Hedges v. First Nat'l Bank of Pawnee

1934 OK 759, 39 P.2d 57, 170 Okla. 175, 1934 Okla. LEXIS 716
CourtSupreme Court of Oklahoma
DecidedDecember 27, 1934
Docket21813
StatusPublished
Cited by4 cases

This text of 1934 OK 759 (Hedges v. First Nat'l Bank of Pawnee) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hedges v. First Nat'l Bank of Pawnee, 1934 OK 759, 39 P.2d 57, 170 Okla. 175, 1934 Okla. LEXIS 716 (Okla. 1934).

Opinion

PER CURIAM.

This is an appeal from the judgment of the district court of Pawnee county, wherein the First National Bank of Pawnee recovered judgment against Pearl Hedges in the sum of $125 for conversion of a storage tank. The parties will be referred to as they appeared in the trial court.

The plaintiff instituted this action seeking to recover a money judgment against defendant for conversion of the storage tank. The defendant in her answer contends that when the tank in question was placed on the real estate belonging to herself and husband by their lessees, it became a fixture and a part of the real estate, and could not be legally covered by a chattel mortgage or removed. The plaintiff in reply alleges, that when said storage tank was placed on the premises of defendant and her husband by their lessees,' said storage tank was a trade fixture and a chattel, subject to being mortgaged by lessees of defendant and her husband, and that when so mortgaged to plaintiff, said mortgage was legal and binding and subject to being foreclosed, and when foreclosed plaintiff became entitled to the possession thereof, or its value, provided possession could not be obtained.

The trial court placed the burden of proof upon the defendant, and after hearing evidence without a jury, held that the storage tank was not a fixture and submitted the question of its value to a jury, and the jury returned a verdict for plaintiff for $125.

The material facts in the case are not disputed. The defendant and her husband were the owners of a filling station in Pawnee, Okla., on January 9, 1928. Defendants leased said filling station to Longmire & Davis for a period of five years. Shortly thereafter, said lessees went in possession of said filling station under said lease, and on January 21, 1928, they bought the storage tank in question in Oklahoma City, Okla., which storage tank was shortly thereafter shipped to Pawnee and erected on the site of the filling station in Pawnee. The storage tank stands upon end, and is supported by timbers laid horizontally to build up a base four or five feet high. The timbers are bolted together and laid upon the ground, and were not laid in cement. Welded into this storage tank are two pipes, one leading to another tank on the premises, and another line that comes under the ground to the storage tank from the unloading dock's of the railroad yards. Nailed to the pillars on which the storage tanks rest is a fence, some four or five feet high.

The lease was silent as to whether or not the storage tank could be placed on said premises, and the lessors had no knowledge of the storage tank being placed upon the-site of the filling station. On June 6, 1928, the lessees borrowed $1,000 from the plaintiff, giving as security a chattel mortgage on the storage tank in question with other property, which said chattel mortgage was duly filed for record on June 7, 1928. The note was never paid, and on date suit was brought in this action, there was a balance due of $673.75. Lessees becoming in financial difficulties, turned back the filling station to defendant, who resumed possession thereon on March 6, 1929. Shortly thereafter, plaintiff learning of the change of possession of the filling station in question, demanded possession of the storage tank in question from lessees. Lessees refused to give possession, giving as their reason that of impending bankruptcy. On May 11, 1929, a petition by creditors was filed in federal court, asking that Longmire & Davis be ad *177 judged involuntary bankrupts, and on June 27, 1929, they were adjudicated bankrupts. On July 3, 1929, lessees filed a bankrupt schedule in which the storage tank in question was listed as one of their assets, subject to the mortgage' of plaintiff, and defendant was listed as a creditor of bankrupts. On July 2, 1929, the referee in bankruptcy made an order appointing one P. L. Long as receiver, and said receiver on July 15, 1929, filed an inventory in which the storage tank in question is listed, and said receiver advertised for sale said storage tank and other property covered by the bank’s mortgage, subject to bank’s mortgage, but received no bids. Defendant had notice of such proceedings as required by law, and on July 20, 1929, filed her claim as creditor of said bankrupts, while plaintiff, relying on defendant’s said mortgage including the storage tank in question, .filed no claim with the referee in bankruptcy. On June 18, 1929, lessees refused to give plaintiff possession of the storage tank covered by its mortgage, and plaintiff brought an action in replevin to recover possession of said storage tank and other chattels covered by their mortgage, and on July 27, 1929, the district court of Pawnee county, after said mortgaged chattels had been released to plaintiff by referee in bankruptcy in federal court, awarded plaintiff judgment for possession of said storage tank and other chattels covered by the mortgage. Defendant at all times had personal knowledge of such replevin proceedings, but remained silent when said storage tank was taken into the possession of the sheriff of Pawnee county under the writ of replevin in said action in said district court; then plaintiff demanded possession of said storage tank from defendant, which was refused. Hence this action.

Defendant contends, first, that the storage tank in question was a fixture and could not have been removed by the lessees after they vacated the premises and the defendant reentered.

A fixture is defined to be, section 11724, O. S. 1931:

“A thing is deemed to be affixed to land when it is attached to it by roots, as in the case of trees, vines or shrubs; or imbedded in it, as in the case of walls, or permanently resting upon it, as in the case of buildings, or permanently attached to what is thus permanent, as by means of cement, plaster, nails, bolts or screws.”

From this definition it is plain that the storage tank in question is not a fixture. If it were, it could not have been removed at any' time after it was placed on demised premises. Defendant concedes that if the storage tank in question had been removed by lessees before they vacated the leased premises and defendant had re-entered, it could have been lawfully removed.-

Then, if the tank in question was not a fixture, was it a “trade fixture”? We think so. A trade fixture is defined by our statute to be, section 11730, O. S. 1931: .

“When a person affixes his property to the land of another without an agreement permitting him to remove it, the thing affixed belongs to the owner of the land unless he chooses to require or permit the former to remove it; provided that a tenant may remove from the demised premises at any time during the continuance of his term any thing affixed thereto for purpose of trade, manufacture, ornament, or domestic use, if the removal can be effected without injury to the premises, unless the thing has, by the manner in which it is affixed, become an integral part of the premises.”

At common law the rule is that whatever is placed upon the land belongs to the land, but the rule has numerous exceptions. Three tests have been devised: First, annexation; second, adaptation; third, intention; the most important of which is “intention.” Our court has never passed upon the question of whether a storage tank placed on leased premises by lessees is a trade fixture. The Supreme Court of Washington has. In the ease of Olympia Lodge No. 1, F. & A. M. v. Keller et ux., 252 P. 121, it held:

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Bluebook (online)
1934 OK 759, 39 P.2d 57, 170 Okla. 175, 1934 Okla. LEXIS 716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hedges-v-first-natl-bank-of-pawnee-okla-1934.