Riley Pennsylvania Oil Co. v. Symmonds

190 S.W. 1038, 195 Mo. App. 111, 1916 Mo. App. LEXIS 136
CourtMissouri Court of Appeals
DecidedDecember 18, 1916
StatusPublished
Cited by8 cases

This text of 190 S.W. 1038 (Riley Pennsylvania Oil Co. v. Symmonds) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riley Pennsylvania Oil Co. v. Symmonds, 190 S.W. 1038, 195 Mo. App. 111, 1916 Mo. App. LEXIS 136 (Mo. Ct. App. 1916).

Opinion

ELLISON,' P. J.

Defendant Symmonds, owned a stock of merchandise and was indebted to plaintiff. He sold the stock in bulk to Tritch. Neither of them complied with the Sales in Bulk statute in Laws 1913, page 163. Plaintiff brought an action by attachment and garnished Tritch. The trial court found for Tritch and plaintiff comes here for relief.

The case involves a construction of the statute just mentioned. It is provided in section 1, that any sale of the whole or greater part of a stock of merchandise, otherwise than in regular course of trade shall be fraudulent and void as against all creditors of the vendor, unless the vendee seven days before the sale obtains from the vendor a written statement, under oath, of all of his creditors with the amount due to each; and the vendee shall then, at least seven days before taking possession or paying therefor, notify each of these creditors of the proposed sale, by telegraph or registered letter. The section contains a proviso; that if the vendor delivers to the vendee a written waiver of these requirements by the creditors, contained in the verified statement, the statute will not apply.

Section 2 of the act provides that any vendee who shall conform to the provisions of this act shall not be held in any way accountable to any creditor of the vendor, for any of the merchandise that have come into the possession of the vendee by virtue of said sale, “but any vendee who shall fraudulently fail or refuse to comply with the provisions of the act, shall upon application of any of the creditors of the vendor become a receiver and be held accountable to such creditors for all the [114]*114merchandise that have come into his possession by virtue of said sale. ’ ’ Then, immediately following, is this proviso: “Provided however, that nothing in this act, shall be so construed as to give any creditor any right to, or lien on any merchandise, except the goods sold by such creditor.”

, Section 4á provides that no proceeding at law, or in equity, shall be brought against any vendee to invalidate any sale after thé expiration of ninety days from date of delivery to such vendee.

We gather from the record that the trial court was of the opinion that notwithstanding in making the sale, the provisions of this statute were ignored, yet under facts appearing in evidence there was a waiver by plaintiff, or stated in another way, there was an estoppel against plaintiff which deprived it of the right to invoke such statute. The facts bearing on such supposed waiver, or,estoppel, are that one New was plaintiff’s local sales agent, who also collected for bills he sold, and that he knew of the sale “a week or ten days before it took place,” and was told (verbally) by Tritch to “look after his account,” when he replied that he had “a check for a part of it and there was only a small amount left.” That thereupon Tritch paid Symmonds all but $500 of the purchase money, such sum being the unpaid bills to other creditors, not including any of plaintiff’s bill. That afterwards it developed that the check given to New was worthless.

The evidence in plaintiff’s behalf tended to show that the verbal notice to New was not until after the sale and delivery to Tritch. It is stated that both Symmonds and Tritch have absconded.

It is thus seen that the statute has not been complied with in any particular. The specific provisions of the law as to written lists of creditors verified hy affidavit, and written notice to such creditors within certain times, were no doubt made to avoid such disputes and trouble, that this case has developed.

The statute (Sec. 1) makes but one provision for a waiver of its terms and that must be a written one from [115]*115the creditors; 1. It is, however, unnecessary to say whether any other kind of waiver could he made, or estoppel invoked, since, in this case, the acts of Few, claimed to constitute a verbal waiver, were the acts of an unauthorized person. A local sales agent has no authority, by virtue of that employment, to waive the provisions of the act. [Knight v. Stevens Shoe Co., 137 Ga. 493, 495.]

But it is insisted by counsel that the bulk sale act cannot be invoked or applied by an ordinary action of attachment provided for by the general statutes. We do not doubt that it can. Under the attachment statute (section 2294, Revised Statutes 19.09) a fraudulent conveyance by the debtor as against creditors, is ground for attachment; and a conveyance in defiance of the bulk sale act is declared to be a fraudulent conveyance as against creditors, and thus, by its own terms, becomes a cause of attachment.

The act has been construed in this State as furnishing an additional character of fraudulent conveyance for which an attachment may be had under the general statute. [Supply Co. v. Smith, 182 Mo. App. 212.] In that case, in the opinion of Judge Farrington, supplemented by the concurrence of Judge Sturgis, is to be found a most interesting discussion of the entire question. Their conclusion that an attachment may be had, is in keeping with the views expressed in States with similar statutes to section 1 of our act. [Musselman Grocer Co. v. Kidd, 115 Mich. 478; Kohn v. Fishbach, 36 Wash. 69; Carstarphen Warehouse Co. v. Fried, 124 Ga. 544; Interstate Rubber Co. v. Kaufman, 98 Neb. 562.]

It seems to us that the meaning of the statute is, that a vendee who buys and obtains possession of merchandise in bulk, without ascertaining the vendor’s creditors and notifying them as required by the statute, becomes a trustee for such creditors, and liable to them in the proportion of their respective claims; that is, he is liable as such trustee to all who may in obedience to section 4a of the act, institute their proceeding, within the ninety days from the day he accepted delivery of the property. [116]*116After the expiration of that limited period he cannot be disturbed in his purchase so far as concerns any violation of that act is concerned.

The latter section is broad, applying against the creditor whether he has been notified or not. For if not notified, it is justly assumed that the limited period is sufficient time for all diligent creditors to have learned of what has taken place. The intention of the statute is to preserve an equality among the creditors under section 1, during the period limited for proceedings against the sale, and thereby prevent a race for preference which might otherwise result. .

We do not mean to be understood as saying that an attachment is the only remedy under section 1. For, it has been held that a proceeding on execution may be had. [Mutz v. Sanderson, 94 Neb. 293; Dickenson v. Harbison, 72 Atl. 941 (N. J.); and by a bill in equity; Sheve v. Vander Kolk, 97 Neb. 204.] Though in Georgia it was held that in cases where the legal remedy was complete without the aid of equity, the latter would be denied; and that would, perhaps, be the view of our courts.

One of the reasons urged why an attachment should* not be had is, that section 2 of the act (which we have above set out) providing for a receiver controls the provisions of section 1, and is the only remedy which may be' had. We think with the Springfield Court of Appeals in Supply Co. v. Smith, supra, that the section in no way affects the right to an attachment. The first clause of section 2, could as well have been left out; it only adds emphasis to what we would have known without it; that is, that the vendee who complied with the act should have his goods without being accountable to any creditor.

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Bluebook (online)
190 S.W. 1038, 195 Mo. App. 111, 1916 Mo. App. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-pennsylvania-oil-co-v-symmonds-moctapp-1916.