Everson v. Sinclair

81 N.W. 187, 110 Iowa 135
Supreme Court of Iowa·Decided December 16, 1899·Published·Cited by 1 cases

Opinion

Robinson, C. J.

On the thirty-first day of" July,. 1896, Strohmeyer Bros, commenced in the district court of Story county an action against J. J. McGrath, aided by attachment. A writ of attachment was delivered " to the defendant, as sheriff of Hamilton county, for service, which he served on the date mentioned by levying uuon and taking-in to his possession five bicycles,' which were subsequently-sold by him under a special execution issued in the case-specified. The plaintiff claims, and the district court was: authorized to find, that when the writ was issued and levied the bicycles taken thereunder were owned by the plaintiff.'The defendant pleads and insists that the plaintiff isestopped to assert title against him by reason of facts substantially as follows: The action of Strohmeyer Bros. was: to recover an amount due for merchandise sent by the' firm to McGrath on the 11th day of April, Í896. At that timer he was .engaged in the mercantile business at Nevada, and the merchandise sold was delivered there; but he had previously, been in business in Webster City, and the plaintiff" had been employed by him there as clerk. McGrath had-carried on a hardware business in Webster City, but disposed of his stock of hardware in the latter part of March,-1896. As we understand the te-stimonv of the plaintiff, he-co-ntinued business in the place McGrath had occupied, without ostensible change of management or ownership.McGrath had given his permission to use his name in busi[137] ness transactions to the amount of "eight hundred dollars, and the plaintiff canned on business in his name, ordering goods, advertising, and depositing money in the bank, and transacting business generally in the name of McGrath. The bicycles in suit were ordered in his name, and there was nothing to apprise the public that the. business really belonged to the plaintiff. On the twenty-seventh day. of July he learned that McGrath had given a mortgage on his stock in Nevada, and, acting on the advice of a traveling salesman, made an inventory of the goods in stock, and claims that he then took possession of the stock .in his own name. He testifies that he made known his ownership, to the defendant before the levy under the writ of attachment was made. We must assume, for the purpose of this appeal, that the testimony of the, plaintiff is true. The testimony on the part of the defendant establishes without contradiction the following facts: The order for the merchandise sold by Strohmeyer Bros, to McGrath was received in March, 1896, and before it was filed the firm made inquiries in regard to the standing of McGrath, consulting his rating as given by a commercial agency. The firm knew that the. business in Webster City had been carried on in his name, and had no knowledge of the arrangement between him and the plaintiff (if it had then been made) by which the latter was the real owner of the business. The only change of which the firm had knowledge at about the time the goods were ordered was the removal of the hardware portion of the stock. In making the sale to McGrath, Strohmeyer Bros, relied upon the commercial report of McGrath’s standing* financially, and upon his apparent ownership of the Webster City stock and business. The plaintiff continued after as he had before the change, apparently in the same capacity. A member of the firm testifies that, before the action against McGrath was commenced, he sent an employe of his firm, named Miller, to the plaintiff, to ascertain if the mortgage McGrath had given included the Webster City. stock, and [138] that Miller returned and reported that the plaintiff stated that it did not, but that the stock belonged to McGrath. Miller testifies that on the thirtieth day of July he talked to the plaintiff in regard to the ownership of the Webster City stock, and was told by him that it belonged to McGrath, and that "on the strength of that wa levied on. the property.” The plaintiff admits having had a conversation with Miller at the time specified, but sa.ys he does not remember making the statement claimed by Miller, and thinks he would have remembered it, had it been made. Miller admits that he did not inform the plaintiff of the purpose of the inquiry, nor that ,he fi*as interested in the ownership off the stock.

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Everson v. Sinclair, 81 N.W. 187, 110 Iowa 135 (iowa 1899).

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