Padgett v. Cleveland

11 S.E. 1069, 33 S.C. 339, 1890 S.C. LEXIS 151
CourtSupreme Court of South Carolina
DecidedOctober 1, 1890
StatusPublished
Cited by11 cases

This text of 11 S.E. 1069 (Padgett v. Cleveland) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Padgett v. Cleveland, 11 S.E. 1069, 33 S.C. 339, 1890 S.C. LEXIS 151 (S.C. 1890).

Opinions

The opinion of the court was delivered by

Mr. Justice McGowan.

It will be useful to make a short consecutive statement of the facts of this case. In 1885, Alonzo Tanner was the owner of three lots of land at Cowpens, in Spartanburg County. In December of that year he and one Lemaster formed a partnership under the firm name of “Tanner & Le-master,” by which they agreed to go into the business of manufacturing “doors, sash, and blinds.” Between that time and February, 1886, they bought in the firm name the necessary machinery, and by February they were ready for business. The machinery ivas put in position in a house on one of the lots of Tanner. How it was attached, if attached to the freehold, was one of the questions in the case.

[342]*342On February 18th, 1886, Tanner gave his note to the plaintiff for $2,000, and secured it by a mortgage of the lot on which the machinery was situated, “together with all the machinery and buildings on said lot, consisting of one engine, one planer, one moulder, one ténoner, mortiser, turning-lathe,” &c. This mortgage was recorded in the real estate book, but not in the chattel mortgage book, of the R. M. C. office of the county. A short time after the plaintiff’s mortgage was executed, “the engine.” then in the factory was sold and a larger one purchased from the “Mecklenburg Iron Works” (Wilkes), the title to remain in the vendor until paid for. In April, 1886, the factory at Cowpens was consumed by fire, and afterwards (August) the engine and the machinery which had escaped the fire were removed to the town of Spartanburg, and there placed in position as it had been at the Cowpens, in a house rented for three years, from one Mills, for that purpose ; and the business was .continued as before.

After this removal and location at Spartanburg, Tanner & Le-master executed two chattel mortgages of the machinery in the shops at Spartanburg to the defendant, Cleveland, and others, which were regularly recorded, and on March 9th, 1887, they gave to Wilkes another mortgage on 'this same machinery. In September, 1887, a day or two, as stated, before the assignment, at the instance of one of the partners, and with the knowledge and consent of the other, Cleveland, for himself and others, sold at private sale the property embraced in their mortgage to one Converse, as claimed and found, for full value. And on September 3rd, 1887, Tanner & Lemaster made an assignment for the benefit of their creditors to the defendant, C. P. Sanders, Esq.

This action was commenced on February 29th, 1888, to foreclose the plaintiff’s mortgage, and asking relief against Cleveland and others for the machinery and engine sold by them, which, as he alleged, were attached to the soil of the Cowpens lot, and thereby became real estate, “fixtures,” and as such passed under his mortgage prior to the alleged chattel mortgage. The issues were referred to the master, who found that Lemaster had no interest in the property covered by tile plaintiff’s mortgage at the time it was given ; that the money borrowed from plaintiff went into [343]*343the business of the factory ; that Lemaster knew of and consented to the mortgage to the plaintiff'; that the machinery which was in the factory when plaintiff’s mortgage was taken was intended to become a permanent improvement to the real property, and was embraced in the mortgage to plaintiff as part of the buildings thereon. These findings were concurred in by the Circuit Judge, who held : 1st. That the machinery on Tanner’s lot at the execution of Padgett’s mortgage was real estate, and could be followed wherever identified, and gave plaintiff judgment against Cleveland and others for its value. 2nd. That they were not responsible for the machinery afterwards put on the lot and removed to Spartanburg. 3rd. That Wilkes was not entitled to any relief against her co-defendants, Cleveland and others.

From this decree Cleveland and other defendants appealed on the following grounds: “I. Because the Circuit Judge erred in holding that the machinery, for the value of which judgment was rendered, was attached to the freehold, became real estate, and a mortgage thereof on the real estate mortgage book was constructive notice of such mortgage to all subsequent mortgagees. II. Because the Circuit Judge erred in holding that said machinery was intended to become veal estate, and in not holding that it was never the intention of either of the partners that any of the machinery owned by them both should ever become a part of and go with the lot on which it was situated. III. Because the Circuit Judge erred in holding even if said machinery had been a part of the real estate, after it became detached, that it could be allowed (followed) with the real estate mortgage as long as it could be identified. IY. Because the Circuit Judge erred in making by his decree the property for the value of which he gave judgment, liable for Tanner’s individual debt to plaintiff, before it could be applied to defendants’ partnership debt, when the property was partnership property. V. Because the Circuit Judge erred in not ruling that certain testimony (admitted by the master) was improperly admitted. YI. Because the Circuit Judge erred in not at least ruling one way or the other upon the question of the admissibility of the testimony referred to in the last preceding-exception. YII. Because the Circuit Judge erred in not finding that if plaintiff was entitled to any relief, it should have been [344]*344only to have the machinery, covered by his mortgage, sold for the collection of his debt, and in holding that plaintiff was-entitled to judgment absolutely against defendant for illegal sale of same.”

The plaintiff appeals, charging that the judge committed error: “1st. In not holding that, at least against the defendants, appellants, the engine and boiler bought by Tanner & Lemaster from Wilkes, and placed on the premises covered by plaintiff’s mortgage, became a fixture and subject to the lien thereof, and that the record thereof was sufficient notice to the defendants of said lien. 2nd. In holding that as to all articles of machinery put on the real estate after the execution of plaintiff’s mortgage, the. mortgagors had a right to sever and remove them; and that as they had been so removed, they at once lost their character as real estate, and became again personalty which could not be followed by the mortgagee of realty.”

lie also gave notice that if the decree could not be sustained in other respects complained of by the defendants, on the grounds stated by the Circuit Judge, he would ask that it be sustained on the grounds : “1st. That the defendants, appellants, had actual notice of the plaintiff’s mortgage. 2nd. That the defendants, appellants, did not have valid and legal mortgages of the property of Tanner & Lemaster.”

As defined in some of the books, “a fixture is an article which was a chattel, but by being physically annexed to the realty by one having an interest in the soil, becomes a part and parcel of it.” This may suffice to give a general idea, but as a distinguished judge has said: “It is difficult to define the term, and there is inextricable confusion both in the text books and adjudged cases as to what is such annexation of chattels to realty as to make them part and pass by a conveyance of the realty.

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Cite This Page — Counsel Stack

Bluebook (online)
11 S.E. 1069, 33 S.C. 339, 1890 S.C. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/padgett-v-cleveland-sc-1890.