Read v. Downey State Bank

392 P.2d 681, 87 Idaho 314, 1964 Ida. LEXIS 241
CourtIdaho Supreme Court
DecidedMay 28, 1964
Docket9259
StatusPublished
Cited by2 cases

This text of 392 P.2d 681 (Read v. Downey State Bank) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Read v. Downey State Bank, 392 P.2d 681, 87 Idaho 314, 1964 Ida. LEXIS 241 (Idaho 1964).

Opinion

SMITH, Justice.

This is an appeal from a judgment for respondent (defendant) entered in an ac *316 tion brought by appellant (plaintiff) to recover damages for the alleged conversion by respondent of sundry of appellant’s farm machinery and equipment. Appellant assigns error committed by the trial court in rendering the judgment. He urges insufficiency of the evidence to support the findings and judgment, thus necessitating a review of the trial record.

February 17, 1959, appellant, doing business in Downey, Idaho, mortgaged certain personal property as security for his promissory note of $3,174.09 executed in respondent’s favor, given to satisfy appellant’s pre-existing debt owing to respondent. The chattel mortgage, prepared by respondent’s attorney, described the mortgaged personalty as follows:

“Any and all personal property located in what is known as the Read Implement Company which is located on Lots 31 and 32 Block 51 and Lots 1 and 2 Block 51, townsite of Downey, Idaho, and any property hereafter acquired and placed on or in said property, the same constituting all machinery, parts, equipment, supplies of any and all nature and kind and any hereafter acquired property of any kind or nature placed in or on said premises.”

Appellant being unable to meet the obligations of his promissory note, respondent foreclosed the chattel mortgage. The judgment and decree of foreclosure, dated August 1, 1960, and the order of sale which, immediately followed, described the property foreclosed identically as described in. the chattel mortgage, and directed the-sheriff of Bannock County to sell all of the mortgaged property, or so much thereof as-would satisfy the principal and interest due respondent, and costs of sale.

At the time of sale, August 10, 1960, the sheriff caused to be sold the personalty located on the four lots described in the chattel mortgage, and sundry of appellant’s machinery and equipment located elsewhere than on those lots. The sale of all such personalty produced a surplusage of $502.-32, which sum respondent eventually caused cashed the check and retained the amount to be forwarded by check to appellant who

Appellant thereafter, on March 30, 1961, commenced this action seeking to recover as damages from respondent the reasonable value of the machinery and equipment allegedly converted by respondent in that, as appellant alleged, respondent wrongfully instructed the sheriff of Bannock County to sell such personalty although not encumbered by the chattel mortgage. Respondent, in its amended answer, denied such allegation and, by affirmative defense, alleged, (1) that in conducting the foreclosure sale, the sheriff acted pursuant to court order and not upon instructions given by respondent; (2) that by accepting and cashing the check for the surplusage realized from *317 sale of the personalty, appellant “is estopped from asserting any wrongful conversion against the defendant [respondent]”; and (3) that “it was the intention of all of the parties that all of the property owned by L. Clifton Read d/b/a Read Implement Company should be given as security to the Downey State Bank and that all of said property was property of the Read Implement Company and was part of the stock of said Read Implement Company.”

In entering judgment for respondent after a trial on the merits without a jury, the trial court in effect found:

That the parties intended the mortgage to cover appellant’s entire stock in trade then on hand and thereafter acquired and wherever physically located, the purpose of the real property description being particularly to pinpoint appellant’s then operations, and not to limit the property covered.
That in the foreclosure action the court directed the sheriff “to sell the property covered by the mortgage”; and thereafter the sheriff “sold the property covered by the mortgage,” according to the description contained in the chattel moragage, and in the judgment and decree of foreclosure; also “pursuant to the order * * * in said action,” the sheriff sold certain other items of machinery and equipment (listed in the findings) which were also subject to the chattel mortgage.

The trial court then concluded that the personalty so sold, situated elsewhere than upon the four lots described in the chattel mortgage, also was covered by the mortgage, and that respondent did not convert any of the property.

Appellant contends that respondent, after preparing the chattel mortgage encumbering the personalty located on the four described lots, wrongfully caused to be sold at the foreclosure sale, appellant’s personalty, listed in his complaint and which he contends was located on seven other lots,— the Dan Jensen property, — not referred to or described in the chattel mortgage; that therefore respondent must be held liable to appellant in conversion for having caused the sale of appellant’s personalty not located on the lots described in the mortgage. A thorough review of the trial record and applicable principles of law leads to the conclusion that appellant’s contention in the premises is partially meritorious and that the trial court erred in entering judgment for respondent.

The general rule regarding the sufficiency of chattel mortgage descriptions was first announced by this Court in McConnell v. Langdon, 3 Idaho 157, 163, 28 P. 403, 405 (1891), as follows:

“A description of property is suffi- . cient if it will enable a third person, *318 aided by inquiries suggested by the instrument, to identify the property.” (Emphasis supplied.)

That rule was approved in Livestock Credit Corp. v. Corbett, 53 Idaho 190, 22 P.2d 874 (1933); it reflects the law universally recognized today by courts and treatises alike. Ingersol v. Seattle-First National Bank, 63 Wash.2d -, 387 P.2d 538 (1963); Security First National Bank v. Haden, 211 Cal.App.2d 459, 27 Cal.Rptr. 282 (1962); Bumb v. McIntyre, 277 F.2d 647 (9th Cir. 1960); Witt v. Milton, 147 Cal.App.2d 554, 305 P.2d 944 (1957); Jackson City Bank & Trust Co. v. Blair, 333 Mich. 399, 53 N.W.2d 493, 32 A.L.R.2d 920; (1952) Annot., 32 A.L.R.2d 929 (1953); 10 Cal.Jur.2d, Chattel Mortgages, § 20 (1953); 14 C.J.S. Chattel Mortgages, § 57 (1939); 10 Am. Jur., Chattel Mortgages, §§ 53, 54, 55 (1937); 1 Jones, Chattel Mortgages and Conditional Sales, § 54 (6th Ed. 1933).

While a lesser degree of certainty is required as between the mortgagor and the mortgagee than where the rights of third parties are involved, Annot., 32 A.L.R.2d, supra; 14 C.J.S. Chattel Mortgages, supra; 10 Am.Jur., Chattel Mortgages, supra, “[t]he court should not make the contract for the parties or interpret it to mean something which it in itself does not contain.” Miller v. Remior, 86 Idaho 121,

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399 P.2d 962 (Idaho Supreme Court, 1965)

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392 P.2d 681, 87 Idaho 314, 1964 Ida. LEXIS 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/read-v-downey-state-bank-idaho-1964.