Frick Co. v. Oats

1908 OK 33, 94 P. 682, 20 Okla. 473, 1907 Okla. LEXIS 46
CourtSupreme Court of Oklahoma
DecidedMarch 12, 1908
DocketNo. 1868, Okla. T.
StatusPublished
Cited by21 cases

This text of 1908 OK 33 (Frick Co. v. Oats) 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
Frick Co. v. Oats, 1908 OK 33, 94 P. 682, 20 Okla. 473, 1907 Okla. LEXIS 46 (Okla. 1908).

Opinion

Tuenbe, J.

This is an action of replevin brought by the plaintiff in error, plaintiff below, against defendants in error, defendants below, in the district court of Woods county, on October 22, 1901, to recover possession, among other things, of a traction engine, an Eclipse thresher, a wind stacker, a sawmill, etc., of the total value of $1,200. 0,n the same day an order of delivery was duly issued and plaintiffs placed in possession of the property, which he has since retained. It seems that on July 10, 1899, one Richard Pearson, being indebted to plaintiff in the sum of about $2,000, made, executed, and delivered to plaintiff a chattel mortgage on the property in controversy, which was never filed as required by law; that said Pearson in August, 1901, after condition broken, turned said property over to plaintiff, who took possession thereof under said mortgage as security for said indebtedness; that while in the possession of said property defendants, who were sheriff and deputy sheriff, respectively, of Woods county, Okla., on October 5, 1901, levied certain executions issued out of a justice of the peace court on said property, and took possession thereof, whereupon plaintiff brought this suit. There was a trial to a jury, and a verdict for defendants, a motion for a new trial, which was overruled, and exceptions taken, a petition in error and case-made duly filed in this court, and the case is now before us on appeal.

*475 The questions we are asked to determine are: Is the verdict sustained by the evidence? Is the verdict contrary to law? If in an antion of replevin the right of the creditor to the possession of the property in controversy, who holds a chattel mortgage of ■ his debtor’s property, which is void as to other creditors of the debtor because it was not filed, but who has taken possession of the mortgaged property, after conditions broken, as security for the debt, with the consent of the mortgagor, is superior to that of a subsequent execution creditor who has levied upon the same property, then the verdict is not sustained by sufficient evidence, is contrary to law, and the judgment of the trial court should be reversed, otherwise not. Let us see how this is.

In Greenville National Bank v. Evans-Snyder-Buell Co., 9 Okla., 393, 60 Pac. 261, the court says:

“At common law the mortgagee held possession of the property as well as the legal title. If the mortgagor was permitted to retain possession, the conveyance was presumptively fraudulent. The rule at common law has been changed by nearly all of the Western states, so that the legal title to the property remains in the mortgagor, and where the mortgage or statute so provides, the mortgagor may remain in possession, and as a general rule, if the mortgagor remains in possession, the mortgage must be filed, or the mortgagee will not be protected against the creditors of the mortgagor; but, if the mortgagee is in possession of the propertjq the most of the states protect his rights under his mort-age against the mortgagor’s creditors.”

- Cobbey on Chattel Mortgages, speaking of unfiled chattel mortgages (volume 1, § 498), says: “If the mortgagee takes possession of the mortgaged property before any other fight or lien attaches, his title under the mortgage is good against everybody, if it was previously valid between the parties”' — and authorities cited. Again, in the same section we find: “Where a creditor who holds a mortgage of his debtor’s property, which is void as to other creditors of the debtor because it was not filed, takes possession of the mortgaged property, with the consent of the debtor, as security foi' the debt, lit may rtill, as against other creditors, hold the property as pledgee. * * * If a mortgagee takes *476 possession of the mortgaged chattels before any other right or lien attaches, his title under the mortgage is good against everybody, if it was previously valid between the parties, although it be not acknowledged and recorded, or the record be ineffectual by reason of some irregularity. The subsequent delivery cures all such defects, and the mortgagee’s right of possession is good against 'the world. * * * ” — citing numerous authorities. Bank v. Damm, 63 Wis. 249, 23 N. W. 497.

Iiammon on Chattel Mortgages, p. 82, says: “If the mortgagee takes possession of the mortgaged property with the consent of the mortgagor before any other right or lien attaches, it will cure the invalidity arising from omission to record the instrument” — citing authorities. The same author on page 225 says: “As between the parties to the contract recordation is therefore unnecessary. Either party may enforce his rights without regard to whether the instrument has been recorded” — citing a number of authorities.

That this doctrine is sustained by an overwhelming weight of authority there can be no question, and it would seem that in all the states unñled chattel mortgages, executed in good faith and good as between the parties on the point in question, stand on a common footing. That such mortgages are good as between the parties has always been held in Arkansas, and. such is also the rule in Oklahoma. Strahorn-Hutton-Evans Com. Co. v. Florer & Bannerman, 7 Okla. 499, 54 Pac. 710. In Evans-Snyder-Buell Co. v. McFadden, 105 Fed. 293, 44 C. C. A. 496, 58 L. R. A. 900, the court said:

“Prior to the adoption of the chapter concerning mortgages as the law in the Indian Territory, it has been decided by the Supreme Court of Arkansas in Main v. Alexander, 9 Ark. 112, 47 Am. Dec. 732, that by force of Mansfield’s Digest §§ 4742, 4743, a mortgage on personal property executed in that -state was good as between the parties thereto, though not acknowledged and recorded; but that it constitutes no lien upon the mortgaged property as against strangers.* • * * ”

See, also, Hannah v. Carrington, 18 Ark. 105; Jackoway v. *477 Gault, 20 Ark. 190, 73 Am. Dec. 494; Carroll v. Duval, 22 Ark. 142; Jarratt v. McDaniel, 32 Ark. 602; Haglin v. Rogers, 37 Ark. 496; Watson v. Thompson, 49 Ark. 84-281, 4 S. W. 62.

But it is contended in the case at bar that section 3578, Wilson’s Rev. & Ann. St. Okla. 1903, which reads as follows: “A. mortgage on personal property is Yoid as against creditors of the mortgagor, subsequent purchasers, and incumbrancers of the property in good faith, for value, unless the original, or an authenticated copy thereof, be filed by depositing the same in the office of the register of deeds of the county where the property mortgaged, or any part thereof, is at the time situated * * *”— renders the chattel mortgage under consideration absolutely void as against the execution creditors in this case. To sustain this contention defendants in error rely on the case of Greenville National Bank v. Evans-Snyder-Buell Company, supra, where the opinion construing this statute, and seeming to establish a contrary rule (same page), reads as follows:

“These rules, however, may be changed or modified to any extent by statutes.

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Bluebook (online)
1908 OK 33, 94 P. 682, 20 Okla. 473, 1907 Okla. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frick-co-v-oats-okla-1908.