Lewis Brown Co., Inc. v. Mallory

8 Tenn. App. 36, 1928 Tenn. App. LEXIS 103
CourtCourt of Appeals of Tennessee
DecidedJune 22, 1928
StatusPublished
Cited by1 cases

This text of 8 Tenn. App. 36 (Lewis Brown Co., Inc. v. Mallory) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis Brown Co., Inc. v. Mallory, 8 Tenn. App. 36, 1928 Tenn. App. LEXIS 103 (Tenn. Ct. App. 1928).

Opinion

OWEN, J.

The Lewis Brown Company, a corporation, hereinafter called defendant, has appealed from a judgment rendered against it in the circuit court of Shelby county, in the sum of $1200. Hereafter, Neely Mallory will be referred to as plaintiff.

It appears that the defendant had a judgment against the Memphis Iron and St.eel Company. An execution was issued on this judgment, which execution was levied on certain iron described in plaintiff’s declaration. The sheriff and his deputy removed the iron which they had levied on at defendant’s insistence and over the protest of the plaintiff. ' At the time this iron was levied on it was on the property of Conley Frog & Switch Company in South Memphis, it had been moved by the plaintiff from the plant of the Memphis Iron and Steel Company, which plant is located in North Memphis. Plaintiff’s suit was for a conversion, he also sued W. S. Knight, sheriff of Shelby county, and his deputy, John Sailors. The defendants filed pleas of not guilty.. Th.e issues were tried to a jury. At the conclusion of all evidence the plaintiff dismissed his suit as to the sheriff and his deputy. The defendant made a motion for a directed verdict which was overruled. After the verdict was returned the defendant seasonably filed a motion for a new trial which was overruled, prayed and perfected an appeal to this court and has assigned thirteen errors. These errors make the following insistences that the court erred in not granting a directed verdict:

1. Because the property in controversy was taken in possession by the sheriff under a valid execution .and before the sheriff could sell the property under the execution, this suit was brought and the sales were delayed pending the outcome of this suit.

*38 2. The defendant had n,ever asserted ownership of the property in controversy, in that it whs holding its subject to the orders of the sheriff, who was holding it.

3. The plaintiff and the Memphis Iron & Steel Company, the judgment debtor of defendant, was engaged in a partnership and the property levied upon was owned by the partnership, therefore, the property was subject to the debit of the Memphis Iron and Steel Company.

4. The mortgage under which the plaintiff claimed title to the property levied on was not a recorded mortgage.

5. The Memphis Iron & Steel Company and plaintiff did not comply with the Bulk Sales Law, therefore, the property sued for was subject to the debt of the Memphis Iron & Steel Company.

6. The invoice relied on by plaintiff was not .for the purpose of conveying the absolute .title of the property to plaintiff but at the time it was given it was the intention of the parties to give him this property as security for their debt and did not constitute an outright sale, therefore, as against execution creditors it stands on no higher ground than an unrecorded mortgage.

7. The sale from the Memphis Iron & Steel Company to plaintiff was in violation of chapter 125 of the Acts of 1919.

8. There is no evidence to support the verdict.

9. Refusing defendant’s special request as follows:

“If you find that the plaintiff, Neely Mallory, left in the possession of the Memphis Iron & Steel Company the property he now claims to have purchased with authority in the Memphis Iron & Steel Company to offer said property for sale as its property, then I charge you as to creditors of the Memphis Iron & Steel Company the sale by the Memphis Iron & Steel Company to the plaintiff Mallory was void as to creditors unless the instrument upon which the plaintiff relies was recorded, and, therefore, the plaintiff cannot recover from the .defendant. ’ ’

These nine propositions cover the defendant’s thirteen assignments of error. The trial judge explained the theories- of the plaintiff and defendant ,as follows:

“The theory of the plaintiff in this case is that Lewis Browji Company pointed out this particular property through one of its agents who went with this deputy sheriff, and said, ‘Levy upon that iron there,’ Now, then, if that happened, Lewis .Brown would be liable for conversion, if that property was not the property of the Memphis Iron' & Steel Company, but was the property of Mr. Mallory, because the Lewis Brown Company would have actively participated in the wrongful levy.
*39 ‘1 The defense relied upon by the defendant is, first, that this property really was not the property of Mallory, but was the property of this Memphis Iron & Steel Company. They further claim that even if it was Mr. Mallory’s property, that they would not be liable, because Mr. Mallory is estopped to claim it as his property, for the reason, as the defendants claim, that Mr. Mallory actively led these people-to believe that it was the property of this Memphis Iron & Steel Company. If one of you gentlemen, to illustrate that point, owned an automobile, and an execution was levied against me, and the officer, thinking he was levying upon my property, undertook to levy upon your automobile, and you stood idly by and did not tell him it was your property, even though it was your property, you 'would be forbidden by the courts to set up a claim; to it, if you stood by and did not speak at the time, as you should have spoken. So the defendant’s theory is that Mr. Mallory knew that the Memphis Iron & Steel Company was offering his property for sale under their name, not mentioning his name, claiming it a.s theirs, and that he should have spoken up then and said it was his. The defendant claims that Mr. Mallory went further than that, and that at the very time this officer was down there, about to make this levy, and was still down where this iron was located, the defendants claim that Mr. Mallory called up Mr. French, one of the officers of the defendant company, and told him that he had a mortgage on the property, and did not tell him that he owned it. Well, if a man owns anything, he does not have a mortgage-on it. A person cannot have a mortgage on anything that he already owns.
“Mr. Mallory on the other hand, claims that he made no such statement over the telephone to Mr. French; that he did not tell Mr. French that he had a mortgage on this, but he told him that it was his property, and .at that time Mr. French was representing the Lewis Brown Company.”

There is a sharp conflict in the evidence between the plaintiff and his witnesses and the defendant and its witnesses, the jury has resolved this conflict in favor of the plaintiff and we find material evidence to sustain the plaintiff’s contentions. We find that the property levied on by the deputy sheriff and carried away by the defendant was the plaintiff’s property. It had been delivered to him by the Memphis Iron & Steel Company on .an indebtedness that said company had owed the plaintiff for many months. The plaintiff had bought the iron at $40- a ton and when purchased, the plaintiff had moved it from the Memphis Iron & Steel Company’s plant to the plant of Conley Frog & Switch Company, or from South Memphis to North Memphis. The two plants were about six or seven miles apart. Plaintiff gave the Memphis Iron & Steel Company credit on his indebtedness against said

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Bluebook (online)
8 Tenn. App. 36, 1928 Tenn. App. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-brown-co-inc-v-mallory-tennctapp-1928.