Rosenbaum v. Foss

56 N.W. 114, 4 S.D. 184, 1893 S.D. LEXIS 66
CourtSouth Dakota Supreme Court
DecidedAugust 15, 1893
StatusPublished
Cited by7 cases

This text of 56 N.W. 114 (Rosenbaum v. Foss) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosenbaum v. Foss, 56 N.W. 114, 4 S.D. 184, 1893 S.D. LEXIS 66 (S.D. 1893).

Opinion

Corson, J.

On January 10, 1889, one Charles W. Seefield being the owner of a certain steam flouring mill, engine house, engine, boilers, etc., situated upon lands leased from the railway company in the town of Arlington, in Kingsbury county, executed a bill of sale for the same to Rosenbaum Bros., plaintiffs herein, for the consideration of $25,000, and under which said plaintiffs took possession of said property on January 19, 1889. Prior to the execution and delivery of said bill of Sale by said Seefield to the Rosenbaums, he executed and delivered to Foss, Strong & Co., defendants herein, two mortgages to secure the payment of about $15,000, which mortgages included, among other property, the steam flouring mill, engine, engine house, boilers,' etc., included in the bill of sale above described. In April, 1889, the Rosenbaums commenced this action to set aside, annul and cancel the two prior mortgages as against them, on the grounds that neither the original mortgages nor duly authenticated copies of the same were filed in the office of the register of deeds of Kingsbury county, and that the Rosenbaums had no actual notice of the same, but that purported copies of said mortgages were on file in said office that cast a cloud upon the title and interest of said Rosenbaums to the property described in their bill of sale. An answer was filed by the defendants, and the cause was referred to a referee, who found the facts, which the court below adopted as its own find1 ings, except one not material to a decision in this case. Numerous exceptions were taken to the findings, all of which were overruled. A motion for a new trial was made and denied [190]*190and judgment rendered for the plaintiffs, from which the defendants appealed.

The findings of facts are exceedingly voluminous, extending over some twenty pages of the printed abstract, but it will only be necessary for the purposes of this decision to refer to a few of them. The bill of sale is set out in finding 5, the material part of which is as follows: ‘‘For and in consideration of the sum of twenty five thousand dollars, to me in hand paid by Rosenbaum Brothers, the receipt whereof is hereby acknowledged, I hereby sell, assign, and make over to said Rosenbaum Brothers all my right, title and interest in and to that certain roller flouring mill, together with the engine house, engine, boiler and appurtenances thereunto belonging situate on land of the Chicago and Northwestern Railway Co., at Arlington, in the territory of Dakota; * * * to have and to hold the same forever; and I do hereby covenant and agree that said property is free and clear of all incumbrances, and that I have full power and lawful right to convey the same in the manner and form aforesaid. All said property is situate in Kingsbury county, Dakota territory; Dated St. Charles, Minnesota, January 10, 1889. Charles W. Seefield. ” By the seventh finding the referee found that the respective parties stipulated that the sail bill of sale was executed and intended as a mortgage to secure the payment of -c'>25,000. The twelfth, thirteenth, and fourteenth findings are as follows: “(12) That after the said Charles W. Seefield had promised to give the said bill of sale and before it was given, and upon the strength of said promise, .said plaintiffs advanced to the said Seefield a large amount of money, to-wit, thirty thousand dollars. (13) That at the time of the taking of said bill of sale plaintiffs believed the property mentioned in the fourth finding herein to be clear of all incumbrances, and, acting upon said belief and understanding, agreed to extend further credit if Seefield would execute a bill of sale of the same to the plaintiffs, to secure "the sum of twenty-five thousand dollars already due. (14) That the plaintiffs, until [191]*191after the delivery and filing of the bill of sale, and until after the time of taking possession of said property, had no actual notice that the defendants, Foss, Strong & Co., or any of them, had any mortgages upon any of the property mentioned in the fourth finding. ” There are a large number of findings as to the manner of making and filing copies of defendants’ mortgages, but we think finding 32 gives the substance of these several findings, and is as follows: “(32) That neither of the mortgages given by said Seefield to defendants Foss, Strong & Reynolds, to-wit, mortgage dated June 23, 1884, and mortgage dated July 3, 1888, were ever actually placed on file, or became at any time a part of the records of .Kingsbury county, but were only, in the possession of the register of deeds long enough to make the endorsements thereon and to prepare authenticated copies therefrom, and, after such endorsements and copies had been made, the originals were immediately returned to the owners thereof, and the authenticated copies were- kept on file. ”

Numerous errors are assigned, but, in our view of the case they may be condensed and stated as follows: (1) The plaintiffs, as vendees or mortgagees of the personal property described, have not such an interest in the property as will entitle them to maintain this action. (2) That the action cannot be maintained, for the reason that, if defendant’s mortgages were invalid as against the Rosenbaums’ bill of sale, such invalidity is apparent upon the face of the instrument. (3.) That said Seefield having only transferred his right, title and interest in the property to the Rosenbaums, they took only such interest as Seefield had in the property at the time the bill of sale was executed, and took the title subject to the mortgages outstanding against the property which were valid as against the mortgagor; in other words, the Rosenbaums took only such interest as Seefield had in the property. (4) That the authenticated copies filed in the office of the register of deeds of Kingsbury county were so filed as to give constructive notice to creditors, [192]*192subsequent purchasers, and incumbrancers in good faith for value. (5) That plaintiffs’ bill of sale or mortgage was given for an antecedent debt, and the plaintiffs therefore do not come within the class of purchasers or incumbrancers in good faith for value that are authorized to question the validity of the defendants’ mortgages.

1. It is contended by the learned counsel for the appellants that the respondents, by virtue of their bill of sale, executed and intended as a mortgage to secure the payment of money, acquired a lien only upon the personal property described in the bill of sale, and hence have no such interest therein as will authorize them to maintain this action It is true that in this jurisdiction a mortgage does not transfer the title to the property, but creates a lien only thereon; and it is also true that, as between the parties to the transaction, a bill of sale given and intended to secure the payment of a debt constitutes a mortgage only. Comp. Laws §§ 4348, 4350, 4358; Jackson v. Lodge, 36 Cal. 28; Raynor v. Drew, 72 Cal. 307, 13 Pac. Rep. 866; Murdock v. Clark (Cal.) 24 Pac. Rep. 272, 274; Wisconsin Cent. R. Co. v. Wisconsin River Land Co., (Wis.) 36 N. W. Rep. 837, 839; Schriber v. LeClair, 66 Wis. 579, 29 N. W. Rep. 570, 889; Barry v. Ins. Co., 110 N. Y. 1, 17 N. E. Rep. 405; Odell v. Montross, 68 N. Y. 499; Niggeler v. Maurin, 34 Minn. 118, 123, 124, 24 N. W. Rep. 369; Allen v. Kemp, 29 Iowa 452. But we are of the opinion that under the liberal provisions of Section 4644, Comp.

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Cite This Page — Counsel Stack

Bluebook (online)
56 N.W. 114, 4 S.D. 184, 1893 S.D. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenbaum-v-foss-sd-1893.