First National Bank v. Beley

80 P. 256, 32 Mont. 291, 1905 Mont. LEXIS 170
CourtMontana Supreme Court
DecidedMarch 31, 1905
DocketNo. 2,071
StatusPublished
Cited by7 cases

This text of 80 P. 256 (First National Bank v. Beley) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Beley, 80 P. 256, 32 Mont. 291, 1905 Mont. LEXIS 170 (Mo. 1905).

Opinion

MR. COMMISSIONER BLAKE

prepared the opinion for the court.

This action was brought by plaintiff (appellant) against defendant (respondent), as sheriff of Park county, and his bondsmen, to recover the value of personal property levied on under a writ of attachment. The findings of the court are not attacked, and it appears therefrom that-John Jervis and his wife executed and delivered to the plaintiff a chattel mortgage to secure the payment of a note dated September 20, 1900, and payable six months after date, for the sum of $4,000 and interest. Jervis and his wife, on September 15, 1900, made the affidavit required by the statute that the mortgage was made in good faith to secure the amount named therein, and without design to hinder, delay, or defraud creditors, and acknowledged the execution of the mortgage. The instrument was filed in the office of the clerk and recorder of Park county September 19, 1900. The plaintiff at all the times mentioned in the complaint was a corporation under the banking laws of the United States, and no affidavit was made to this mortgage by any officer of the plaintiff in its behalf.

[293]*293On March 19, 1901, the cashier of the bank made affidavit for the renewal of the mortgage, and this was filed March 20, 1901, in the office of the county clerk and recorder of Park county. This affidavit, omitting the formal parts, is as follows: “That said bank is the mortgagee in that certain chattel mortgage dated September 20, 1900, wherein John Jervis and Caroline Jervis are mortgagors. Said chattel mortgage secures a promissory note of the sum of four thousand dollars ($4,000), dated at Livingston, Montana, September 20, 1900, due six months after date. That said mortgage was filed in the office of the county clerk and recorder of Park county, Montana, on the 19th day of September, 1900, 8:45 a. m. That there is justly owing at the time of filing this affidavit on said note secured by said mortgage the sum of four thousand dollars, and that said chattel mortgage is hereby extended to the 20th day of September, 1901, and that such debt or obligation was not made or renewed to hinder, delay or defraud the creditors or subsequent encumbrancers of the mortgagors.”

It further appears from the findings that the note given to the plaintiff by Jervis and his wife has not been paid, and that the mortgagors remained in the possession of the mortgaged property under the terms of the mortgage, and that the plaintiff was never in possession of the same. Jervis was indebted May 16, 1901, to one Hoppe, in the sum of $1,928.32. Hoppe commenced action in the district court of Park county to recover the same. A writ of attachment was duly issued out of the court and placed in the hands of the defendant as sheriff, who levied upon and took into his possession the property described in the mortgage. A judgment of the court was given and made February 14, 1903, for Hoppe and against Jervis, for the amount claimed in the complaint. A writ of execution was issued out of the court on the judgment, and all the property attached was sold, and the proceeds of the sale were applied to the satisfaction of the judgment.

It further appears from the findings that the defendant, as such sheriff, did not pay or tender to the plaintiff the amount [294]*294of said mortgage debt or interest, and did not deposit the amount thereof with the treasurer of Park county, payable to the order of the plaintiff, before he attached and took the property described in the mortgage into his possession under the writ of attachment. As a conclusion of law from the facts the court finds the mortgage was null and void' as to attaching creditors of John Jervis, and that the property described in the mortgage was subject to the levy under the writ of attachment issued in the case of Hoppe v. Jervis. Prom a judgment entered in favor of the defendant this appeal has been prosecuted.

It is admitted that the mortgage was void as to attaching creditors before the affidavit of its renewal was filed. The instrument was not accompanied by the affidavit of plaintiff of good faith, and the statute was not complied with. (Civil Code, sec. 3861; Reynolds v. Fitzpatrick, 23 Mont. 52, 57 Pac. 452; Westheimer v. Goodkind, 24 Mont. 90, 60 Pac. 813, and cases cited.)

There is one question for decision: Was the mortgage, though void as to creditors at the time of its execution by reason of the failure of the mortgagee to make the affidavit required -by law, rendered valid as against attaching creditors, and renewed by the affidavit filed with the clerk and recorder March 20, 1901?

The Code provides that “every mortgage of personal property, made, acknowledged and filed as provided by the laws of this state may be renewed at or before the maturity of the debt or obligation secured thereby,” by filing in the office where the mortgage is filed an affidavit of the mortgagee showing certain facts, as provided in section 3866 of the Civil Code. Section 1542, fifth division, of the Compiled Statutes of 1887, is the same as section 3866, supra, and was construed in Cope v. Minnesota T. F. Co., 21 Mont. 18, 52 Pac. 617. The court held that an affidavit for the renewal of a chattel mortgage conformed to the statute, and said: “When said affidavit was [295]*295filed in the office where the original mortgage therein described was filed, and when the clerk and recorder of deeds of the county in whose office the mortgage was "filed attached the affidavit to the mortgage therein described, and noted the date of filing as provided by the statute, thereby the mortgage was renewed, was continued, and became a valid lien, of full force and effect upon the chattels described in the mortgage, for the time specified in the affidavit.”

The respondents maintain that the affidavit of renewal before us is incomplete and defective. The statute requires the affidavit to show the time co which the same (debt or obligation) is extended. (Civil Code, sec. 3866.) The affidavit states “that said chattel mortgage is hereby extended to the 20th day of September, 1901.” We do not express an opinion upon this point, but assume on this appeal that the plaintiff filed a sufficient affidavit for the renewal of a valid mortgage.

The appellant claims that the statutes governing chattel mortgages should be liberally construed; that the affidavit of renewal contains all the facts necessary to give notice to persons of the existence of the debt owing by the mortgagors to the mortgagee, the lien of the mortgage upon the property therein described, the good faith of the parties; and that in the absence of fraud the omission of the plaintiff to make the affidavit required by the statute has been cured.

Our attention has not been called to any authority in support of the main proposition of appellant that the affidavit of renewal made valid the lien of the plaintiff on the property described in the mortgage as against attaching creditors. Laws regulating chattel mortgages have been enacted in every state, but their provisions are not uniform, although the same objects are accomplished. In decisions involving their interpretation, one principle is adhered to, and that is that statutory requirements intended to protect the lien of the mortgagee on the mortgaged property against attaching creditors must be strictly followed.

The re-filing of a chattel mortgage in some jurisdictions has the same effect as its renewal under our Code, and the authori[296]

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Cite This Page — Counsel Stack

Bluebook (online)
80 P. 256, 32 Mont. 291, 1905 Mont. LEXIS 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-beley-mont-1905.