Meysenburg v. Schlieper

48 Mo. 426
Supreme Court of Missouri·Decided October 15, 1871·Published·Cited by 11 cases

Opinion

Currier, Judge,

delivered the opinion of the court.

Windeek &. Luebering conveyed the real and personal property described in the petition to the defendant Borg, in trust to secure the payment of certain notes. The said estate was at the time subject to a prior deed of trust in favor of a third party. Subsequently Windeek conveyed his remaining interest in the property, in trust to secure a debt due plaintiff Sternberg.

The personal property included in the second or Borg deed of trust was advertised for sale under that deed, the sale to occur June 26, 1868, one of the notes secured by it having matured, and default having been made in the payment of it. The plaintiffs stopped the sale by injunction, and the injunction was not removed until November 6, 1868. After the injunction was dissolved Borg again advertised, but the sale was again interrupted by a second injunction, which was also sued out by the plaintiffs. This second injunction was laid December 1, 1868, and dissolved May 15, 1869, the first suit in the meanwhile having been dismissed.

Subsequently to the dissolution of these injunctions, the court assessed the defendants- damages- as follows : Under the first at $2,450 ; and under the second, $773.63. The plaintiffs complain of these assessments as having been made under erroneous principles, and seek a reversal on that ground. The two cases were tried together in the court below, and have been so argued and submitted here.

The Circuit Court assessed the damages upon the principle that the plaintiffs were liable for the depreciation in the salable value of the property during the period the sale was suspended by the injunctions as well as for the costs and expenses incurred in defending against the injunction suits. The court also seems to have taken into consideration, in assessing the damages, the depreciation upon certain articles of property which the plaintiffs insist had been attached to the realty as fixtures, and had thus [431]*431ceased, as tbe plaintiffs claim, to be personal estate. It is tbe action o£ tbe court in making these assessments that tbe plaintiffs object to and complain of as erroneous.

Prior to either of these injunctions Windeck & Luebering bad become insolvent, so that the only reliance for tbe payment of tbe notes secured by tbe Borg deed of trust was the security furnished by that deed. One of tbe notes thus secured, and a year’s interest on tbe remaining notes, became due the last of May, 1868 ; and tbe property in question, as we have seen, was advertised for sale under the Borg deed of trust on tbe 26th of June of that year. Had the sale been made as advertised, it satisfactorily appears that tbe whole debt secured by that deed would have been paid from the proceeds of the sale, and from the surplus arising from the sale of the real estate under the first deed of trust; the Borg deed of trust being the second encumbrance upon the realty, and the-first upon the personalty.

The personal property, on the 26th of June, 1868, as the evidence shows, was well worth, and would have sold on that day, for at least $4,000. The sale, however, was delayed by the injunctions so that it did not oocur until July, 1869, when the property was duly advertised and sold for $1,550, the plaintiff (Sternberg) becoming the purchaser. This result indicates depreciation in the salable value of the property of $2,500. On whom should this loss fall? Was it, in the language of the statute (Glen. Stat. 1865, p. 667, § 11), “ occasioned” by the injunctions ? If it was, the plaintiffs should pay it, and the judgment of the Circuit Court so awarding should be affirmed; otherwise, the judgment should be reversed.

In opposition to this view, the plaintiffs’ counsel insist that the depreciation ought not to be taken into consideration, since, as he claims, the injunctions were not the direct cause of the depreciation. However that may be, the injunctions indisputably delayed the sale for nearly a year, and the $2,500 loss was an incident of that delay. The injunctions, therefore, were the “occasion” of the supposed loss. In cases such as‘this the damages are to be measured 'by the extent of the “ injury the creditor has sustained from the improper'act of the party in

[432]*432stepping in between the creditor and his debtor,” and thus postponing the enforcement of the creditor’s rights. (City of St. Louis v. Alexander, 23 Mo. 522.) If property is deteriorated or destroyed during the suspension caused by an unwarranted injunction, the loss thence resulting is to be considered in assessing damages. (Kennedy’s Adm’r v. Hammond, 16 Mo. 341; Middlesburger v. McDaniels, 38 Mo. 142.) The depreciation in the salable value of property occurring under the same circumstances falls within the same principle.

It has already appeared that the first injunction was dissolved November 6, 1868, and the seoond May 15, 1869. On the 3d of December, 1868, the defendant Schlieper, the creditor under the Borg deed of trust, was paid $3,719.85, that being the surplus arising from the sale of the real estate under the first deed of trust. Schlieper’s was the second encumbrance, and so entitled to that surplus.. The $3,719.85 exceeded the amount then due upon Schlieper’s notes, as shown by the notes, apart from the deed of trust. On that fact the plaintiffs found the theory that all right to sell under the deed of trust was suspended as from, the beginning, and irrespective of the injunction, till the maturity of the note next falling due, to-wit: May 28,1869. The injunctions were removed prior to that date, and it is accordingly argued that the injury resulting from the depreciation of the property is not traceable to any delay caused by the injunctions.

This view of the matter involves an examination of the provisions of the deed of trust bearing upon the construction of the notes, as respects the date of their maturity. The deed provided that “ in case the property should be sold on account of the nonpayment of any one of said notes, or the interest on any one of them, then all the notes should be considered due and payable” from the date of sale. The deed further authorized a sale of the property, or any part of it, if the notes or any one of them, or any part of the interest, should become due and remain unpaid.

Twenty-thnee hundred and ten dollars of principal and interest became due in May, 1868, and the property was accordingly duly advertised for sale on the 26th of the following June, in accordance with the terms of the deed. The sale, however, as we have [433]*433seen, was prevented by the wrongful interference of the plaintiffs. At that time Borg had an undoubted right to sell the property, and the whole of it, and apply the proceeds to the payment of the notes, whether due upon their face or not. For the purpose of foreclosing the deed of trust, the notes, as the deed provided, were to be considered and treated as falling due upon the occurrence oE the first default. By the terms of the deed it was the right of Borg to sell the property and pay the notes as. far as the proceeds would go, although only one of them might, according totheirterms, be actually overdue. He sought to avail himself of this right, but was defeated by.the wrongful acts of the plaintiffs. They wrongfully interposed and stopped the sale, and now urge the non-occurrence of the sale as a reason why they should not be held to liability. Is it warrantable for them thus to take advantage of their own wrong? I think not. They wrongfully-stopped the sale, and the consequences of that wrongful aet they must meet and bear.

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