Lau v. W. B. Grimes Dry Goods Co.

56 N.W. 954, 38 Neb. 215, 1893 Neb. LEXIS 339
CourtNebraska Supreme Court
DecidedNovember 8, 1893
DocketNo. 4870
StatusPublished
Cited by1 cases

This text of 56 N.W. 954 (Lau v. W. B. Grimes Dry Goods Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lau v. W. B. Grimes Dry Goods Co., 56 N.W. 954, 38 Neb. 215, 1893 Neb. LEXIS 339 (Neb. 1893).

Opinion

Post, J.

This was an action in the district court of Fillmore county by the defendant in error, The W. B. Grimes Dry Goods Company, against the plaintiff in error under the provisions of section 225 of the Code, for an unsatisfactory disclosure as garnishee;

[217]*217The other defendants in error, thirteen in number, were intervenors who each claimed an interest in the property adverse to the defendant below. It appears from the record of the case that for some time prior to October 15,1888, fm. Schultz & Son had been doing business as general merchants in the village of Strang in said county. That on the day named said parties executed in favor of Lau, the plaintiff in error, a mortgage on their entire stock of merchandise to secure a note of that date of $1,086.89, and suffered the mortgagee to take immediate possession of the property so conveyed. Shortly thereafter The Grimes Dry Goods Company commenced an action against Schultz & Son in the district court of said county, and caused an order of attachment to issue therein, by virtue of which the property in controversy was seized while in possession of the plaintiff in error. The latter subsequently recovered possession of the property by means of an action of replevin against the sheriff, and proceeded to sell it in order to satisfy his mortgage. Some time after he had recovered possession of the property by his action against the sheriff, The Grimes Dry Goods Company and other creditors of Schultz & Son instituted garnishment proceedings against him as a supposed debtor of the latter. The several attachment suits were consolidated to the extent that by agreement a single answer was filed by the garnishee, in which he says: “There is now in his hands belonging to said defendants (Schultz & Son), subject to the liens by mortgages and orders of garnishment, the sum of $2,812.68; and that with this answer affiant hands into this court the said sum of $2,812.68, subject to the orders of said court hereafter to be made. Affiant further says that said amount is all of the property, moneys, or credits of any nature whatsoever now in his hands belonging to the said defendants, and that since the orders of garnishment were served upon this affiant he has not in any manner paid to the said Schultz & Son any part of the money in his hands, and that the amount [218]*218of money in his hands, and that the amount of money now handed to the court is all of the money belonging to the defendants.”

In the petition below, after stating its cause of action against Schultz & Son, which had in the meantime been reduced to judgment, The Grimes Dry Goods Company alleges the filing of the answer set out above, and charges that said answer is not tru§, and is not a full disclosure of the indebtedness of the garnishee to Schultz & Son. It is further charged that at the time he was served with notice said garnishee had in his possession belonging to Schultz & Son money to the amount of $4,000 and the stock of merchandise above mentioned of the value of $9,000, all of which he has converted to his own use.

In his answer the plaintiff in error admits that he had in his possession when served as garnishee the stock of goods belonging to Schultz &, Son, and that he at said time held the property in controversy by virtue of the aforesaid mortgage in his favor, but denies that said property was of the value of $9,000, and avers that the value thereof was $4,533.91, and no more. He admits that said property had been disposed of by him at private sale, and avers that it was so disposed of under and by virtue of an agreement with the plaintiff below and the several garnishees. He alleges that the stock of goods in controversy was sold to the best possible advantage, and in such manner as would insure the largest and best price, but that they were old and shop-worn, and worth only the sum above named; and that after paying the amount due by virtue of the mortgage in his favor and his actual and necessary expenses in the premises, he had paid into court the balance remaining, to-wit, $2,812.68. He also alleges that previous to the filing of his answer as garnishee he entered into a written stipulation with the plaintiff by which it was agreed that he should be discharged upon paying into court the money then remaining in his hands after satisfying his [219]*219mortgage and costs of sale. The stipulation referred to above is as follows:

“ In District Court of Fillmore county,
“Barbe Bros. ] v- f Shultz & Son. J
“Paxton & Gallagher v. Shultz & Son.
“W. B. Grimes Dry Goods Co. v. Shultz & Son.
“Robert Kraus I v- r Shultz & Son. J
“It is hereby stipulated and agreed by and between the parties to the above entitled causes, and each of them, that answer of garnishee, Hans P. Lau, in open court is waived and consent given him to answer by June 4, 1889, by affidavit, showing fully the amount of money remaining in his hands from sale of stock of goods formerly belonging to Shultz & Son.
“ 2. That the amount of said sums of money, less the . amount of Lau’s note and mortgage thereon and expenses of foreclosure, be by him paid into court to await the further order.
“ 3. That upon the payment of said money into court, the garnishee be dismissed. H. F. Rose,
“For H. P. Lau, garnishee.
“ W. C. Sloan,
“Alt’y for all the above plaintiffs.”

The issues presented by the petition of the interven ors and answers thereto are substantially the same as above. At the trial it was stipulated as follows:

“It is stipulated by the parties that the issues, so far as this trial is concerned, to be submitted to the jury here, are the following questions:
[220]*220“1. Was the sale of the merchandise made prior to the advertised day of such sale of goods and merchandise held by the defendant Lau under his mortgage, made under an agreement with the plaintiff?
“2. Was the sale of the merchandise, made prior to the advertised day of such sale of the goods and merchandise held by defendant Lau under his mortgage, made under any agreement with the intervenors herein?
“3. What was the fair and reasonable value of the stock of merchandise of Shultz & Son at the time the same was taken possession of by the defendant Lau, to-wit, October 19, 1888 ?
The finding of these facts is to be taken in no way as intended to admit the claims of any of these defendants, but for the purpose of this trial, of the facts submitted to the jury, these claims will be taken to be admitted as represented in their pleadings. This agreement is not intended in any way to hamper or interfere with the parties in this action which they may find arise under the pleadings which shall be submitted to the court in this case, if any such there be.
“As to any other questions of fact other than these submitted to the jury here, a jury is waived and they will be submitted to the court.”

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Bluebook (online)
56 N.W. 954, 38 Neb. 215, 1893 Neb. LEXIS 339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lau-v-w-b-grimes-dry-goods-co-neb-1893.