Goodwin v. Tuttle

141 P. 1120, 70 Or. 424, 1914 Ore. LEXIS 271
CourtOregon Supreme Court
DecidedMay 26, 1914
StatusPublished
Cited by11 cases

This text of 141 P. 1120 (Goodwin v. Tuttle) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goodwin v. Tuttle, 141 P. 1120, 70 Or. 424, 1914 Ore. LEXIS 271 (Or. 1914).

Opinion

Mr. Justice Burnett

delivered the opinion of the court.

The controlling question in this case is whether or not the court erred in refusing to allow the plaintiff to prove in his case in chief the allegations of his reply respecting the bulk sale of the property to the defendant by the corporation, and in directing a verdict for the defendant. The statute affecting such transfers, as it stood at the time of the transaction, is found in Sections 6069, 6070, L. O. L.:

“It shall be the duty of every person who shall bargain for or purchase any stock of goods, wares, or [427]*427merchandise in bulk, for cash or on credit, to demand and receive from the vendor thereof, and if the vendor be a corporation then from a managing officer or agent thereof, at least five days before the consummation of such bargain or purchase, and at least five days before paying or delivering to the vendor any part of the purchase price or consideration therefor, or any promissory note or other evidence of indebtedness therefor, a written statement under oath containing the names and addresses of all of the creditors of said vendor, together with the amount of indebtedness due or owing, or to become due or owing, by said vendor to each of such creditors, and if there be no such creditors, a written statement under oath to that effect; and it shall be the duty of such vendor to furnish such statement at least five days before any sale or transfer by him of any stock of goods, wares, or merchandise in bulk”: Section 6069, L. O. L.
“After having received from the vendor the written statement under oath mentioned in section 6069 the vendee shall, at least five days before the consummation of such bargain or purchase, and at least five days before paying or delivering to the vendor any part of the purchase price or consideration therefor, or any promissory note or other evidence of indebtedness for the same, in good faith notify or cause to be notified, personally or by wire or by registered letter, each of the creditors of the vendor named in said statement, of the proposed purchase by him of such stock of goods, wares, or merchandise; and whenever any person shall purchase any stock of goods, wares, or merchandise in bulk, or shall pay the purchase price or any part thereof, or execute or deliver to the vendor thereof or to his order, or to any person- for his use, any promissory note or other evidence of indebtedness for said stock, or any part thereof, without having first demanded and received from his vendor the statement under oath as provided in section 6069, and without having also notified or caused to be notified all of the creditors of the vendor named in such statement, as in this section prescribed, such purchase, [428]*428sale, or transfer shall, as to any and all creditors of the vendor, be conclusively presumed fraudulent and void”: Section 6070, L. O. L.

Section 70 of the National Bankrupt Law provides:

“The trustee of the estate of a bankrupt, upon his appointment and qualification, # * shall in turn be vested by operation of law with the title of the bankrupt, as of the date he was adjudged a bankrupt, * * ” to “property transferred by him in fraud of his creditors”; and “property which prior to the filing of the petition he could by any means have transferred or which might have been levied upon and sold undet judicial process against him. * * The trustee may avoid any transfer by the bankrupt of his property which any creditor of such bankrupt might have avoided, and may recover the property so transferred, or its value, from the person to whom it was transferred, unless he was a bona fide holder for value prior to the date of the adjudication. Such property may be recovered or its value collected from whoever may have received it, except a bona fide holder for value. For the purpose of such recovery any court of bankruptcy, as hereinbefore defined, and any state court which would have had jurisdiction if bankruptcy had not intervened, shall have concurrent jurisdiction. ’ ’

1. It was argued that, because the property was described as being “acquired” from the Co-Operative Trading Company, the complaint, in effect, pleaded property in the defendant. A fair construction of the complaint, however, taking it by the four corners, does not justify such a conclusion. The word “acquired” is used merely as descriptive of the property, and does not necessarily mean that title had passed to the defendant. A thief may properly be said to have “acquired” the property which he has stolen, and in a certain sense any person taking possession of property may be properly said to have “acquired” it.

[429]*4292. It was also contended by the defendant that where the plaintiff alleges that he is the absolute and unqualified owner of the property in dispute, which defendant denies, he is required to prove it, and that proof that the plaintiff holds it in trust for another is not enough. Contrary to the single authority cited in support of that point, it has been held in this state in several cases that in replevin under the allegation of general ownership the plaintiff may prove a special property entitling him to possession: Reinstein v. Roberts, 34 Or. 87 (55 Pac. 90, 75 Am. St. Rep. 564); Backhaus v. Buells, 43 Or. 558 (72 Pac. 976, 73 Pac. 342); Culver v. Randle, 45 Or. 491, (78 Pac. 394); Harvey v. Lidvall, 48 Or. 558 (87 Pac. 895); Swank v. Elwert, 55 Or. 487 (105 Pac. 901); Roberson v. Ellis, 58 Or. 219 (114 Pac. 100).

3. Another argument of the defendant was that the new matter in the reply constituted a departure from the complaint. It seems that it was upon this ground that the Circuit Court refused to allow the plaintiff to prove the invalidity of the alleged bulk sale of the property. Under the terms of the national bankrupt law quoted, the trustee by operation of law is vested with the title of all the bankrupt’s estate, and is equipped with all the legal remedies for the recovery of the same. Suppose that he had found the property of the bankrupt in the possession of some individual without any claim of title whatever on the part of the holder. No one would claim in such a case that the trustee should be compelled to set up in his complaint the evidence of his own title. It would be sufficient in the first instance for him to allege in the ordinary form his property and right 'to the immediate possession of the chattels in question. So it is in the first place always where the trustee seeks to recover the [430]*430possession of property. It is only when, as in this litigation, the defendant has alleged title in himself that it becomes necessary or even proper for the plaintiff to reinforce his complaint by showing in greater detail the invalidity of the defendant’s claim to the property. This is the purpose and effect of the new matter in the reply in the case at bar. It is not a departure from, but rather a fortification of, the complaint, and hence is not open to objection: Moores v. Clackamas County, 40 Or. 536 (67 Pac. 662); Cooper v. Blair, 50 Or. 394 (92 Pac. 1074); Roots v. Boring Junction Lbr. Co., 50 Or. 298 (92 Pac. 811, 94 Pac. 182); Pioneer Hdw. Co. v. Farrin, 55 Or. 590 (107 Pac. 456).

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Cite This Page — Counsel Stack

Bluebook (online)
141 P. 1120, 70 Or. 424, 1914 Ore. LEXIS 271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goodwin-v-tuttle-or-1914.