Mansue-Tebbetts Implement Co. v. Ritchie

143 Mo. 587
CourtSupreme Court of Missouri
DecidedApril 20, 1898
StatusPublished
Cited by20 cases

This text of 143 Mo. 587 (Mansue-Tebbetts Implement Co. v. Ritchie) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mansue-Tebbetts Implement Co. v. Ritchie, 143 Mo. 587 (Mo. 1898).

Opinion

Marshall, J.

On the tenth of May, 1894, J. J. Ritchie executed and delivered to S. P. Hudson, a promissory note for $2,225.74, and secured it by a deed of trust, in the usual form, to Bruton as trustee for Hudson, covering a stock of merchandise in Sturgeon, [593]*593Missouri, which was properly recorded the same day. Hudson at once transferred the note and deed to the Sturgeon Savings Bank in payment and satisfaction of an indebtedness from him to the bank. On the eleventh of May, 1894, Bruton, the trustee, went to the store and found Mr. Owens, a clerk for Ritchie, in possession, who turned over the keys to the store to him, and he locked the doors and kept the keys.

On the twelfth of May, plaintiff began a suit by attachment in the Sturgeon common pleas court against Ritchie and Hudson, and seized and sold the goods covered by the mortgage. Thereafter Bruton filed an interplea in the attachment suit as trustee for the use and benefit of the Sturgeon Savings Bank, and claimed the proceeds of the property by virtue of the deed of trust. Plaintiff answered the interplea and averred that the deed of trust was a false and fraudulent conveyance and was made by Ritchie to hinder, delay and defraud his creditors, and that it was so designed by Ritchie and so received and accepted by Bruton and the bank, who each knew and understood said purpose and intent and actively helped, aided and assisted in making the same effective and operative. The reply of the interpleader was a general denial. At the return term plaintiff applied for a change of venue, alleging an undue influence of Bruton and the bank over the minds of the inhabitants of the territory embraced in the jurisdiction of the Sturgeon Court of Common Pleas, and also a like influence over the people of Boone, Audrain, Randolph and Howard counties. The interpleader objected, but the court granted the change of venue and sent the case to the circuit court of Chariton county, where it was tried, resulting in a verdict for the plaintiff, and the interpleader appealed.

For the interpleader evidence was intro duced tending to show that prior to April, 1893, J. J. Ritchie and [594]*594J. W. Ratliff were partners; that about that time S. P. Hudson, a brother-in-law of J. J. Ritchie, purchased Ratliff’s interest in the partnership, nominally for himself but really for the benefit of his brother-in-law. Hudson borrowed the money to make this purchase from the Sturgeon Savings bank, of which J. S. Ritchie, the father of J. J. Ritchie, was the cashier; that thereafter the business was run in the name of J. J. Ritchie; that afterward Hudson gave the bank his note for an overdraft the bank held against J. J. Ritchie; that on the tenth of May, 1894, J. J. Ritchie executed and delivered to S. P. Hudson the note for $2,225.74, payable one day after date, secured by deed of trust on the stock of merchandise, to cover the amount Hudson had paid to buy Ratliff’s interest, and the note Hudson had given the bank to take up J. J. Ritchie’s overdraft; that Hudson at once, on the same day, transferred the note and deed of trust to the bank and took up his notes which he had given the bank on the two occasions referred to. All of the transactions between Hudson and the bank were made with J. S. Ritchie, the cashier of the bank, and the father of J. J. Ritchie. The stock of goods was worth $2,593.05.

For the plaintiff in the attachment suit evidence was introduced showing that on the nineteenth of October, 1893, a statement of assets and liabilities was made to plaintiff “by the firm of J. J. Ritchie, city of Sturgeon, State of Missouri, which is composed of the following persons: J. J. Ritchie and S. P. Hudson, co-partnership unlimited, and engaged in the business of hardware and implements,” showing that the assets exceeded the liabilities $12,300, which was signed only by J. J. Ritchie, and which recited that it “is presented as a basis of credit with Mansur-Tebbetts Implement Company;” that on the first of November, 1893, plaintiff wrote Ritchie calling his attention to the fact [595]*595that the statement made it appear that Hudson was a partner but that he had not signed the statement, inclosed him a copy of it and asked him to have Hudson sign it; that on the twenty-third of November, 1893, Hudson wrote plaintiff acknowledging receipt of the letter of the first of November to Eitchie, concerning the statement, and also of an order blank containing goods selected by Eitchie, aggregating over $1,900, and objecting to the terms of the sale because they gave plaintiff the right to ship the goods at any time, whereas, “we can not arrange to take care of them before January 20, 1894,” and also because it gave no right to cut down the amount of the order if after checking up on the first of January their financial condition required it, and saying: “While toe desire to handle your goods we do not want to purchase more than we can pay for, as this would make it unpleasant for all parties concerned. While'we may find it to our interest to handle all goods selected in the order blank and even more, yet it is unfair at this early date to tie ourselves up for such an order as this.” And further adding: “For the above reasons I respectfully decline to sign the attached statement unless the privilege is granted to reduce the order to suit the conditions of our financial circumstances January 1st, 1894, and to have shipment deferred as late as January 20th, 1894.” It further appeared for plaintiff that the plaintiff acceded to the qualifications in the order suggested- by Hudson and the goods were shipped about the twentieth of January, 1894, and that J. J. Eitchie gave, plaintiff five notes, in settlement of the order, one dated March 10, 1894, for $153, and four dated March 31, 1894, for $445.04, $450, $700 and $600, respectively, and that the attachment, suit was based on them. It further appeared that both Eitchie and Hudson were largely indebted at the time the deed of trust was éxe[596]*596cuted. The contention of the interpleader at the trial was that Ritchie owed Hudson and Hudson, owed the bank the same amount Ritchie owed him, in fact it was the same debt; that to secure himself Hudson took the note and deed of trust from Ritchie, and immediately transferred it to the bank, taking up his notes from the bank; that although Ritchie was in failing circumstances, if not absolutely insolvent, he had the right to prefer Hudson even though the deed of trust covered the whole-of his property, as it substantially didin this case. For the plaintiff it was maintained that J. J. Ritchie and S. P. Hudson were partners doing business under the firm name of J. J. Ritchie, that the partnership was insolvent, and that the note and deed of trust from Ritchie to Hudson were fraudulent and intended to hinder, delay and defraud the creditors of the firm.

At the request of the interpleader the court gave the following instructions:

1. The court instructs the jury that if they believe from the evidence that J. J. Ritchie was on the tenth day of May, 1894, indebted to S. P. Hudson on a bona fide claim for the sum of $2,225.74 for money advanced by said Hudson to said Ritchie, then the said Ritchie had a legal right to execute a deed of trust to F. E. Bruton, as trustee, on the property and stock of goods in question to secure said debt, and if the jury believe that said Bruton, as trustee in said deed of trust, was in possession of said property at the time of the levy with the consent of said Ritchie, grantor in said deed of trust, and that said deed of trust was executed to-said Bruton by said Ritchie in good faith to secure a

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Bluebook (online)
143 Mo. 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mansue-tebbetts-implement-co-v-ritchie-mo-1898.