James v. Wilson

77 N.W. 603, 8 N.D. 186, 1898 N.D. LEXIS 36
CourtNorth Dakota Supreme Court
DecidedDecember 2, 1898
StatusPublished
Cited by3 cases

This text of 77 N.W. 603 (James v. Wilson) 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
James v. Wilson, 77 N.W. 603, 8 N.D. 186, 1898 N.D. LEXIS 36 (N.D. 1898).

Opinion

Wallin, J.

This action was brought to recover the possession of personal property, consisting of wheat, oats, and barley, and certain farm machinery. Plaintiffs claim the right of possession under two chattel mortgages covering said property, executed by the defendant Robert Wilson, and delivered to the plaintiffs to secure certain promissory notes described in the mortgages. It is conceded that the notes were due and unpaid when this action was commenced, and both, of the notes and mortgages were put in evidence without objection. It was expressly conceded by the defendants’ counsel at the trial that the plaintiffs were entitled to the possession of said farm machinery, and, on the other hand, it was practically conceded by the plaintiffs’ counsel that under the evi[188]*188dence the mortgages of the plaintiffs did not cover the oats and barley. At the close of the case the trial court directed a verdict in favor of the defendants as follows: “The Court directs you that your verdict will be for the defendants, Robert Wilson and Jane Wilson, in this action, for th,e possession of the wheat, oats, and barley described in the complaint; and, in case a return thereof cannot be had for the value thereof, the value to be fixed by you under the evidence given here in court. The amount will be shown by the papers, and I think is undisputed. You will arrive at the value from the evidence given by the witnesses here in court.” Pursuant to this direction of the trial court, the jury returned a verdict for the value of said grain, aggregating $344.58. The defendants’ answer was amended at the trial, and, as amended, embodied a general denial, and also set out the following as a special defense: “Third. That the right to the possession of all the crops mentioned in the complaint was at the time of the commencement of this action, and at all times since and prior thereto, in one Mary Simmons, and not in these plaintiffs, or either of them.” In support of this special defense the defendants offered testimony tending to show that the defendants had, long prior to the execution of the two chattel mortgages of the plaintiffs, made and delivered two other chattel mortgages to secure the defendants’ obligations, and that the same had been properly filed, and were due and outstanding mortgages, and that the same were unpaid at the time this action was commenced, and were then owned by the said Mary Simmons. The fact that said prior mortgages were executed and delivered is conceded by the plaintiffs’ counsel, but plaintiffs’ counsel strenuously contends that the evidence shows that one of said mortgages was paid prior to the commencement of this action, and that the other had ceased to be a lien, for the reason that payment thereof had been tendered prior to the commencement of this action, and that said tender had been kept good. The two prior mortgages and the notes secured thereby were put in evidence by the defense against the plaintiffs’ objections, and this ruling is assigned as error in this Court. This evidence was objected to on various grounds, only one of which need be referred to, viz: that such evidence was incompetent, irrelevant, "and immaterial, and does not tend in any way to disprove plaintiffs’ right to the possession of the property, described in the complaint. As we have determined that this objection is vital, and must be sustained, it need not be decided in this case whether the prior mortgages had or had not been paid or legally discharged at any time prior to the commencement of this action or at all; and we shall assume for the purposes of this decision that the mortgages were due and unpaid, and were the property of Mary Simmons when the action began. The action being in the nature of replevin in the detinet, it was competent for defendants to show, when the action was commenced, either that the defendants were lawfully entitled to the possession of the property, or that some person other than the defendants had the right of [189]*189possession as against the plaintiffs. This rule has become elementary, and hence citations in its support are unnecessary; but see Griffin v. Railroad Co., 101 N. Y. 348, 4 N. E. Rep. 740, for an exposition of the rule. As against the plaintiffs’ right of possession, the defendants cannot rely upon their general ownership of the property in question, inasmuch as it is undisputed that the debts secured by plaintiffs’ mortgage were due and not paid when the action began. So far as appears by the record, the only defense attempted to be interposed at 'the trial to plaintiffs’ right of possession under their mortgages was the attempt to show that Mary Simmons, under and by virture of said prior chattel mortgages, had a right of possession as against the plaintiffs. No evidence was offered tending to show that Mary Simmons had ever demanded the possession of the property in question, or that she intended at any time to make a demand therefor under said prior mortgages, or at all. We are of the opinion that the prior mortgages were inadmissible in evidence, for the reason that they do not show such a matured and unconditional right of possession in Mary Simmons as will defeat the plaintiffs, who have demanded possession under their mortgages and against whose right of possession no counter or superior right has ever been asserted by the owner of the prior mortgages. In this state a chattel mortgage in the usual form does not transfer title, nor does it confer the absolute right of possession, even after condition broken. Until the right is definitely asserted, and possession is demanded by the mortgagee, it is a mere lien. Rev. Codes, § § 4683, 4714. In jurisdictions where title passes by a chattel mortgage if the instrument embraces a stipulation that the mortgagor may retain possession of the property until ,a breach of the conditions of the mortgage has occurred, the debtor cannot, as against a plaintiff suing him in replevin, set up such mortgage as a defense, where there is no evidence that the prior mortgagee has ever made any claim under his mortgage. Adams v. Wildes, 107 Mass. 123. See, also, Gardner's Adm’r v. Morrison, 12 Ala. 547. In the case last cited the Court uses this language: “It is no objection to this conclusion that plaintiff’s title is subordinate to that of the first mortgagee, and that the property may be recovered of him by the latter. This is a matter with which the defendant has no concern. The plaintiff may relieve himself from the lien of the first mortgage by purchasing it, or paying the debt for which it provides, or he may go into equity, and foreclose, giving the first mortgagee the preference in the payment of his demand. Whatever be the rights and remedies between prior and subsequent mortgagees it is unimportant to the defense set up.” We regard this language as being strictly appropriate to the case at bar. In this case there is no controversy between a second and a first mortgagee. But, on the contrary, the defendants are seeking shelter under the rights of another, who has not asserted any rights as against the plaintiffs in this action, and who may never do so. The case of Rankine v. Greer, 38 Kan. 343, 16 Pac. Rep. [190]*190680, is squarely in point.

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Bluebook (online)
77 N.W. 603, 8 N.D. 186, 1898 N.D. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-v-wilson-nd-1898.