Security Nat. Bank v. Truscon Steel Co.

1923 OK 484, 218 P. 665, 92 Okla. 81, 1923 Okla. LEXIS 782
CourtSupreme Court of Oklahoma
DecidedJuly 10, 1923
Docket11651
StatusPublished
Cited by7 cases

This text of 1923 OK 484 (Security Nat. Bank v. Truscon Steel Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security Nat. Bank v. Truscon Steel Co., 1923 OK 484, 218 P. 665, 92 Okla. 81, 1923 Okla. LEXIS 782 (Okla. 1923).

Opinion

Opinion by

PINKHAM, C.

This appeal involves controversies, first, between plaintiff in error and the 'State National ¡Bank and Julius Kahn, defendants in error, over the priority of liens on personal property of the Olson-Magee Company for use in constructing a bridge across the South Canadian river, and designated as lot 9, being one clam shell, one concrete conveyor or bucket, and’one piece of tract, about ten feet long, at Moore, Okla.; and lot 11, being one Kissel motor truck and all attachments, including trailer for truck, then near Moore, Okla.; arid lot 13, being Lackawanna steel piling, about 55 pieces; and lot 17, being all bridge work, materials and equipment and supplies not specified in certain other lots, as set out in the judgment and findings of the court.

Second, between plaintiff in error and the Truscon 'Steel Company, defendant in error, over the priority of liens on certain personal property designated as lot seven, being all reinforcing steel, consisting of two( piles between two elevators at Moore, Cleveland county, Okla., which steel had been purchased from said Truscon 'Steel Company, defendant in error, by Olson-Magee Company, defendant in error, to be used in the construction of the said bridge, and attached September 12, 1919, by plaintiff in error.

The State National Bank, defendant in error, Security National Bank, plaintiff in error, and the Truscon Steel Company, defendant in error, had demands against Olson-Magee Company, and the only issues are as to which of the parties hereinbefore mentioned have the prior right to such property, the other defendants in error having no claims on the same.

On January IS, 1919, the State National Bank, defendant in error, filed suit as plaintiff in the district court of Oklahoma county, against the Olson-Magee Company, a corporation, which had previously undertaken under a contract with the State Highway Department, to construct a bridge across the South Canadian river, between Cleveland and McClain counties, the funds being contributed by the state, the counties and the federal government, and against M. L. Cunningham as State Engineer, to recover $26,449.49, with interest, for money advanced to Olson-Magee Company.

The case was afterwards dismissed as to Cunningham, and the state withdrew from the suit.

On January 20, 1SÜ0, the State National Bank procured writs of attachment to the sheriffs of Cleveland and McClain counties, respectively.

The Cleveland county attachment was levied January 21, 1919, on a large amount of “lumber — average 10 feet long,” piling of various lengths, a carload of piling and five “cars of bridge steel/’ the “first five” of the cars shipped by Truscon Steel Company, defendant in error.

The McClain county attachment was levied January 20, 1919, on certain lumber, cement, buildings, equipment, and tools.

The effect of these attachments was to 'stop work on the bridge and prevent the Olson-Magee Company from, realizing on monthly estimates upon their contract. In this situation the State National Bank, plaintiff below, Olson-Magee Company and M. L. Cunningham, State Engineer, entered into a stipulation bearing date of February 2S and March 1, 1919, by the terms of which Olson-Magee ‘Company paid the State National Bank $10,000 (furnished by the state) and the state agreed to pay to the State National Bank “at least $5,000, out of moneys coming due from the state to defendants every 30 days,” the first payment to be made “on or about the 25th day of March, 1919.”

*83 It was also agreed that if the monthly estimates exceeded $5,000, the State National Bank should he paid two-thirds of the amount up to $7,500. The Olson-Magee Company were to have the balance for working capital. Olson-Magee Company agreed to do work enough to entitle them to a monthly estimate of $5,000 every 30 days.

The stipulation then provides as follows:

•‘The sheriff of Cleveland county and the sheriff of McClain county shall stay and remain in possession of all property of the defendants attached by said sheriffs, respect-.vely, as shown by the return of said sheriffs on file herein, and shall deliver to said defendants, Olson-Magee Company and O. H.-Olson, their agents and employes, the building material held by said sheriffs under said attachment writ as the same is in the due course of work in the construction of said bridge spanning the Canadian river between the counties of Cleveland, and McClain, at Newcastle, Oklahoma, required by the said defendants, Olson-Magee Company and O. H. Olson, but aside from the materials so delivered from time to time as necessitated in the construction of said bridge, said attachments shall be and remain in full force and effect.
“It is further agreed that the said Olson-Magee Company and O. H. Olson, defendants, shall have the right to use all tools, machinery and equipment now under said attachment writ; the same, however, to be at all times under the care, keeping and custody of the respective sheriffs as aforesaid, the sole and only purpose in permitting the said defendants to use said tools, machinery and equipment being such as is necessary for the construction of the bridge aforesaid.”

Materials released from the attachment were put into the bridge, and the equipment was used by the Olson-Magee Company in carrying on the work of the construction of the bridge.

On March 3, 1919, Olson-Magee Company, O. H. Olson and Allen J. Olson executed their note of that date to the plaintiff in error in which they promised to pay $10,-000 on May 12, 1919. The note was after-wards extended to June 26, 1919.

To secure this indebtedness the Olson-Ma-gee Company executed its mortgage upon certain equipment and buildings, in each of the two counties, concluding with: “This mortgage is intended to, and does cover any and all tools and equipment of any kind and nature.” The mortgage also secured another note for $5,000, payable April 12, 1919, which, it appears, has been paid.

The mortgage of the Security National Bank, plaintiff in error, was filed for record in the counties of McClain and Cleveland, where the property described therein was kept, April 6th and 8, 1919, respectively; the attachment of the State National Bank, levied January 20, 1919, was levied on certain of that property classified for the purpose of the trial and referred to as lots 9, 11, 13, and 17 in the judgment of the court.

Between the date of State National Bank attachment and the mortgage to the plaintiff in error, the “last three cars” of the Truscon Steel Company’s reinforcing steel had arrived and been unloaded. These “last three cars” of steel were not attached by the State National Bank, and were no! included in the plaintiff in error’s mortgage.

The Truscon Steel Company, defendant in error, had shipped to the Olson-Magee Company five cars of material from November 21, 1918, to January 20, 1919, inclusive, and three cars on February 27th and 28, 1919.

The material parts of the contract between the Olson-Magee Company and O. H. Olson, and the Truscon Steel Company, defendant in error, are that the deliveries to Olson-Magee Company were to be “f. o. b. Youngstown, Ohio or Pittsburg, Pennsylvania;” that “prices are quoted f. o. b. plant, title reserved until payment or incorporation in structure.

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Cite This Page — Counsel Stack

Bluebook (online)
1923 OK 484, 218 P. 665, 92 Okla. 81, 1923 Okla. LEXIS 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-nat-bank-v-truscon-steel-co-okla-1923.