Pettyplace v. Groton Bridge & Manufacturing Co.
This text of 61 N.W. 266 (Pettyplace v. Groton Bridge & Manufacturing Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
This action was brought to recover the value of a one-third interest in an engine and threshing machine. Defendant had verdict- and judgment under the direction of the court.
It appears that in July, 1890, B. R. Cushman, William N. Cushman, and A. R. Dodge entered into a contract in writing with the defendant for the purchase of the engine and thresher for the price of $1,550. To secure the payment of the purchase price four notes were to be given. The property was delivered in August, and the notes given. The first was for $387.50, and was signed by all the parties; the second was signed by the two Cushmans and by Jared A. Cushman as surety; the third by the two Cushmans; and the fourth by Mr. Dodge alone, and to secure the payment of which he gave a real-estate mortgage, signed by himself and wife. Each of the last three notes was equal in amount to the first. The contract contained a printed stipulation as to the material and workmanship of the machine, and in which it was recited:
“The title, ownership, and right of possession shall remain in the party of the first part until the price above' named, including notes, is fully paid.”
The contract was signed by the two Cushmans and Dodge. The first note was fully paid, and the second one also, all but $18.66'. Nothing was paid on the third, and the fourth was not yet due when the machine was taken by defendant. The interest of one of the Cushmans and of Dodge in the machine was transferred to the plaintiff, who took the transfer from Dodge without notice of the [158]*158rights of defendant under the contract.1 Defendant took the property into possession, claiming that right under the contract, by reason of failure of the payment of the third note. The real-estate mortgage given by Dodge and wife has been foreclosed, or is in process of foreclosure.
It was claimed on the trial by plaintiff:
1. That the contract was a sale to each of the Cushmans and Dodge of a on'e-third interest, and not a sale of the whole to them jointly, and that each is responsible only for the payment of one-third of the purchase price.
2. That because one note was indorsed by Jared A. Cushman, and one note secured by Dodge by a real-estate mortgage, the sale was a completed one, and the company could not insist upon the subsequent provision in the contract which recited that it retained title to the property; that the recitation of the times and terms of payment are inconsistent with the provision as to the title remaining in the defendant company, and, as the times and terms of payment were written in, while the stipulation as to title is a part of the printed form, the former must control.
3. That Mr. Dodge was induced to sign the contract by fraud, in that, before the contract was signed, the agent of the company read it over to him, as he did not have his glasses with him, and could not read without them, and that the agent did not read this printed stipulation as to title.
Under this last claim the plaintiff sought, to show the alleged fraud; but the evidence was excluded, and, we think, properly. It appeared that the contract was in the form of an order for the machine. A copy was left with the Cushmans and Dodge, and when the machine was delivered the notes and mortgage were given. The notes [159]*159contained the same stipulation as to title as contained in the contract, and the mortgage given by Dodge referred to this clause. The note and mortgage signed by Dodge were read by him, and he was fully apprised of the stipulation as to title. Knowing the contents of these instruments, he signed them, took the machine into possession, and used it for two years, and finally sold his interest. It cannot be contended, under such circumstances, that he did not know of this stipulation.
The plaintiff, under his claim that the contract conveyed separate interests, sought to show what the arrangement and agreement was. This was based upon the claim that the order or contract of purchase was ambiguous and needed explanation. The court held that no ambiguity existed, and, we think, properly. In the case of Larkin v. Butterfield, 29 Mich. 254, it was expressly stipulated in the contract that “ each of the sai$ first parties to be held personally responsible for one-fourth of the said $1,500.” This was held to be a several, and not a joint, undertaking, and that this was shown upon the face of the- contract. But it is evident that the parties to the contract in the present case did not regard the contract of purchase as conveying to them separate interests. After the purchase, they entered into a contract between themselves relative to the running of the thresher, what each was to do, and how the accounts were to be collected and the proceeds divided.
There cannot be said to have been a completed sale. It is conceded .that the title to personal property sold may be retained by the seller, and that a note may be taken for the price, and the sale'will still be,conditional; but it is claimed that, if other or collateral security be taken, then the sale becomes absolute. This is not the rule. It was held in Peninsular General Electric Light Co. v. Norris, 100 Mich. 496, that a mechanic’s lien could be en[160]*160forced notwithstanding the title was held by the vendor. In Manufacturing Co. v. Smith, 40 Fed. Rep. 339, it was said:
“Instead of being inconsistent, it was merely additional security to that provided by the statute. It certainly does not establish, as matter of law, that, in thus retaining title to the machinery, complainant has waived its statutory lien upon the lot of ground or premises on which the machinery was placed.”
In Fuller v. Byrne, 102 Mich. 461, a stipulation was inserted in the contract, which provided that the property “is and shall remain the property of Estey & Camp until each and every of said amounts, and interest thereon, and any judgment rendered thereon, is paid in full.” It was claimed that the rendition of judgment for the purchase price passed the title to the property. It was held that it-did not have that effect, but that the vendor could take possession of the property under the contract.
It was held in Couse v. Tregent, 11 Mich. 65, that one in possession of personal property, of which he has made a conditional purchase, cannot, before the condition has been complied with, sell the property so as to vest the title in a bona fide purchaser. This rule has been restated in many subsequent cases, and in which it has been held that the contract need not be recorded as a chattel mortgage. The court below was clearly right in directing verdict for defendant.
The judgment must be affirmed.
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Cite This Page — Counsel Stack
61 N.W. 266, 103 Mich. 155, 1894 Mich. LEXIS 1124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pettyplace-v-groton-bridge-manufacturing-co-mich-1894.