Lyon v. Ballentine

29 N.W. 837, 63 Mich. 97, 1886 Mich. LEXIS 638
CourtMichigan Supreme Court
DecidedOctober 14, 1886
StatusPublished
Cited by12 cases

This text of 29 N.W. 837 (Lyon v. Ballentine) 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
Lyon v. Ballentine, 29 N.W. 837, 63 Mich. 97, 1886 Mich. LEXIS 638 (Mich. 1886).

Opinion

Sherwood, J.

From the record in this case it appears that for some time prior to 1880 the principal defendant, Marontate, was in the employ of Silas L. Ballentine & Co., at Port Huron, the defendant Ballentine being a member of that firm; that in that year Marontate engaged in general merchandise business at Bay City, commencing with a capital of his own not exceeding $1,000, and that his first purchases of goods to stock his store were made, beyond his capital, of Ballentine & Co., on credit. He continued his business, and largely increased the same, a part of the time occupying two stores, until December, 1884; during all of which time Ballentine & Co. continued to be his creditors, and he also became largely indebted to others, among whom were W. D. Robinson & Co., James K. Burnham & Co., Edson, Moore & Co., and the plaintiffs in this ease, the indebtedness to the latter being at the date last mentioned about the sum of $6,857.32.

It further appears that on the fourth day of December, 1884, Morontáte’s entire liabilities were fully equal to, and perhaps greater than, the value of his entire stock of goods, it aggregating between $35,000 and $40,000; that at [100]*100this time Marontate executed a chattel mortgage for $12,000 to Ballentine & Co., on his stock of goods, to secure them, and placed the same on file in the proper office. He then telegraphed Ballentine & Co. what he had done, and Ballentine came to Bay City, and received a duplicate of the mortgage.

J. K. Burnham'& Co., on being advised the same day of the existence of the mortgage through the commercial agency, at once sent their agent to Marontate, and he asked for a mortgage to secure the Burnham debt; this being refused by Marontate unless the agent would allow the Eobinson & Co. claim to be included. Those terms were accepted, and .a mortgage executed to James K. Burnham & Co. and to W. 1). Eobinson & Co., covering the entire stock of goods, to secure both debts, amounting to the sum of $9,775.19, and duly filed.

On the next day Marontate executed a third mortgage upon the same goods to Edson, Moore & Co. and the plaintiffs, to secure their debts, and on the same day Ballentine placed in the hands of the sheriff of Bay county Ballentine & Co.’s mortgage, for foreclosure under the power contained therein. At the same time Burnham placed in the hands of the sheriff the Burnham & Co. mortgage, with instructions to foreclose the same for the mortgagees therein named, and the property was advertised for sale on both mortgages at the same place, on the thirteenth of December, at 11 A. m. on the first, and at 9 A. m. on the second.

The goods were sold under the Burnham and Eobinson mortgage subject to Ballentine & Co.’s mortgage, which was stated to be $11,207, and Day, Campbell & Co., of Detroit, became the purchasers at such sale,, at the sum of $3,100.

On the morning of the day of the sale of the property, and before it took place, the writ of garnishment in this [101]*101case was served on defendants, Ballentine and Burnham.

The affidavit upon which the writ was issued was made by John O. McLaughlin, agent of the plaintiffs; and charges that Silas L. Ballentine and James K. Burnham had property, money, goods, chattels, and effects in their hands and under their control belonging to the principal defendant, Marontate,” as he believed and had good reason to believe.

The garnishee defendants filed their separate disclosures in writing, and were separately examined under the statute. At the instance of the plaintiffs, a statutory issue was framed for trial of the matter between the plaintiffs and garnishee defendants, and a trial thereof was had before Judge Green, by jury, in the Bay circuit, which resulted in a verdict for the plaintiffs for the full amount of the judgment recovered in the plaintiffs’ suit against the principal defendant, being $6,857.32.

The garnishee defendants remove the case into this Court by writ of error for review.

The record is full, and has been examined with care, but we do not think this judgment can be sustained.

An actual bona fide indebtedness from Marontate to James K. Burnham & Co. and to W. D. Bobinson & Co. is not disputed or questioned, nor that it was intended to cover the amount owing to both firms in the mortgage they received. It is not claimed that this mortgage was defective in form, or in its execution.

