Merrick v. Avery, Wayne & Co.

14 Ark. 370
CourtSupreme Court of Arkansas
DecidedJanuary 15, 1854
StatusPublished
Cited by2 cases

This text of 14 Ark. 370 (Merrick v. Avery, Wayne & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merrick v. Avery, Wayne & Co., 14 Ark. 370 (Ark. 1854).

Opinion

Mr. Chief Justice Watkins

delivered the opinion of the Court.

This was a suit in chancery, instituted by the appellees, Avery, Wayne & Co., Thomas Hite and others, against Merrick & Fenno, and William Fisher.

From the record sent here, the material facts of the case appear ;to be as follows :

The complainants residing at Cincinnati, Ohio, having furnished supplies to the steamboat P. H. White, then running in the Ohio river, and owned by William Fisher, settled their respective demands against the boat, on the 7th August, 1849, by taking the note in some instances of the owner, and in others of the master of the boat, either due presently or at so many days from date. Soon afterwards the boat left the Ohio, and in the latter part of August, was brought by Fisher into the Arkansas, -where she continued to run. While navigating the Arkansas river the boat became indebted to the defendants, Merrick & Fenno, residing at Little Rock, for advances and supplies furnished in this State, amounting to near four hundred dollars; and -on the 6th of October, 1847, they took a bill of sale of the boat from Fisher, expressed to be in consideration of their having just ■claims against the boat, which he was desirous should be paid. The bill of sale contained a stipulation to the effect, that when .all the claims then held by Merrick & Fenno should be paid and satisfied, they would in good faith, re-sell, re-convey, and re-deliver the boat, her engine, tackle, &c., to Fisher, on his reasonable request, and in the meantime render accounts of the business of the boat, or permit him to inspect its books on request. This instrument, which clearly was a mortgage security, was never filed for record. It is fully proved that Merrick & Fenno, notwithstanding the positive denial and averments in their answer, immediately upon the execution of the bill of sale, took possession of the boat and commenced running her, for the purpose of re-imbursing what she owed them, and that such was the intention of the parties in executing the bill of sale, is inferable from its tenor.

Whether the boat left the Ohio river with the knowledge or consent of the complainants does not appear. Down to the time of taking the bill of sale so called, Merrick & Fenno had no notice of the claims of the Ohio creditors against the boat, but of which they were shortly afterwards apprized. Those creditors pursued Fisher to Arkansas, and brought suits in personam, against him* for the amount of their respective demands, in all of which judgments were rendered against Fisher, on the common law side of' the Pulaski Circuit Court, on the 25th April, 1848.

In the meantime the boat, not paying the expenses of running; her, and continuing to fall in debt to Merrick & Fenno, so that-including what they had advanced before undertaking to run the-boat for Fisher’s account, she owed them for supplies, stores,, cash advances, wharfage, &c., a balance of $1,751, and on the-7th of June, 1848, they advertised her for sale at auction on the-19th day of that month.

Two days before this sale took place, the complainants filed-their bill, the scope of which was, that by the law of Ohio, their claims were liens upon the boat, entitled to be specifically enforced and satisfied against her, in preference to any claim which the defendants, Merrick & Fenno, might have subsequently acquired. The complainants had. caused executions to be issued upon their judgments at law against Fisher, which being returned milla bona they claimed, in another aspect of their bill, to be entitled in equity, as judgment creditors of his, to subject the boat or its proceeds in the hands of Merrick & Fenno to satisfy the judgments; upon the ground that Merrick & Fenno had no real or valid claim, and in respect of which they prayed a discovery and account, but only held possession of the boat as trustees for Fisher.

The boat, when sold, did not bring enough to pay the balance due Merrick & Fenno, who received the proceeds of the sale,., amounting to $1,250.

At the hearing it was agreed that the law of Ohio, in regard to claims against boats and vessels, should be read in evidence, and it was admitted that the supplies &c., originally furnished by the complainants in Ohio, were such as 'were provided for by that law. The chancellor allowed Merrick & Fenno to retain the amount of their demand, being four hundred dollars, against the boat at the time of the execution of the mortgage, but decreed that they should pay the residue of the proceeds arising from the sale, to be distributed pro rata among the complainants.

While the appellants contend that the complainants below had no lien, it is argued that, conceding they might have had such lien, they lost it by taking notes of the master or owner, thereby giving a personal credit to them, and also by merging their demands in judgments against the owner. If these were the only questions to be decided, we might have no difficulty in holding, that where by analogy to maritime law or usage, a material man has a triple remedy against the master, the owner, and the boat, he may pursue them all, independently of each other, until one satisfaction is had. In such cases a reasonable credit is allowed to be extended to the boat for the benefit of commerce, else there would be no necessity for any lien. So the taking of a note not negotiated or outstanding would not waive the lien, unless some additional security were obtained, or under circumstances manifesting an intention to do so. According to what is the law of the place, the simple contract demand might be merged in the note, and a judgment in personam would bar another action on the note; but that judgment while unsatisfied, being but a security, would be no bar to a distinct proceeding in romiot the same debt, supposing such were the case here.

But the essential enquiry is, whether the complainants upon the facts stated, had any lien in Ohio, which they can enforce in this State as against the defendants, and this enquiry involves many considerations of serious difficulty. In the first place the the distinction between the different kinds of lien is to be observed. The common law lien is a right to retain a thing until some claim upon it is satisfied, and if possession be given up the lien is lost. Statutory liens, among which are chattel mortgages, do not depend upon possession of the thing. They import a right to prior satisfaction out of the property bound by the lien, and being the creatures of positive law, are usually regiilated by a system of registry, operating as constructive notice; so that they take effect, and are to be satisfied according to priority of record! A maritime lien does not depend upon possession or registry of any contract which confers the lien. It excludes the idea of possession or registry. Nor do such liens take effect according to priority of time; in many instances, when they come to be satisfied the order of priority is inverted. The maritime law is part of the law of nations, a peculiar system supposed to be based on principles of the most enlightened equity, and proceeding according to rules of its own wholly unlike the common law. It concerns vessels which navigate the seas,- and the classes of persons engaged in navigating, or who contract in respect of such vessels! The maritime lien is one of the necessities attending commerce between foreign countries.

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Bluebook (online)
14 Ark. 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrick-v-avery-wayne-co-ark-1854.