Sargent v. Chapman

12 Colo. App. 529
Colorado Court of Appeals·Decided January 15, 1899·No. No. 1516·Published·Cited by 4 cases

Opinion

Bissell, J.

In this suit the mortgagees and attaching creditors are contesting their title to a lot of personal property which belonged to the Strater Thorp Drug Company, a corporation doing business in Durango and at other points in the state. Up to the early part of July, 1893, the drug company were the undisputed owners and in possession of the property. In stating the facts on which we predicate our judgment we shall follow the evidence produced by the mortgagees in support of their title [531] because not only does the verdict of the jury manifestly depend on it, but because we are thoroughly satisfied they maintained their case, and that a verdict finding otherwise could not be supported and must inevitably have been set aside. In so far as it is attached by the testimony of Strater we do not think it is at all shaken. We give little credence to his testimony, and in this respect are evidently in entire accord and .sympathy with the jury. The drug company became embarrassed in the summer of. 1893. It owed the State National Bank a large debt contracted at various times and for various purposes in the interests of the corporation. The bank commenced negotiations looking to the execution of ' a security therefor. They started about the 7th of Juty, and the propriety of attachment, bill of sale, or chattel mortgage was discussed between , the parties. It was concluded to give a chattel mortgage as the shortest, safest and least costly of the various methods which might be adopted. The chattel mortgage was prepared either on Friday or Saturday, the 7th .or 8th day of July, and so far as respects its preparation by the scrivener was completed on Saturday evening. It was probably signed by the president and secretary of the company on that date and turned over to a notary to fill out and indorse the acknowledgment. It is quite probable the parties acknowledged its execution when it was handed to the notary. According to the terms of the mortgage as it existed on Saturday, it contained this clause:

“ Also, that until said indebtedness, and every part thereof, and all interest, as aforesaid, shall be fully paid, said party of the first part, its successors or legal representatives, will not sell or dispose of, or' attempt to sell or dispose of, the said property, goods and chattels, nor any part thereof.” There was also another clause found later in the instrument substantially reciting an agreement that, until default shall be made b.y the drug company in the performance of some of its conditions or agreements, the said drug company “ may keep, retain and use the said goods and chattels.” After this execution of the instrumient and on Sunday it was turned [532] over to the attorney representing the bank for inspection and ' to determine whether in all respects it was legal, regular and sufficient in form. The attorney made some question about the words “ retain and use,” and to avoid any ultimate question respecting the validity of the instrument growing out of that feature, its erasure was requested. The evidence clearly shows that the officers of the drug company assented to their elimination, though whether this was done prior to the time that the instrument was given to the notary for acknowledgment is not clear. It is, however, very evident from the testimony, at least it is clearly established by the weight of it, and to our judgment satisfactorily juoven, that the words were erased before the delivery of the instrument. Strater disagreed with the other witnesses respecting some of the pivotal matters which we state. On Monday, the 10th of July, and about noon of the day, the mortgage was returned to the Strater Drug Company, having only been temporarily out of their possession for the purpose of examination, and at that time Strater formally delivered it to the mortgagees. We concede that Strater denied this ; denied any consent to the erasure of the words “retain and use,” asserted a prior delivery of the instrument, and insisted that he did not have it in his possession, or deliver it on Monday noon to the mortgagees; but he is so completely contradicted by the evidence of every other witness in the case who knew anything about it, and there is such an inherent improbability in the story which he tells, and we are so thoroughly impressed with its inaccuracy that, like the jury, we do not hesitate to disregard it. We therefore on the record as it stands decide the mortgage was not delivered until the noon of Monday, the 10th, that the words “retain and use” had been erased by consent of the mortgagors before this time, and that on the noon of that day the drug company delivered the instrument to the mortgagees for the purpose of securing their debt. Concurrently with the delivery of the instrument the mortgagees took immediate possession of the property, remained in possession for some time, when the appellant here levied [533] the attachments on the goods and attempted to make the debts by the levy. The mortgagees replevied. The attaching creditors defended on various grounds, and the verdict of the jury being against them bring the case here by appeal. So far as we are able to discover there are no other important matters of fact suggested by the record, and enough has been stated to exhibit the facts in dispute and to enable us to decide the various propositions on which the appellant relies to reverse the judgment.

The appellant presents many questions of greater or less importance. As we look at it there are but a very few of sufficient magnitude to justify the reversal of the ease if we should accede to his contentions. We shall therefore only notice those which would, if sustained by proof, and warranted by the law, justify a reversal, paying no attention whatever to the minor propositions which we do not regard as of vital significance. The appellant’s counsel have very properly, in a manner which aids the court very much in formulating its opinion, stated the principal propositions on which they rely.

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Sargent v. Chapman, 12 Colo. App. 529 (Colo. Ct. App. 1899).

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