Morrson v. McCluer

27 Colo. App. 264
CourtColorado Court of Appeals
DecidedApril 15, 1915
DocketNo. 4131
StatusPublished

This text of 27 Colo. App. 264 (Morrson v. McCluer) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morrson v. McCluer, 27 Colo. App. 264 (Colo. Ct. App. 1915).

Opinion

Hurlbut, J.,

rendered the opinion of the court.

On August 22, 1912, Fay Morrison, plaintiff in error (plaintiff below), filed her complaint in replevin against Tim J. McCluer, defendant, and sued out, in aid, a writ of. replevin. Under the writ certain wagons, buggies, harness, etc., were taken from the possession of the sheriff by the coroner.

[265]*265The case was tried to a jury, which returned a verdict in favor of defendant, finding the value of the property to be $550.00.

It appears from the coinplaint that plaintiff’s cause of action is based upon a claim that she was entitled to the property under the terms of a certain chattel mortgage executed to her by one Frank Langley on the 23rd day of July, 1912, recorded the same day. The .property was levied upon by the sheriff under a writ of execution, based upon a judgment recovered by The Durango Mercantile Company against said Langley on July 25, 1912.

The answer admits the execution and recording of the mortgage in question, but pleads it was neither made in good faith, nor supported by valuable or good consideration ; alleging that Langley executed and delivered the same for the purpose of cheating and defrauding his creditors; that plaintiff conspired with him to do so, and obtained the mortgage for the purpose of assisting him in such fraudulent design; and that The Durango Mercantile Company is entitled to the possession of the chattels replevined, by virtue of a chattel mortgage executed April 12, 1912, by said Langley to it, duly recorded that day, and possession taken thereunder, as well as by virtue of the levy aforesaid. Plaintiff contends that said mortgage was void, as no grantee was named therein, and that possession was not taken until after her chattel mortgage was recorded.

One of the controlling questions raised by this record is: Was sufficient possession taken by the mercantile company of the property described in the mortgage of April 12th, in the latter part of June or first of July, to warrant it in holding the chattels against other creditors of Langley (mortgagor), and was it such a taking as would not militate against our statute of frauds and the law relating to chattel mortgages? ,

Defendant’s witness Couch testified in part as follows:

[266]*266“A. I got the mortgage (April 12th) from the attorney of the mercantile company, with instructoins to foreclose it. I went to A1 Stevenson at the San Juan barn, and told him what I had, and pointed out to. him what I wanted to foreclose on, and he showed me what belonged to him and what belonged to Langley. Then I appointed him custodian to take care of the stuff. I turned it over to him.
Q. Well did he, or not, agree to turn the stuff over to you and hold it for you?
A. He did.”

It appears from the record that Stevenson was in possession of the property at the San Juan barn under contract of bailment with Langley, by the terms of which Stevenson was' to use the same for profit, dividing such profits with Langley.

It is urged by plaintiff that, as against Langley’s other creditors, the possession of the chattels taken by Couch from Stevenson, as above shown, was insufficient to transfer the possession thereof from Langley to. the mercantile company. This contention is not tenable under the following authorities, to-wit: Weiland v. Potter, 8 Colo. App. 79, 44 Pac. 769; Jones v. Mackenzie Bros. W. P. & P. Co., 19 Colo. App. 121, 73 Pac. 847; Hendrie & Bolthoff Mfg. Co. v. Collins, 13 Colo. App. 8, 8 Pac. 815; Hendrie & Bolthoff Mfg. Co. v. Collins, 29 Colo. 102, 67 Pac. 164. It was held in the cases just cited that our statute of frauds, requiring a sale of personal property as against creditors to be accompanied by immediate delivery and followed by actual and continued change of possession, does not apply where, prior to the sale, the vendor had placed the property in the possession of a third party as bailee. If the bailee is informed of the sale and agrees to hold the property for the purchaser, possession is thereby delivered, and the sale is not fraudulent in law as to the creditors of the vendor. Applying the facts of this case to the law as. stated, it is clear that the acts and doings of Couch, the mercantile company's [267]*267agent, in taking possession o.f the property from Stevenson at the San Juan barn, were not affected by the statute of frauds. Couch informed Stevenson that he had the chattel mortgage from Langley to his principal, and came for the purpose of foreclosing the same for such principal. Stevenson was thus informed that Langley had conveyed the property to the mercantile company. He made no objection to recognizing the sale, and thereupon agreed that from that time on to hold hold the chattels as the custodian of the mercantile company, and to turn them over to the company at any time. Plaintiff, however, suggests that at the time Couch took possession, the debt secured by the mortgage was not due, and therefore Langley’s bailee had no right to surrender possession of the property to the mortgagee company, the mortgage providing that • until maturity of the debt the mortgagor was entitled to retain possession of the chattels. A sufficient answer to this contention is that at the time the mortgage debt matured, to-wit, July 12th, the mortgagee company was in the actual possession of the property through its custodian, Stevenson, and so retained the possession up to the time the Morrison mortgage was given. Had the Morrison mortgage been executed and recorded between the time Couch took possession, and the maturity of the mortgage debt, another question would be presented, upon which we express no opinion. We hold that, although the defendant’s written instrument was inoperative as a chattel mortgage, under Herr v. Denver M. & M. Co., 13 Colo. 406, 22 Pac. 770, 6 L. R. A. 641, yet the transaction between Langley and the mercantile company, of which the instrument was a part, shown by the evidence to have been intended by both parties as a mortgage, when coupled with the complete delivery to, and taking of possession by, the mortgagee, was sufficient as a common law chattel mortgage, as against the junior lien of plaintiff. We are of the opinion that the mortgagee company had a lawful right to retain possession of the mort[268]*268gaged chattels located at the San Juan barn, and to subject the same, by sale, to the payment pro tanto of the mortgage indebtedness, and the judgment to that extent must be affirmed.

As to. the chattels located at Ignacio, a most careful reading of the record fails to disclose any evidence showing that possession thereof was ever taken at any time under the mortgage of April 12th by the mercantile company. On the contrary, the record strongly tends to show that no such possession was taken. Some five or six days after the levy was made, under the judgment mentioned, on the property at the San Juan barn, Hopkins was sent by the sheriff to Ignacio to bring the chattels from that place to Durango. When he went there he had an order from the sheriff on Langley to deliver the chattels to Hopkins, which order he delivered to Langley, who thereupon, without any objection, turned the property over to Hopkins. The latter found the property in Cundiff’s livery stable at Ignacio, but testifies that he obtained it from Langley.

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Related

Jackson v. Allen
4 Colo. 263 (Supreme Court of Colorado, 1878)
Herr v. Denver Milling & Mercantile Co.
13 Colo. 406 (Supreme Court of Colorado, 1889)
Rittmaster v. Brisbane
19 Colo. 371 (Supreme Court of Colorado, 1894)
Lathrop v. Tracy
24 Colo. 382 (Supreme Court of Colorado, 1897)
Hendrie & Bolthoff Manufacturing Co. v. Collins
29 Colo. 102 (Supreme Court of Colorado, 1901)
Weiland v. Potter
8 Colo. App. 79 (Colorado Court of Appeals, 1896)
Talcott v. Mastin
20 Colo. App. 488 (Colorado Court of Appeals, 1905)

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Bluebook (online)
27 Colo. App. 264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morrson-v-mccluer-coloctapp-1915.