First Nat. Bank of Anadarko v. Mills

1928 OK 732, 272 P. 840, 134 Okla. 186, 1928 Okla. LEXIS 840
CourtSupreme Court of Oklahoma
DecidedDecember 18, 1928
Docket18216
StatusPublished
Cited by7 cases

This text of 1928 OK 732 (First Nat. Bank of Anadarko v. Mills) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Nat. Bank of Anadarko v. Mills, 1928 OK 732, 272 P. 840, 134 Okla. 186, 1928 Okla. LEXIS 840 (Okla. 1928).

Opinion

BENNETT, C.

The First National Bank of Anadarko filed its petition in district court of Caddo county against W. D. Mills, as surviving partner of the partnership of Mills Brothers, and W. D. Mills, individually, defendant, to recover $6,809.45, represented by a promissory note, and to foreclose a chattel mortgage on a certain grain elevator and hay barn, all considered as personal property, and for an injunction prohibiting W. D. Mills from selling certain property pending litigation. The petition, in so far as it touches the question in controversy here, is, in substance, as follows:

That Mills Brothers, a partnership, consisting of II. T. Mills and W. D. Mills, for a valuable consideration, did, on November 19, 1925, execute and deliver to plaintiff their certain promissory note for $7,000 and a chattel mortgage securing same, which note was du'e May 19, 1926, and was indorsed individually by H. T. Mills and W. D. Mills. Copies of the note with indorsements and mortgage were attached to and made part of the petition; that the above mortgage was executed subject to a $3,500 first mortgage on the same property in favor of F. M. Fulkerson. That the note and mortgage sued on are in default, and that there remains due on the same $6,809.49, with interest thereon at ten per cent, per annum from the 6th day of December, 1926, together with the sum of $700 as attorney’s fees; that H. T. Mills died June 26, 1926, and that W. D. Mills, as surviving partner, took, possession of all the partnership property of said Mills Brothers, including the property covered by said chattel mortgage; that he has failed to furnish the administrator of the estate of said H. T. Mills a full and correct inventory and a fair and just appraisement of the partnership property *187 and assets belonging to him and the said deceased partner; that he has disposed of nearly $2,000 of the’stock of feed stuff, hay, grain, and seeds belonging to said partnership, and has failed to apply the proceeds of said sale in the settlement of the debts of said partnership, and particularly to that held by plaintiff; that the mortgaged property now in the hands of said W. D. Mills, surviving partner, is not sufficient to pay said first mortgage and the amount due plaintiff, and that there will be a personal liability against the said surviving partner, and as an indorser of said note by reason of the insufficiency of said partnership property; that the said W. D. Mills is about to dispose of his property and with the intent to defraud his creditors, and particularly this plaintiff, and to render any judgment which this plaintiff may recover against him individually ineffectual ; that said defendant, individually, is the owner of lot 1, block 33, of the value of $2,500 and of lot 7 in block 36, both in the city of Anadarko, of the value of $5,000; that said defendant has already negotiated for the sale of the lot first described for $2,500, and has notified the purchaser that he should make payment in cash only; that the plaintiff verily believes and alleges the truth to be that the defendant is selling said property for the purpose of getting the proceeds in cash and placing the same beyond the reach of any judgment that plaintiff may recover against him in this action. Wherefore, plaintiff demands judgment for such demand, and also for an injunction against defendant ■ restraining and enjoining him from disposing of his property until the final determination of this suit and until satisfaction of plaintiff, and until plaintiff’s claims are satisfied, and for temporary restraining order, etc.

On the 21st day of December, 1926, a temporary injunction was granted according to the prayer of plaintiff’s petition, upon filing by plaintiff of an injunction bond in due form in the sum of $1,500. On January 12, 1927, the defendant, W. D. Mills, as surviving member of the partnership of Mills Brothers, and W. D. Mills, individually, filed a demurrer to the petition alleging that the same did not state facts sufficient to constitute a cause of action against the defendant herein in so far as relief by injunction is concerned. On March 10, 1927, the cause came on for hearing upon said demurrer, and upon the motion made by the defendant in open court to dissolve the temporary injunction, and the court sustained the demurrer interposed, “for the reason that the same does not' state facts sufficient to constitute a cause of action for injunction, and that the motion to dissolve the temporary injunction heretofore granted in said cause on the 21st day of December, 1926, should be sustained for the same reason.” From this judgment the plaintiff appeals to this court for review.

Plaintiff makes, two assignments of error, to wit: (1) That the court erred in sustaining the demurrer; and (2) that the court erred in sustaining the motion of defendant to dissolve the temporary injunction. These are treated together in the argument, and they will be so considered here.

The determination of this cause requires an interpretation of section 405, C. O. S. 1921, which is as follows:

“Cause for Injunction. When it appears, by the petition, that the plaintiff is entitled to the relief demanded, and such relief, or any part thereof, consists in restraining the commission or continuance of some act, the commission .or continuance of which, during the litigation, would produce injury to the plaintiff; or when, during the litigation, it appears that the defendant is doing, or threatens, or is about to do, or is procuring or suffering to be done, some act in violation of the plaintiff’s rights respecting the subject of the action, and tending to render the judgment ineffectual, a temporary in--junetion may be granted to restrain such act. And when, during the pendency of an action, it shall appear, by affidavit, that the defendant threatens, or is about to remove or dispose of his property with intent to defraud his creditors, or to render the judgment ineffectual, a temporary injunction may be granted to restrain such removal or disposition. It may, also, be granted in any case where it is specially authorized by stat- . ute.”

The demurrer admits: (1) That the defendant is indebted to plaintiff by promissory note, which is past due and unpaid in the sum of $6,809.49 with ten per cent, interest thereon, and $700 as attorney’s fee; (2) that the note is secured by a chattel mortgage on personal property upon which there exists a prior mortgage for $3,500, and that the mortgaged property is insufficient in value to pay the debts secured by the two mortgages; (3) that the note sued on and secured by the second mortgage aforesaid was made for valuable consideration by Mills Brothers, a partnership consisting of H. T. Mills and W. D. Mills on November 19, 1925, the said partners personally indorsing said note— and thereafter, in June, 1926, H. T. Mills died, and the defendant, W. D. Mills, as surviving partner, took possession of all the partnership property including that covered by the chattel mortgage sued on; (4) that *188 said W. D. Mills failed to furnish the administrator of the estate of H. T. Mills a correct and fair inventory and appraisement of the partnership property and assets belonging to such copartnership, and thereafter to such partners, but that he disposed of $1,-800 worth of personal property belonging to said partnership at the time of the death of H. T. Mills, and failed to apply the proceeds thereof to the payment of the partnership debts and particularly the debt due plaintiff; (5) that W. D.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gotshall v. Taylor
196 So. 2d 479 (District Court of Appeal of Florida, 1967)
State Ex Rel. Olsen v. Sundling
281 P.2d 499 (Montana Supreme Court, 1955)
Loeffler v. Federal Supply Co.
1940 OK 217 (Supreme Court of Oklahoma, 1940)
In Re Assessment of Champlin Refining Co.
1940 OK 67 (Supreme Court of Oklahoma, 1940)
Board of Equalization of Oklahoma County v. Bonner
1939 OK 302 (Supreme Court of Oklahoma, 1939)
Spencer v. Correll
1932 OK 839 (Supreme Court of Oklahoma, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
1928 OK 732, 272 P. 840, 134 Okla. 186, 1928 Okla. LEXIS 840, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-of-anadarko-v-mills-okla-1928.