Sampson v. Camperdown Cotton Mills

64 F. 939, 1894 U.S. App. LEXIS 3102
CourtU.S. Circuit Court for the District of South Carolina
DecidedDecember 21, 1894
StatusPublished
Cited by2 cases

This text of 64 F. 939 (Sampson v. Camperdown Cotton Mills) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sampson v. Camperdown Cotton Mills, 64 F. 939, 1894 U.S. App. LEXIS 3102 (circtdsc 1894).

Opinion

SIMONTON, Circuit Judge.

The Camperdown Cotton Mills, a corporation, executed to the complainant in March, 1893, a mortgage of its personal property. The description of the property mortgaged [940]*940begins thus: “125 H. P. Buckeye automatic cut-off engine, two steam boilers, one steam .pipe, one two-beater opener, 56 36-inch Wellman cords, with railway, troughs, and fixtures complete;” going on and giving in minute detail, article by article, the machinery and appliances used in a cotton mill. Alter this long and minute detail come these words in a separate paragraph: “All personal property of whatever nature on the premises of the Camperdown Cotton Mills, or in any manner belonging to them, including property loaned to others or held by other párties on commission or storage for Camperdown Cotton Mills.” This mortgage was foreclosed in the main cause, and the receiver appointed thereunder was instructed to sell at public auction, after due advertisement, the property mortgaged on a day fixed by the court. This sale took place. In his advertisement of sale the receiver followed the description of the property in the mortgage in its minute detail, changing, however, the punctuation, and ending the descziption as follows: “Two watchman’s clocks, two-sets harness, sundry carpenters’ and masons’ tools, six wheelbarrows, all other personal property on the premises belonging to the Camper-down Cotton Mills, and covered by the mortgage foreclosed in this case.” At this sale, under this advertisement, O. H. Sampson became the highest bidder, and was declared the purchaser. The date of the sale was 31st of October, 1894. On the 24th of November thereafter, O. H. Sampson sent certain workmen to tear down the principal warehouse on the premises, heretofore occupied by the Camper-down Cotton Mills, claiming that he had purchased it as a part of the mortgaged property. Thereupon this petition was filed. The warehouse was put up by the Camperdown Cotton Mills for the purpose of storing cotton, used in its business of manufacture, and is affixed to the freehold. If it passed at this sale, it did so because it was included in the words “all personal property of the Camperdown Cotton Mills.” The Camperdown Cotton Mills conducted its business upon certain leased premises in G-reenville, S. C. The lease was executed by Alexander McBee and Yardry S. McBee, in 1876, to the Camperdown Mills, another corporation, for a term beginning March 1, 1876, and ending March 1, 1906. The lease is to that corporation and its successors and assigns, and does not require the .assent of the lessees to any assignment of the lease. The Camper-down Mills became insolvent, passed into the hands of a receiver appointed in the state court; and all its property, including this lease, was sold in 1885 at public auction by the receiver to JEL P. Hammett and his associates. The deed, executed 3d August, 1885, conveys the entire property, including the lease, to H. P. Hammett and his associates, naming each of them and his proportion of interest, habendum to the said H. P. Hammett and his associates above named, according to their respective interest as above set forth, and their and each ,of their executors, etc., forever. At the session of the general assembly held in November following this purchase and conveyance, Hammett and hi? associates were incorporated as the Camperdown Cotton Mills, the act reciting the above-named purchase by them. 19 St. at Large ,S. C. 347. , The new. corporation was placed in possession of all the property of the old company and of the leased prem[941]*941ises. No deed was made, and, as far as flus record shows, no writing' whatever at tended this transfer. When, in iis turn, the Camper-down Cotton Mills failed and went into the hands of a receiver, the receiver, within a month after his appointment, notified Vardry E. Me-Bee, the petitioner, who in the meantime had become sole owner of the fee in the leased premises and the least1, that he did not intend to undertake the lease, and, as far as lay in his power, he surrendered it, notifying Mm of his intention to turn over the possession of the leased premises as soon as practicable and the court shall direct. V. E. Me Bee to this, in substance, replied, denying the right of the receiver io destroy the validity of the lease, and notifying him that he would insist on his rights thereunder. The matter comes up on a rule issued upon the petition of O. H. Sampson to show cause why, etc., and on his return thereto. The return claims that all the buildings erected by the Camperdown Cotton Mills on the leased premises for the purposes of its business were trade fixtures, and so personal property, included in the very terms of the mortgage; that, being so included, they were all sold at the sale for foreclosure, and passed lo and are the property of the respondent, the purchaser at that sale. Ou tin1 other hand, the intervener, owner of the fee in the land, denies that these buildings of a permanent character let into the freehold, became and are personal property; that, whatever may be the general law on the subject of trade fixtures, the erection of buildings and the interest of tenants in them were controlled by the terms of the lease, which permitted the erection of buildings and the pulling down and changing them, as may be deemed necessary and convenient, during the term of the lease only. He further denies that the Oam-perdown Cotton Mills ever were Ms tenant, or occupied towards him the relation of lessee and lessor, there never having been any assignment to it of the lease in writing; that, whatever may be the conclusion on these points, these buildings were not sold at the sale, and did not pass to the purchaser, because nothing in the advertisement disclosed, and no notice was given at the sale, that structures on (he land were a part of flu1 property offered for sale. Finally, he claims a lien for rent to accrue. On this last point no reason is seen to change the conclusion heretofore reached in this same case. The law of South Carolina gives no lien for reni, to accrue.

At the threshold of this case it is best, to ascertain the precise relations which the petitioner, the owner of the fee, and the Camper-down Cotton Mills occupied towards each other. Were these relations those of lessor and lessee? The original lease was to the Camper-down Mills. It was assigned by deed to Hammeit and liis associates, to their and each of their executors, etc. No assignment in writing was made to the Camperdown Cotton Mills. The statute of frauds of force in South Carolina (Gen. St. c. 73) forbids the assignment, grant, or surrender of a lease unless by deed or note in writing. Gen. St. § 2018. See Charles v. Byrd, 29 S. C. 544, 8 S. E. 1; Davis v. Pollock, 36 S. C. 544, 15 S. E. 718. McBee could not, under the terms of this least1, complain of any assignment by Ms lessee. The law, however, protected Mm in prescribing a mode of assignment. The Camper-down Cotton Mills, a corporation, was an entity distinct from Ham[942]*942mett and bis associates. It coúld contract with thorn. It was not bound by any of their acts, except in a corporate capacity. Mor. Corp. § 232. Property held by them in cotenancy did not, by the mere fact of incorporation, become its property. A deed was necessary to pass property which could only pass by the observance of formalities, — a deed or writing. A lease is of this character. The conclusion is evident that the relation of lessor and lessee never existed between McBee and the Camperdown Cotton Mills.

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Bluebook (online)
64 F. 939, 1894 U.S. App. LEXIS 3102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sampson-v-camperdown-cotton-mills-circtdsc-1894.