Snodgrass v. Wallowa Milling & Grain Co.

227 P. 294, 111 Or. 402, 1924 Ore. LEXIS 153
CourtOregon Supreme Court
DecidedJune 24, 1924
StatusPublished
Cited by1 cases

This text of 227 P. 294 (Snodgrass v. Wallowa Milling & Grain Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snodgrass v. Wallowa Milling & Grain Co., 227 P. 294, 111 Or. 402, 1924 Ore. LEXIS 153 (Or. 1924).

Opinion

COSHOW, J.

The ruling of the court on the admissibility of the testimony is not seriously urged in this court. The ruling of the court on the admission and rejection of testimony did not constitute reversible error. No new principle is involved justifying any further enlargement in this opinion on those rulings.

It is contended by the appellant, who was defendant in the Circuit Court, that the instrument given to the plaintiff as security by the Inland Motor Company did not constitute a chattel mortgage; that not having been recorded it was void as to creditors; that the plaintiff having consented to the sale of the car [407]*407by the Inland Motor Company, thereby waived her lien on the proceeds of the sale.

It has been held by this court that a similar instrument constituted a valid chattel mortgage between parties thereto and creditors having knowledge thereof: Teshner v. Roome, 106 Or. 382, 387, 389 (210 Pac. 160, 212 Pac. 473). In page 392, the court, speaking through Mr. Justice McCourt, said:

“The chattel mortgages given by the firm to plaintiff were valid between the parties notwithstanding the oral understanding, whereby plaintiff allowed the firm to sell and dispose of the mortgaged property, upon condition that the firm' should keep a strict account of sales, and promptly pay the same over to plaintiff, that condition having been observed by the parties.” (Authorities cited.)

Again, in page 394, the court announces the rule as follows:

“Notwithstanding the statutory declaration last referred to, it is firmly established in this state that the title and all rights of an attaching creditor are subordinate to prior valid liens upon the attached property, of which he had actual knowledge or sufficient notice to put him upon inquiry.” (Authorities cited.) Wiggins Co. v. McMinnville Motor Gar Co. 111 Or. 123 (225 Pac. 314).

It is earnestly contended that the defendant did not have knowledge of the chattel mortgage held by the plaintiff against the car. This contention is based upon the well established principle of law that knowledge acquired by an officer or agent of one corporation while acting as an officer or agent of another corporation is not imputable to the first corporation. The defendant cites a long list of authorities: 4 Fletcher, Cyc. Corp., pp. 3439, 3442 and 3443, note 95; Utah Construction Co. v. Western Pac. Ry. Co.,

[408]*408174 Cal. 156 (162 Pac. 631). Oliver v. Grand Ronde Grain Co., 72 Or. 46 (142 Pac. 541), announces that rule in this state. Farmers’ Bank v. Sailing, 33 Or. 394, 406 (54 Pac. 190). Whether or not the defendant had notice of the plaintiff’s lien on the car was a question of fact. The evidence was submitted to the jury and the jury found in favor of the plaintiff thereby precluding an inquiry by this court into the facts any further than to determine whether or not there was any material evidence to support the verdict of the jury. The evidence discloses that Wade Siler the general manager of the defendant corporation was also president of the Inland Motor Company the mortgagor. He presided at a meeting of the board of directors when the chattel mortgage was authorized. At that time the Inland Motor Company was doubtless indebted to the defendant in a large sum of money. It was the duty of the said Wade Siler to protect the defendant company by collecting the indebtedness from the Inland Motor Company. It was this Wade Siler who took the car with the consent of the plaintiff from La Grande to Wallowa for the purpose of selling the same for the benefit of the plaintiff. At the time the car was sold Wade Siler was not officially connected either with the defendant corporation or the Inland Motor Company. Wade Siler was not a witness. In the light of these circumstances there was certainly some evidence to support the verdict, but in addition to those circumstances Put Siler, who had been a salesman for the Inland Motor Company, sold the car. He received his orders with reference to the disposition of the proceeds from one Hanna, who was assistant manager of the defendant company with headquarters in Wallowa County. This evidence would tend to support the contention of [409]*409the plaintiff that the defendant was conducting the sale of the car. This evidence is strengthened by the fact that one Kennedy was at the time the general manager of both the defendant corporation and of the Inland Motor Company. In addition to this testimony, there is further testimony that one Austin described as an auditor for the party holding the controlling interest in both corporations, who had recently audited the boohs of both corporations, and must, therefore, have known of the mortgage in favor of the plaintiff, attempted to effect a settlement with the plaintiff through her husband J. D. Snodgrass. The said Austin directed N. E. Coulter, who had immediate charge of the affairs of the Inland Motor Company at La Grande, in negotiating for a settlement with J. G. Snodgrass, husband of plaintiff. The defendant is relying upon that alleged settlement. The defendant claims that when the $815 was paid over to the plaintiff, through her husband, he agreed to accept the Nash roadster, taken in- part payment of the Nash sedan, as security for the $600 remaining unpaid on her note against the Inland Motor Company. The defendant contends that plaintiff cannot accept the benefits of that alleged agreement and reject the adverse elements thereof. The defendant attempts to rely upon that alleged agreement which it admits was made through the said Austin, hut at the same time attempts to repudiate the consequences of Austin’s knowledge in connection with the transactions involved in the instant case. Since the defendant is relying upon the contract alleged to have been made by Austin in its behalf with the husband of the plaintiff, it cannot he heard to deny that Austin was not its agent with reference to that matter. A principal cannot take advantage of [410]*410that part of an agent’s contract which is favorable to him and repudiate the remainder: Hillyard v. Hewitt, 61 Or. 58, 62 (120 Pac. 750); Grover v. Hawthorne Estate, 82 Or. 77 (114 Pac. 472, 121 Pac: 808); La Grande National Bank v. Blum, 27 Or. 215, 217 (41 Pac. 659).

The jury would have been justified in holding that Austin acquired knowledge of the mortgage in favor of the plaintiff on the sedan car. The evidence disclosed that the execution of the mortgage was authorized at a meeting of the board of directors of the Inland Motor Company. No question is raised about the indebtedness of the Inland Motor Company to the plaintiff.

If the said Austin was the agent of the defendant for the purpose of adjusting plaintiff’s claim, the knowledge of the said Austin in regard to the lien of the plaintiff could have been properly imputed to the defendant. However, all of these matters together are certainly sufficient evidence to justify submitting the question of fact here involved to the jury.

It is further contended by the defendant that consent by a chattel mortgagee that the mortgagor may sell the mortgaged property constitutes a waiver of the lien on the proceeds rather than a transfer thereof to the proceeds, and the promise of the mortgagor to apply the proceeds of the sale on the debt is merely a personal obligation.

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Bluebook (online)
227 P. 294, 111 Or. 402, 1924 Ore. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snodgrass-v-wallowa-milling-grain-co-or-1924.