McGinnis v. Savage

1 S.E. 746, 29 W. Va. 362, 1887 W. Va. LEXIS 6
CourtWest Virginia Supreme Court
DecidedFebruary 5, 1887
StatusPublished
Cited by13 cases

This text of 1 S.E. 746 (McGinnis v. Savage) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGinnis v. Savage, 1 S.E. 746, 29 W. Va. 362, 1887 W. Va. LEXIS 6 (W. Va. 1887).

Opinion

GReen, Judge:

The first question in this case is : — What is the meaning and legal effect of the contract between the plaintiffs and defendants, copied in the statement of the case, made by [367]*367them on January 3,1885, in reference to the personal property the subject of this suit? Although this property is in the beginning of the agreement stated to have been leased by the plaintiffs to the defendants, yet the entire agreement shows, that it was no hiring of this property to the defendants for ten months, as it is said to be in the beginning of the agreement. One of the clearest indications, that the parties never designed to hire this property, is that no hire is stipulated to be paid for its use by the defendants. It is true, that the defendants do covenant to do hauling for the plaintiffs, and that they will not do less than $20.00 worth of such hauling in each month, until the sum of $200.00 shall be paid. But this hauling was obviously not to be done as the hire of the two horses, the harness and hay-ladder ; for this agreement expressly says that this“ $200.00 is to be paid for the horses, harness and hay-ladder, and when thus jjaid in full, that the plaintiffs were to relinquish all claim to the property and bound themselves to give the defendants a clear receipt.” Though very badly expressed the meaning of this would seem to be clear, that, when the defendants should have paid in labor to the plaintiffs the value of this property estimated at $200.00 in payments of not less than $20.00 per month, then the plaintiffs would make to them a good title to this property, and that in the mean time the defendants should have the possession of but not the title to the property.

There is, it is true, a rather singular provision inserted in this agreement, and one, which may like the leasiny provision in the beginning of the agreement seem at first sight to be inconsistent with the interpretation above given. The provision is.: — “And it is further understood, that in the event of the death of one or both of the horses by accident or sickness there is to be no deduction from the $200.00 coming to the plaintiffs ; but if the defendants should fail to comply with the above stipulated contract, they are to surrender the peaceable possession of the property and lose all they have paid.” The fact, that the death by accident or sickness of either horse should be the loss of the defendants, does not seem to consist with what seems to be clearly the meaping of the contract, that the title to the [368]*368horses should remain with the plaintiffs, till the $200.00 in work should be paid by the defendants in full; or it would seem to be a very unreasonable advantage conferred on the vendors. But this clause could hardly control the clear meaning of the contract, especially as it seems to be an independent clause in the contract; and while it puts on the defendants the burden of running the risk of the horses dying before the expiration of the ten months, the plaintiffs requiring the defendants if one'horse should die to pay $200.00 for the other; and if they failed to comply with their agreement of paying for the property at the rate of $20.00 per month till the whole was paid for, they would surrender the property and lose all they had paid. Yet, as if to offset these unreasonable provisions, there was in this portion of the agreement some compensation to the defendants for the harshness of these stipulations. In the first place, as there is no stipulation for the hiring of this property at any named price, the conclusion to be drawn would seem to be, that, if the defendants paid the $200.00 in labor, as stipulated for in the contract, they were to have title to the property without paying anything to the plaintiffs for the use of the property under this contract; and, if they failed to pay the plaintiffs $20.00 a month in labor for ten months, the plaintiff's might demand of them the surrender of the property, the title to it still being in the plaintiffs ; and as the defendants were to pay no hire, so the plaintiffs were to refund nothing, which might have been paid on the property; and if the defendants should fail to pay as much, as the hire of the property might be worth, and the plaintiffs should not demand possession of the property promptly, the result would seem to be, that the defendants in such case would have the use of the property for less than the use of it was worth. But, as the plaintiffs could have resumed possession of this property at the end of any month, in which the defendants failed to pay them at least $20.00 in work, it is obvious, that the plaintiffs had it in their power to save themselves from all loss in the transaction.

It is true, that a provision of this character placing the risk of the death of the property on one of the parties to the [369]*369agreement, has in some cases been regarded as important in determining and throwing light upon the character of the transaction and the true meaning of the agreement. As to the influence of such a provision upon a contract, see the following cases, no one of which however bears much resemblance to the case before us Harrison v. Lee, 1 Litt. (Ky.) 191; Gray v. Pruther, 2 Bibb 223; Berry v. Glover, 1 Harp. Eq. (S. C.) 153; Bishop v. Rutlege, 7 J. J. Marsh. 217; Hart v. Barton, Id. 322; Stone v. Weltis, 4 B. Mon. 496;

Williams v. Cheathem, 19 Ark. 278; Johnson v. Clark, 5 Ark. 321; Brown v. Bennett, 8 Johns. 96. But whatever effect or construction might be given to this provision of the contract, if this was a suit on the contract, there is nothing in it to prevent us from regarding this contract as for the sale of personal property, the possession of which was to be delivered to the vendees immediately, and which was so delivered, but the title thereto was not to vest in the vendees, till they had complied with a condition precedent, that is, till they had paid all the purchase-money.

Contracts of this character have in recent years become very common in many States of the Union; and they have been the occasion of much litigation. Such a contract was very obviously not designed by the parties to it to be a chattel-mortgage. Their obvious purpose was to put their contract in a form, in which it should not be regarded as an absolute sale of the property but as a conditional sale, the title to remain in the vendor, till the condition should be performed, and at the same time the parties evidently intended, that the contract should not be regarded as a mortgage to secure the price of the property, as if absolutely sold and delivered.

When the contract is in reference to real estate, it is frequently difficult to determine, whether it constitutes an absolute sale or a conditional sale or a mortgage ; and in determining, which of the three it is, the court habitually looks beyond the mere wording of the contract to the circumstances surrounding the parties, at the time they made it, and their real object and purpose, — frequently holding the transaction to be a mortgage, when the wording of the contract shows, that it was the design of the parties to [370]*370give to the transaction the appearance of not being a mortgage. (Vangilder v. Hoffman, 22 W. Va. 2, pts. C and 7 of syll.; Hoffman v. Ryan, 21 W. Va. 415; Davis v. Hemming, 12 W. Va. 281).

Upon the principles governing in these cases the contract before us should be regarded as a conditional sale, not as a, mortgage.

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Bluebook (online)
1 S.E. 746, 29 W. Va. 362, 1887 W. Va. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcginnis-v-savage-wva-1887.