Ricketts v. Murray

73 F. 690, 19 C.C.A. 648, 1896 U.S. App. LEXIS 1835
Court of Appeals for the Seventh Circuit·Decided May 4, 1896·No. No. 269·Published

Opinion

WOODS, Circuit Judge.

The appellees, Robert I. Murray, Richard F. Pearsall, and Effingham C. Haight, as executors of the will of Charles Haight, brought this suit to foreclose a mortgage on real estate executed on the 28th day of May, A. D. 1880, by Alfred A. Freeman to secure the payment to Charles Haight, since deceased, of the sum of §75,000, in accordance with the terms of a penal bond for double that amount executed by the mortgagor to the mortgagee. The appellant, William H. Ricketts, as receiver of the assets of Charles Haight & Co., upon leave to intervene in the suit, filed an answer to the effect that the mortgage was executed *to secure an indebtedness of Freeman & Ruyter to Charles Haight & Co., and upon no other consideration; that it was made payable to Charles Haight in trust for the firm, of which he was a member, and therefore was an asset of which, as receiver, the intervener was entitled to possession and control,- — concluding with an affirmative prayer that the intervener be declared to be the owner and entitled to possession of the bond and mortgage, and that the other parties to the [691] action, some of whom were also interveners who had filed cross bills attacking the validity of’ the mortgage as having been made in fraud of the creditors of Freeman & Kuyter, he declared to have no right, title, or interest therein. There was a finding and decree in favor of the appellees against all other parties, but the appellant alone prayed an appeal, without showing a refusal of other parties to join therein, and without an order of severance. See Estis v. Trabue, 128 U. S. 225, 9 Sup. Ct. 58; Dolan v. Jennings, 139 U. S. 385, 11 Sup. Ct. 584.

On the authority of Collumb v. Read, 24 N. Y. 505; Riddle v. Whitehill, 135 U. S. 621, 10 Sup. Ct. 924, and other cases, it has been urged that in certain particulars the burden of proof was upon the appellees; but, upon the view which we take of the facts, the cases are not applicable, and if they were the result would not he different, because the decree rendered is supported by a preponderance of the evidence so clear and unmistakable as to make unimportant any question of the burden of proof. It would serve no good purpose to attempt a full presentation and analysis of the evidence, which, in so far as it is not documentary, consists in the testimony of conflicting witnesses, who are evenly balanced in numbers, and, upon the most favorable view to the appellant, evenly balanced in credibility and weight. The written evidence and undisputed circumstances leave no room for reasonable doubt where lies the truth. The firm of Charles Haight & Co., composed of Charles Haight, Alfred A. Freeman, Henry Koper, and Albert I. Freeman, was formed September 1, 1885, and, by its articles of copartnership, was to continue for five years from that date in the business of “buying and selling flour, and selling flour on commission,” in the city of New York. Alfred A. Freeman was at the same tíme a member of two independent firms, namely, A. A. Freeman & Co., millers at La Crosse, and Freeman & Ruyter, millers at River Falls, Wis. These firms sold their flour through Charles Haight & Co., and, by reason of advances received from time to time, each became largely indebted to that firm, and in order to secure its liability the firm of A. A. Freeman & Co., in the year 1885, executed a mortgage upon its property at La Crosse to the individual members of Charles Haight & Go., excepting Alfred A. Freeman, who, being a mortgagor, was not named as a mortgagee. In 1887 Albert I. Freeman died, but the business of Charles Haight & Co. was kept going by the surviving partners. Charles Haight, besides his contribution of $50.000 to the capital invested, loaned the firm money and securities to a large amount, for which in 1889 he was demanding security; and to that end, in December, a contract and mortgage, to be executed by Alfred A. Freeman, were drawn, but were not signed. In May, 1890, an understanding was reached whereby the partnership was to be extended for another term of five years; Effingham M. Cock, who afterwards changed his name to Haight, being admitted to membership at the instance of his uncle Charles, who jtromised to make a further investment of $20,000 in the business, and to make additional loans if required. As a result of these negotiations the bond and mortgage in question were executed, the acknowledgment being [692] dated May 28,1890, and the new partnership agreement, bearing date June 5, 1890, was signed. On July 28, 1890, after making further loads to the- firm exceeding $30,000, Charles Haight died at his home, in New York City, where his executors were appointed. The sur-, vivors continued the business of the firm until June 8,1891, when an assignment for the benefit of creditors was made; but in March, 1893, the supreme court, sitting at New York, vacated the assignment, and appointed the appellant, Ricketts, receiver of the property of the firm.

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Ricketts v. Murray, 73 F. 690, 19 C.C.A. 648, 1896 U.S. App. LEXIS 1835 (7th Cir. 1896).

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Related

Estis v. Trabue
128 U.S. 225 (Supreme Court, 1888)
Riddle v. Whitehill
135 U.S. 621 (Supreme Court, 1890)
Dolan v. Jennings
139 U.S. 385 (Supreme Court, 1891)
Collumb v. . Read
24 N.Y. 505 (New York Court of Appeals, 1862)