Howell v. D. B. Fisk & Co.

52 Ill. App. 310, 1893 Ill. App. LEXIS 177
Appellate Court of Illinois·Decided October 28, 1893·Published·Cited by 3 cases

Opinion

Mr. Presiding Justice Boggs

delivered the opinion of the Court.

This was replevin brought by the appellees to recover a stock of millinery goods which the appellant, as sheriff of McLean county, by virtue of an attachment writ in favor of Edson Keith & Co., had levied upon and taken into his possession as the property of Mrs. Minnie H. Durham, the defendant in the attachment writ. The goods in question originally belonged to Mrs. Durham and composed the stock in trade of a millinery establishment called the “ Bee Hive” conducted by her in the city of Bloomington, Ill. The attachment writ was levied on the 10th day of November, 1892. The appellees claim that they, in good faith, and for a valuable consideration, on the evening of the 7th day of November, 1892, purchased the stock of goods of Mrs. Durham; that possession of the same was delivered to them on the morning of the 8th of November, 1892; that the sale was then complete; that at the time of the levy of the attachment writ they were the owners of the property in dispute and had open and notorious possession thereof. The appellant, who is, as sheriff, the representative of Edson Keith & Co., attaching creditors, upon their behalf denied that Mrs. Durham had sold the goods to the appellees, and insisted that the transaction between them, claimed to be a sale, was fraudulent in law because it was not, as appelants claimed, accompanied by delivery or change of possession, and fraudulent in fact, as being not a real, but a color-able transaction. As this case must again be submitted to a jury, we, for obvious reasons, decline to discuss the evidence relied upon to avoid the alleged sale as being in fact fraudulent. The appellees contend that if the sale was otherwise valid, it is not to be deemed fraudulent in law, even if possession did remain with the vendor. This court is committed to the doctrine that a sale of chattels is, as to a creditor of the vendor, fraudulent in law, unless the property sold is actually delivered to the purchaser, when it is of such a nature and character that an actual delivery and change of possession can be made. Hewitt v. Griswold, 43 App. 43. Such is the Illinois rule, and the Illinois authorities supporting this view will be found collected and cited in note 9, page 882, Vol. 8, Amer. and Eng. Ency. of Law.

Counsel for appellees call our attention to Hanford v. Obrecht, 49 Ill. 16, Lowe v. Keen, 29 N. E. Rept. (Ill. Supreme Court) page 1036, and Powers v. Green, 14 Ill. 386, which in their opinion announces the doctrine that a sale, if otherwise valid, is not to be deemed fraudulent merely because there is no change in the possession of the property sold. The facts in the Hanford v. Obrecht case were that personal property, the possession of which had been actually taken from a mortgagor by virtue of a chattel mortgage, was, after it had been some days in the possession of the mortgagee, sold at public auction to the highest bidder, Avho received possession of it from the mortgagee and afterAvard left it in the possession of the mortgagor. Such possession of the mortgagor was held not to be fraudulent for the manifest reason that he had parted with the possession to the mortgagee, who after some days sold and delivered it to the buyer, whereby the buyer became the legal owner and could legally leave it with the mortgagor or any one else. In Lowe v. Keene, supra,, an assignee of an insolvent debtor had not taken actual possession of the assigned property before executions against the insolvent debtor came to the hands of the sheriff. The holding is, that such an assignee stands in the position of a trustee of the estate for the benefit of the creditors and does not occupy the same position as does a purchaser of personal property under the rule (which is distinctly recognized) that a sale of chattels unaccompanied by possession is void as to creditors, and Mr. Justice Craig dissented, upon the ground that in his opinion an assignee stood in the same relation to a creditor as an ordinary purchaser. In Powers v. Green, supra, it is said on page 389 (Underwood’s Annotated Reports), “The contract must be made in good faith and upon a valuable consideration and accompanied and followed by possession,” and (page 390) it is in the same case said, “ The jury found that there was a delivery and that possession was retained by the vendee, but we are called to review the evidence upon which they so found.” The court then reviews the evidence and declares it sufficient to support the finding of the jury. These cases and each of them are not only entirely consistent with the Illinois rule as we have announced it, but may each well be regarded as authority in support of the rule. While the appellees contend that the goods were delivered to them and now insist that the proof sufficiently supports them in that contention, yet they contended in the Circuit Court and now contend in this court that the law is that a sale of personal property, if otherwise valid, is not fraudulent as to existing creditors, though there be no change of possession and the property remains in the custody of the vendor, if the creditor has notice of the sale before a levy is made. The Circuit Court accepted this as the correct legal rule, and so in effect instructed the jury. The appellees assert that it is shown by a preponderance of evidence that Edson Keith & Co. had such notice of the sale to the appellee.

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Howell v. D. B. Fisk & Co., 52 Ill. App. 310, 1893 Ill. App. LEXIS 177 (Ill. Ct. App. 1893).

52 Ill. App. 310 (Howell v. D. B. Fisk & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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