Gussner v. Mandan Creamery & Produce Co.

51 N.W.2d 352, 78 N.D. 594, 1952 N.D. LEXIS 68
CourtNorth Dakota Supreme Court
DecidedJanuary 22, 1952
DocketFile 7281
StatusPublished
Cited by7 cases

This text of 51 N.W.2d 352 (Gussner v. Mandan Creamery & Produce Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gussner v. Mandan Creamery & Produce Co., 51 N.W.2d 352, 78 N.D. 594, 1952 N.D. LEXIS 68 (N.D. 1952).

Opinion

Morris, Ch. J.

This is a law action tried to the court without a jury which resulted in a judgment against the defendant for $4,846.10 damages and costs for the removal of certain refrigeration equipment and machinery from a slaughterhouse and storage plant owned by the-plaintiffs.

In 1926 one George Gussner was the owner of a slaughterhouse, livestock sheds, feed sheds, stockyards, and other appurtenances located on the Southeast Quarter of the Northwest Quarter of Section 10, Township 138, Range 80 in Burleigh County. In November of that year he leased to his son, Arthur W. Gussner, these and other premises for a period of three years. The main building was forty feet wide and eighty feet long, two *598 stories high, and built of concrete. It was designed especially for the killing of livestock and storage of meat. Arthur W. Gussner added considerable equipment to further the use for which the building was originally designed and developed it as a refrigeration plant. This equipment included coils, pipes, fittings, valves, brackets, fasteners, gauges, thermostats, and other incidental items necessary to cooling the rooms used for refrigeration and chilling the products of the plant. It also included the cooling units which were- a 6x6 York ammonia compressor with a 20 horsepower electric motor and a 3 x 3 York self contained unit ice machine. The pipes and coils were fastened to the walls and ceilings with brackets, bolts, and screws, and in places the pipes penetrated the floors and the concrete walls between the rooms. The large compressor and motor were bolted down to concrete' blocks or foundations. The compressor was also connected to the refrigerating pipes or coils as a part of the refrigerating unit. The 3x3 ice machine was not bolted down but sat on the concrete floor. It, too, was connected with the pipes and coils of the refrigerating system and with the electrical system of the building. The large compressor was in regular use as a part of the system and the smaller self contained unit was a standby or emergency machine used on temporary occasions.

After the expiration of the written lease Arthur W. Gussner continued to occupy the premises and operate his meat packing and slaughtering business thereon. On January 13, 1939, he filed a voluntary petition in bankruptcy and was adjudicated a bankrupt on January 16, 1939, whereupon his estate was taken over and administered by a trustee in bankruptcy. The petition in bankruptcy listed as assets of the bankrupt the property involved in this action, along with many other assets. An appraiser was appointed who filed with the referee in bankruptcy his return and appraisement of the property on February 21, 1939. Part of the property in litigation was designated as “KILLING PLANT EQUIPMENT” and is listed as being “Affixed to Realty.” It is itemized as follows:

*599 “3 x 3 York Ice Machine — Automatic Self-Cont.
6x6 York Ice Machine — Automatic Starter & 20 HP Motor
Vertical Rend. Tank & Boiler
Hot Water Tank
Drinking Fountain
1 Toilet & Shower Fixture
Condenser & Coils
G-alv. Drain Off Sheets & Frames
A. R. Sink”

This property was not appraised and, although listed in the appraisement, no value was fixed as the appraised value of the various items. The bankrupt estate was reappraised in January 1940 and again no value was fixed for these items. It does not appear that the property was ever valued or appraised by the bankruptcy court. The bankruptcy act requires the appraisement - of all property of the estate, although a sale without appraisement is not necessarily void. Remington on Bankruptcy, 4th Edition, Volume 6, Section 2523. This requirement of the bankruptcy act, however, is of significance in determining the attitude of the trustee and referee toward the property, where, as in this case, property is listed as affixed to realty not owned by the bankrupt and is not appraised and the report of the appraiser is approved by the referee.

The trustee does not appear to have attempted to exercise any dominion over the property throughout the course of the bankruptcy proceedings, except the sale which we will later discuss in more detail. The trustee did-not continue to operate the packing business of the bankrupt, nor did he take over or occupy the premises upon which the litigated property was located. The trustee permitted the property to remain on the premises without severance. On October 15, 1941, some two years and eight months after the adjudication, the trustee, having obtained an order from the referee in bankruptcy authorizing the sale of the remaining assets of the estate, sold to A. A. Bentz for $75.00 “all of the personal property, goods and effects, including the accounts receivable in the said Bankrupt Estate *600 . . . The bill of sale did not itemize or otherwise describe the personal property sold.

Mr. Bentz testified that when he bought the property the trustees showed him the bankruptcy schedules which contained a list of the property of the estate and pointed out the items that remained unsold and that the trustee particularly mentioned the ice machines. Mr. Bentz, unaccompanied by the referee, went out to the packing plant where an employee of the defendant, then in possession as tenant of George Gussner, pointed out the' ice machines and various other items that were on the list.

On October 24, 1941, A. A. Bentz, for a consideration of $250.00, executed a bill of sale to Cloverdale Products Company covering the following personal property:

“1 — 3 x 3 York Ice Machine, automatic self. cont.
1 — 6 x 6 York Ice Machine
1 — 15 HP Motor complete with starter and switch
1 — Large steel offal table
1 — Galvanized sink and drain board
1 — Hot water tank
1 — 2 blade gang plow
1 — Bradley 2 row cultivator
1 — McCormick Deering corn binder
and all other small articles located at the old Gussner Packing Plant . . . .”

The defendant leased the packing plant from George Gussner and took possession of the premises, including the property in litigation which was a part of the packing plant equipment then in place. The term and terms of this lease do not appear. On December 1,1941, George Gussner and the defendant entered into a written lease -for one year covei’ing the premises, including the packing plant, slaughterhouse, and appurtenant buildings. In that lease it was agreed, among other things, “that the Lessee shall be responsible for mechanical adjustments and operators services necessary for maintenance of the refrigeration equipment.

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Bluebook (online)
51 N.W.2d 352, 78 N.D. 594, 1952 N.D. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gussner-v-mandan-creamery-produce-co-nd-1952.