures of the several states (Mitchell v. Clark, 110 U. S. 633, 643, 4 Sup. Ct. 170, 28 L. Ed. 279; Legal Tender Cases, 12 Wall. 457, 20 L. Ed. 287; Beach, Mod. Cont. § 1633); and, second, because no contract is disclosed by the record which the act of congress in question operates to impair. It is true that the attaching creditors have a judgment against J. It. Blocker, and that judgments are sometimes termed “contracts of record”; but such general statements mean only that the law will imply a promise on the . part of a judgment debtor to pay a judgment that has been recovered against him, and that he may be sued in form ex contractu on such implied promise. A contract of that nature, however, which does not rest on the mutual assent of the parties thereto, but is forced upon the judgment debtor as the result of a legal implication, is not such a contract as the federal constitution was intended to protect against legislation tending to impair its obligation. This proposition is well established by controlling authority. Louisiana v. Mayor, etc., of City of New Orleans, 109 U. S. 285, 288, 3. Sup. Ct. 211, 27 L. Ed. 936; Garrison v. City of New York, 21 Wall. 196, 203, 22 L. Ed. 612. If the act of congress of February 3, 1897, above quoted, is invalid, it is made so by virtue of the fifth amendment to the federal constitution, which, in so far as it is pertinent here, declares that, “no person * * * shall be deprived of life, liberty or property without due process of law.” This is a limitation on the power of congress, and the question is whether the attaching creditors will be deprived of a property right in the cattle which they have caused to be seized under the writ of attachment in their favor if the act is given effect according to the manifest purpose of the lawmaker.

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Bluebook (online)
105 F. 293, 1900 U.S. App. LEXIS 3830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-snider-buel-co-v-mcfadden-ca8-1900.