That a chattel mortgage given to several persons jointly may be made to cover separate debts is settled in this State in Adams v. Niemann, 46 Mich. 135; and that either mortgagee may* enforce his own claim by foreclosure of the mortgage must, I think, be conceded on authority (Herm. Chat. Mort. 357; Burnett v. Pratt, 22 Pick. 556; Gilson v. Gilson, 2 Allen, 115); and such mortgage may [102]*102be foreclosed by the mortgagees jointly. Wheeler v. Nichols, 32 Me. 238; Howard v. Chase, 104 Mass. 249.1

If the mortgage, by mistake or want of knowledge at the time, has been given for more or less than the actual indebtedness, and no deception or fraud was intended by either party, it will npt have the effect to invalidate the mortgage. Jones, Chat. Mort. § 92; Willison v. Desenberg, 41 Mich. 156; Wood v. Scott, 55 Iowa, 114; Kalk v. Fielding, 50 Wis. 339; Strauss v. Kranert, 56 Ill. 254; Blakeslee v Rossman, 43 Wis. 116, 123.

The prior mortgage given to Ballentine & Co. seems to have been properly made and executed, and it was competent for the second mortgagees to take theirs subject to the Ballentine mortgage; and such was the fact, as shown by the record. Jones, Chat. Mort. § 492; Smith v. Smith, 24 Me. 555; Shoenberger v. Mount, 1 Handy, 566; Treat v. Gilmore, 49 Me. 34; Tuite v, Stevens, 98 Mass. 305; Newman v Tymeson, 13 Wis. 172.

The mortgages taken by J. K. Burnham & Co. and W. D. Robinson & Co., and by Ballentine & Co., were both duly filed as soon as made, and were in the-usual form, authorizing possession to be taken of the property by the mortgagees, and sale thereof to be made, as soon as condition broken.

A breach in any one of the conditions entitled such possession to be taken, and foreclosure of the mortgage to be made, by the mortgagee. Leland v. Collver, 34 Mich. 418; Cassel v. Cassel, 26 Ind. 90; Jones, Chat. Mort. § 760.

These mortgages specified no time of payment, and were therefore due without demand of payment, and could be foreclosed immediately. Eaton v. Truesdail, 40 Mich. 1; Jones, Chat. Mort. § 770; Dikeman v. Puckhafer, 1 Abb. Pr. (N. S.) 32; Howland v Willett, 3 Sandf. 607; Farrell v. Bean, 10 Md. 217.

[103]*103The mortgage given, to Ballentine & Co. contained no illegal provision. It was in the usual form, and properly executed. It was due by its terms, and the testimony shows it was unpaid. There was nothing on its face showing anything more than the ordinary security given upon personal property to secure bona fide indebtedness of the mortgagor, and the same may be said of the Burn-ham mortgage.

Under these circumstances Ballentine & Co.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Robert W. Irwin Co. v. Sterling, Inc.
14 F.R.D. 250 (W.D. Michigan, 1953)
Farmers Trust & Savings Bank v. Bannworth
289 N.W. 423 (South Dakota Supreme Court, 1939)
Metz Manf'g Co. v. Holbeck
225 N.W. 536 (Michigan Supreme Court, 1929)
Credit Service Co. v. Furney
271 P. 738 (Oregon Supreme Court, 1928)
Metropolitan State Bank v. Wright
209 P. 804 (Supreme Court of Colorado, 1922)
Weber v. Wayne Circuit Judge
187 N.W. 528 (Michigan Supreme Court, 1922)
H. Stern, Jr., & Bros. v. Wing
97 N.W. 791 (Michigan Supreme Court, 1904)
Louden v. Vinton
66 N.W. 222 (Michigan Supreme Court, 1896)
Watson v. Mead
57 N.W. 181 (Michigan Supreme Court, 1894)
Warner v. Littlefield
50 N.W. 721 (Michigan Supreme Court, 1891)
Black v. Dawson
46 N.W. 793 (Michigan Supreme Court, 1890)
Kennedy v. McLellan
43 N.W. 641 (Michigan Supreme Court, 1889)

Cite This Page — Counsel Stack

Bluebook (online)
29 N.W. 837, 63 Mich. 97, 1886 Mich. LEXIS 638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyon-v-ballentine-mich-1886.