M. P. Musser & Co. v. King

59 N.W. 744, 40 Neb. 892, 1894 Neb. LEXIS 371
CourtNebraska Supreme Court
DecidedJune 5, 1894
DocketNo. 5452
StatusPublished
Cited by28 cases

This text of 59 N.W. 744 (M. P. Musser & Co. v. King) 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
M. P. Musser & Co. v. King, 59 N.W. 744, 40 Neb. 892, 1894 Neb. LEXIS 371 (Neb. 1894).

Opinion

Ragan, C.

M. P. Musser & Co. brought a suit in replevin in the ■district.court of Sheridan county against John King, and alleged in their petition that they were the owners of and entitled to the immediate possession of certain chattels, and that John King unlawfully detained possession of said •chattels from them. To this petition John King filed an answer, consisting of a general denial. King had a ver[894]*894diet and judgment, and Musser & Co. bring the case here on error. On the trial of the case Musser & Co. proved that one William B. King, on the 16th of December, 1889, gave his note to one Nathan Tibbets, and to secure the same at the same time executed to Tibbets a chattel mortgage on the property involved in this suit; that said William B. King died insolvent on the 16th day of February, 1891, and that Tibbets had assigned the note and the mortgage securing the same to Musser & Co. After this proof was made Musser & Co. offered in evidence the note and chattel mortgage. John King objected to their introduction in evidence on the ground, among others, that no proper foundation was laid for their admission in evidence, and that they did not tend to prove the issue made by the pleadings. The district court sustained the objection and excluded the note and chattel mortgage, to which ruling Musser & Co. took an exception. No other or further evidence was offered on the trial of the case. The only error assigned here is the ruling of the district court in excluding from the jury this note and mortgage. The issue in the case was the right of Musser & Co. to the immediate possession of the property replevied, and by their petition they predicated their right to the possession of the property on their ownership of the same.

In replevin, as in all other actions, the evidence should correspond to the allegations in the pleadings. If Musser & Co. based their right, as is probable, to the possession of this property on their ownership of the note and chattel mortgage, they should have so stated in their petition. In other words, they should have pleaded the facts. If they claimed to be the actual owners of the property, an allegation that they were the owners of it was sufficient. If they claimed a special ownership in, or lien upon, the property, and predicated their right to the possession of the property on such special ownership or lien, the petition should Hve stated the facts in reference thereto. (Haggard [895]*895v. Wallen, 6 Neb., 271.) The note and mortgage offered did not tend to prove that Musser & Co. were either the owners of or entitled to the possession of the property. There was no evidence offered showing that William B. King was either the owner or in possession of this property at the time he mortgaged it to Tibbets. The law, in the absence of all evidence on the subject, will not indulge the presumption that one who made a mortgage upon chattels was either the owner of or in possession of such property at the time he made such mortgage when the holder of such mortgage seeks to recover possession by replevin of such property from a third party. (Everett v. Brown, 64 Ia., 420; Warner v. Wilson, 73 Ia., 719; Gibbs v. Childs, 143 Mass., 103.)

The petition in this case was doubtless framed upon the theory that the mortgagee of chattels is the owner of the legal title thereto, and in Adams v. Nebraska City Nat. Bank, 4 Neb., 370, it was so decided. An examination of that case, however, shows that the point was not necessary to a decision of the case. The action was brought by a mortgagee of chattels in possession thereof to restrain a sheriff from levying upon and selling said chattels under an execution against such mortgagee, and the court held that the petition did not state such a case as authorized the interference of a court of equity to restrain the sale. There can be no question but that the conclusion reached was a correct one; but the other point stated in the first paragraph of the syllabus of the case, viz., “A mortgage of chattels transfers to the mortgagee the whole legal title to the thing mortgaged,” was not involved in the ease. This case, if not expressly, has in effect been many times overruled by the decisions of this court; and we think it is the almost universal understanding of both the bench and the bar of the state that the mortgagee of chattels acquires only a lien upon the mortgaged property, and not the legal title thereto, by virtue of such mortgage. That [896]*896the interest of a mortgagee in chattels is that of a mere lien has been frequently recognized by this court.

In Tompkins v. Batie, 11 Neb., 147, it was held: “A mere tender of the amount secured by a chattel mortgage to the creditor on the day fixed for payment, although not accepted nor kept good, has the effect to release the property from the lien of the mortgage.” This case was reaffirmed in Knox v. Williams, 24 Neb., 630.

In Gillilan v. Kendall, 26 Neb., 82, the court said: “The mortgagor of chattels, until foreclosure, possesses a beneficial interest in the property mortgaged, and will convey a good title by a sale of such property to one who purchases in the open market in good faith and without notice, actual ■or constructive, of the mortgage.”

A chattel mortgage has also been recognized by this court as a mere lien upon the property mortgaged in the following cases: Marseilles Mfg. Co. v. Morgan, 12 Neb., 66; Grand Island Banking Co. v. Frey, 25 Neb., 66; Gandy v. Dewey, 28 Neb., 175.

In Grimes v. Farrington, 19 Neb., 44, the court held that the mortgagor of personal property, upon which an attachment issued against him had been levied, had the right, under the provisions of section 235 of the Civil Code, to resist the attachment by a motion to discharge the same.

In Hamilton v. Lau, 24 Neb., 64, the court said: “In every mortgage there is a trust created in a certain sense in favor of the mortgagor in respect to the residue or surplus after the application of sufficient of the fund to satisfy the claim of the mortgagee.”

In Jordan v. Hamilton County Bank, 11 Neb., 499, it was held: “Where a senior mortgagee of chattels, for the purpose of depriving of his security a junior mortgagee of a part of the same property, fraudulently releases that portion on which h>'s mortgage is the exclusive lien, the same being adequate security, he will not be permitted, to the prejudice of the latter, to go upon the property covered by the second mortgage for payment of his demand.”

[897]*897In Newlean v. Olson, 22 Neb., 717, the mortgage in controversy contained this clause: “If the mortgagee shall at any time feel unsafe or insecure, he may seize and sell as aforesaid the property.” The court held that the words “feel unsafe and insecure” did not authorize the mortgagee to exercise an arbitrary discretion in taking possession of the mortgaged property, but that before he could take possession thereof the mortgagor must have done or been about to do some act tending to impair the mortgagee’s security.

In Harman v. Barhydt, 20 Neb., 625, the court said that the transfer of one of several notes secured by a chattel mortgage was an assignment pro tanto of the mortgage to the person to whom such note was assigned.

Chapter 12, Compiled Statutes, 1893, prescribes one method by which chattel mortgages may be foreclosed.

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Bluebook (online)
59 N.W. 744, 40 Neb. 892, 1894 Neb. LEXIS 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-p-musser-co-v-king-neb-1894.