McCombs v. Guild, Church & Co.

77 Tenn. 81
Tennessee Supreme Court·Decided April 15, 1882·Published·Cited by 7 cases

Opinions

Cooper, J.,

delivered the opinion of the court.

This action was ^commenced by Guild, Church & Co., against M. A. McCombs, before a justice of the peace by warrant, “ in a plea of debt by account.” Upon appeal to ' the circuit court, the regular judge being engaged in the trial, of a cause, the parties agreed that the cause might be tried by C. W. Heiskell, an attorney of the court, as special judge. This is the substance of one entry on the minutes. The bill of exceptions says that the parties agree to submit the case to C. W. Heiskell, Esq., “ appointed by the court, with the consent of both parties, a special judge,” without the intervention of- a jury, the judgment to be entered as the judgment of the court, “both parties reserving the right to appeal from the same to the Supreme Court as if the case had been regularly called and tried by the circuit judge.” The special judge rendered judgment for the plaintiffs below, and [83] the defendant appealed in error. ,The bill of exceptions and the judgment of the court are signed by the special judge.

The first point made is that the judgment is not •one from which an appeal can be taken. But no motion was made to dismiss the appeal, and a majority of the court think that the objection comes too late. ' I have grave doubts of the jurisdiction of the -court in such a case.

On September 25, 1875, the plaintiffs, in Boston, sold to C. S. Cooper, of Memphis, Tennessee, a piano at the price of $325, of which $27.12 were paid in cash, and the residue secured by eleven notes of the purchaser for $27.08 each, payable at intervals of a month for the .next eleven .months, with 7 per cent interest. The contract, which was in writing signed by the purchaser, provided that the piano should remain the property of the plaintiffs until all of the payments were made, with the right on their part, in case of failure to. pay, or if the purchaser should remove the same from the house No. —, or sell, mortgage or convey the same in any manner, without their written consent,” to take the piano back. The purchaser brougnt the piano to Memphis, and kept it '“in a sewing machine store for sale, where persons desirous of purchasing pianos examined and tried it; he also .kept other pianos there.” On October 3, 1875, Cooper, through one L. Schunck, sold the piano to the defendant for $500, which was paid in another piano worth. $100, and the residue in cash. The defendant had no knowledge of the contract between. [84] plaintiff and Cooper, but bought and paid for it believing that Scliunck and Cooper were the absolute owners. She has had possession of the piano since her purchase. The plaintiffs had no knowledge of the sale to the defendant. They made no demand of the defendant for the piano until March, 1879, when defendant was told by the agent of the plaintiffs that he, had the purchase notes for collection, and, as they had not been paid,- that Cooper had no title to the-piano; that if defendant wished to keep the piano she must pay for it, or, if she preferred to return the piano, he would accept it in payment. The piano is worth $325. The plaintiffs, who reside in Boston, Massachusetts, had permitted Cooper to bring the piano from Boston to Memphis,' and had not put the agreement of sale on record, or made any advertisment in Memphis, or otherwise given notice that the title of Cooper was not complete.

It has ^uniformly been held in this State that a contract for the sale of personal property, by which the possession is delivered to the purchaser but the title retained in the seller until the purchase money be paid, is valid, and if the purchaser dispose of the property before the title is vested in him by the payment of the purchase money, the original owner may follow it into the hands of the third party: Houston v. Dyche, Meigs, 76: Gambling v. Read, Meigs, 281; Price v. Jones, 3 Head, 84; Holmark v. Molin, 5 Cold., 482. And although the contract of sale be reduced to writing, it need not be registered: Bradshaw v. Thomas, 7 Yer., 497; Buson v. Dougherty, 11 [85] Hum., 50. As between the original vendor and sub-vendee in such a case it is a question of title, and neither payment of the price nor want of notice of the vendor’s right will protect the sub-vendee: Price v. Jones, 3 Head, 85. Taking possession and assuming control of the property as owner, would be a conversion: Houston v. Dyche, Meigs, 76. Demand of .possession and refusal are required only in those cases in which the possession was rightfully acquired: Merchants National Bank v. Trenholm, 12 Heis., 524.

In Gambling v. Read, it was said by the court that possession of personal property is only prima fa-cie evidence of title, and will not protect the purchaser against the claim of the true owner, except in a few cases provided for in law, where it has been of such a character as is calculated to .impose upon creditors and subsequent purchasers. Some of these cases are noticed by the eminent judge who delivered the opinion of the court in Taylor v. Pope, 5 Cold., 416. They are usually cases in which possession is connected with an apparent power to sell superinduced by the acts of the owner, or by coupling the possession with the usual indicia of title with authority to convey, as in the case of certificates of stock with a power of attorney to transfer on the books of the corporation endorsed thereon: Cherry v. Frost, 7 Lea, 1. It is insisted that the facts in this case bring it within the exceptional class.

This position rests upon the ground that the agreed statement of facts shows that the piano was kept by the original vendee in a sewing machine store for sale, [86] ■where he also kept other pianos, and that the plaintiff' permitted him to bring it from Boston to Memphis, presumably for the purpose of sale. This court has held that a trust assignment or mortgage of goods, duly proved and registered, intended to secure particular debts, but leaving the possession of the goods with the assignor to sell in the usual course of trade, and replenish the stock, will be invalid as tending to hinder and delay creditors: Tennessee National Bank v. Ebbert, 9 Heis., 153; Nailer v. Young, 7 Lea, 735. See also Phelps v. Murray, 2 Tenn. Ch., 746. And even where such assignments are held valid as between the parties, a purchaser under the power of sale would of course obtain a good title: Mitchell v. Winslow, 2 Story, 630; Brett v. Carter, 3 C. L. J., 286. A conditional sale, with like powers to sell, would be subject to the same rule: Lewis v. McCabe, 21 Am. Law Reg., 217, and cases cited in note. This court, in analogy to its holding in regard to trust assignments as above, would probably treat a conditional sale of chattels with power in the purchaser to sell as tending to. hinder and delay creditors, or contrary to public policy and void.

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McCombs v. Guild, Church & Co., 77 Tenn. 81 (Tenn. 1882).

77 Tenn. 81 (McCombs v. Guild, Church & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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