Farmers Grain & Mercantile Co. v. Benson

195 Iowa 695
CourtSupreme Court of Iowa
DecidedApril 3, 1923
StatusPublished
Cited by2 cases

This text of 195 Iowa 695 (Farmers Grain & Mercantile Co. v. Benson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers Grain & Mercantile Co. v. Benson, 195 Iowa 695 (iowa 1923).

Opinion

De Grape, J.

/This is an action in equity to subject certain personal property to the, satisfaction of a judgment. Section 4087 Code 1897. The facts are simple and the legal principles involved are not complicated.

Briefly stated these are the primary matters disclosed by the pleadings and the evidence. On August 26, 1919 one Barton leased in writing to the defendant Benson a 200-acre farm in Shelby County, Iowa at an annual rental of $2,720 payable in equal installments October 1st and February 1st of each year after the commencement of a two-year term which began March 1st, 1919.

The lessee failed to pay all of his rent for the year ending March 1, 1920, and on May 28, 1920 Barton commenced a law action to recover judgment on the rent note aided by a landlord’s attachment. On September 18, 1920 a judgment was entered, and it was further decreed “that plaintiff has a landlord’s lien on all of the property of defendant levied on by the sheriff of Shelby County, Iowa,” pursuant to the attachment save and except any exempt property and except any of said property subject to mortgage liens existing prior to the commencement of the term, and “that said lien is established as in full force [697]*697and effect as of the date by levy by the sheriff” on the attachment.

The court further ordered “that the said property be sold, as by law provided, for the satisfaction of the judgment rendered herein, and that execution and other usual and necessary process issue for the sale thereof.”

On February 11, 1921 plaintiff caused a general execution to issue and a levy was made upon certain personal property of the defendant used and kept by him on the leased premises during the term, including that seized under the writ of attachment.

On February 14, 1921 the defendants in the instant action, other than Benson, served notice of claim of ownership to the property under levy by virtue of certain chattel mortgages thereon executed by the lessee Benson, and for this reason demanded a release of the property.

Plaintiff failed to furnish an indemnifying bond, and the sheriff released said property from the levy and returned the execution wholly unsatisfied. As the mortgagees 'could not be made parties to the law action to determine their respective interests and priorities in relation to the claim of the plaintiff, who is the assignee of the landlord of the judgment and lien, the action at bar was commenced February 15, 1921. On said date all of the parties entered into a written stipulation, and it was agreed that the property levied on under the general execution should be sold and the proceeds thereof deposited in a certain bank until it was judicially determined who was entitled thereto, and “the proceeds of said sale to be treated in all respects as the property from which the same was derived. ’ ’

The record discloses that subsequently to the commencement of the term of the lease to wit, March 1, 1919,' two chattel mortgages were executed and delivered by the defendant lessee Benson to the defendants Gaukel and the Farmers Savings Bank of Irwin respectively on property kept and used on the leased premises. These liens were junior and inferior to the landlord’s lien.

On September 23, 1918, prior to the commencement of the term, a chattel mortgage was executed and delivered by defendant Benson on 19 head of three-year-old cows, 1 Hereford bull four years old, and 17 Hereford calves six months old. This [698]*698mortgage recites that “This money is loaned for the purchase price of above stock.” This stock was subsequently taken to the leased premises.

We recognize that the giving of a purchase-money mortgage by a tenant as part of the transaction of purchase by him constitutes a lien in favor of the mortgagor superior to the lien of the landlord for rent. The landlord has a lien upon all the property of the lessee located or placed upon the premises during the term and upon none other. The lien attaches only to the property rights of the lessee. Miller v. Swartzlender & Holman 192 Iowa 153.

Whether the property levied on by virtue of the execution of February 11, 1921 included the property or some of it described in the purchase money mortgage is immaterial for the reason that the levy under that execution was released and the execution was returned by the sheriff unsatisfied. Furthermore, the property sold under the stipulation and applied to the landlord’s judgment lien was not covered by the purchase money mortgage.

The trial court in its decree determined that a part of the proceeds of the sale of the property on February 16, 1921 which was made pursuant to the stipulation of the parties when the instant action was instituted, was not claimed by the plaintiff, and that part of the proceeds was exempt to the lessee Benson, and that a balance of $154.25 was due the landlord from Benson as rental for the year ending March 1, 1921.

The court further determined that Barton perfected his landlord’s lien against the property that was-sold pursuant to the stipulation, and that the said lien is still in force as against the proceeds of the sale pursuant to the stipulation of the parties. What property did the sale include?

It included 40 tons of hay that was grown upon the leased premises during the term and this item in the sum of $227 is not covered by any of the mortgages in question. The sale also included a team of grey geldings which had been taken upon the premises by the lessee prior to the execution of any mortgage covering the same. The value of this item under the sale is $200. The sale also included 39 hogs in value $595.55. These hogs were the increase'of the hogs described in a chattel mort[699]*699gage executed subsequently to the commencement of the term. These were hogs that were farrowed on the leased premises during the term of the lease. The sale also included 10 calves of the value of $292.50 and these were the increase of the cows described in the first chattel mortgage executed by the lessee prior to the commencement of the term. These were calves born on the leased premises during the term.

These items of sale having satisfied and discharged plaintiff’s judgment with interest and costs'the court held that “it is not necessary to determine, as between the plaintiff and said mortgagees, as to which has the prior lien on the remainder of the property sold,” pursuant to,the stipulation “and the proceeds of which is now in said Farmers Savings Bank of Irwin.”

The trial court then determined that as between the mortgagees and the mortgagor Benson the mortgagees have a valid lien upon all of the proceeds of said sale that will remain after paying to the defendant Benson the value of the exempt property sold. With these findings we discover no legal cause for complaint, but we deem it necessary to briefly discuss other propositions advanced by appellant.

I. Did the issuance of a general in lieu of a special execution to which plaintiff was entitled under the original judgment constitute a waiver of the landlord’s lien?

That judgment is a verity. Theoretically it was the end of that lawsuit. It settled the disputed issues of fact and applied to the facts the established principles of law. It fixed and declared the respective rights and obligations of the parties thereto as to matters submitted to the court for decision. Code Section 3769. The execution was simply the final process in the action, and its function was to give, to the successful party the fruits of his judgment.

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Related

Wunder v. Schram
251 N.W. 762 (Supreme Court of Iowa, 1933)
Kinart v. Churchill
230 N.W. 349 (Supreme Court of Iowa, 1930)

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Bluebook (online)
195 Iowa 695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-grain-mercantile-co-v-benson-iowa-1923.