Frost v. Citizens' National Bank of Beloit

32 N.W. 110, 68 Wis. 234, 1887 Wisc. LEXIS 90
Wisconsin Supreme Court·Decided March 1, 1887·Published·Cited by 4 cases

Opinion

Onion, J.

It appears that the firm of Hinman, Moody & Co., on the 5th day of September, 1883, executed a chattel mortgage upon the goods described in the complaint, to the respondent bank, to secure certain promissory notes therein described, and that said mortgage was duly filed in the clerk’s office of the city of Beloit on the 2d day of November thereafter. The said firm thereafter, and- about the 5th day of November, 1883, made- a voluntary assignment for the benefit of their creditors, of all of their property, including the goods which had been so mortgaged to said bank, to the appellant. The said goods, being found in the possession of said bank, were demanded by the appellant ■as such assignee, and upon said bank’s refusal to deliver the same the appellant brought this action of replevin to recover the possession thereof. A jury having been waived, the circuit court found all the issues in favor of the defendants, and judgment was entered accordingly, and this appeal is taken therefrom.

The two main grounds assumed and sought to be maintained by the appellant upon the trial of this action were (1) that the goods described in the complaint and taken by the writ were not those described in and conveyed by said mortgage; and (2) that if they were the same goods the said bank could not withhold the same from the appellant as such assignee, because said mortgage was void for the reason that it was made by said Hinman, Moody & Co., with intent to hinder, delay, or defraud their creditors; and these grounds, on the merits, are urged in this court to reverse the judgment.

The first ground rests upon the uncertain and insufficient •description and identity of the goods mortgaged to and taken possession of by the said bank; and it is claimed by the learned counsel of the appellant that the said bank, as such mortgagee, has shown no right to said goods. The description of the goods in the mortgage is as follows: [236]*236“2 Potter power presses; 1 Taylor power press; 1 Hoe pony press; 1 stereotype outfit, together with all its tools and supplies; 4 oases and stands, with the type and letters therein; 20 tons manilla paper; 40 tons drygoods paper; 60 tons straw paper; 60 tons rag paper; 15 tons sugar paper; 400,000 paper bags; 15,000 envelopes; 2'tons twine and cords; 2,000 lbs. writing paper; and the several lots of blank books,— said property situated and being now at their warehouse, next south of the east side Rock River Paper Co.’s mill, in the city of Beloit,” etc. Many of these articles would appear to have been sufficiently described in themselves, and all of them sufficiently identified as being in said warehouse so long as they remained in that place. But it is contended that sales were made of many of the articles, which were supplied by others manufactured or purchased, in such way that their identity has been made impossible as being the goods mortgaged.

The following findings of the circuit court are pertinent to the. question of the identity of the goods: “ Second. That at the time of making said assignment, and before it was made, the goods and chattels mentioned in the complaint herein were included in and covered by a certain chattel mortgage duly executed by said firm of Hinman, Moody & Co., on the 5th day of September, 1883, and bearing date September 5, 1883, and which was duly filed in the office of the clerk of the city of Beloit on the 2d day of November, 1883, at 3 25-60 o’clock in the afternoon of that day.” “ Seventh. That shortly prior to the time of giving the mortgage, Moses S. Hinman, the managing partner of said firm at Beloit, pointed out to G. B. Salmon, the cashier and one of the stockholders of the Citizens' National Bank of Beloit, the property intended to be covered by said mortgage, and at the request of Salmon furnished a memorandum of the same property thus pointed out to be included in the mortgage, and which was afterwards included in the [237]*237same.” “ Eighth. That on the 3d day of November, 1883, Moses S. Hinman pointed out to G. B. Salmon, the cashier of said bank, the property covered by the said mortgage, which property was afterwards,. on the 5th day of November, 1883, prior to the execution and delivery of said assignment, seized and taken possession of by the agents and officers of said bank under and by virtue of said chattel mortgage; all of which property remained in the possession of said officers and agents, under said mortgage, until the same was disposed of by them under and by virtue of said mortgage in the month of December, 1883, prior to the commencement of this action; and that said Moses S. Hin-man again on the 6th day of December, 1883, after the property had been seized on said mortgage as before found, pointed out the same property to the officers and agents of said bank as and for the property included in said mortgage; and that there was a schedule made and attached to said assignment, made on or about the 15th day of November, 1883, and that on the said schedule of property so attached to the assignment is this memorandum, viz.: ‘ All the foregoing goods and chattels enumerated in Schedule A, class 4, at Beloit, Wis., are subject to a chattel'mortgage, dated September 5, ’1883, executed by Hinman, Moody & Co., to the Citizeiis’ National Bank of Beloit, Wis.’ That this memorandum referred to the said chattel mortgage executed September 5, 1883, by the said Hinman, Moody & Co., to the. Citizens’ National Bank, of Beloit; and at the time this memorandum was made the property referred to was in the possession of said mortgagee, its officers and agents, and was and is the same property to recover which, or its value, this action is brought, and was and is the same property seized under and by virtue of said mortgage.” There is another finding, in effect, that said bank was the lawful owner and lawfully entitled to the possession of all and singular the said property prior to the execution and delivery [238]*238of said assignment, and was lawfully in possession of tbe same under and by virtue of said mortgage, and remained in tbe actual and continuous possession thereof until sold as aforesaid.

Tbe testimony was amply sufficient to sustain these findings. Tbe appellant, Frost, tbe officer, Allen, and tbe cashier, Salmon, concurred in testifying that tbe property was in tbe possession of the bank; and Salmon and Ilinman testified that it was pointed out by Ilinman as being covered by tbe mortgage before tbe execution and delivery of tbe assignment. Tbe appellant, as such assignee, on tbe Gtb day of November thereafter, served upon tbe officers of said bank a written demand for tbe bank to surrender such possession to him “ of all and singular tbe property mentioned in a certain mortgage dated September 5, 1883, and which purports to have been executed by said Ilinman, Moody & Go., to tbe Citizens' National Bernik of Beloit, Wis.,” preparatory to tbe commencement of this action. As between tbe parties to tbe mortgage, these findings, so sustained by tbe evidence, dispose of tbe question of tbe certainty of description and identity of tbe property, for their legal effect is that said firm of Ilinman, Moody & Co. specially identified, turned out and delivered to tbe bank as tbe mortgagee tbe said property as that which was described in and conveyed by tbe mortgage, and that tbe bank took full possession thereof, by tbe consent of tbe said mortgagors, before tbe execution of said assignment. This cures any insufficiency or want of certainty of description of tbe property.

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Frost v. Citizens' National Bank of Beloit, 32 N.W. 110, 68 Wis. 234, 1887 Wisc. LEXIS 90 (Wis. 1887).

32 N.W. 110 (Frost v. Citizens' National Bank of Beloit) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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