Hyde v. Shank

43 N.W. 890, 77 Mich. 517, 1889 Mich. LEXIS 769
CourtMichigan Supreme Court
DecidedNovember 8, 1889
StatusPublished
Cited by5 cases

This text of 43 N.W. 890 (Hyde v. Shank) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hyde v. Shank, 43 N.W. 890, 77 Mich. 517, 1889 Mich. LEXIS 769 (Mich. 1889).

Opinion

Champlin, J.

Alonzo M. Shank, as sheriff of Osceola county, seized certain chattels by virtue of a writ of attachment sued out of the circuit court of that county in favor of Daniel M. Gardner, against the goods, chattels, lands, and tenements of John R. Edgett. The writ was tested on February 4, 1887, and was seiwed on the 11th of that month.

On November 3, 1886, John R. Edgett executed a mortgage to Frank D. and George S. Hyde, under the name of “Hyde Bros.;” which was duly filed on November 6, 1886. The mortgage recited that Edgett was justly indebted to Hyde Bros, in the sum of $2,000, and that he expected to receive other and additional moneys, notes, and indorsements from them, from time to time, during the continuance of the mortgage; and, as the indebtedness of Edgett to them was liable to change in amount and time of payment, and as he had agreed that the payment of the existing indebtedness of Edgett to Hyde Bros., and also the payment of other indebtedness for moneys, notes, and indorsements to be furnished and given to Edgett by them should be secured, therefore the party of the first part agreed to pay the parties of the second part the sum of $2,000, on or before one year from the date thereof, with interest at 10 per cent., payable annually, until paid; and that Edgett would pay to them such bills, notes, advances, and indemnify from such indorsements, as should be made, at such time and times as they should thereafter be due, with interest at the rate of 10 per cent., payable annually, until paid. And, in pursuance of such agreement, the said party of the first part granted and sold to the party of the second part certain goods and chattels particularly described in said chattel mortgage. The mortgage was so written as to cover after-acquired property.

It was conditioned that Edgett should pay the sum of [521]*521§2,090 at the time and manner therein set forth, and the interest, and also pay, or cause to be paid, all bills, notes, and accounts thereafter made by Edgett to Hyde Bros., and indemnify them for all indorsements and accommodation paper furnished by them to him during the continuance of the agreement, as the same became due, respectively. The mortgage contained a clause relative to insurance; and it was expressly agreed that, should Edgett neglect to insure, or should he make default in the payment of any of said bills, notes, indorsements, accounts, or indebtedness on any day whereon the same became due and payable, and remain unpaid and in arrear for the period of 30 days, then and from thenceforth, in any one of such events, the entire amount secured by the mortgage should, at the option of Hyde Bros., be due and payable immediately thereafter.

It was further agreed by the terms of the mortgage that in case default was made in the payment of the said several sums of money or interest, or any part thereof, at the time the same should become due, or in case the whole amount should be declared due by reason of any default therein contained, or in case of sale, etc., by Edgett without written consent, in either event, Hyde Bros, were licensed and authorized to take possession and sell at private sale or public auction.

Edgett at the time was engaged in the manufacture of shingles, and Hyde Bros, were purchasers of the cut of tire mill, under certain contracts under which they claim to have made advances. The mortgage covered the entire plant for manufacturing shingles, including boiler, engine, shingle-machines, shaftings, horses, oxen, trucks, etc. A further proviso was contained in the mortgage, as follows:

“ Provided, always, that in default in, or the violation of, one or more of the covenants or agreements herein [522]*522contained, the said party of the first part, his executors, administrators, or assigns, may possess, use, and enjoy, in the usual and regular manner appertaining to such mill business, without any disturbance or interference by the said, parties of the second part, their executors, administrators, or assigns, all the goods, chattels, and personal property in this indenture mentioned, including all which may be added, after-acquired, or substituted; and it is further agreed that, in case of any auction sale by reason of the power of sale contained in this indenture, the said parties of the second part, their executors, administrators, or assigns, shall have full power and authority, and be at liberty, to bid on and buy in for themselves the whole, or any part, of the property so offered for sale, the same as any other bidder might do.”

Gardner claimed that the mortgage was absolutely void as to the creditors of Edgett, and levied his attachment upon that theory. After the attachment was levied, Hyde Bros, and Edgett looked over their accounts, and had, at least, a partial settlement, and found a balance due from Edgett to Hyde Bros., and it was then agreed that Hyde Bros, might treat the whole amount as due under the mortgage; and they claim that the whole debt, on or about February 1, 1887, was about $1,200.

Hpon the trial of issues involving fraud, a pretty large latitude of inquiry is permitted; and all facts and circumstances tending to throw light upon the transaction between the parties alleged to have been implicated are allowed to be given in evidence. We do not think the court erred in permitting the testimony to be introduced upon which error is assigned. What Edgett claimed the property was worth which he transferred to Hyde Bros., and its actual value, were proper subjects of inquiry, as affecting the question of the intent of the parties.

The remaining assignments of error are directed to the charge of the court. The fifth and sixth assignments are. considered together in the brief of plaintiffs’ counsel. [523]*523We see no error in this part of the charge, and it is unnecessary to repeat it.

The seventh assignment is as follows:

“ The court erred in instructing the jury in said case as follows: ‘Now, in regard to this question of fraud, gentlemen, the mere fact that the mortgage upon its face was taken for more than there was due is not conclusive proof of fraud; it is a mere circumstance tending in that direction, for what it is worth. If a man gives a mortgage for a little more than there is due, it is very unimportant, as a general rule, but, if he gives the same for a large amount more than there is due, it is a badge of fraud, as the authorities say; and it is a circumstance tending to show that it was not given in good faith, but it is not conclusive/”

It is urged, in support of this assignment of error, that the court should have charged that the mortgage would not be fraudulent for contemplating future advances. But the learned judge covered this objection in the following portion of his charge, namely:

“If you find it to be true; if that mortgage was given in good faith, to secure an honest indebtedness at the time, — it would secure it as between all the parties to this contention, and it would also secure them in subsequent indorsements, bills, notes, 'and advances made by them for the benefit of Edgett coming within the contemplation of the paper; and if, 30 days before this suit was commenced, they had made notes, bills, and advances, and they were due and payable, and not paid 30 days before the suit was commenced in this case, the plaintiffs are entitled to recover.”

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Cite This Page — Counsel Stack

Bluebook (online)
43 N.W. 890, 77 Mich. 517, 1889 Mich. LEXIS 769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyde-v-shank-mich-1889.