Mendenhall v. Kratz

44 P. 872, 14 Wash. 453, 1896 Wash. LEXIS 388
CourtWashington Supreme Court
DecidedApril 30, 1896
DocketNo. 1663
StatusPublished
Cited by17 cases

This text of 44 P. 872 (Mendenhall v. Kratz) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mendenhall v. Kratz, 44 P. 872, 14 Wash. 453, 1896 Wash. LEXIS 388 (Wash. 1896).

Opinion

The opinion of the court was delivered by

Anders, J.

This action was brought to foreclose a chattel mortgage executed by V. Kratz and the Clal-lam Lumber Company to Russell & Co., an Ohio corporation, to secure the payment of $3,000, the same being a part of the purchase price of certain sawmill machinery included in the mortgage. The instrument was dated May 26, 1891, but was not acknowledged and delivered until June 3, 1891. At or about [454]*454the time the mortgage was delivered the property therein mentioned was shipped from Portland, Oregon, to the mortgagors at Clallam Bay in Clallam county, Washington, where it was when this action was commenced. The mortgage was filed for record in King county on July 9, 1891, but was not filed in Clallam county until April 11, 1892. On or about November 18, 1891, the defendant Earles purchased the property for a valuable consideration from the mortgagors who were then in possession thereof at Clallam Bay aforesaid. The mortgage and notes, it is conceded, were duly assigned and transferred to plaintiff prior to the commencement of this action. There was no affidavit of good faith accompanying or attached to the mortgage, as required by statute, nor was it acknowledged by the Clallam Lumber Company both of which facts appeared from the complaint, of which the mortgage sought to be foreclosed was expressly made a part. The defendant Earles, appellant here, interposed a demurrer to the complaint on the ground that it failed to state a cause of action as against him, which demurrer was overruled by the court. He then filed an answer in which he, after denying the material allegations of the complaint, alleged affirmatively that on November 18,1891, he purchased the property described in the complaint for value and in good faith.

Upon the issues presented by the pleadings a trial was had resulting in a decree of foreclosure of the mortgage in question. From this judgment and decree the defendant Earles has appealed and alleges, among other things, that the court erred in overruling his demurrer to the complaint. His contention is that under the express provisions of our statute the mortgage upon which this action was based was and [455]*455is, as to him, absolutely ineffectual and void, for the reasons that it was not accompanied by the required affidavit and was not properly acknowledged or timely recorded. The learned counsel for the respondent concedes that the mortgage is defective in the particulars mentioned, and that it was not recorded prior to appellant’s purchase of the property; but he nevertheless insists that appellant had, or, at least, by the exercise of ordinary diligence, could have had, knowledge of its existence, and that he is, therefore, not in a position to avail himself of the objections above specified, and, hence, took the property subject to the lien.

In order to determine which one of these positions is correct it is necessary to refer to the statute concerning chattel mortgages, for it can hardly be disputed that he who claims a statutory lien upon property must be able to show that he is within the terms of the statute granting or authorizing it. That a mortgage of personal property may be good as between the parties, and, at the same time, void as to other parties is not disputed. The only question here is whether the mortgage as to appellant is or is not void under the statute. Sec. 1648 of the General Statutes, (1 Hill’s Code,) provides that,

“A mortgage of personal property is void as against creditors of the mortgagor or subsequent purchaser, and incumbrances of the property for value and in good faith, unless it is accompanied by the affidavit of the mortgagor that it is made in good faith, and without any design to hinder, delay or defraud creditors, and it is acknowledged and recorded in the same manner as is required by law in conveyance of real property.”

It will be observed that this statute makes a broad distinction between creditors and subsequent purchasers or incumbrancers. As to the former it positively [456]*456declares that chattel mortgages are void unless they are accompanied by the specified affidavit and are acknowledged and recorded as required by law. But an incumbrancer or subsequent purchaser, in order to avail himself of an omission of the affidavit, or of a failure to acknowledge or record the instrument, must be able to show that he is an incumbrancer for value and in good faith. Nothing is said about notice and that question is therefore material only in cases where good faith is required to be shown. The mere fact, therefore, that respondent’s mortgage was not verified or recorded will not render it invalid as to appellant unless he purchased the property for value and in good faith; and no one can become a purchaser or an incumbrancer of property in good faith, if he have notice of a pre-existing mortgage, although such mortgage may not be recorded or verified in accordance with the statute. Roy & Co. v. Scott, Hartley & Co., 11 Wash. 399 (39 Pac. 679); Farmers’ Loan & Trust Co. v. Hendrickson, 25 Barb. 484.

See, also, Chase v. Tacoma Box Co., 11 Wash. 377 (39 Pac. 639); Darland v. Levins, 1 Wash. 582 (20 Pac. 309); Hinchman v. Point Defiance Railway Co., ante, p. 349; Jones, Chattel Mortgages (4th ed.), § 318.

The complaint in this action alleges that appellant’s interest in the property in question was acquired subsequently to the making and delivery of respondent’s mortgage, and with full knowledge of its existence and that the same had not been paid; and this being true for the purpose of the demurrer, it follows that the objection to the complaint on the ground that the mortgage was not acknowledged or recorded is not well taken.

But it is further claimed that the mortgage is void on its face for the reason that the description of the [457]*457property therein set forth is insufficient to identify it, and is too vague and indefinite to impart notice to third parties. The articles included in the mortgage are separately mentioned and the more important ones are not only described generally but also by numbers, as, for example: “One 10x16 (65 EL P.) Automatic Engine No. 6075.” All of the property is stated to have been manufactured by Russell & Co., and it consists of machinery such as is only used in sawmills and planing mills; and it does not appear that the Clallam Lumber Company ever owned any other machinery of the kind. Indeed, it is difficult to see how a more minute description could have been given. It is true that the location of the property is not stated, but that, though usual and proper, is not necessary where the property is. otherwise sufficiently ■described. 1 Cobbey, Chattel Mortgages, § 179; Adams v. Hill, 10 Kan. 627. It is generally, or at least often, impossible to describe property in a mortgage or other instrument so particularly that a stranger can select it from other property of the same kind or class without the aid of facts which do not appear in the instrument itself; and, therefore, any description in a mortgage is sufficient which will enable a stranger, aided by inquiries which the instrument itself suggests, to identify the property. 1 Cobbey, Chattel Mortgages, §170; Jones, Chattel Mortgages, §54, and cases cited.

Tested by this rule, we think the description is sufficient, and that the demurrer was properly overruled.

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Cite This Page — Counsel Stack

Bluebook (online)
44 P. 872, 14 Wash. 453, 1896 Wash. LEXIS 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mendenhall-v-kratz-wash-1896.