Farmers' Loan & Trust Co. v. Commercial Bank of Racine

15 Wis. 424
CourtWisconsin Supreme Court
DecidedMay 15, 1862
StatusPublished
Cited by15 cases

This text of 15 Wis. 424 (Farmers' Loan & Trust Co. v. Commercial Bank of Racine) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Loan & Trust Co. v. Commercial Bank of Racine, 15 Wis. 424 (Wis. 1862).

Opinion

By the Gourt,

PAINE, J.

In tliis case tbe appellant claims a quantity of railroad cbairs, under railroad mortgages executed by tbe Racine & Mississippi Railroad Company. Tbe case bas once been before this court, and as it appeared that tbe cbairs in question were acquired by tbe railroad company after tbe execution of tbe mortgages, we beld that the plaintiff bad no title, for tbe reason that tbe mortgages contained no language purporting to grant materials which tbe company might thereafter acquire to use in constructing tbe road, except so far as such materials were actually so used and became a part of tbe road itself. Some additional evidence was introduced at tbe second trial, which, tbe counsel for the appellant claims, furnishes new light upon this question, and shows that tbe intention of tbe parties was to grant everything that tbe company then owned or might afterwards acquire. And be claimed that tbe intention of tbe parties should be arrived at, as well by tbe consideration of their situation and tbe general nature and object of railroad mortgages, as of tbe words in tbe instruments. There is no doubt that tbe intention is tbe object to be sought for in construction. And to get at that, tbe situation of tbe parties, and tbe nature and object of their transactions, may be looked at. But it must be borne in mind that it is not tbe business of construction to look outside of the instrument to get at tbe intention of tbe parties, and then carry out that intention whether tbe instrument contains language sufficient to express it or not; but tbe sole duty of construction is, to find out what was meant by tbe language of tbe instrument. And this language must be sufficient, when looked at in tbe light of such facts as tbe court is entitled to consider, to sustain whatever effect is given to tbe instrument. And we can see nothing in tbe additional evidence now before us, which we think ought to change tbe effect before given to tbe mortgages under which tbe appellant claims. [439]*439The counsel was obliged to concede that the language, accurately construed, did not profess to grant materials to be thereafter acquired, any further than they became a part of the road granted, or appurtenant to it, or should be used in operating it. This I think cannot be denied; and so far as the meaning of the language is concerned, I can perhaps add nothing to what I said in the former opinion upon that subject.

Should the general nature and object of the conveyances give to that language any more enlarged meaning ? I am unable to see why it should. The company first mortgaged the eastern division of its road. Notwithstanding this, it still remained necessary for it to have materials for the western division. It was therefore utterly improbable that it intended, in the first, to grant all materials that should be thereafter acquired, and was very natural for it to limit the grant to such materials as should actually become a part of the road granted, or be used in operating it. This being true of the first mortgage, is equally true of the second. For although the first division was mortgaged, it was still in possession of the company, and- they might still need materials for its completion. How can it be said, therefore, that they intended in the second to convey all materials thereafter to be acquired, though such materials might be needed for the first division? It is true here that both divisions were mortgaged to the same corporation, but I cannot see that this fact should have any influence in their construction. If they had been conveyed to different mortgagees I should find it impossible to say which lien, if either, attached to these materials as soon as they were acquired by the company. It seems equally impossible although both mortgages are to one trustee. The company evidently did not intend to annihilate itself, or its capacity to acquire and hold property, and I can see nothing in the nature and objects of the conveyances that should warrant the court in assuming an intention to include in them that to which their language does not extend.

The counsel for the appellant also relied on an estoppel, which he claimed to grow out of the following facts : After [440]*440-¡¡be execution of the mortgages under which the appellant claims, and also after the company had acquired the chairs in question, it executed another mortgage to Jesup & Ray--1 l . i , , , , , , . , J mond, which was express^ declared to be subject to the two prior mortgages to the appellant. As the railroad company had these chairs when this last mortgage was made, so that they were conveyed by that as “ materials,” and as that was made subject to the two prior mortgages to the appellant, it is said that the company and all claiming under it are estop-ped from showing that the two prior mortgages did not include all that was conveyed by the Jesup & Raymond mortgage. Without stopping to inquire whether a prior mortgagee would be in a position to insist upon an estoppel growing out of a recital in a subsequent mortgage to other parties, which had in no degree produced or affected his position, we are clearly of the opinion that there is no estoppel in this case, from the language of the subsequent mortgage itself. It does not say that the mortgages to the Trust Company are prior liens upon all the property “herein described,” but after referring to each of them specifically, says they are prior liens upon all the property “ therein described respectively ” &c. This recital, therefore, does not profess to give those mortgages any more extensive application than they respectively purport to have, and can create no estoppel. If one having ten lots, moi’tgages nine of them, and afterwards gives a mortgage irpon all, subject to the pri- or mortgage upon the lots “ therein described,” this certainly could not extend the prior mortgage to the tenth lot, nor es-top the mortgagor, or any one claiming under him, from showing that the tenth lot was not included in the first mortgage.

The only remaining question necessary to be considered, is as to the form of the judgment taken by the defendant. The judgment was for the value, and not in the alternative, for a return or the value in case a return could not be had. This question was passed upon by this court in the case of Pratt v. Donovan, 10 Wis., 387, in which it was held that a defendant might, under the Code and act of 1854, which was then in force, waive a return and take a judgment for the [441]*441value. Since then, the act of 1854, referred to in that case, has.been repealed in the general revision, leaving the question to depend on the provisions of the Code in relation judgments, which were also therein referred to. It is now t, , , , insisted that the decision in Pratt v. Donovan depended on that act, and that the same conclusion cannot now be sustained. But we are of the opinion that the provisions of the Code in relation to judgments, upon tlie construction of which the decision in Pratt v. Donovan mainly depended, sufficiently recognize the option of defendants in these actions to waive a return and take judgment for the value, where the property has been delivered to the plaintiffs. And that decision sufficiently states the reasons for this conclusion.

The statute makes the alternative judgment in favor of a defendant dependent on the condition that he “claims a return and we can give no effect to this clause except by allowing an option to claim a return or not.

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Bluebook (online)
15 Wis. 424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-loan-trust-co-v-commercial-bank-of-racine-wis-1862.