Goddard v. Morgan

74 P.2d 894, 193 Wash. 83
CourtWashington Supreme Court
DecidedDecember 29, 1937
DocketNo. 26819. Department Two.
StatusPublished
Cited by6 cases

This text of 74 P.2d 894 (Goddard v. Morgan) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goddard v. Morgan, 74 P.2d 894, 193 Wash. 83 (Wash. 1937).

Opinion

Millard, J.

Plaintiffs, a marital community, leased a building owned by them in Seattle to John A. Facklars for a term of three years. A chattel mortgage on the restaurant equipment placed on the leased premises was executed by the lessee to secure the payment of the rent to the lessors.

This action was instituted against Facklars and his successors in interest for foreclosure of the mortgage. By their second cause of action, the plaintiffs seek to establish and foreclose a landlord’s lien on the same personal property covered by the chattel mortgage for the rental of the premises for the last two months of the term, to be included in the total amount demanded in the first cause of action. S. M. Morgan and L. H. Kraft, to whom one of the assignees of the lease executed chattel mortgages on the same property to secure payments of loans of money, by cross-complaint pray foreclosure of their mortgages as prior in right to the chattel mortgage of Facklars to Goddard. This appeal is from the decree subordinating plaintiffs’ chattel mortgage to the claims of Morgan and Kraft.

The facts are as follows:

Appellants leased to John A. Facklars a building owned by them in Seattle for a term of three years, commencing April 15, 1932, at a monthly rental of one hundred twenty-five dollars. That contract, which recites that it is by and between Alfred Goddard and John A. Facklars, is signed by John A. Facklars and Alfred Goddard and provides that the lessee shall give to the lessor a chattel mortgage in the amount of five hundred dollars upon all of the lessee’s fixtures placed on the leased premises for the operation of a restaurant, to secure the payment of the rent. Pursuant to that *85 condition of the lease, Facklars executed a chattel mortgage, which was duly filed in the office of the auditor for King county. The restaurant equipment of Facklars was thereupon placed in the premises and there remained until the trial of this action.

On May 5, 1933, Facklars made a written assignment of the lease to Nick Carras, who, on August 21, 1933, made a written assignment of the lease to Gust Cozakos, who remained in possession of the leased premises until the end of the term. No part of the rent for the months beginning December 13, 1934, and the 13th of January, February, and March, 1935, in the total sum of five hundred dollars, was ever paid. Notice to pay the rent or vacate was served on the tenant March 23, 1935. The lease expired April 15, 1935. The tenant did not pay the rental due of five hundred dollars and did not vacate the premises until the end of the term. On April 12, 1935, which was within two months of the due date of the rent for the last two months in the amount of two hundred fifty dollars, this action was commenced.

By their first cause of action, the appellants sought foreclosure of the chattel mortgage from Facklars to Alfred Goddard. The prayer of their second cause of action was for the foreclosure of the landlord’s lien for two months’ rent on the same personal property covered by the chattel mortgage. The two months rental of two hundred fifty dollars was to be included, however, in the total of five hundred dollars demanded in the first cause of action.

Respondent Morgan sought by his cross-complaint foreclosure of the chattel mortgage, made by Cozakos March 22, 1934, on the same property as that covered by the chattel mortgage in favor of appellant, to secure payment of a loan of one hundred dollars from Morgan to Cozakos. The prayer of the cross-complaint of the *86 respondent Kraft was for the foreclosure of two chattel mortgages on the same property executed by Cozakos May 21 and December 24, 1934, to secure payment of loans of two hundred fifty dollars and one hundred dollars, respectively, from Kraft to Cozakos. By his answer, Carras urged, as a defense, the assignment of the lease to him as an accommodation to appellants, with the understanding that he was not to be held for any rent or the performance of any of the other provisions of the lease.

Orders of default were entered against Facklars, Cozakos, Meyer, and Paul, who made no appearance. Carras was dismissed from the case. The appellants were awarded a judgment in the amount of five hundred dollars claimed by them against Facklars and Cozakos, and their landlord’s lien established as prior to the rights of all the other parties, but the chattel mortgage of appellants was subordinated to the claims of respondents Morgan and' Kraft under their three chattel mortgages described above.

Appellants contend that their chattel mortgage is prior in time and right to the claims of respondents, and that the trial court erred in its refusal to so hold and to enter a decree foreclosing the appellants’ chattel mortgage as a prior and superior lien.

The chattel mortgage of the appellants was executed in March, 1932, and filed in the office of the county auditor of King county within the ten day period prescribed by the statute. Rem. Rev. Stat., § 3781 [P. C. § 9760]. Such filing gave constructive notice to all the world of the existence and conditions of the mortgage. Rem. Rev. Stat., § 3782 [P. C. § 9761]. The chattel mortgages of the respondents were not executed or filed until 1934; therefore, the appellants’ mortgage was prior in time to the mortgages of the respondents.

*87 Respondents contend that, as the lease was unacknowledged by the lessee, it constituted only a tenancy from month to month.

In Central Building Co. v. Keystone Shares Corp., 185 Wash. 645, 56 P. (2d) 697, we held that, since a lease need not be signed by the lessee if it is accepted and acted on, it need not be acknowledged by him if he accepts it and acts thereunder. See, also, Rowland v. Cook, 179 Wash. 624, 38 P. (2d) 224, 101 A. L. R. 180.

Appellants’ lessee accepted the lease and acted thereunder — all of the conditions and terms of the lease, except payment of the rental for the last four months of the lease, were performed — therefore, the lease in question was valid without the acknowledgment of the lessee.

Respondents argue that, as the leased property was community property and appellant wife did not sign or acknowledge the lease, the tenancy was only from month to month. The statute (Rem. Rev. Stat., § 6893 [P. C. § 1434]) provides that the husband shall not sell or encumber the community real estate unless the wife joins with him in executing the instrument by which the real estate is sold or encumbered, and such instrument must be acknowledged by him and his wife.

A contract to lease community property for a term of years made by a married man without his wife joining him in the manner provided by the statute (Rem. Rev. Stat., § 6893) is in contravention of the statute, and cannot be established for the full term by part performance as against the community owner (the wife) not bound by the lease. Spreitzer v. Miller, 98 Wash. 601, 168 Pac. 179; Kaufman v. Perkins, 114 Wash. 40, 194 Pac. 802.

The question as to the right of the wife to deny the validity of a lease not signed and acknowledged by her *88 is not before us.

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Bluebook (online)
74 P.2d 894, 193 Wash. 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goddard-v-morgan-wash-1937.