Great American Indemnity Co. v. Utility Contractors, Inc.

111 S.W.2d 901, 21 Tenn. App. 463, 1937 Tenn. App. LEXIS 48
CourtCourt of Appeals of Tennessee
DecidedMay 24, 1937
StatusPublished
Cited by14 cases

This text of 111 S.W.2d 901 (Great American Indemnity Co. v. Utility Contractors, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great American Indemnity Co. v. Utility Contractors, Inc., 111 S.W.2d 901, 21 Tenn. App. 463, 1937 Tenn. App. LEXIS 48 (Tenn. Ct. App. 1937).

Opinion

FAW, P. J.

The original bill in-this case was filed in the chancery court of Wilson county on March 25, 1932, by the Great American Indemnity Company, a New York corporation domesticated in Tennessee, against Utility Contractors, Inc., a nonresident corporation, organized under the laws of the State of Indiana, with its office and principal place of business at South Bend, Ind. Certain alleged creditors of the Utility Contractors, Inc., were also made defendants to the bill. An amended and supplemental bill was filed by the same complainant against the same defendants and some additional defendants on April 16, 1932. The bill, as thus amended and supplemented, was sustained as a general creditors bill for the benefit of all creditors of the Utility Contractors, Inc. (an insolvent corporation), who may claim its benefits or come in under it.

The Utility Contractors, Inc., had been engaged for some months prior to the time the bill was filed as aforesaid in the laying and constructing of a pipe line from Fox Hill, near Lebanon, to Hunters Point on the Cumberland River, a distance of approximately six miles, pursuant to a contract with Lebanon, Tenn., a municipal corporation, but had abandoned the contract, without completing it, on February 17, 1932.

The Utility Contractors, Inc., had certain personal property in its possession in Wilson county when the bill in this cause was filed, and, pursuant to the prayer of the bill, an attachment was issued and levied upon said personalty, including “one Ingersoll-Rand Air Compressor,” a machine which the Utility Contractors, Inc., had been using in the construction of the aforesaid pipe line, and which machine is described in the record. Later a receiver was *466 appointed to take possession of the attached property and hold and dispose of same under the orders of the court.

The controversy on the present appeal is with respect to the conflicting claims of an intervening petitioner, the Wilson Machinery & Supply Company, a Kentucky corporation, with its situs at Lexington, Ky., on the one hand, and the general creditors of the Utility Contractors, Inc., on the other hand, to the aforesaid Inger-soll-Rand Air Compressor. The Chancellor decided this controversy in favor of the general creditors and adversely to the contentions of the Wilson Machinery & Supply Company and the latter company appealed to this court and has assigned errors here.

Appellant filed an intervening petition below on May 26, 1932, in which it alleged that it is the owner of the aforesaid Ingersoll-Rand air compressor (which is fully described for the purposes of identification in the petition); and petitioner further alleged that it “as evidence of its ownership respectfully presents to the Court a chattel mortgage, dated August 26, 1930, executed by the Utility Contractors, Inc., to secure an indebtedness to the amount of $1470, evidenced by twelve promissory notes, as set out in said chattel mortgage, all of which notes are now past due and none of said notes having been paid except one note for the amount of $123.33, leaving the remainder due and unpaid, secured by said Chattel mortgage ’ ’ on the aforesaid Ingersoll-Rand air compressor; and that “petitioner will ask this honorable court to grant it permission to take over said air compressor, as above described, and if required, the petitioner will execute a sufficient bond in an amount not to exceed $800, to protect all creditors in the event your petitioner- should be unable to establish the right to possession and priority as a first mortgage holder on said property hereinabove described.”

Shortly after the aforesaid petition was filed, the Chancellor ordered said Ingersoll-Rand air compressor delivered to petitioner Wilson Machinery & Supply Company upon the filing of a “forthcoming bond,” with surety, in the sum of $800, by petitioner; and this was done.

The complainant, Great American Indemnity Company, filed an answer to the petition of Wilson Machinery & Supply Company, putting in issue its material allegations.

On May 14, 1934, the Chancellor rendered a decree in the cause, and, among other matters adjudicated therein, he adjudged that the attachment under the bill in this cause was superior to the claims of the petitioner Wilson Machinery & Supply Company, and he rendered a decree against the Wilson Machinery & Supply Company and the surety on its said forthcoming bond for $800, with directions that when said sum should be paid to the clerk and master, it would become a part of the funds in the hands of *467 tbe receiver in tbe canse, and be distributed as directed in tbe decree.

On June 1, 1934, the Wilson Machinery & Supply Company filed a petition for a rehearing and for leave to file proof of certain specified statutes of tbe State of Indiana with respect to tbe acknowledgment of deeds and mortgages.

In response to said petition to rehear, etc., tbe Chancellor ordered that tbe decree complained of in the petition be suspended and stayed, and that .the Wilson Machinery & Supply Company be permitted to prove the laws of the State of Indiana, and that, for this purpose, it be allowed fifteen days, and complainant would be allowed fifteen days thereafter to prove the laws of the State of Indiana.

On December 6, 1934, and before the cause was further heard by the Chancellor, the Wilson Machinery & Supply Company filed an “amended petition” as follows:

“This petitioner, in addition to the allegations contained in its petition heretofore filed by it, in this cause, leave of the court being first obtained, says that the notes secured by the Chattel Mortgage as set out in the original petition, in addition to being secured by said Mortgage as set out in the original petition, were and are right and title notes, each retaining title to the machinery in controversy, until etch and all of said notes were paid in full, and your petitioner will ask that in the event the mortgage, for any cause, is held to be insufficient, then that your petitioner be decreed entitled to said machinery, described in the petition, and set out in the face of the notes heretofore filed as exhibits to proof submitted by petitioner, there being ten of said notes for the sum of $123.33 each, long since due and unpaid.”

Subsequently the time for taking proof was extended to January 10, 1936, and it was further ordered by the court that the petitioner be permitted “to take such other and further proof on the matters in issue as it may see fit to take.”

The controversy arising upon the aforesaid petition of the Wilson Machinery & Supply Company was heard by the Chancellor, and a decree adverse to the appellant was thereafter entered on March 21, 1936. The findings and adjudications of the Chancellor are set forth in said decree as follows:

“It appearing to the Court that the mortgage, and the notes secured thereby, relied upon by the said petitioner are insufficient because the mortgage was executed and recorded in St.

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Bluebook (online)
111 S.W.2d 901, 21 Tenn. App. 463, 1937 Tenn. App. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-american-indemnity-co-v-utility-contractors-inc-tennctapp-1937.